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AARON SAYS U.S. TO PRESS EU ON HARMONIZATION

WASHINGTON-David Aaron, undersecretary of Commerce for international trade, told wireless executives last week the Clinton administration intends to press the European Union to affirm a carrier compromise on harmonizing competing Code Division Multiple Access standards for third-generation mobile phones.

Aaron, according to a participant at the closed TransAtlantic Business Dialogue meeting last Thursday, said the administration fears the EU will move slowly in converging U.S.-based CDMA and European-based Wideband CDMA, and some countries may try to license only W-CDMA. Aaron said such a tack, according to the TABD participant, would be challenged by the United States in the World Trade Organization.

U.S.-developed CDMA is locked out of Europe today. American manufacturers Qualcomm Inc. and Lucent Technologies Inc. and U.S. carriers that deploy CDMA technology favor CDMA harmonization for 3G phones.

Motorola Inc., the top U.S. mobile phone supplier and a leading international vendor, has taken a somewhat neutral position in the standards debate.

W-CDMA is championed by Finland’s Nokia Corp., Sweden’s L.M. Ericsson and Japan. The technology’s predecessor-Global System for Mobile communications-is popular throughout the world.

An International Telecommunication Union task group approved the operator CDMA harmonization plan a little more than week ago in Beijing. The ITU plans to authorize a 3G Time Division Multiple Access standard as well. The standards are scheduled to be completed by year’s end.

Aaron, said the TABD attendee, will raise concerns about 3G CDMA harmonization in bilateral talks with EU officials this week.

In addition, U.S. Trade Representative Charlene Barshefsky is expected to send a letter to the EU stating the administration’s position on 3G.

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