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To: SpudFarmer who wrote (51938)	11/29/1999 2:54:00 PM
From: MileHigh	Read Replies (1) \| Respond to of 152472

Everybody sure about W-CDMA!? NTT DoCoMo Says Report of Hutchison Stake Speculation (Update2) NTT DoCoMo Says Report of Hutchison Stake Speculation (Update2) (Rewrites 1st paragraph. Updates share price in 13th paragraph.) Tokyo, Nov. 29 (Bloomberg) -- NTT Mobile Communications Network Inc. described as ``speculation' a report it will buy a stake in Hutchison Whampoa Ltd.'s mobile telecommunications business, a move which would extend the reach of Japan's largest cellular phone provider throughout Asia. Hong Kong's Oriental Daily News, citing unnamed people, said NTT DoCoMo, as the company is better known, will become the second-largest shareholder in Hutchison Telecom and that the companies will jointly develop W-CDMA, a new standard for cellular telephone transmission. Hutchison Telecom is Hong Kong's largest cellular operator in terms of the number of subscribers. ``We can't comment on speculation,' said Youichi Mizushima, a manager for NTT DoCoMo public relations. Analysts say such a move would have merit and that NTT DoCoMo will probably use capital alliances with overseas carriers to promote and develop the new standard. ``This deal makes sense,' said Ng Kong Yong, an analyst at GK Goh Reseach in Hong Kong. ``From NTT (DoCoMo)'s point of view, it will have a foothold in the Hong Kong market and for the longer term in the China market. It has the same perspective as Hutchison.' New Standard NTT DoCoMo is expected to become the world's first operator to start cellular phone services based on Wideband-Code Division Multiple Access, which in addition to voice traffic will be capable of sending moving pictures and high-speed Internet access. Earlier, Hutchison Whampoa spokeswoman Laura Cheung refused comment, adding the company isn't planning any news conferences in the next two days. The Hong Kong newspaper report said an announcement was expected today. A stake in Hutchison Telecom would give NTT DoCoMo an opportunity to more readily promote the W-CDMA standard in other parts of Asia. NTT DoCoMo is trying to position itself as the leading provider of the new cellular phone standard, which it says will be introduced in 2001. The new standard will allow mobile users to access the Internet at two megabits per second when standing still and 384 kilobits per second when moving. NTT DoCoMo President Keiji Tachikawa said last week the company is seeking opportunities to ally with other Asian carriers and that his company is willing to ``contribute' to the expansion of new generation phone technology in the region. The report of a possible tie-up with Hutchison Telecom comes after the company's parent, Nippon Telegraph & Telephone Corp. confirmed last week it was looking at investing in Telekom Malaysia. NTT said NTT Communications Corp., its international arm, and NTT DoCoMo had reached agreement with Khazanah Nasional Bhd., Telekom Malaysia Bhd.s largest shareholder, to consider a ``strategic investment' in that company. Earlier this month, Hutchison and Global Crossing Ltd., which is building a global undersea network, said they will form a $1.2 billion venture to offer Internet-related services in Hong Kong and later in mainland China. NTT DoCoMo shares rose 200,000 yen, or 5 percent, to 3.89 million yen. Hutchison Whampoa was unchanged at HK$95.50. NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.