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Trade dispute threat as 3G row escalates
Electronics Times
by John Walko
Efforts to develop a worldwide standard for the next generation of mobile
communications are threatening to spill over into a serious trade dispute
between Europe and the US.
A stand-off exists between the different camps - particularly Ericsson and
Qualcomm - and the standards-setting organisations supporting each stance.
It has already meant a delay in the UK government's plans to auction
licences for third-generation networks based on the Universal Mobile
Telecommunications System (UMTS).
Last week, the European Commission strongly refuted accusations from the
US that the European stance could shut out US telecoms equipment makers
from lucrative contracts.
Paul Verhoef, an aide to Martin Bangemann, the commissioner in charge of
industrial affairs, said: "We have not and will not intervene on this. The
Commission has no intention to interfere in this industry-led standardisation
process."
The Commission was responding to complaints late last year from the US
administration, including Charlene Barshefsky, US trade representative, and
William Daley, trade secretary. The strongly worded letters said there were
grave concerns about signs that Europe might adopt a single, mandatory
standard.
The tension has been building as the stand-off between the European
Telecommunications Institute (ETSI), Ericsson and Qualcomm over
intellectual property rights was not sorted out by the 31 December deadline
set by the ITU.
But another European official, Dr Joao da Silva, head of the mobile unit in
DG XIII, said: "Whether we like it or not, and whatever the ITU wish to
recommend, the chances of a single air interface standard for
third-generation systems are most unlikely.
"There will be multiple air interfaces, and technologists will have to work
around that to ensure global roaming."
At the announcement of the #37bn takeover by Vodafone of US group
AirTouch, Chris Gent, head of Vodafone, told Electronics Times that the
merged group "will put as much pressure as possible on all the interested
parties to ensure we do come up with a single standard for broadband
mobile telecoms.
"It is a huge opportunity, and our combined clout as the biggest mobile
operator around the world will be considerable."
Gent says he is disappointed that the UK government has put back slightly
the timetable for auctioning the licences for UMTS, which will now not start
until the summer.
(Copyright 1999)
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