To: chas e. who wrote (2576 ) 12/17/1998 5:56:00 PM From: Jim Lurgio Read Replies (1) | Respond to of 5195
Charles, We should watch this closely tomorrow to see we fit into the puzzle. TOKYO (Dow Jones)--Major cellular operators from Europe and Asia plan Friday to wade into an increasingly bitter rivalry over wireless technology between equipment manufacturers Sweden's Ericsson AB (ERICY) and Qualcomm Inc. (QCOM) of the U.S. Japan's NTT Mobile Communications Networks Inc., a unit of Nippon Telephone & Telegraph Corp. (NTT or 9432), said it and several other operators from both Europe and Asia will issue a joint statement concerning the latest efforts by Ericsson and Qualcomm to reach a compromise on the technology, known in industry circles as third-generation, or 3G. It wouldn't name the other operators or divulge the contents of the announcement. Analysts predicted any statement would be a potent admonition for the two rivals to stop squabbling and come to a speedy compromise. "The operators want the issue solved quickly," said Eric Gan, a telecommunications analyst at Goldman Sachs & Co. in Tokyo. "They're the ones paying for it." The aim behind 3G is simple: create a global standard that will alleviate increasingly crowded digital cellular networks, accommodate futuristic Internet-based services and allow consumers to buy a mobile phone in one place and use it anywhere else in the world. Industry executives say the battle pits an increasingly desperate Qualcomm against mounting international support for a rival standard that would make Qualcomm's existing technology significantly less attractive to operators, if not obsolete. Qualcomm has mounted a vociferous counterattack, appealing to the U.S. government to defend it from what it says is anti-competitive behavior, a move that has had repercussions on U.S.-China trade talks. Equipment manufacturers such as Finland's Nokia Oy (NOKA) and Lucent Technologies Inc. (LU) say they're increasingly pessimistic that any global standard will ever be developed. Nevertheless, the International Telecommunications Union is considering submissions for a 3G standard and is scheduled to make its endorsement by early next year. Ericsson and Qualcomm are backing two similar, but incompatible, standards based on radio principles first commercialized by Qualcomm. Ericsson, together with Nokia are backing a technology developed by NTT Mobile that is designed to work with existing digital networks in Japan and with networks worldwide that use the European-developed global system for mobile communications standard (GSM). Qualcomm is backing a different 3G standard designed to work with the much lower number of digital networks in the world using its own digital standard, called CDMA. Qualcomm also says it owns patents on technology essential to W-CDMA, which it alleges was intentionally designed it to be incompatible with existing CDMA networks. It threatened to refuse licenses for W-CDMA equipment unless it is made compatible with CDMA networks. Earlier this month, the ITU issued an ultimatum: resolve the patent dispute or both standards may be removed consideration. Ericsson surprised the industry last week by announcing its support for harmonization, but offered specifications still incompatible with CDMA, a move CDMA backers decried as an insult. ---------------------------------------------------------------------- Another Version ---------------------------------------------------------------------- Cellular outfits plan 3G compromise statement Asian and European cellular companies are to issue a joint statement regarding third generation (3G) wireless technology, according to Japanese reports. The content of the statement is not as yet known, but the companies involved suggest that it will be a further attempt to isolate/tame Qualcomm. Qualcomm, Ericsson and the ITU last week got involved in strange manoeuvring over the convergence of rival standards for high speed wireless (see Ericsson plots Qualcomm's demise). The ITU has issued an edict threatening to remove squabbling parties from consideration for the global IMT-2000 standard, while Ericsson has made what it claims is an offer of a compromise. The CDG (CDMA Development Group) has rejected this out of hand, saying the offer is deliberately incompatible with its own preferred option. Qualcomm has meanwhile been fingered by the ITU for being less than generous with its intellectual property, and Ericsson is trying not to get into trouble (and therefore, possibly, out of consideration) for similar sins. The companies making today's announcement will likely include most of those involved in the compromise over the European UMTS standard last year. This grouping included Ericsson, Alcatel, Nokia and Siemens, while NTT is also involved, as its technology is a key part of UMTS. Nokia made neutral noises when Ericsson made its compromise offer last week, so although it might seem that the UMTS grouping is getting ready to squash Qualcomm, it's by no means certain that they'll support Ericsson entirely. Qualcomm, however, has few friends, so it's still likely that whatever deal they come up with will put further pressure on the US company. ®theregister.co.uk