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ADVANCE AUDIO INTERVIEW WITH DR. IRWIN JACOBS!
Titans Of Technology Breakfast
Presented by NVTC's Programs Committee.
Date:
March 17, 2004
Time:
7:00 am Registration and Networking
8:00 - 9:15 am Program
Note Location Change - Hyatt Regency RestonTitle:
"Third Generation Wireless - Technology, Impact, and Politics"
Featuring
Dr. Irwin Jacobs, Chairman & CEO, QUALCOMM, Inc.
Speaker Bio
Virginia's Attorney General Jerry Kilgore also will join us for an update on the Commonwealth's Anti-Spam Prosecution.
ADVANCE AUDIO INTERVIEW WITH DR. IRWIN JACOBS! Just to whet your appetite for the big event on March 17, Bisnow on Business has done an exclusive interview with Dr. Jacobs for NVTC, outlining his vision for "third generation wireless," and how he sees it as the next big tech revolution. Dr. Jacobs told Bisnow he is really looking forward to seeing everyone and of course saving the big stuff for his speech! To listen to the audio interview, click here.
Gold Signature Sponsor:
Latham & Watkins
Platinum Titans Sponsors:
The British Midlands; Computer Associates; Houlihan Lokey Howard & Zukin; Welsh Development Agency
Gold Titans Sponsors:
Cox Communications; Finnegan, Henderson, Farabow, Garrett & Dunner, LLP; Hampton Roads Economic Development Alliance; Latham & Watkins; Metrocall Wireless; Morrison & Foerster LLP Siemens Information and Communication Networks, Inc.; Wachovia Corporation; Williams Mullen
Silver Titans Sponsors:
CB Richard Ellis; Joan Carol Design & Exhibit Group; RCM&D
To sponsor this event Click Here
Location:
Hyatt Regency - Reston Town Center
1800 Presidents Street, Reston, VA
Directions to Hyatt Regency - Reston Town Center
Cost:
$40 Members / $80 Non-Members
--------------------------------------------------------------------------------
Pre-registration for this event has closed. Walk-ins will be accepted, on a space available basis. An additional $10 late registration fee will be charged for non-complementary events.
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NVTC Business Partners:
CSC; Deloitte; Ernst & Young; Heidrick & Struggles; Information Management Consultants, Inc.; KPMG LLP; Lee Technologies; NEXTEL; PricewaterhouseCoopers LLP; SAIC; ShawPittman LLP; Venable LLP; Virginia's Center for Innovative Technology
Registration Policies
Registration
All attendees must have a paid registration to enter an event. Advance registration and payment is required. Pre-registration will close 24/48 hrs prior to the event. Once pre-registration has closed, all registrations will be considered a "walk-in registration" and will be assessed an additional $10 fee to any payment rendered. Events for which payment is not required, will not be assessed such a fee.
Cancellations
Cancellations must be made in writing and sent to events@nvtc.org more than two business days in advance in order to receive a refund. No-shows will not receive a refund.
Confirmations and Receipts
NVTC provides registration confirmations ONLY upon request. If you would like to confirm your registration, please send your request to events@nvtc.org and we will be happy to check your registration status. Thank you.
http://online.nvtc.org/calendar/geteventinfo.cfm?event=TITANS-5
US Wireless Co Qualcomm Eyes Chip Design Center In India
Wednesday March 17, 9:26 am ET
NEW DELHI -(Dow Jones)- Qualcomm Inc. (NasdaqNM:QCOM - News) , a provider of digital wireless communication technologies, is considering opening a chip design and software center in India, the group president said Wednesday.
ADVERTISEMENT
"We are actively looking at the possibility of setting up a center in India for software and chip development," Qualcomm's Group President Paul Jacobs told reporters on the sidelines of an industry conference.
U.S.-based Qualcomm, which had revenues of $4 billion in 2003, is best known as the company that pioneered Code Division Multiple Access, or CDMA, technology that is used in wireless networks and handsets in many countries.
Jacobs didn't discuss why the company is interested in a venture in India, which is fast emerging as the low-cost technology development hub for multinational software and telecommunications companies.
`"To put up a facility in India, we will need around 100 engineers...The investment would be significant," said Jacobs.
In December 2001, around two years before Reliance Infocomm introduced CDMA mobile services in India, Qualcomm'sboard decided to buy a 4% stake in the Indian company for $200 million, however the purchase was never made.
Asked about the 2001 plans, Jacobs said Qualcomm isn't planning any investment now in the Indian company.
"Reliance Infocomm was able to launch its services without our investment," Jacobs said without elaborating.
Reliance Infocomm owns the telecommunications assets of India's biggest private sector enterprise, Reliance Industries Ltd. .
-By Ruchira Singh; Dow Jones Newswires; +91 11 2307 4020; ashok.bhattacharjee@dowjones.com
http://biz.yahoo.com/djus/040317/0926000578_1.html
From CBS MarketWatch.com
http://www.marketwatch.com/tools/quotes/quotes.asp?symb=qcom&siteid=yhoo&dist=mktwqn
7:35am 03/17/04 Qualcomm says can proceed with breach-of-contract claim - CBS MarketWatch.com
Jim, many thanks. Hopefully, it will slowdown TXN and its 2 partners' work on CDMA and increase Q's lead time on 3g chipsets.
DR, Jim or anybody, what is your take on <Qualcomm's suit survives TXN's motion to dismiss> ?
Your opinion will be greatly appreciated.
Sorry for the duplicated posts, EOM.
Japan KDDI to offer phone with global data roaming
TOKYO (Reuters) - KDDI Corp, Japan's second-largest telecoms operator, unveiled a new mobile phone on Wednesday that would for the first time allow its users to send and receive e-mail while overseas, starting in South Korea.
The new phone comes on the heels of smaller rival Vodafone Holdings KK's efforts to promote its global service in conjunction with British parent Vodafone Group Plc.
KDDI said users would initially only be able to send and receive e-mail or surf the Web in South Korea. But it also plans to establish roaming partners for data in other countries with operators that offer similar networks based on Qualcomm Inc's CDMA2000 1X technology.
The company already has roaming agreements for voice services with operators in 12 countries or regions such as the United States, China, South Korea, Canada and Australia.
The new phone, made by Sanyo Electric Co Ltd, will hit stores in May and include features such as an FM radio tuner, navigation system, digital camera, voice recorder and Japanese-English/English-Japanese dictionary.
South Korea's SK Telecom started offering a similar roaming service to its subscribers while in Japan in February, KDDI said.
http://in.tech.yahoo.com/040317/137/2c1jo.html
Delaware Court Denies Motion to Dismiss QUALCOMM's Complaint Against Texas Instruments
Wednesday March 17, 7:30 am ET
SAN DIEGO, March 17 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated (Nasdaq: QCOM - News), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced that the Delaware Court of Chancery has denied Texas Instruments Incorporated's motion to dismiss QUALCOMM's claim for termination of Texas Instruments' rights under the Patent Portfolio Agreement signed by the companies in December 2000. In denying Texas Instruments' motion, the court opined that QUALCOMM "has alleged facts that, if accepted as true, may support a finding that the breach of the contract is so substantial that it defeats the object of the parties in making the contract."
ADVERTISEMENT
QUALCOMM sued Texas Instruments for breach of the Patent Portfolio Agreement in July 2003 in the Delaware Superior Court. In response, Texas Instruments filed an action against QUALCOMM in the Chancery Court. QUALCOMM then voluntarily dismissed its Superior Court case and refiled its claims in the Chancery Court action to avoid having duplicative lawsuits addressing the same agreement. Shortly thereafter, Texas Instruments filed a motion to dismiss QUALCOMM's claims. The Chancery Court denied the motion on March 15, 2004.
QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and is a 2003 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
QUALCOMM is a registered trademark of QUALCOMM Incorporated. All other trademarks are the property of their respective owners.
For further information, please contact Christine Trimble, Corporate Public Relations, +1-858-651-3628, publicrelations@qualcomm.com, or Bill Davidson, Investor Relations, +1-858-658-4813, ir@qualcomm.com, both of QUALCOMM Incorporated.
--------------------------------------------------------------------------------
Source: QUALCOMM Incorporated
http://biz.yahoo.com/prnews/040317/law043_1.html
S. Korean Cell Phone Makers to Offer More EV-DO Models in 2004
SEOUL, March 16 (Yonhap) -- South Korea's big-three cell phone manufacturers are stepping up shipments of handsets that use an advanced version of code division multiple access, or CDMA, technology, industry sources said on Tuesday.
Most of the handsets that are now being offered in the country's retail stores are faster cell phones, based on Qualcomm's CDMA2000 EV-DO (evolution-data optimized) standard.
http://www.yonhapnews.co.kr/Engnews/20040316/300500000020040316110306E2.html
2:16pm 03/16/04 FOMC keeps rates steady, more worried about jobs By Greg Robb
WASHINGTON (CBS.MW) - The economy continues to expand but there are renewed worries about the job market, Federal Reserve officials said Tuesday. Following a closed-door meeting, the Federal Open Market Committee opted to keep its interest rate target at a 45-year low of 1 percent. The vote was unanimous. The FOMC said that new hiring has lagged since the last meeting on Jan. 28. The FOMC did not change its wording on the inflation outlook, saying the risks of deflation and rising prices are almost equal.
http://cbs.marketwatch.com/news/newsfinder/pulseone.asp?guid={F8AE7CC9-751A-49A1-9BAD-5F26A3735BA6}&...
Immelman, please don't try to engage us in discussing IDCC. you are in the wrong room once again. Try this link:
http://www.investorshub.com/boards/board.asp?board_id=916
Immelman, you are in the wrong board. we are not discussing IDCC here.
Motorola Versus the Rest of the World: ABI Research Observes the Ultrawideband Battle
Tuesday March 16, 10:57 am ET
OYSTER BAY, N.Y.--(BUSINESS WIRE)--March 16, 2004--The possibility of obtaining consensus on a single Ultrawideband (UWB) standard for Wireless Personal Area Networks (WPAN) has disappeared, notes ABI Research. There are two standards on the table, one proposed by Motorola and a couple others, and the other proposed by nearly all the remaining industry heavyweights, including Intel, Texas Instruments, Philips, Microsoft, Fujitsu, NEC, Hewlett Packard, Infineon, and STMicroelectronics.
This is not the first time a company singularly attempted to drive a technology against massive opposition. In the 1990s Qualcomm successfully achieved this with CDMA for digital cellular. Qualcomm won that battle and it is noteworthy to examine three significant parallels that may be drawn between these efforts:
(1) Qualcomm's pioneers were not proposing an unknown or exotic technology -- CDMA had been used by the military for close to forty years;
(2) The company relentlessly played up a few key benefits of CDMA over and over again until finally even the operators took notice; and
(3) Qualcomm did not have to worry about interoperating with systems other than their own.
Will the UWB camp with Motorola at its helm be able to pull off a similar feat? They have the advantage that the technology on which their standard is based, DSSS (direct sequence spread spectrum), is a well-understood technology and has been used in other wireless areas for many years. They have constantly been claiming a couple of benefits, including Federal Communications Commission (FCC) interference compliance under any and all interpretations, and a significant time-to-market advantage over the competition . But what about the last point: will the UWB solution for a WPAN have to interoperate with all other WPAN networks?
It is one thing to win the standards battle, but it is another thing to win the customer war. Other questions remain: Would an OEM choose the DSSS UWB solution even at the expense of losing interoperability? Is it possible that an OEM may decide to differentiate their product by offering a 100 Mbit multimedia data rate before any of their competition by using the DSSS UWB?
These questions and more are answered in ABI Research's report, "Ultrawideband: Standards, Technology, OEM Strategy, and Markets & Applications Spaces," which details OEM strategy, technology comparisons and ABI Research's predictions for the next few months regarding the two factions' market moves, engineering design challenges, the difficulties on the road to convergence, and the long-term vision of the FCC. The report also examines the global trends in shipments, ASPs, and revenues in 18 different end-use markets, and profiles some of the key players in these spaces.
Founded in 1990 and headquartered in New York, ABI Research maintains global operations that support annual research programs, quarterly intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. Their market research products can be found on the web at abiresearch.com, or by calling 516.624.3113.
Contact:
ABI Research
Jake Wengroff, 516-624-3113, ext. 20
pr@abiresearch.com
Source: ABI Research
http://biz.yahoo.com/bw/040316/165639_1.html
Samsung Expects Chip Shortage, Lifts Handset Target
Mon Mar 15, 2004 05:04 AM ET
By Kim Miyoung
SEOUL (Reuters) - Samsung Electronics Co Ltd said on Monday it expected a global shortage of basic memory chips later this year as chip makers switch production to more specialized chips used in cell phones and digital cameras.
Samsung, which is the world's top maker of memory chips, also said its mobile phone sales were likely to top an earlier target of 65 million units this year and beat 55.6 million in 2003 sales.
"Such bullish forecasts for cell phones and DRAM are just confirmation of a generally more upbeat industry outlook. Samsung's own estimates have been very conservative," said Yu Chang-eyun, an analyst at BNP Paribas Peregrine.
Deutsche Bank expects Samsung to ship 75 million handsets in 2004, while Credit Suisse First Boston sees 76.8 million units.
Samsung has bet on hefty growth in demand for the basic DRAM (dynamic random access memory) chips used mostly in personal computers and mobile phones, lifting investment faster than its rivals.
"Limited DRAM supply helped chip prices stay firm in the first quarter, which is a traditionally slow season, and a chip shortage is expected starting in the second half," Samsung said in a statement.
Eighty percent of DRAM chips, the most common type of memory chips, are used in personal computers.
"We expect a shortage of DRAM chips in the second half as PC demand is traditionally higher prior to students returning to school in the fall, and before the Christmas holiday season," a senior official at Samsung told Reuters.
A rebound in corporate spending is expected to drive double-digit growth in PC demand at the same time as chip makers cut DRAM capacity to instead make flash memory chips to meet explosive demand for camera phones and digital cameras.
DRAINING DRAM
The price of 256-megabit DDR DRAM chips, the industry standard, stood at $4.53 per unit late on Friday, according to data from online microchip broker DRAMexchange.com.
Analysts expect DRAM prices of around $4.5-$5 in the second half, little changed from the same period a year ago.
"Supply is likely to remain slightly tight in the second half as chip makers are switching a significant portion of their DRAM capacity to flash chips to meet growing demand for flash," said Chin Yeong-hoon, an analyst at Daishin Securities.
Chin expected Samsung to have slashed DRAM output to 60 percent of its total memory production this quarter from above 80 percent two years ago to lift flash chips above 35 percent.
Demand for flash, which stores and erases data quickly in digital electronic goods, is so strong that Samsung has said it was meeting only 60-70 percent of demand.
Samsung, which is the world's third-largest cell phone maker after Nokia and Motorola, is the latest phone maker reinforcing an upbeat outlook for mobile phones, the world's biggest consumer electronics market worth almost $100 billion a year.
Market research group Gartner said global sales of mobile phones could grow to 580 million units this year, 20 million more than predicted last month, bolstered by stellar demand for phones with color screens in developed markets and cheap handsets in emerging markets such as China, India and Russia.
Shares in Samsung, Asia's most valuable technology company with a market value of about $72 billion, closed up 0.2 percent at 525,000 won after rising as high as 1.7 percent. ($1=1180.0 won) (Additional reporting by Jean Yoon and Rhee So-eui)
© Reuters 2004. All Rights Reserved.
http://www.reuters.com/newsArticle.jhtml;jsessionid=1QC5VO2LEORXMCRBAELCFEY?type=technologyNews&...
Irwin Jacobs, Chairman and CEO of QUALCOMM, to Speak at
NVTC's Monthly Titans of Technology Breakfast
Dr. Irwin Jacobs, Chairman and CEO of QUALCOMM, will be the featured speaker at the Northern Virginia Technology Council's monthly Titans of Technology breakfast on March 17.
(Logo: http://www.newscom.com/cgi-bin/prnh/20011017/NVTCLOGO )
Jacobs will speak on the topic of "Third Generation Wireless - Technology, Impact, and Politics."
When: Wednesday, March 17, 2004
7:00 a.m. to 9:15 a.m.
Where: The Hyatt Regency, Reston Town Center
1800 Presidents Street
Reston, VA
Contact: To register for the event, please contact Nancy Rollman or
Scott Warner by no later than 5:00 p.m., Tuesday, March 16.
CONTACT: Nancy Rollman of the Northern Virginia Technology Council, +1-703-904-7878, ext. 287, or nrollman@nvtc.org; or Scott Warner of Qorvis Communications, +1-703-744-7824, or swarner@qorvis.com, for the Northern Virginia Technology Council
SOURCE Northern Virginia Technology Council
-0- 03/15/2004 P
/PRNewswire -- March 15/
/Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20011017/NVTCLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840/
/Web site: http://www.nvtc.org /
CO: Northern Virginia Technology Council; NVTC; QUALCOMM ST: Virginia IN: CPR TLS SU: MAV -0- Mar/15/2004 17:46 GMT
Last Updated: March 15, 2004 12:46 EST
http://quote.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=QCOM:US&sid=aZoW0u...
kechuwa3, the Czech Eurotel story is very good news for Qualcomm and CDMA. Fortress Europe is slowly cracking, beginning with Russia and Eastern Europe. A few weeks ago, LU has deployed commercial network in 450 MHZ spectrum for Delta Telecom and Moscow cellular commmunications as part of Skylia initiative in Russia and Zapp Mobile in Romania.
Vodafone gets pat on back from new report
By: Anthony Newman, Friday 12th March 2004, 10:26 GMT
Latest report from Strategy Analytics finds that one-third of European mobile users would switch of Vodafone; Vodafone three times as popular as MMO2.
The latest Strategy Analytics Wireless Network Strategies report, "Sharks And Minnows - European Mobile Operator Satisfaction Monitor, " finds that Vodafone is the preferred destination for 32 percent of its rivals' customers in Western Europe, well clear of second-placed MMO2 (11 percent) and Orange (10 percent)."The European wireless market has served Vodafone well--its customers rate it highly for customer care, network quality and service scope. Customers of other operators are well-aware of the discrepancies between Vodafone and their current service providers," commented Phil Kendall, Director of the Wireless Network Strategies service.
According to Sara Harris, Senior Industry Analyst, and author of the report, "Among the other large carrier groups of this region, T-Mobile and TIM are failing conspicuously to meet customer expectations, and are thus finding themselves in precarious positions. Although these operators may be rated well on service quality, it is clear that a significant proportion of their customers are deeply dissatisfied with the pricing and customer care they are being offered."
David Kerr, Vice President of the Global Wireless Practice, says, "Smaller operators, such as E-Plus or WIND, are in even more exposed positions. This should give 3/Tre, the third-generation operator, some indications of the challenges ahead." Ten percent of potential churners in the UK, and 20 percent in Italy, would choose to sign up for 3/Tre, but despite its data-centric marketing approach, 3/Tre has to attract customers on price, like all new entrants before it. There is nothing to stop those customers from looking for a better deal once they sign up for 3/Tre - or for any other company."
http://www.infosyncworld.com/news/n/4704.html
Sweden is First Country to Deploy Nationwide 3G Network
Friday March 12, 2:04 pm ET
Mobile Operator TeliaSonera Currently Covers 96% of Sweden's Municipalities
LOS ANGELES--(BUSINESS WIRE)--March 12, 2004--Sweden, recognized worldwide for its leadership in wireless technologies, will be the first country in the world to offer nationwide 3G (Third Generation Cellular Phone Network) coverage to its mobile users. Coinciding with Telia's national rollout beginning March 10, 2004, a variety of new 3G handsets will be available along with a host of new services for data, e-mail, mobile Internet, multi-media messages, and streaming video. With nearly one-third of 3G patents being held by Ericsson and TeliaSonera, Swedish companies continue to develop innovative mobile technologies and deploy services via their sophisticated wireless infrastructure.
"Once again Sweden is the first country in the world to deploy the latest wireless technologies, mobile devices, and infrastructure nationwide," stated Goran Eriksson, director, Los Angeles branch office -- Invest in Sweden Agency. "This will be a very exciting time to observe the evolution of new products, services, and business trends in the rapidly growing 3G market."
3G in Sweden
When TeliaSonera Sweden opened its 3G network this week, users gained access to mobile Internet at broadband speed, initially in one or more densely populated areas in 280 of Sweden's 290 municipalities. Telia GO service has been updated with a new and simpler interface, even better and faster services, improved e-mail that enables users to read several e-mail boxes as well as many new services such as news, sports and video clips from the Swedish Song Contest. Certain 3G mobile phones also feature video calling, where you can talk and see the person you are talking to in real time.
TeliaSonera Sweden's mobile network covers 99 percent of the Swedish population. TeliaSonera Sweden's 3G network currently covers 75 percent of the Swedish population and 96 percent of the municipalities. If a user is outside the 3G coverage area, ongoing calls and data connections are automatically moved to the GSM network. Combined, this makes TeliaSonera Sweden's GSM network and 3G network the strongest mobile network in Europe.
According to a survey carried out by the research company Netsurvey for Telia during January 2004 which polled 306 managers who work at companies in different parts of Sweden, 85 percent of companies in Sweden expect to use 3G services within three years. Almost one out of every three managers believes their companies will use 3G services on a daily basis already within one year.
About Invest in Sweden Agency
Invest in Sweden Agency was established by the Swedish government to help attract and facilitate foreign direct investment in Sweden -- Europe's leading IT cluster and a world leader in wireless and mobile Internet. Sweden provides a strong industrial base, sophisticated multinational customers, active utilization of information technology in both the public and private sectors, an advanced infrastructure, and a highly skilled workforce.
ISA assists companies interested in locating manufacturing sites, research and development facilities, sales offices, and customer interaction centers in Sweden by providing free site selection information and other business-related services. ISA is headquartered in Stockholm, with offices in New York, London, Shanghai, and Tokyo, a branch office in Los Angeles, and representatives in major European, North American, and Asian cities. For more information, visit the agency's Web site at www.isa.se or call the LA office at 310-204-6790 or the NY office at 212-702-8780. Questions can be sent via e-mail to isa@usa.isa.se.
--------------------------------------------------------------------------------
Contact:
Invest In Sweden, Los Angeles
Anna Lindberg, 310-204-6790
anna.lindberg@usa.isa.se
or
TopSpin Communications Inc.
Joe Waldygo, 480-632-5050 (Media)
joe@topspinpr.com
--------------------------------------------------------------------------------
Source: Invest in Sweden Agency
http://biz.yahoo.com/bw/040312/125413_1.html
8 mln 3G users in Europe by 2005
ITFacts.biz
Newsteam / ITFacts [] / POSTED: 03.12.04 @07:58
If Western Europe replicates the Japanese adoption timeline, there will be more than 8 mln W-CDMA users in the region by mid-2005 (2.4% of 340 mln).
There's no doubt the two markets are very different; the main difference is the attitude of consumers toward mobile data. However, there are strong reasons to believe the pace of European 3G adoption will equal or exceed Japan’s.
First, most carriers are conducting pre-commercial trials and will launch commercial services in 2004. Carrier pressure on vendors and greater economies of scale will mean better and cheaper equipment, while the lessons of DoCoMo and 3 should help other providers avoid early technical problems.
In addition, there is the lack of competing technologies. Where CDMA and 1X upgrades will compete with W-CDMA in Japan, there is no comparable cellular broadband technology being deployed in Western Europe. Interim or parallel technologies such as EDGE and Wi-Fi have similar characteristics but cannot match the attributes and benefits of W-CDMA.
http://www.alwayson-network.com/comments.php?id=P3242_0_7_0_C
Czech Eurotel To Launch CDMA450 Internet Svc In May
Friday March 12, 1:11 pm ET
PRAGUE (Dow Jones)--Czech mobile phone operator Eurotel Praha spol SRO said Friday it will launch a high-speed wireless Internet service in May and seek ways to market the product jointly with parent company Cesky Telecom AS (BAATELEC.PR).
"We've made a decision to roll it out," Eurotel General Director Terrence Valeski said in an interview with Dow Jones Newswires.
"We continue to look for complimentary opportunities with Cesky Telecom in terms of sales and marketing," Valeski said.
The new service based on code division multiple access, or CDMA450, has been a bone of contention between Eurotel and its parent company. Cesky Telecom's officials worry that Eurotel's CDMA service would damp the demand for Cesky Telecom's own fixed-line broadband Internet service based on asymmetric digital subscriber line, or ADSL, technology.
The CDMA issue has also highlighted problems Cesky Telecom and Eurotel have been facing as they seek to bring closer their management teams and offer complimentary products, following the 100% consolidation of Eurotel by Cesky Telecom last year.
According to Cesky Telecom spokesman Vladan Crha, no decision has been made on the launch of the CDMA450 service by Eurotel. "It hasn't been approved by the ( Cesky Telecom) supervisory board yet," Crha said.
Valeski downplayed the differences over the CDMA450 service between Eurotel and Cesky Telecom. The launch of the CMDA450 service is part of the approved Eurotel business plan for 2004, Valeski said.
"That isn't holding us up. We're moving forward with it," he said.
Valeski also said he remains confident that the CDMA450 service will add value to the joint portfolio of products offered by the Cesky Telecom group.
"My hope is that there are complimentary aspects of both companies that actually do that they compliment one another and give the customer a lot of value-creating options," he said.
Eurotel is currently operating both digital Global System for Mobile Telecommunications, or GSM, and analogue Nordic Mobile Telephony, or NMT, networks. The NMT network operates in the 450 megahertz bandwidth for which Eurotel is the only license holder in the Czech Republic.
Last year, Eurotel began testing a CDMA 450 MHz service by converting a portion of its NMT network.
Eurotel currently has about 47,000 users of its slow-speed wireless Internet service over the GSM network and it sees the new CDMA service as a way to expand the popular wireless Internet connectivity.
The CDMA service will offer higher data transfer speeds compared with the GSM service and will be tailored for users seeking a broadband-quality Internet connectivity in the areas where no such Internet service is available via fixed lines or television cable, Valeski said.
Eurotel Website: http://www.eurotel.cz
Cesky Telecom Website: http://www.telecom.cz
-By Leos Rousek, Dow Jones Newswires; 420-221-085-272; leos.rousek@dowjones.com
http://biz.yahoo.com/djus/040312/1311000663_2.html
Qualcomm: Top of the Wireless Food Chain(II)
CDMA ADVANTAGE. This month, Qualcomm announced its first delivery of a 90-nanometer, low-power MSM chip with its foundry, Taiwan Semiconductor, thus reducing mobile-application power consumption, boosting processor capability, and enabling the integration of more service features on a smaller chip. We believe it will be a steep challenge for Qualcomm's competitors to catch up in the CDMA integrated-device market, when so much is demanded from handset suppliers and wireless service providers. Advertisement
Qualcomm's CDMA offers superior performance compared to other digital technologies, allowing a greater number of calls within the allocated frequency. The outfit holds many patents related to CDMA and derives royalties from more than 100 license agreements tied to its technology. Royalties are paid when the manufacturers earn revenue from the sale of CDMA-based equipment. The technology-licensing business accounted for 28% of its December-quarter revenues.
Qualcomm's third-generation CDMA2000 1X technology was commercially deployed in October, 2000, in South Korea and had picked up 17 million subscribers as of February, 2003. In North America, most CDMA-based operators had commercially deployed CDMA2000 1X at the end of 2003.
GROWTH NICHE. In January, 2004, Verizon Wireless (VZ ) selected Qualcomm's CDMA2000 1X-EV-DO third-generation technology for high-speed, wireless data service applications. We expect Vodafone (VOD ) to deploy WCDMA or UMTS in its markets in Asia and Europe during the second half of 2004.
Global CDMA handset forecasts are a useful gauge to determine Qualcomm's expected royalty stream from vendor and carrier license agreements. S&P's Equity Research forecasts total handsets to reach 515 million to 520 million in 2004, compared with 472 million handsets shipped in 2003. Qualcomm expects CDMA handsets to reach 142 million units in 2004, from 100 million in 2003.
Hence, the CDMA market segment is growing four times faster than the overall handset market. Qualcomm should benefit from the expanding demand in emerging markets, such as China and India, as well as a faster handset-replacement cycle in North America, Japan, and South Korea.
STRONG BREW. Qualcomm forecasts that WCDMA in Europe and other markets should contribute 10% of total CDMA handset shipments in 2004, compared with less than 2% in 2003. It targets North America at 37% of total CDMA handsets shipped in 2004; China and India at 19%; South Korea, Japan, and Southeast Asia at 22%; Latin America at 9%; and the rest of the world at 3%. Qualcomm sees ASPs for handsets declining only 7%, as the market looks to buy more high-end phones in developed countries to offset low-end phones shipped in emerging markets.
The wireless and Internet segment accounted for 11% of Qualcomm's December-quarter sales. It provides satellite-based, two-way data messaging and position-reporting equipment to transportation companies. The segment shipped 10,900 products in the quarter, bringing the total to nearly 500,000 units shipped.
Qualcomm's BREW software is reported within this segment, and we expect it to be the outfit's third sales driver. BREW is software on a chip capable of providing a user interface in the handset with e-mail, photo sharing, messaging, location-based services, push to chat, a Web browser, video player, and a Java applet. Qualcomm has established partnerships with hundreds of software developers to leverage BREW, which is able to operate on different radio frequency technologies, including GSM/GPRS, UMTS, cdmaOne, as well as CDMA2000 1X-EV-DO.
The fourth business segment is Qualcomm's strategic investments in wireless-technology developers and service providers in emerging markets. This unit has materially reduced Qualcomm's reported earnings, but with the sale of its 16% interest in Vesper, a Brazilian carrier, we expect this segment to have less of a negative impact on earnings.
Note: Kenneth Leon has no stock ownership or financial interest in any of the companies in his coverage area. He's a registered representative of Standard & Poor's Securities, Inc. Other S&P affiliates may provide services to the companies under discussion.
http://www.businessweek.com/investor/content/mar2004/pi20040312_1829_PG2_pi044.htm
Qualcomm: Top of the Wireless Food Chain(I)
S&P likes the stock since the company's patents in mobile telecom technology give it an edge over rivals as global demand picks up
We at Standard & Poor's Equity Research Services view Qualcomm (QCOM; buy; recent price: $63.50) as the best in its class, with one of the most attractive business models in the telecommunications industry. In many ways, we see parallels to the success Microsoft (MSFT; buy; $26) enjoyed in the last decade. Advertisement
Qualcomm has a unique position, thanks to its intellectual property from designing code division multiple access (CDMA) for the mobile wireless industry. Its patents' strength have enabled the outfit to receive high-margin license royalty fees from all users, handset and infrastructure suppliers, as well as service providers that use CDMA for software-enabling applications.
In addition, Qualcomm is the leading fabless semiconductor concern, with more than 98% of the worldwide market for CDMA chipsets. Fabless means it designs and upgrades its portfolio of CDMA chipsets and then outsources the manufacturing to foundries operated by IBM (IBM; buy; $94) and Taiwan Semiconductor Manufacturing (TSM; $10.80).
CASH PILE. Having foundries in each major region of the world is what San Diego-based Qualcomm is planning, with Europe the next major target as the Continent's telcos begin to upgrade for third-generation (3G) technology known as WCDMA (wideband code division multiple access) or UMTS (universal mobile telecommunications systems).
Plus, Qualcomm generates substantial operating cash flow to meet capital requirements, make strategic investments, and pay a dividend on common shares. As of Dec. 31, it had approximately $5.4 billion in cash and cash equivalents, or 61% of its total assets, with long-term debt under $130 million. As its Board of Directors declared a 43% hike in its annual cash dividend, to 40 cents per share, we anticipate that the stock may become more attractive to a broader group of mutual funds that seek growth and income in their portfolios.
Aside from its $5.4 billion in cash equivalents and nominal long-term debt, the 25% sales growth and net margins near 30% that we expect for 2004 are favorable drivers to boost higher earnings growth and bigger p-e gains for the shares.
A CLOSER LOOK. Our 12-month target price of $80 is based on discounted cash flow and forward price-to-sales and price-to-earnings valuation metrics. (Our model assumes a weighted average cost of capital of 12.48% and a terminal growth rate for free cash flows of 7% after year 15. We believe our assumption of mid-20% cash-flow growth for the next five years is reasonable, followed by a gradual slowing to 8% in year 15.) The shares trade near peer levels on a 2004 p-e multiple basis, and we would buy the stock based on our view of a strong company outlook.
Digging deeper into the numbers, let's take a look at Qualcomm's major products and services. It reports results in four operating segments: CDMA technology, technology licensing, wireless and Internet, and strategic initiatives.
The CDMA segment, which accounted for 61% of total sales in the December quarter, provides integrated circuits and system software to many of the world's leading wireless handset and infrastructure manufacturers. After shipping 32 million chipsets in the seasonally strong December quarter, Qualcomm raised its forecast for the March quarter to 31 million to 32 million units, from a previous range of 29 million to 31 million units.
CHIPS AHOY! The comparisons get easier in the June and September quarters, as Qualcomm should not experience the same weak demand as last year, when SARS and an inventory glut in China reduced chipset shipments. We're forecasting 123.5 million chips to be shipped in fiscal 2004, up 23.5% from the prior year.
Dominating the CDMA market, Qualcomm has developed a family of chips called mobile station modems (MSM) for 2G and 3G wireless handsets. Average selling prices (ASPs) are stable to slightly higher as it introduces higher functioning chips for audio, video, camera, and graphics capabilities. By 2005, Qualcomm's enhanced multimedia and graphics chipsets will allow camera-ready phones to deliver images of up to 4 megapixels.
In November, 2003, Qualcomm was selected by 13 global manufacturers for its integrated chipsets and software to deliver a wide variety of enterprise and consumer wireless devices to support WCDMA (UMTS) markets. In February, 2004, Huawei Technologies and ZTE Corp., two major Chinese equipment suppliers, selected Qualcomm's MSM6250 MSM chipset and system software to enable cost-effective, data-enhanced handsets for the WCDMA (UMTS) market.
http://www.businessweek.com/investor/content/mar2004/pi20040312_1829_pi044.htm
IT Exports from Korea to Balloon in February
March 12, 2004 (SEOUL) -- At a time when the domestic Korean economy has not yet seen light at the end of the tunnel, information technology (IT) products are getting much-needed accolades overseas.
The Ministry of Information and Communication (MOIC) announced March 10 that the volume of exports in IT products increased 51.4 percent year-on-year to US$5.72 billion in February.
The stellar performance in exports reflects higher shipments of mobile handsets and memory chips, according to MOIC.
Customs-cleared imports of IT products amounted to US$3.28 billion in February, an increase of 24.3 percent from a year ago.
MOIC also said Korea's IT trade surplus in the month registered US$2.43 billion.
(Maeil Business Newspaper, Korea)
http://neasia.nikkeibp.com/wcs/leaf?CID=onair/asabt/news/295421
Asia-Pacific Telecom Sector to Experience Upturn in 2004, Says Gartner
In 2004, Asia-Pacific carrier investments in telecom infrastructure are expected to start to grow again for the first time since 1999 because of better economic conditions, improving carrier financial performance and a decline in price competition, according to Gartner. Total investment in 2004 is expected to grow 9% over 2003. During 2004, the Asia-Pacific region is expected to add another 125 million phone connections across fixed and mobile services, up 13% over 2003. Revenue growth across fixed and mobile services in 2004 is expected to grow only 7% to US$17.1 billion because of lower customer yield.
(March 2004 Issue, Nikkei Electronics Asia)
http://neasia.nikkeibp.com/nea/200403/alert_292669.html
Cover Story: Chinese Mobile Phone Makers Eye Global Market
The mobile phone market in China is approaching 100 million units a year in sales; Chinese manufacturers are steadily increasing their share of the market, and developing more high-end models.
China has been positioned as one of the most critical markets by leading mobile phone manufacturers around the world. Impressively, a Chinese manufacturer - Ningbo Bird Co, Ltd of China - recently soared above what are often considered the top two firms, Nokia Corp of Finland and Motorola, Inc of the US, to take the top share in sales volume for the first half of 2003 (January to June). Another Chinese firm, TCL Mobile Communication Co, Ltd of China, jumped up to third place. Total share for all Chinese manufacturers hit 55.3% by sales volume (Fig 1), taking the larger share of the market for the first time.
Next Target: Overseas
Chinese firms have been working hard to win market share, and now they are working to assure continued growth in the future. They are moving into high-end designs, offering functions such as cameras, and launching basic R&D into third-generation (3G) mobile phone technology.
Camera-equipped mobile phones have been released by China Kejian Co, Ltd of China, the Legend Group Ltd of China, Qingdao Hisense Communications Co, Ltd of China and other healthy mid-sized firms. As Liu Yunlong of China Kejian explained, "Commercializing camera-equipped phones will boost our technical capabilities and advertise our brand name at the same time." Qingdao Hisense began selling its C3698 camera-equipped model in May 2003. Recently, models have appeared offering
MPEG-4 video capture, MP3 player and Global Positioning System (GPS) receiver functions. China Kejian's Liu added, "We'll complete our 3G mobile phone prototype in early 2004." Qingdao Hisense is also advancing R&D into both wideband code division multiple access (W-CDMA) and CDMA2000 designs.
Chinese manufacturers are eager to enter the world market; not only top manufacturers like the Legend Group and TCL Mobile Communication, but even mid-sized firms are gearing up for action. A source at TCL Mobile Communication said, "Our mobile phones are on display in shops in Southeast Asia and South Asia, like Thailand and Bangladesh. And we are making steady progress in negotiations with agents in Russia, the UK, France, Germany, Greece and elsewhere." Qingdao Hisense is pursuing business in Southeast Asia, where CDMA communication service is becoming established. The Legend Group, a major PC manufacturer in China, is also hot, according to Jin Jian, Mobile Communication Lab Director, Legend Corp R&D: "We began to use the Lenovo brand name in early 2003 as part of a branding strategy designed with expansion into overseas markets in mind."
R&D Projects Farmed Out Most Chinese manufacturers have only been in the mobile phone market for two or three years (Table 1), but even so they are experiencing phenomenal growth in business scale. A company releasing 10 to 20 new models a year, with sales between the hundreds of thousands and the millions, is not unusual. TCL Mobile Communication, for example, established as the mobile phone arm of the TCL Group, sold a total of 2.92 million mobile phones in 18 different models in 2002. It released 16 models from January to October 2003, and as of the end of September that year had already shipped over 7.16 million units.
Qingdao Hisense began volume production only in October 2001, but sold over 400,000 units the following year. It shipped six models in 2003, and expects to sell over 1.2 million units. Plans for 2004 are for 11 models and 1.8 million units. While there are differences in corporate scale, this style of dynamic, newborn Chinese company is not at all uncommon.
So why have so many Chinese firms entered the market, and boosted market share so much? How can so many new models be developed so quickly, and released to the market so cheaply? Some industry observers claim that the broad sales networks covering China have contributed to this success, but that's not the only factor. Behind the Chinese manufacturers are two key resources, the first of which is the subcontractors to handle mobile phone development, design and manufacturing.
Help from Contractors
Contractors include the design houses handling development and design, and electronics manufacturing services (EMS) for actual manufacturing. When Chinese manufacturers first began to make terminals they had little technology or expertise in the manufacturing sector. These contractors were indispensable in filling the gap between the needs of the local market, created by leading foreign manufacturers, and the technical capabilities of Chinese manufacturers just entering the field.
One approach is to hire a design house to handle hardware design and communication protocol implementation, while taking care of the user interface software and case design in-house. Tie-ups with any of the large number of EMS firms in China will take care of manufacturing, making it possible to sell the result under the company's own name. Approaches like this have made it possible to productize 10 or 20 mobile phones in a very short period of time.
Until a few years ago, foreign-capital design houses were leaders in China, including firms like Bellwave Co, Ltd of Korea, Cellon Inc of the US and TTPCOM Ltd of the UK. Well-known EMS companies including Solectron Corp of the US and Flextronics International Ltd of Singapore were there, too. In recent years, however, sharp market growth and a rapid increase in the number of manufacturers has led to an increase in the number of Chinese design houses, many of which are developing solid capabilities.
One good example is the Techfaith group. This engineering firm has about 400 employees, almost all Chinese.
Fan Liming, CEO of STEP Technologies (Beijing) Co Ltd, a group company, expressed confidence: "We can handle any and all processes, from mobile phone development through manufacture. Not only hardware and software development, but also ramping up production lines and handling quality assurance."
Attracting Technology
The second key resource supporting the rapid development of Chinese manufacturers is the component manufacturing industry, which views China as a promising market. Its sheer scale has attracted the attention of component manufacturers in Japan, Korea, the US and Europe, each of which is in a rush to sell its own parts and technologies. If a local firm lacks product assembly capabilities, a components manufacturer is usually available to provide assistance. As a result, Chinese manufacturers can release mobile phones to the market featuring the latest technologies.
Renesas Technology Corp of Japan has begun supplying China with its SH-Mobile application processor for mobile phones. The first mobile phone from a Chinese manufacturer using the SH-Mobile will appear
in the first half of 2004. Seiko Epson Corp of Japan is also offering its microcontrollers for mid-range models.
Procurement, Development
Chinese manufacturers are also getting serious about the procurement of components at home. While many components were primarily procured through imports in the initial stages, the ratio of domestic procurement is steadily rising. The key goal is improved price competitiveness.
Click fig to enlarge
Of the components available in China, many come from manufacturing sites established by foreign-capital firms from Japan, the US or Korea. Mechanical parts like microphones, speakers, printed circuit boards and cases, however, are starting to be offered by wholly Chinese suppliers (Fig 2).
As more and more components come from China, efforts are also under way to improve design technology: design work formerly left up to design houses and component manufacturers is gradually being moved in-house as firms try to boost price competitiveness by adding value through unique functions, or by reducing royalties paid to design houses. At present, however, core components such as baseband processors and radio frequency (RF) processing ICs are imported, or manufactured locally by foreign-capital firms.
As Ikuya Kawasaki, department manager, SOC Design Dept 6, SOC Div, MCU & SOC Business Unit, Renesas Technology, pointed out, "Considering how fast they're growing, I wouldn't be at all surprised if the top group of Chinese manufacturers begins designing its own phones soon."
3G Ambitions Commercial service for 3G mobile phones is expected to start in China as early as the second half of 2004. The Chinese government is paying close attention to implementation timing, positioning 3G mobile phones as a prime target for local industry development plans.
Chinese manufacturers involved with infrastructural communications equipment are eagerly pushing ahead with 3G system development. The largest Chinese manufacturer for communication equipment, Huawei Technologies Co, Ltd of China, is commercializing a range of key products for the W-CDMA 3G mobile infrastructure, including basestations and radio network controllers (RNC).
China is also considering introducing a third standard, unlike W-CDMA or CDMA2000, called Time Division Synchronous CDMA (TDS-CDMA), apparently with hopes of nurturing domestic industry. Datang Telecom Technology Co, Ltd of China and other firms are developing infrastructural equipment for TDS-CDMA, and terminals are expected to be productized in the second half of 2004.
Chinese mobile phone carriers are also eager to begin 3G mobile service. One of the key reasons is that the capital investment required for the communications infrastructure is expected to be significantly less than that needed for Global System for Mobile Communication (GSM). They seem to be aware of advantages other than merely the increased diversity of high-speed services they can offer and the resulting potential for increased revenue.
Chinese mobile phone carriers are being forced to upgrade their infrastructure, such as through additional basestations, to meet user growth. Even though the number of subscribers is enormous, however, the average revenue per user (ARPU) is not very high; estimates are RMB120 to RMB130 (about 1,680yen to 1,820yen). Not surprisingly, mobile phone operators want to minimize the cost of basestations.
With 3G mobile phone technology, which achieves a high frequency utilization ratio, the user capacity can be significantly increased. Carriers believe that compared to the existing GSM approach, the new system could mean more users for the same capital investment.
Development of cheaper terminals is also a key priority. In September 2002, Huawei Technologies entered into a tie-up with Infineon Technologies AG of Germany to jointly develop an inexpensive
W-CDMA mobile phone. Their goal is to productize a design at the same price as a low-end GSM model. Prototyping is planned to be completed before the end of 2003, with market release in June 2004.
by Chikashi Horikiri
(March 2004 Issue, Nikkei Electronics Asia
http://neasia.nikkeibp.com/nea/200403/comnet_292680.html
Koreans Hungry for New Cell Phones
By Kim Tae-gyu
Staff Reporter
Korean handset owners are the quickest in the world in upgrading their mobile phones, with a replacement cycle of 12-18 months, market research institutes said on Friday.
The LG Economic Research Institute (LGERI) said average Koreans switch their cell phones every 12 months, based on its analysis of the local market and rollout of new products.
Domestic cell phone makers like Samsung Electronics, LG Electronics and Pantech Group, estimated the rotation cycle to be somewhat longer, at around 18 months.
In either case, the figure represents the shortest term in the world compared to nations in Europe and North America, regions with high wireless network penetration rates.
According to research firm Gartner Dataquest, the cell phone replacement cycles are 21 months in the United States, 30 months in Canada, 24 months in Russia.
Most Europeans upgrade their cell phones after using them two or three years. Even industry leader Nokia's homeland of Finland was reported to lag behind Korea's enthusiasm for next-generation products.
Experts said the brisk cell phone switches here are attributable to trend-sensitive Koreans, who react keenly to new applications or expansion peripherals.
The replacement cycle is expected to further accelerate this year as coverage of the number portability system expands and high-end phones continue to hit the shelves.
Under the number portability scheme, SK Telecom customers can switch their service provider from this year while retaining their phone numbers. The same rule will be applied to KTF from this June and LG Telecom from next year.
When defecting to other operators, cell phone users are required to switch their devices because SK Telecom-serviced phones use a different frequency range to KTF and LG Telecom.
voc200@koreatimes.co.kr
03-12-2004 19:10
http://times.hankooki.com/lpage/tech/200403/kt2004031219083111780.htm
Taiwan ready for wideband mobile multimedia standard
3GSM platform to deliver seamless roaming across 200 countries
2004-03-11 / Taiwan News, Staff Reporter / By Marie Feliciano
Chairman of the GSM Association Craig Ehrlich, right, and CEO of the GSM Association Robert G. Conway promote the next generation wideband mobile multimedia standard, 3GSM. (Peter Mah, Taiwan News)
Taiwan is raring to exploit the market potential of the next global generation wideband mobile multimedia standard or 3GSM (global system for mobile communications), a world trade association for mobile operators said yesterday.
"What 3GSM represents in Taiwan is an opportunity for mobile operators to get higher revenues per user. That is one of the pathways that the GSM Association is promoting," GSMA Chairman Craig Ehrlich said at a media briefing in Taipei.
The trade association is comprised of 620 second- and third-generation mobile operators, and 130 manufacturers and suppliers in 206 countries. Taiwan Cellular Corporation sits on the GSMA board.
As of February 2004, the group's members provided mobile services to over a billion customers, Ehrlich continued.
3GSM, the technology that the trade group is plying, is a platform for third-generation mobile multimedia services. Its core strength is its ability to deliver seamless international roaming across more than 200 countries. The platform has penetrated 75 percent of the world's mobile phone industry, while its competitor, CDMA or Code Division Multiple Access digital wireless technology, is trailing behind with only a 15 percent share, Ehrlich said.
"(Our) 75 percent (share) will increase to 80 percent in two years because two other technologies - TDMA in the U.S. and PDC in Japan - will be switching to GSM," he said. "Our levels of penetration throughout the world will continue to increase and CDMA will continue to be what I call a niche (platform)."
Taiwan is ready to deliver "cost-effective and compelling multimedia services" on the 3GSM platform later this year, he boasted.
"Around the world, 3GSM momentum continues unabated, 36 networks have already launched, and a further 40 are expected to launch by end of 2004," Ehrlich, said. This is the year that the industry can finally say that it has economies of scale, he added.
"Massive operator investment and the supply of 3GSM handsets coming on stream from leading vendors, combined with a wealth of exciting mobile content and a fiercely competitive market are all key factors that will rapidly unlock Taiwan's mass market," the executive said.
Taiwan, the official added, was an early mover in the world of GSM, with the first networks launched in 1995. The country currently has a 113 percent market penetration - the highest in the world.
"Global roaming and interoperability, massive value, and variety of products and services are the unique hallmarks of a global open standard, the fruits of which Taiwan, its people and its industry already enjoy with GSM," GSMA CEO Rob Conway added.
"GSM is the world's biggest commercial cooperative - a mobile telephony eco-system. The global reach and breadth of the GSM industry keeps handset, infrastructure, and application costs down, benefiting Taiwan's operators and their customers - these economies of scale help explain Taiwan's massive level of penetration."
Ehrlich likewise dismissed skeptics and naysayers who predicted that 3G was destined to be a flop, or that 3GSM would never get off the ground.
"A number of years ago, when the Internet implosion occurred in the stock markets of the world and some of the 3G auctions occurred in Europe, there were some significant questions about the future of the mobile phone industry," he said.
"Those of us in the industry felt very confident about our future but some of the financial community were a bit skeptical about how we can survive going forward with 3G."
Within the next few months, those skeptics would realize that "it was a timing issue only," said Erhlich.
"One factor that seemed to slow down the development of 3GSM was the handset. Will we have enough telephones? We are very confident that has been solved. During the third and fourth quarters, we will see at least a dozen different handset vendors introducing their 3GSM products," he added.
Another frequently asked question, he noted, was: Where will the next one billion subscribers come from?
Mobile operators would be able shore up their revenues by creating more demand for wireless multimedia services in advanced economies, and making their products and services accessible to emerging markets that had still low penetration levels, he said.
China, where GSM has cornered 25 percent of the market, will grow another 20 percent this year. India, which enjoyed 120 percent growth last year, was another plum market for the GSM community, the official added.
"China, India, Latin America, and Eastern Europe still have low penetration levels. That's where our next one billion subscribers will come from," Ehrlich said.
"The issue here is: How do we get our terminals and handsets into those markets? Our industry is finding ways to get our products into the hands of more people."
http://www.etaiwannews.com/Business/2004/03/11/1078972825.htm
Optimism seen for operators of 3G networks
HIGH-TECH PHONES: A lack of handsets and compelling content have put many off 3G services, but that will all change this year, an insider says
By Lisa Wang
STAFF REPORTER
Thursday, Mar 11, 2004,Page 10
Many telecommunication operators around the world have slowed the launch of third-generation (3G) networks amid questions about demand for the services. But Craig Ehrlich, chairman of the UK-based GSM Association, remains optimistic.
Ehrlich, also a board member of Hutchison Mobile Communications, said yesterday in Taipei that he believes the launch of 3G networks could pick up this year as a greater range of 3G phones enters the market. Hutchison Mobile is a wholly owned subsidiary of Hong Kong-based Hutchison Whampoa Ltd (©M°O¶À®H).
Third-generation technology is designed to provide faster delivery of e-mail, high-speed Internet surfing and live sound and image broadcasts to compatible handsets.
But the lack of 3G handsets and content has dimmed the hopes of operators and consumers about the potential of the service.
"We're very confident that these problems will gradually be solved this summer," Ehrlich told reporters yesterday in Taipei during his trip around Asia. "There are a lot of 3G handsets to be launched."
Ehrlich expects 40 more operators to start providing commercial services on 3G wireless networks this year.
The GSM Association is a trade group that represents GSM mobile operators around the world. Its members include 620 second- and third-generation mobile operators and 130 manufacturers and suppliers.
Taiwan's mobile operators are adopting the voice-based GSM standard for 2G phones and will migrate to GSM's 3G standard, called Wideband CDMA (WCDMA), which has been re-branded "3GSM," as the natural progression.
Despite Ehrlich's optimism, industry watchers still see a bumpy road ahead, with Hutchison Whampoa finally launching its "3 band" service last month only after several delays.
"It's not a technological problem, but we just don't see demand there," said Gary Lai (¿à´¸·), a telecom analyst at Primasia Securities Co.
A lack of "killer" applications to lure customers and abundant content are the biggest obstacles to convince 2G subscribers to move up to 3G, Lai said.
"It's certainly a trend to migrate to data-based 3G services, but we don't yet know how long the transition will take. Five years? Perhaps," Lai said.
In Taiwan, only Motorola Inc's A835 and Nokia's 7600 support 3G technology. But international mobile-phone vendors are set to roll out more models in the second half of the year.
Taiwan's No.1 handset maker, BenQ Corp (©ú°ò¹q³q), said its first 3G model will not hit the market until the first quarter of next year at the earliest.
Foreseeing the difficulties, local operators have been slow in launching 3G services because of low demand for wireless Global Packet Radio Services (GPRS), a transition technology between 2G and 3G services, said Chris Tan (ÃÓ§Ó©¾), an analyst at Yuanta Core Pacific Capital Management (¤¸¤j¨ÊµØ§ëÅU).
Reduced spending on new 3G equipment is a sign of the problems, he added.
Chunghwa Telecom Co (¤¤µØ¹q«H) has slashed its spending on equipment by 20 percent to NT$3.8 billion this year, Tan said.
"Now, local operators hope only to safeguard their market position and wait for the launch of 3G to mature," Tan said.
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http://www.taipeitimes.com/News/biz/archives/2004/03/11/2003102033
1x EV-DV Now Official, and Officially Fast
By Eric Lin, Wed Mar 10 22:45:00 GMT 2004
The 3G Partnership Project has just approved revision D of CDMA 2000 1x EV-DV. 1x EV-DO was already achieving higher data rates than WCDMA; EV-DV quadruples the data speed, adds faster upload rates and simultaneous voice transmission.
If the CDMA Development Group's claims are even close to what we'll seen in real world deployments, CDMA 2000 1x EV-DV will not only blow away WCDMA and 1x EV-DO for data speeds, it will even outpace DSL. By creating separate channels for download and upload of date, EV-DV frees the network up for an impressive 3.1 megabit download rate. Even if it's only capable of one half to two thirds that rate in large scale deployment, that's still 1.5 to 2 Mpbs.
The separate download and upload channels also allow for much faster upload as well, the group is seeing speeds of about 1.8 Mbps upstream. Since most CDMA handsets sold in the US lack Bluetooth or IR, fast upload rates are becoming critical as manufacturers integrate cameras capable of megapixel pictures or large video into their phones. 1x EV-DV also finally realizes CDMA 2000's goal of simultaneous voice and data transmission.
According to the CDMA Development Group's press release, 1x EV-DV will be commercially available in 2005. However it is not clear whether that means the basestation equipment will become available next year, or if EV-DV networks are expected to be open to subscribers then. Phonescoop reminds us that the US carrier Sprint has committed to deploying EV-DV on its nationwide network. Verizon, the other US CDMA carrier, has recently announced it will complete a nationwide deployment of 1x EV-DO by 2005, but will begin launching the network in major cities this summer. If the development group means actual EV-DV networks will up and running in 2005, it would be possible for Sprint to launch nationwide EV-DV shortly after Verizon completes their EV-DO network
http://www.thefeature.com/article?articleid=100452&ref=-1
World's First to Integrate Bluetooth and BREW: KDDI Adds the A5504T to Its New Lineup of 3G Mobile Handsets
http://www.japancorp.net/Article.Asp?Art_ID=6775
Tokyo, Japan, Mar 10, 2004 - (JCN Newswire) - KDDI (TSE: 9433) and Okinawa Cellular Telephone (TSE: 9436) are pleased to announce an addition to their new high-speed 3G mobile handset lineup. The new A5504T by Toshiba, available from mid-April, is the first handset ot merge BluetoothTM with BREW TM applications, and comes with a mega-pixel camera, web-authoring software, multi-media output functionality, EZNavi Walk compatibility, and data transmission speeds of up to 144kbps.
Multi-Media Editing
The A5504T is equipped with multi-media authoring software which allows users to edit TV programs recorded on their PCs with TV tuner and videos captured by video camera, and replay them on the handset.
Multi-Media Output
The A5504T is equipped iwith a TV function, first made available on the A5501T model. Users are able to output the Photo Movie captured by the A5504T handset and display it on TV, using a TV connection cable that is provided with the handset.
Bluetooth
The A5504T compies to BluetoothTM. Users are able to easily transmit JPEG data of images captured by the mega-pixel camera on the handset to BluetoothTM compatible printers by wireless means. Users may also connect ot car naviagations systems that are compatible with the BluetoothTM enable TOYOTA G-BOOK, and speak to the handset hands free while driving.
The A5504T is the first handset able to merge BluetoothTm with BREW TM applications, enabling the development of new solutions brought about through wireless communcations between mobile handsets and various peripheral devices.
*As of March 2004.
About KDDI Corporation
KDDI Corporation was established in 1984 and is currently the second largest telecommunications company in Japan, providing a comprehensive range of voice, data, IP and mobile services to both business customers and consumers. After merging with KDD and IDO in October, 2000, KDDI serves over 15 million long-distance subscribers, 1.4 million internet subscribers, 13 million mobile subscribers, and 5 million PHS subscribers. KDDI has 34,000 km of highly reliable domestic network infrastructure, in addition to optical submarine cable systems such as TPC-5, Japan-US CN and China-US CN. KDDI also works to develop advanced technology in the areas of radio & mobile, lightwave, multimedia, and Internet communications. The KDDI Group consists of approx 100 companies covering a wide variety of telecommunications-related businesses such as engineering, facility hosting, submarine cable construction, and R&D. For further information, please visit the KDDI Corporation home page at: www.kddi.com/english/index.html
About Okinawa Cellular Telephone Co.
For further information, please visit the Okinawa Cellular Telephone Co. home page at: www.au.kddi.com/english/index.html
Contact:
KDDI Corporation
Dale Hug
hug@nippondigi.com
+81-3-5623-1493
--------------------------------------------------------------------------------
Mar 10, 2004
Source: KDDI Corporation
KDDI Corporation (TSE: 9433) (OTC: KDDIF)
www.kddi.com/english/index.html
From the Japan Corporate News Network
http://www.japancorp.net
Topic: New Product
Sectors: Wireless, Multimedia , Other IT & Internet, Networking
Factories: The Gears Are Turning
After three years of recession, demand is surging. The comeback looks real
A year ago, Navistar International Corp. (NAV ) was almost out of gas. With sales of its heavy-duty trucks down almost 40% from 1999's peak, the company was toting up losses for the third year in a row. And with no sign of an imminent turnaround, management was putting the screws on labor, threatening to shut down Navistar's big-rig factory in Ontario unless unionized workers went along with deep cuts in pay, benefits, and jobs.
Today, Navistar is barreling along. The Warrenville (Ill.) company in late February boosted its 2004 sales forecast to 25% above last year's levels. Navistar has just recalled 110 laid-off workers in Ontario as it prepares to ramp up production for the spring to twice the level of a year earlier. And down at its truck-assembly plant in Springfield, Ohio, output is up 36% from last year's levels. The way things are going, Chairman and Chief Executive Daniel C. Ustian says he just might bump up the numbers after another quarter. "I don't think we've seen yet how good it can get," he says.
After three long, extremely painful years, American manufacturers are finally coming back. Over the past several months, factory output has rebounded sharply, growing at its fastest pace in two decades. Enriched by rising profits, businesses are replacing equipment that is now worn out or outdated. With the sharply higher demand leading inventories to be drawn down to their lowest levels ever relative to sales, many plants have little choice but to crank up production to restock the warehouse. And the slumping dollar has also fueled demand by making U.S.-made goods much cheaper than products from Europe and Japan. The combination has many executives, who only a year ago watched a similar surge of orders fade away, cautiously optimistic that this time around the recovery has legs. "We feel real good about it," says Nickolas W. Vande Steeg, chief operating officer at factory-equipment maker Parker Hannifin Corp. (PH ), which has seen its orders surge 20% so far this year.
Certainly, there's plenty in the recent economic data to bolster confidence. In its latest monthly survey of factory-sector purchasing managers, the Institute for Supply Management said its February index of manufacturing activity, while down slightly from January, remained robust. The index has now turned in its strongest four-month streak in 20 years. Moreover, the recovery appears to be broadening. According to the Federal Reserve's latest Beige Book, released on Mar. 3, manufacturing activity rose during January and February in 11 of the 12 Federal Reserve districts. Add it up, and it looks like this recovery has lots of oomph. Indeed, the National Association of Manufacturers is predicting that factory-sector output will climb 6% in 2004, two full percentage points more than the overall economy. And if those expectations come to pass, factory hiring should finally begin to grow in the months ahead.
NO CUSHIONS. Sharp turns of this sort often lead to short-term headaches, of course. With demand for many goods surging far more than expected, the factory sector also shows some signs of struggling to keep up for the first time since the glory days of the 1990s. The ISM report also reported that backlogs are growing and delivery times are lengthening amid the fastest rise in raw-material and component prices since 1995. Many steel products were in such tight supply that factory owners and economists are starting to warn of spot shortages and production bottlenecks. "Nobody's got an inventory cushion," says Diane Swonk, chief economist at Bank One Corp. (ONE ).
The sheer strength of the manufacturing revival has taken executives and economists by surprise. Although the surge in orders began last fall, it has picked up speed and broadened out this year. A combination of factors explains the shift. For starters, many companies held off big purchases as they struggled to cut costs. Instead, they ran their truck fleet or computer network an extra year or two. But after three years of underinvestment, it's starting to cost more to maintain old equipment than to buy new stuff. Just as important, many now have the money to up capital spending or order replacement goods. Thanks to last year's 76% surge in corporate profits, the biggest in over 30 years, companies have begun to turn the spigots on capital spending. Richard J. DeKaser, chief economist at Cleveland's National City Corp. (NCC ), expects cap-ex to climb 13.6% in 2004, vs. 5.2% last year. "It's pedal to the metal," he says.
In addition, companies have kept inventories low coming out of the downturn, leaving them with little stock to draw from as sales turned up. Their reluctance to fill the supply chain made sense even as the economy gained steam last year. Over the past few years, many manufacturers had boosted output before when orders ticked up, only to see the goods get stacked up when sales quickly tapered off again. But now, after months of stronger demand, many companies have drawn inventories down so low they can't fill orders anymore unless they hike production. As manufacturers gain faith that growth will remain strong, output should move into higher gear as warehouses are restocked, economists say.
The dollar's decline also could help sustain the nascent turnaround. Exports haven't helped much yet, but a third of respondents to the NAM's annual membership survey, released on Feb. 23, believe they'll see greater foreign sales this year; just 4% believe exports will fall. Also, imports are becoming pricier, which should shift more orders to domestic producers.
The surprisingly strong upturn is lifting everyone from old-line manufacturers like Navistar to high-tech outfits such as Qualcomm Inc. (QCOM ). The San Diego microchip maker has been blindsided by demand from mobile-phone producers. Sales of phones using Qualcomm's CDMA technology totaled 37 million in the yearend quarter, up from a forecast of 32 million, as wireless outfits signed up new customers in droves. And with sales for the current quarter also running ahead of predictions, inventories have been drained. Says Chairman and CEO Irwin M. Jacobs: "We had to scramble to provide sufficient supply to meet the demand."
SMALL HIRING STEPS. Some are scrambling more than others to fill orders. Virtually every company that uses steel or other commodity metals is getting walloped with higher prices; many are also facing longer lead times for deliveries. Bottlenecks like that are retarding the factory-sector rebound, claims Bank One's Swonk. But she and other economists believe such curtailments are likely to be fleeting. As prices rise, output of goods such as steel will rise, too. Plus, sharp price runups and spot shortages typically are a sign of strength, occurring when demand outstrips supply.
Still, for all the factory sector's renewed vigor, the $64 million question remains: When will the strengthening order books translate into a rise in manufacturing payrolls? Since the factory sector tumbled into recession in mid-2000, manufacturing has lost more than 2.8 million jobs, or one in every seven, as employers moved work to low-wage sites outside the U.S. or simply folded. Now, though there are few signs of robust hiring, the slide in jobs appears to be bottoming out.
While most big manufacturers remain reluctant to staff up, many of their smaller brethren are starting to add to the headcount. That's fairly typical at this point in the cycle, since smaller firms often carry little inventory and maintain leaner payrolls. Take Manitowoc Co. (MTW ). The $1.6 billion industrial company is adding 600 employees at its shipyards in home-state Wisconsin and Ohio, to handle new orders for oil tankers and Navy combat ships. After three years of almost unrelenting recession, manufacturing is 2004's comeback kid.
By Michael Arndt in Chicago, with Faith Arner in Boston, Arlene Weintraub in Los Angeles, and Rich Miller in Washington
http://yahoo.businessweek.com/magazine/content/04_11/b3874060.htm
Euronext Paris) - Alcatel and DoCoMo Engineering jointly hosted the first "3G Indoor Coverage Forum" in Tokyo
(10/03/04 10:32 CET)
Paris, March 10, 2004 - Alcatel (Paris: CGEP.PA and NYSE: ALA) and DoCoMo Engineering Inc., a 100% subsidiary of NTT DoCoMo, Inc. Japan, announced today that they jointly host the "3G Indoor Coverage Forum" in Tokyo, Japan, on March 9th to 10th, 2004. This Forum gathers 24 international
mobile operators from 18 countries.
In the context of the current UMTS uptake, the main purpose of this Forum was to support 3G operators so that they can accurately address the right challenges (investments, traffic and revenue boost) of the 3G indoor coverage. Such enhancement is indeed essential as new services introduced by 3G, like visio-conference, will require high capacity and excellent end-user Quality of Service in indoor areas such as high-rise buildings, underground and shopping centers.
On one hand, DoCoMo Engineering Inc. is demonstrating to the international
operators participating in the Forum, the reality of NTT DoCoMo's FOMA®,
the world's first commercial 3G mobile communications service based on
W-CDMA technology. During an operational tour in downtown Tokyo, each
operator could experience key 3G FOMA® applications, including i-mode®, a
high-speed packet transmission service at speeds of up to 384 kbps, in different indoor conditions. This illustrated some of the DoCoMo Engineering's technological advances and patterns applications.
On the other hand, leveraging its international reach and its deep knowledge of European and Asian mobile operators' deployment needs, Alcatel is proposing a process to adapt and integrate DoCoMo Engineering's know-how into 3G worldwide indoor implementations. This comes on top of Alcatel's
well-established GSM experience, of its current partners' portfolio management, like RFS and LGC Wireless, and of its turnkey project
capabilities for cost-effective configurations deployments.
Masami Yamamoto, President of DoCoMo Engineering Inc. said, "NTT DoCoMo has been building up relationships with worldwide operators in order to promote
FOMA®, the world's first commercial 3G mobile communication service based
on W-CDMA technology. DoCoMo Engineering contributes to such promotion of
W-CDMA by supporting vendors around the globe, especially for indoor
engineering." He added, "We consider that the global market now needs to be
more seamless and wireless. This is why Alcatel and DoCoMo Engineering
jointly hosted the 3G Indoor Coverage Forum in Tokyo as an activity for 3G indoor promotion. We expect Alcatel's global marketing know-how and
experience and our 3G indoor field experience will contribute to the
success of tomorrow's 3G global market."
Paolo Semenzato, director of mobile radio access systems, technology and
engineering of TIM, the leading mobile operator in Italy, stated, "Even if European countries usually focus much more on outdoor coverage, the
continually expanding and international business centers, shopping malls
and train stations in Europe will require top level indoor service conditions from the very beginning." He added, "As such, the cooperation on 3G indoor coverage which was demonstrated during this Forum between Alcatel and the DoCoMo Group in Japan is of prime importance for 3G services
implementation in Europe."
Cliff Woo, deputy managing director & wireless networks director of Hutchison 3G Hong Kong, Ltd., stated, "Operating cellular networks in the highly dense metropolitan area of Hong Kong, we at Hutchison have been working in the past years for the provisioning of superb indoor coverage for both 2G and 3G." He added, "The combination of Alcatel's and DoCoMo's 3G indoor coverage skills and know-how shown during this Forum will surely help us to get the best compromise between technical constraints and economical advantage, which will result in a key differentiating position."
Marc Rouanne, chief operating officer of Alcatel's mobile communications
activities said, "The 3G indoor engineering concept is a key initial step of Alcatel's larger vision for end-user indoor behavior. Our customers now expect intercontinental seamless, wireless, and broadband services. As such, this partnership between Alcatel and the DoCoMo Group, focusing on today's and tomorrow's fixed and mobile telecom visions, consolidates the transfer of experience which, for months, Alcatel has been promoting between Japan and the rest of the world."
FOMA and i-mode are registered trademarks of NTT DoCoMo, Inc. in Japan and other countries
About DoCoMo Engineering Inc.
With sales of YEN 43 billion in FY 2003, DoCoMo Engineering ,Inc. continues
to carry out its operations within the vast scope of mobile communication, including construction, operation, and maintenance, data processing, and
development of new technologies, as the technical support of NTT DoCoMo.
DoCoMo Engineering, Inc. strives to lead the way in the IT age.
About IMCS
IMCS (In-building Mobile Communication System) is a name of the system
which has been developed by NTT DoCoMo Inc. Japan for providing
telecommunication services in the closed area. This service is provided for
mobile phones and PHS in closed areas such as underground facilities,
inside building etc. The service is made available by connecting radio base
station located in underground or inside building with NTT DoCoMo's mobile
and PHS network through leased circuit. Then the radio base station is linked to antenna located in several locations in closed area via coaxial cable, optical fiber etc.
About Alcatel
Alcatel provides communications solutions to telecommunication carriers,
Internet service providers and enterprises for delivery of voice, data and
video applications to their customers or to their employees. Alcatel leverages its leading position in fixed and mobile broadband networks,
applications and services to bring value to its customers in the framework
of a broadband world. With sales of EURO 12.5 billion in 2003, Alcatel
operates in more than 130 countries.
Alcatel is now the world's fastest growing GSM/GPRS and EDGE supplier.
Alcatel has established a dominant position in today's expanding emerging
markets, where it is now the leader, with a 25% share. Alcatel's diversified portfolio of over 150 mobile operators includes a strong segment of greenfield operators - in Central & Eastern Europe, Asia-Pacific and Africa & the Middle-East - which are poised for the most rapid expansion. Alcatel's highly efficient business model implemented through its Evolium? radio & core solutions - GPRS and EDGE ready, has significantly contributed to this success. Alcatel offers mobile operators a GSM 800, 900, 1800 and 1900MHz end-to-end solution offering, including radio access and core network systems, services platform and mobile terminals. Moreover, the company is expanding its offering in advanced
applications and services. Alcatel's application portfolio leverages and extends the value of telecom networks. Alcatel's Open Service Delivery Engine is the ideal applications environment based on next generation IN and J2EE technology. It enables the implementation of a wide range of applications such as network proxies, WAP or SMS gateways, messaging solutions such as UMS or MMS, 0800 and 0900 services, mobile or fixed VPN solutions, a complete and convergent real-time payment chain. Alcatel's UMTS solutions are a reality today, with more than 20 UMTS pilot networks delivered in Europe and in Asia. Evolium SAS, the Alcatel-Fujitsu joint venture, delivers a mobile infrastructure that is 3GPP-compliant, field-proven and capitalizes on Japanese 3G technical and field experience.
Source : Alcatel
http://www.euronext.com/news/companypressrelease/0,4616,1732_11894_140656996__1,00.html
Verizon Wireless to Launch Global Cell Phone Next Month
By Peter J. Howe, The Boston Globe Knight Ridder/Tribune Business News
Mar. 8 - After years of development, Verizon Wireless plans next month to roll out its first cellphone that will also work on European and international wireless networks.
The move will give Verizon a new way to compete with other carriers, including T-Mobile and Cingular, that offer roaming abroad but are consistently rated as having less reliable US coverage than Verizon, the largest US carrier with 38.5 million subscribers. Analysts expect the phones will cost $300 or more, but Verizon has not disclosed any prices.
Besides addressing service demands from globe-trotting US executives for single-phone wireless coverage around the world, analysts said the plan may also be aimed at shoring up the frayed ties between Verizon Communications Inc. and European wireless giant Vodafone Group PLC, which owns a minority stake in Verizon Wireless in a 55 percent-45 percent partnership with Verizon.
Vodafone last month offered nearly $40 billion to buy AT&T Wireless Services Inc. before it was edged out by Cingular, losing a chance to get full control of its own US operations. Some industry executives said that while Verizon Wireless has been a good investment, Vodafone, which has interests in systems serving 125 million wireless subscribers globally, may be frustrated that Verizon has not better integrated itself with Vodafone -- a complaint Verizon can mollify by selling phones that get subscribers on Vodafone networks abroad.
Denny Strigl, chief executive of Verizon Wireless, told Reuters last week that "you will see the evidence of a major project that we've been working on for a couple years very shortly, which is our global phone." The unit, which Verizon has been talking about for years, would have extra components so it works on Verizon's US network as well as the GSM, or Global System for Mobile, networks that dominate in Europe and other foreign locations.
Verizon Wireless declined to give more details. Vodafone spokeswoman Jeanine Young said, "This is something that Verizon has been working on for quite some time, and it is theirs to talk about."
"Obviously, we'd be delighted to have a handset like that," Young said, but she described it as the sole initiative of Verizon, not something Vodafone has pushed for.
According to the US Commerce Department's Office of Travel & Tourism Industries, in 2002 23.4 million Americans traveled abroad, about 1.6 million of whom came from New England. About 7.5 million people traveled for business, spending an average of 13.9 nights abroad, and the average business traveler made five trips outside the United States. Western Europe accounted for 46 percent of all business trips abroad.
Overall, those numbers suggest that the number of US business people who travel often enough and long enough to want global-coverage wireless phones may be no more than 1 or 2 percent of the 155.9 million US wireless subscribers.
"The numbers are relatively modest, but they are some of your best business customers," said Mark Lowenstein, managing director of Mobile Ecosystem, a Wellesley wireless consulting firm.
Agreed Yankee Group wireless analyst Roger Entner: "The target market for this phone is not the mass market. It's the key decision-makers in multinational corporations, a small but very, very powerful number of people."
Eric Kraus, vice president of corporate communications for Boston-based Gillette Co., which operates in 200 countries and has factories in 14, said he and many other Gillette executives use a second phone when traveling. "The phone that I have abroad does have coverage in the US, but the signal strength isn't as good," said Kraus, who declined to say which carriers he uses. Kraus said many business travelers might like one-phone convenience, but carrying "a second phone may work very well. It really comes down to a matter of personal preference."
T-Mobile USA, a Deutsche Telekom unit that has always offered solely GSM service, has made its international roaming coverage in over 125 countries a key marketing pitch, although it tends to get more young, cost-conscious subscribers than business users. Adding international roaming -- as well as access to advanced European handsets -- has been a key driver for AT&T Wireless and Cingular, which are both most of the way through adding GSM service.
Nextel Communications Inc. also offers a $200 phone that works on GSM networks abroad but not on Nextel's US network. The advantage for Nextel subscribers is they can use their Nextel number abroad by transferring a stamp-sized card from their regular Nextel phone into the international phone when traveling.
The Verizon Wireless commitment to a global phone plan may reflect Strigl's desire to mend fences with Vodafone, given speculation that Vodafone's bid for AT&T Wireless reflected dissatisfaction with Verizon Communications Inc. Keeping Vodafone happy is important for Verizon Communications because Vodafone this year can exercise an option to force Verizon Communications to buy out Vodafone's interest in Verizon Wireless for $20 billion or more, which would have huge balance-sheet effects on Verizon Communications, currently carrying $39.4 billion in long-term debt.
Entner said the global phone offer "is meant to show the commitment of Verizon Wireless to being a global partner of Vodafone," quipping that "instead of saying it with flowers, Denny's saying it with a phone."
-----
http://www.miami.com/mld/miamiherald/8134730.htm
Nokia 3G 7600 Sales Soar
9th March , 2004
Europe : After suffering months of crippling handset delays, high profile accusations of poor coverage, customer care and service quality, 3 are currently in a state of rebirth. The 3G operator can now boast an invigorated line up of devices, improved network coverage and a rapidly improving customer care organisation. When this is coupled with, by far and away, the most generous consumer tariffs in the market, now is the time for the incumbent mobile operators to regard 3 as being at their most dangerous.
Mako Analysis, a UK based mobile market analysis, research and consulting firm, has this week revealed that 3 have now addressed the majority of their weaknesses that dogged them during 2003 and are now in a battle ready state to take on the incumbent mobile phone operators.
In their report, “3 – Running at a Third of its Potential”, Mako Analysis provides a full analysis of every aspect of 3’s operation from its launch a year ago, to its strategy for 2004 and beyond.
The report also reveals that 3 are currently selling over 8,000 Nokia 7600 devices per week in the Carphone Warehouse chain. This total has beaten all previous connection records for 3 sales in the chain, which peaked last summer at 2,300 customers per week.
A spokesperson for Mako Analysis commented, “Its time for the likes of Vodafone and Orange to take another look at 3 as they have now resolved many of the issues that have been preventing the 3G operator from acquiring customers for some time.” He continued, “3 have, for the first time, beaten all of the incumbent operator’s weekly connection figures in the Carphone Warehouse chain, this should serve as a massive wake up call. This feat clearly illustrates the power of 3’s tariffs when combined with a compelling device, 3 will soon have compelling devices in all channels which will result in record breaking connection figures for the operator.”
He concluded, “3 are back in the market and are baying for blood, incumbent mobile operators will need to deploy some pretty impressive retention efforts in order to stem the number of customers leaving for 3. As discussed in the report, 3 do have their weaknesses but they will not remain so for long, the incumbent mobile operators have to apply pressure to these weaknesses sooner rather than later.”
http://www.3g.co.uk/PR/March2004/6754.htm
DoCoMo Employees Fudge the Numbers
By Eric Lin, Mon Mar 08 22:30:00 GMT 2004
January's figures for Japanese mobile subscribers weren't a fluke, DoCoMo was looking bad in February too- so bad that one district's employees signed up for for 800 extra subscriptions at the end of the month to boost dwindling numbers.
Although DoCoMo's rate of growth has slowed lately, they still have added new customers every month. But last month DoCoMo Kyushu, a subsidiary covering the southern island, was about to suffer a net loss of subscribers for the first time. To avoid the shame of being the first subsidiary to actually lose more customers than they gained, employees signed up for 800 new subscriptions at the end of the month to boost the numbers, according to a translation from Dottocomu.
Of course no one may have noticed this trick except that the employees all cancelled their contracts a few days later, raising flags in the company database. DoCoMo Kyushu has apologized and will punish the employees. Even though it is unlikely that 800 subs could have effected the numbers much outside of Kyushu Island, this has caused DoCoMo as a whole to look pretty stupid. February's numbers have not been released yet, but we're willing to bet DoCoMo will be in the black, even with Kyushu's net loss.
Dottocomu echoes the stories we've been hearing that KDDI's AU service, their Infobar handset, and their flat rate data tariff putting the hurt on DoCoMo. Recently DoCoMo announced they would offer a flat rate data plan as well, but they have not opened the plan or announced the price to date. DoCoMo's brand is so strong that when they start a flat-rate plan, they should be able to stop bleeding subscribers. Apparently the DoCoMo employees couldn't wait for this to happen.
http://www.thefeature.com/article?articleid=100445&ref=-1
New Hitachi 3G Mobile
9th March , 2004
ASIA : KDDI and Okinawa Cellular Phone are pleased to announce a new 3G mobile phone that will be available in March 2004. The main features of the mobile phones to be released are as follows:
W21H (supporting CDMA 1X WIN service), by Hitachi, Ltd.
First megapixel phone for the broadband CDMA-1xEVDO.
- 1.24 Megapixel
- 1280 x 960 SXGA (QVGA) display
- 22-step - 8X Digital Zoom
- 1xEVDO speed of dowloading data ranges from 400Kbps to 2.4Mbps.
- Supports CDMA 1X WIN service that offers fixed monthly charges for e-mails and EZweb access. (Does not support EZchannel, high definition EZmovie, Live Camera, or large-sized high definition MovieMail.)
- "Mail Mode" to send mega pixel images.
- "Okonomi Icon" for downloading users' favorite menu icons
http://www.3g.co.uk/PR/March2004/6742.htm
3G Shakeout Continues in Europe
9th March , 2004
US : If the adoption of 3G in Western Europe follows the same timeline as it did in Japan, there will be more than 8 million W-CDMA users in the region by mid-2005.
Above shows : W-CDMA User Share of Domestic Mobile Market from NTT DoCoMo and Hutchison Whampoa, 2004. Telefonica Moviles’ announcement in January 2004 that it had agreed to sell its Austrian 3G license to local incumbent Mobilkom marked the scrapping of yet another would-be 3G network. Telefonica had previously abandoned its 3G licenses Quam (Germany) and Blu (Italy).
Orange, which has unloaded its Swedish license, and OniWay in Portugal, which was broken up and absorbed by the three incumbents, joined Telefonica in its strategic retreat. Meanwhile, Tele2 decided it was better off being a virtual 3G operator (MVNO) in Norway rather than spend millions on building out its own network. Broadband Mobile declined its Norwegian license from the outset.
Including Mobilcom in Germany, and of the 70 national 3G licenses issued in Western Europe, eight have been officially scuppered while plans for a few others remain in serious doubt.
At the end of 2003, commercial W-CDMA services were only available in Austria, Denmark, Italy, Sweden and the U.K. Hutchison’s 3, which has commercial operations in all five markets, has made uninspiring progress so far. After 9 months of handset, network and roaming problems, it had achieved a user market share of less than 1 percent in both Italy and the U.K. by the end of 2003.
As a European W-CDMA market leader, 3 can be forgiven some initial teething problems. Even NTT DoCoMo encountered major glitches following the launch of its FOMA W-CDMA service in Japan. In October 2002, 1 year after service launch, there were only 142,000 FOMA users—a mere 0.2 percent of all Japanese mobile users. However, in the last 12 months, as network coverage expanded, the range and price of handsets improved and the glitches ironed out, FOMA adoption snowballed. By the end of 2003, DoCoMo had 1.9 million FOMA users—an annual increase of more than 1,000 percent, and accounting for 2.4 percent of the country s mobile users.
If Western Europe replicates the Japanese adoption timeline, there will be more than 8 million W-CDMA users in the region by mid-2005 (2.4 percent of 340 million). There's no doubt the two markets are very different; the main difference is the attitude of consumers toward mobile data. However, there are strong reasons to believe the pace of European 3G adoption will equal or exceed Japan’s.
First, most carriers are conducting pre-commercial trials and will launch commercial services in 2004. Carrier pressure on vendors and greater economies of scale will mean better and cheaper equipment, while the lessons of DoCoMo and 3 should help other providers avoid early technical problems.
In addition, there is the lack of competing technologies. Where CDMA and 1X upgrades will compete with W-CDMA in Japan, there is no comparable cellular broadband technology being deployed in Western Europe. Interim or parallel technologies such as EDGE and Wi-Fi have similar characteristics but cannot match the attributes and benefits of W-CDMA.
Despite some licensees dropping out, most markets will see a new infrastructure-based mobile entrant, bringing additional competition, lower prices and greater stimulus for mobile data adoption and usage.
Vendors Recommendations
· Collaborate more on open standards and interoperability. Despite various industry initiatives, network and handset technologies from different vendors still don’t interact effectively, causing major integration issues, delays, and higher rollout costs.
· Introduce 3G handsets with advanced features now. Vendors should focus on fulfilling carrier demand for W-CDMA handsets in 2004. Interim technology upgrades are less important. Operators have shown they will find alternative suppliers or create their own branded devices with OEMs if requests are not fulfilled.
Carriers Recommendations
· Ensure that you have adequate network coverage, reliability and interoperability before marketing commercial services. Resist pressure to launch in response to competitors actions or loose regulatory mandates, for consumer disappointment will be hard to reverse.
· Focus on W-CDMA. The future, as determined by spectrum licenses and market realities, lies with W-CDMA. Diverting resources now to develop and extend the shelf life of E-GPRS or EDGE will only delay progress to this eventual goal. EDGE can play a useful for role for many European operators over the next 5 years, but it should complement W-CDMA rather than substitute for it.
· Keep price levels similar to GSM. Even if this means very high handset subsidization and low video call revenues in the interim. Base pricing for additional W-CDMA services on the value customers perceive, not on the fact the service uses a new technology.
http://www.3g.co.uk/PR/March2004/6752.htm
Zacks Buy List Highlights:
Ceradyne, Mandalay Resort Group, American Eagle Outfitters, and Qualcomm
Tuesday March 9, 6:00 am ET
Excerpt from above:
Qualcomm, Inc. (NASDAQ:QCOM - News) develops and delivers innovative digital wireless communications products and services. In late February, Qualcomm stated that record demand for its chipsets and strong growth in virtually all CDMA markets are driving solid financial results in fiscal 2004. Based on the current business outlook, the company forecasted fiscal second quarter earnings per share, excluding the QSI segment, of between 48 cents and 50 cents. That range would mark an increase of +26% to +32% from last year, and was well ahead of the consensus. It also anticipates revenues for the quarter, excluding the QSI segment, to improved about +16% to +18% year-over-year. The news rested well with analysts as earnings estimates for the year ending September 2004 are now up approximately 11 cents, or +7%, from one month ago. Given its popular products and encouraging outlook for the future, Qualcomm may be a good addition to your investment universe.
http://biz.yahoo.com/bw/040309/95159_1.html
3G difficult times will end soon - report
March 8, 2004
The Yankee Group
If the adoption of 3G in Western Europe follows the same timeline as it did in Japan, there will be more than 8 million W-CDMA users in the region by mid-2005.
Telefonica Moviles' announcement in January 2004 that it had agreed to sell its Austrian 3G license to local incumbent Mobilkom marked the scrapping of yet another would-be 3G network. Telefonica had previously abandoned its 3G licenses Quam (Germany) and Blu (Italy).
Orange, which has unloaded its Swedish license, and OniWay in Portugal, which was broken up and absorbed by the three incumbents, joined Telefonica in its strategic retreat. Meanwhile, Tele2 decided it was better off being a virtual 3G operator (MVNO) in Norway rather than spend millions on building out its own network. Broadband Mobile declined its Norwegian license from the outset.
Including Mobilcom in Germany, and of the 70 national 3G licenses issued in Western Europe, eight have been officially scuppered while plans for a few others remain in serious doubt.
At the end of 2003, commercial W-CDMA services were only available in Austria, Denmark, Italy, Sweden and the U.K. Hutchison's 3, which has commercial operations in all five markets, has made uninspiring progress so far. After 9 months of handset, network and roaming problems, it had achieved a user market share of less than 1 percent in both Italy and the U.K. by the end of 2003.
As a European W-CDMA market leader, 3 can be forgiven some initial teething problems. Even NTT DoCoMo encountered major glitches following the launch of its FOMA W-CDMA service in Japan. In October 2002, 1 year after service launch, there were only 142,000 FOMA users-a mere 0.2 percent of all Japanese mobile users. However, in the last 12 months, as network coverage expanded, the range and price of handsets improved and the glitches ironed out, FOMA adoption snowballed. By the end of 2003, DoCoMo had 1.9 million FOMA users-an annual increase of more than 1,000 percent, and accounting for 2.4 percent of the country s mobile users.
W-CDMA User Share of Domestic Mobile Market
Source: NTT DoCoMo and Hutchison Whampoa, 2004
If Western Europe replicates the Japanese adoption timeline, there will be more than 8 million W-CDMA users in the region by mid-2005 (2.4 percent of 340 million). There's no doubt the two markets are very different; the main difference is the attitude of consumers toward mobile data. However, there are strong reasons to believe the pace of European 3G adoption will equal or exceed Japan's.
First, most carriers are conducting pre-commercial trials and will launch commercial services in 2004. Carrier pressure on vendors and greater economies of scale will mean better and cheaper equipment, while the lessons of DoCoMo and 3 should help other providers avoid early technical problems.
In addition, there is the lack of competing technologies. Where CDMA and 1X upgrades will compete with W-CDMA in Japan, there is no comparable cellular broadband technology being deployed in Western Europe. Interim or parallel technologies such as EDGE and Wi-Fi have similar characteristics but cannot match the attributes and benefits of W-CDMA.
Despite some licensees dropping out, most markets will see a new infrastructure-based mobile entrant, bringing additional competition, lower prices and greater stimulus for mobile data adoption and usage.
Vendors Recommendations
- Collaborate more on open standards and interoperability. Despite various industry initiatives, network and handset technologies from different vendors still don't interact effectively, causing major integration issues, delays, and higher rollout costs.
- Introduce 3G handsets with advanced features now. Vendors should focus on fulfilling carrier demand for W-CDMA handsets in 2004. Interim technology upgrades are less important. Operators have shown they will find alternative suppliers or create their own branded devices with OEMs if requests are not fulfilled.
Carriers Recommendations
- Ensure that you have adequate network coverage, reliability and interoperability before marketing commercial services. Resist pressure to launch in response to competitors actions or loose regulatory mandates, for consumer disappointment will be hard to reverse.
- Focus on W-CDMA. The future, as determined by spectrum licenses and market realities, lies with W-CDMA. Diverting resources now to develop and extend the shelf life of E-GPRS or EDGE will only delay progress to this eventual goal. EDGE can play a useful for role for many European operators over the next 5 years, but it should complement W-CDMA rather than substitute for it.
- Keep price levels similar to GSM. Even if this means very high handset subsidization and low video call revenues in the interim. Base pricing for additional W-CDMA services on the value customers perceive, not on the fact the service uses a new technology.
http://www.3gnewsroom.com/3g_news/mar_04/news_4284.shtml
Qualcomm, Inc. Re: 50% of WCDMA?
http://www.fool.com/community/pod/2004/040308.htm?ref=foolwatch