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To: Eric L who wrote (18854)	3/13/2002 9:32:42 AM
From: elmatador	Respond to of 34857

Toshiba and Mitsubishi to link mobile operations By Michiyo Nakamoto in Tokyo and FT.com staff Published: March 13 2002 09:37 \| Last Updated: March 13 2002 11:30 <<If MSFT wasn't enough, The Japanese are coming! And the Korenas too! We are going to need diry cheap phones. 3G must not start as 2G when terminals were rich boys' toys. It is the only way to kick up infra>> Toshiba and Mitsubishi Electric, two of Japan's leading electronics groups, on Wednesday said they would be joining forces to develop third generation mobile phones, the latest step towards consolidation in the increasingly saturated sector. The companies said they would jointly develop a technical platform that could become a global standard for next generation mobile phones. Mobile phones currently operate over four different standards worldwide, and Mitusbishi and Toshiba are hoping to create technology that bridges the gap. The alliance is to begin in April with the intention of starting the marketing of joint products in the spring of 2004. No decision has yet been taken on whether the companies will manufacture the jointly-developed products together or separately, but Toshiba and Mitsubishi said they wanted to create a joint venture company for teh development work. The alliance comes as mobile phone manufacturers suffer a sharp downturn in demand at a time when they face a major technological challenge in the shift to third generation phones. The downturn in demand from the mobile phone industry was one of the main factors cited by Mitsubishi last month when it issued a profits warning for the year to the end of March. NEC and Matsushita, two of Japan's most powerful mobile phone makers, have already joined hands in the development of 3G phones, which is extremely costly and requires tremendous resources. Fujitsu said recently it would tie-up with Sagem of France, while Sony and Ericsson are already making mobile phones together in their new joint venture, Sony Ericsson. Toshiba dissolved its 3G mobile phone alliance with Siemens in December last year. The latest venture between Toshiba and Mitsubishi remains at a disadvantage since it does not include a foreign partner. Japanese mobile phone makers are aiming to expand their overseas presence with the start of 3G services but without a foreign partner with expertise in GSM, the new Toshiba-Mitsubishi alliance will face an uphill struggle.