Japan's NEC wins order for Italy 3G cellphone test

date: 25th January 2001, source: reuters.com

Japanese electronics maker NEC Corp said on it would supply Italian mobile phone operator TIM with equipment enabling it to offer third-generation (3G) cell phone services for a field test.

The first such deal between a Japanese telecoms equipment maker and a European carrier comes ahead of the expected launch of 3G services in Europe sometime early next year, an NEC spokeswoman said.

The 3G systems will offer such features as high-speed Internet connections with customised news services, ability to recognise the user's location and remote monitoring of devices.

NEC's shares closed 3.09 percent higher on Monday at 2,335 yen, helped by the softer yen against the dollar and recovering stock prices in the technology-laden U.S. Nasdaq market.

Japanese manufacturers have so far made telecoms equipment based on a format used exclusively in Japan.

But the launch in May of the world's first 3G service by Japanese cell phone giant NTT DoCoMo Inc is expected to prompt other telecoms firms -- such as Fujitsu Ltd and Matsushita Electric Industrial Co Ltd -- to enter overseas markets, Japanese business daily Nihon Keizai Shimbun said on Monday.

NEC will work with Siemens AG of Germany to develop the equipment, which it will start shipping by this spring, the NEC spokeswoman said.

Under the deal with TIM (Telecom Italia Mobile), NEC will make cell phone radio stations, which will be offered to the major Italian cell phone carrier along with Siemens' wireless phone switching systems.

The equipment will be put to the test in a field trial to be carried out in the Italian city of Padua in the spring, the spokeswoman said.

NEC declined to disclose the number of devices to be shipped to TIM or the value of the deal.

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