Hi Declan, hi all,
> Has anybody heard the rumour of Qualcomm wanting to become a Type
> One carrier in Japan, or should I shoot my sources?
I think this is what you mean:
INTERVIEW: Qualcomm Japan 'For Real' In 3G License Bid
(http://sg.biz.yahoo.com/news/international/dowjones/article.html?s=sgfinance/news/000424/international/dowjones/INTERVIEW_Qualcomm_Japan__For_Real__In_3G_License_Bid.html)
By Ian Messer
TOKYO (Dow Jones)--The president of Qualcomm Inc.'s (QCOM)
Japanese operations said the company is serious about pursuing
an operating license for third-generation (3G) cellphone
services, depending on which of the two competing formats
for 3G technology Japan's DDI Corp. (J.DDD) chooses.
"We cannot live with a situation monopolized by the wrong
technology," Ted Matsumoto said in an interview with Dow
Jones Newswires, explaining the U.S. telecommunications
giant's surprise decision to launch a last-minute
application for a 3G license in Japan.
Matsumoto confirmed that Qualcomm would decide whether to
go ahead with the application to Japan's Ministry of Posts
and Telecommunications if DDI, one of Japan's three major
cellphone service operators, chooses to adopt the W-CDMA
(wideband code division multiple access) technological
standard rather than the CDMA2000 format supported by
Qualcomm.
Such a move by DDI, which would represent a major reverse, would
mean that the company is falling in line with Japan's two other
big cellphone operators, NTT DoCoMo Inc. (J.NTX or 9437) and Japan
Telecom Co. (J.JTC or 9434), which have already said that they
will adopt the W-CDMA standard.
Matsumoto called the odds of DDI's choosing W-CDMA "50-50".
Such a choice would be bad news for Qualcomm, he said. Although
Qualcomm generates the same royalty rates from both W-CDMA and
CDMA2000 technology, he noted that a shutout of CDMA2000
technology would hurt Qualcomm's sales of semiconductor chip
sets for mobile handsets in Japan.
Matsumoto said he was "very surprised" by DDI's possible change
of heart, and that DDI's prevarication left Qualcomm no other
choice but to apply for a license itself.
Qualcomm would most likely drop its license bid and come to an
"amicable settlement" with DDI if DDI were to choose the
CDMA2000 format Qualcomm favors, Matsumoto said.
However, he stressed that Qualcomm's plans for making its own
application are "for real," and said he and his staff are
currently working around-the-clock to prepare an application by
the May 12 deadline.
Matsumoto said that if Qualcomm goes ahead with its application,
he is "reasonably confident" of winning a license. Unlike other
countries where licenses to operate 3G cellphone licenses are
offered through an auction process, in Japan it's a "beauty
contest," noted Matsumoto.
Qualcomm's CDMA2000 format is "clearly superior" for wireless
Internet applications, Matsumoto said. "Our technology can utilize
the 3G spectrum much more efficiently for Internet users," he said.
Matsumoto conceded Qualcomm's application would be handicapped by the
fact that it isn't a cellphone service operator, unlike the three
other declared applicants. However, he sees the strength of CDMA2000
technology as a telling advantage.
Outlining Qualcomm's strategy for its license application,
Matsumoto said that Qualcomm's bid would be made through a new
company rather than through its existing operations in Japan.
The new company would be backed by a "purely U.S. consortium," he
said, adding that Japanese partners would only be invited after
a license has been obtained.
Matsumoto said that he has already been in touch with several
potential local partners, but declined to name the parties
involved.
The Qualcomm-led consortium would initially build between 9,000
and 10,000 base stations to support a 3G cellphone service in
Japan.
The plan would require investment of roughly $10 billion,
Matsumoto estimates. Financing would not be a problem, as
"the money is available," Matsumoto said. Qualcomm estimates
that the new venture would have "a positive cashflow in 3-4
years," he said.
At stake is a huge potential market, as the introduction of
commercial 3G services is expected to be the next landmark
event in the development of the global telecommunications
industry.
The wider bandwidth available with 3G technology can support
video conferencing and high-speed Internet access through
cellphone handsets.
Japan recently became the third country in the world where
cellphone subscribers outnumber fixed-line users.
Kind regards,
Andrea Hoffmann
--
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Received on Wed Apr 26 06:46:36 2000