Feeds

Toshiba breaks off 3G partnership with Siemens

And now we know why

  • alert
  • submit to reddit

Remote control for virtualized desktops

Updated Toshiba has ended its partnership with Siemens to build 3G phones, blaming delays in European networks and poor prospects for the next-generation service.

News of the break-up first surfaced on the Web site of German newspaper Handelsblatt, where it quoted a Toshiba spokesman saying the joint research group "is not progressing as originally planned". It initially denied the partnership had been cancelled, but subsequently confirm the split, saying "considering the profitability of the business and its prospects, we felt that it's not feasible."

The partnership was formed in November 2000, where Toshiba hailed it as a "long-term alliance to drive development of third generation mobile phones". The two companies would combine resources and R&D "to ensure the availability of 3G terminals in early 2002". Analysts praised the deal.

However, with every European operator now saying 3G will appear at the end of 2002 at the very earliest, Toshiba has decided to duck out, leaving Siemens to shoulder the development costs.

The two companies were concentrating on W-CDMA (Wideband Code Division Multiple Access) technology handsets for Europe and Asia to aid in migration from GSM phones to the 3G standard UMTS. It also planned to work on future 3G phones like MPEG-4 handsets. So far though W-CDMA has only been used by NTT DoCoMo in Japan and something called CDMA 2000 RTT-1 used (extensively) in Korea. European operators are increasingly looking at GPRS phones as a stop gap.

"This was never a joint venture," a Siemens spokeswoman has said. Semantics.

Update

Thanks to vulture-eyed readers Bert Kenward and Adam Tibbalds, we believe we may have found the reason behind Toshiba's decision. Could it perhaps have anything to do with a deal, also announced today, in which Toshiba has signed up with TTP Communications "for the development of dual-mode 3G/GSM baseband chipsets for wireless terminals"?

It would seem: "the dual-mode chipsets will enable terminals to be used on both GSM and 3G wireless networks". Of course "the deal combines TTPCom's 3G/GSM dual-mode technology with Toshiba's existing 3G technology developed for the rapidly growing Japanese market, where the world's first 3G (W-CDMA) network has recently been launched."

This has had the rather advantageous effect of boosting TTP's share price by 5.5 per cent. ®

Related Links

Initial announcement of partnership
Handelsblatt story

Choosing a cloud hosting partner with confidence

More from The Register

next story
729 teraflops, 71,000-core Super cost just US$5,500 to build
Cloud doubters, this isn't going to be your best day
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
SAVE ME, NASA system builder, from my DEAD WORKSTATION
Anal-retentive hardware nerd in paws-on workstation crisis
Microsoft adds video offering to Office 365. Oh NOES, you'll need Adobe Flash
Lovely presentations... but not on your Flash-hating mobe
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.