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Technology Stocks : Motorola (MOT)

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From: Dexter Lives On	12/12/2006 8:21:56 AM
	of 3436

Motorola snubs 3G handset initiative Build cost still high By Tony Dennis: Monday 11 December 2006, 12:11 THE STATE of the GSM Association's '3G For All' initiative is looking shaky following the news that Motorola doesn't intend to take part. According to Michael Carroll, editor of Mobile Handset Analyst, "Motorola’s strong support for the [previous] EMH initiative means its decision not to take part in 3G for All is a major blow to the GSMA’s ambitions." EMH was the GSMA’s 'Emerging Mobile Handsets' initiative in 2005. Motorola probably made around $32 million by winning the tender for both previous EMH handsets. The problem is that 3G handset chips aren't cheap enough yet. The cost of production for a 3G handset probably won't fall from $150 currently to $55 until 2008. If anyone does bother to accept the challenge, the GSMA will announce the name at 3GSM Barcelona in February 2007. µ L'INQ Mobile Handset Analyst theinquirer.net TM

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