Replies to post #20684 on InterDigital Inc (IDCC)

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Sharp gets 3G funding and expands to China

Japan's DoCoMo has said that it will invest in the development of 3G mobile phones being manufactured by Sharp Corporation. For the past six months, DoCoMo has been investing in the development of 3G phones being developed by other handset manufacturers, including Fujitsu, Mitsubishi Electric, NEC and Panasonic Mobile. New handsets manufactured by NEC, Fujitsu and Panasonic were introduced earlier this year, helping boost the number of FOMA users. With the inclusion of Sharp, the total amount to be invested by DoCoMo in the development of 3G phones by handset manufacturers during fiscal 2002 and 2003 (ending March 31, 2004) is expected to reach approximately US$350 million.

Under the terms of DoCoMo's agreements with them, the five manufacturers are required to develop new FOMA handsets, featuring advanced applications and longer battery life, within the current fiscal year ending March 31, 2004. DoCoMo will share ownership rights for FOMA handset patented technologies and know-how with the manufacturers, receiving royalties if these manufacturers supply similar 3G handsets to other 3G operators.

Sharp has also signed an agreement with China's Datang Telecom to supply camera-equipped GSM mobile phones to the Chinese market. Sharp has been manufacturing and selling audio-visual products, home appliances, office equipment and electronic components in China, but this is the company's first entry into the Chinese mobile phone market.

Under the agreement Sharp will provide 100,000 units to Datang, which will distribute them through its nationwide sales network. Sharp aims to strengthen its partnership with Datang, a company with strong links to the Chinese government, and fully expand its business in the Chinese market.

Datang Telecom, headquartered in Beijing, is a large telecommunication infrastructure systems group separated from the China Academy of Telecommunications Technology and formed in 1998. Datang is also a key promoter of TD-SCDMA, a 3G mobile phone standard specific to China. Many speculate that this will likely lead to the coexistence of three systems-TD-SCDMA, W-CDMA, and cdma2000-in China.