MCI expects 3G profit not good

date: July 26, 2001

Matsushita Communications Industrial threw cold water on hopes for early returns from 3G mobile phones by indicating profits from the handsets were unlikely to materialise for a few years.

Matsushita, which is manufacturing 3G phones for NTT DoCoMo, expects to realise gains from the phones towards the end of 2003, said the company's president, Yasuo Katsura.

This was because the handsets were not likely to spread until a nationwide network is in place.

DoCoMo's 3G service, the first trial service in the world, is restricted to the Tokyo area.

Mr Katsura's comments come as the Matsushita group, led by president, Kunio Nakamura, revealed its first quarterly loss in more than three decades and as DoCoMo prepares to unveil results of its trial 3G service.

Mr Katsura said the short life of the batteries used in DoCoMo's 3G service, known as FOMA, was a problem unlikely to be solved quickly.

NTT DoCoMo will supply more details about the 3G FOMA service on Thursday.

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