Handset Briefs

After pioneering efforts to bring Bluetooth technology to market, Ericsson dropped plans to launch the T36 cell phone, its first Bluetooth-enabled handset, in an attempt to pull its handset division back toward profitability. The T36, announced in June, was one of two cell phones the company planned to launch that would have full Bluetooth capabilities. The company said it would continue to develop handsets with Bluetooth capabilities, which would be released in the future. Rumors continue to circulate that Ericsson is coming under increasing pressure to sell off its troubled cell-phone arm.

A department chief from China’s Ministry of Information Industry (MII), Xie Linzhen, said mobile phones manufactured by local companies would comprise 15 percent of the market by the end of this year, up from 8 percent by the end of June. Currently, 10 domestic companies have been authorized to make mobile phones, and they produced more than 1.4 million handsets in the first half of this year. The government has urged its telecom operators to use more local telecom equipment to further boost production growth. According to Xie Linzhen’s forecast, domestically made handsets and base stations could both take up to half the market by the end of 2003.

Nokia increased it ownership of Brazilian joint venture NG Industrial (NGI) to 100 percent by acquiring all the shares of NGI held by Gradiente Telecom, 49 percent, for US$415 million. GSM manufacturers such as Nokia are making plans to boost in-country production ahead of 1.8 GHz license allocations early next year. NGI was established in 1997 in Manaus, Brazil. Gradiente will continue to sell Gradiente-branded digital wireless phones throughout its retail distribution network in Brazil, Nokia said. Brazil is the Finnish company’s seventh-largest market.

Japan’s NEC plans to invest a total of A$70 million (US$36.5 million) during the next three years to strengthen its facilities in Australia to gear up its development of third-generation (3G) terminals in the country. The firm will invest in Mulgrave Technology Center, a research and development center under NEC Australia. The firm will increase its employee numbers to 200 in Australia, following the expansion.

NEC has been developing 3G terminals in Japan, the United Kingdom and the United States. NEC Australia manufactures and sells networking and transmission equipment in Australia. Coordinating with its other four overseas facilities, the Australian center will develop 3G terminals based on wideband-CDMA (W-CDMA) and Enhanced Data Rates for Global Evolution (EDGE) technologies.

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