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To: Ruffian who wrote (4845)	5/14/2000 9:40:00 PM
From: JohnG	Respond to of 34857

To: SKIP PAUL who wrote (10093) From: Ruffian Sunday, May 14, 2000 9:34 PM ET Reply # of 10095 DDI, Qualcomm Plan Deal to Offer Third-Generation Service in Japan By IAN MESSER Dow Jones Newswires TOKYO -- DDI Corp. plans to offer third-generation cell-phone services in Japan with technology developed by Qualcomm Inc. of the U.S. The Japanese telecommunications company said it requested a third-generation license from the country's Ministry of Posts and Telecommunications on Friday, the deadline for applications. The licenses give companies platforms to offer the third-generation technology, which supports video conferencing and high-speed Internet access through cell phones. Capital investment associated with the company's rollout of third-generation services probably will total one trillion yen ($9.21 billion), said Yusai Okuyama, DDI's president. DDI intends to merge with KDD Corp., an international call operator, and Ido Corp., a cell-phone unit of Toyota Motor Corp., later this year. Mr. Okuyama declined to disclose how the companies plan to fund the third-generation investment, saying only that they will consider a range of options in addition to bank loans. The companies plan to launch third-generation services in the Kanto and Kansai areas, which include Tokyo and Osaka, in September 2002. Other regions in Japan are to receive service by March 2004. The companies want to provide third-generation service to more than 90% of Japan's population by March 2006. DDI also said it will use Qualcomm's so-called cdma2000 technology, rather than the wideband code division multiple access format favored by DDI's two main competitors, NTT DoCoMo Inc. and Japan Telecom Inc. Until earlier this year, the decision to go with Qualcomm had seemed like a sure thing, primarily because DDI and Ido already use a closely related technology. However, DDI abruptly changed its stance and said that it was considering both technologies, prompting Qualcomm to threaten to launch its own application for a third-generation license. Mr. Okuyama attributed DDI's decision to adopt the cdma2000 format to several factors, including the technology's strength and its probable adoption in the U.S., as well as in other markets in Asia. Write to Ian Messer at ian.messer@dowjones.com btw, DDI reports today, might be more on this subject....