To: Harvey Rosenkrantz who wrote (5075 ) 10/29/1997 9:57:00 AM From: Jim Lurgio Respond to of 152472
Telecom Italia Breaks Ranks To Back Japanese 3G Standard By Jeremy Scott-Joynt 28-OCT-97 Telecom Italia Mobile, Italy's largest mobile operator, has become the first European operator to reveal its hand and back one of the candidates for Europe's next-generation mobile system. TIM, a subsidiary of recently-privatized Telecom Italia, signed a memorandum of understanding with NTT's subsidiary NTT DoCoMo saying the Italian company will help DoCoMo win the standardization battles for its wideband CDMA standard. W-CDMA, the companies said, should be the air interface for a next-generation system which could work across both Europe and Asia, and should be backwards-compatible with GSM to ensure a smooth transition and a maximum takeup. Europe is about to start making the final decisions on which of five proposals will become the Europe-wide Universal Mobile Telecoms System. The European Telecoms Standards Institute (ETSI) will begin final deliberations in December, with a decision expected by March at the latest. European vendors, in the shape of Ericsson and Nokia, have already rallied behind W-CDMA, along with Lucent and Motorola. The leading competitor to W-CDMA is a hybrid CDMA/TDMA standard developed by a consortium of Nortel, Alcatel, Siemens and Italtel. Bosch and - in an attempt to hedge its bets - Motorola joined the group last week. Claire McCarthy, senior consultant at London-based telecoms consultancy Ovum, said there were powerful arguments for both standards - many of them political rather than technical. "With backing from Ericsson and Nokia - and Ericsson has something like 60% of Europe's equipment market - that's powerful endorsement for W-CDMA," she said. "But the hybrid approach has support from France and Germany, both of which are have significant lobbying power in ETSI, and that will strengthen their hand." As for why TIM should be the first to break cover, she suggested the company might well have an eye to the future. "Ericsson's argument is that W-CDMA will be a global standard. So TIM could well be looking at it from a broader, global strategy perspective." Telecom Italia was close to AT&T, she pointed out, whose WorldPartners alliance included 12 Asian carriers including NTT, KDD, Hong Kong Telecom and SingTel. TIM and DoCoMo are the two biggest mobile operators in the world. DoCoMo dominates the Japanese mobile market, with over 10 million of Japan's 21 million cellular users on its books. TIM, with 8 million customers, is still managing to fight off competition from Olivetti-owned Omnitel Pronto Italia. For DoCoMo and Japan in particular, W-CDMA is of vital importance to cement Japan's place at the top table of telecoms standards. Japan's previous attempts - the personal digital cellular (PDC) system now used by 90% of cellular subscribers and the shorter-range personal handyphone system (PHS), with 7 million customers - have failed to garner international support. With W-CDMA, though, Japan believes it can lead standards across Asia, and to secure European support for its plans would boost that aim immeasurably. Indeed, some analysts believe that to that end NTT will soon move away from PDC altogether, in favor of following Europe towards a common GSM-type architecture for the next generation. 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