UPDATE 1-Hutchison taps Motorola for $700 mln in 3G devices
July 10, 2001 07:48:00 AM ET
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HONG KONG, July 10 (Reuters) - Conglomerate Hutchison Whampoa Ltd said on Tuesday it had selected U.S. telecoms gear giant Motorola Inc (MOT) to provide it with US$700 million in third-generation wireless devices, with delivery expected to begin in the third quarter of 2002.
Hutchison said it named Motorola as its preferred provider of 3G handsets for its planned networks in markets including the United Kingdom, Italy, Sweden, Australia and Austria.
The 3G devices will be multimedia-capable, boast always-on Internet connections, and able to operate on existing and next-generation networks using the UMTS (Universal Mobile Telecommunications Service) standard, the companies said.
Hutchison, which also has holdings in ports, supermarkets and property, plans to launch 3G services in 2002 in each market where it owns spectrum.
"Once there are mass volumes of devices in the market, 3G will become a reality," Hutchison managing director Canning Fok said in a statement.
Hutchison was among the companies that paid what totaled more than $100 billion last year for 3G network spectrum in Europe. Third-generation mobile technology promises to provide high-speed wireless Internet connections but a loss of investor faith in the unproven technology has helped to punish telecoms valuations globally.
The agreement commits both companies to work together to develop 3G mobile devices through at least 2003, Hutchison said. REUTERS
© 2001 Reuters
