NEC joins 3G forces with Matsushita

More partnerships, more partnerships

NEC and Matsushita are to work together in developing 3G software. The software will concentrate on getting video to the handsets - something that will remain a main selling point when the networks and handsets are finally available.

The link-up was first reported by Japanese newspaper Nihon Keizai Shimbun, which said a formal announcement will be made tomorrow. NEC has already admitted the joint venture.

The decision for two such big companies to work together on 3G is most likely a sign of things to come. The huge cost of rolling out 3G has everyone involved in it panicking. The companies behind infrastructure have already announced a wide range of partnerships. Now it's the turn of software and hardware manufacturers.

The next-generation networks may well start off with the cheapest rather than the best software. Large scale link-up will help companies lower price while not taking such a hit in investment.

It doesn't help either that demand for other mobiles is falling, leaving companies with less money to invest in development. ®

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