Subject: [NEXTEL-1] US' Nextel in talks to form wireless services JV with China's Stacom

From: [email-masked]
Date: Sun, 04 Jul 2004 15:18:48 -0400

US' Nextel in talks to form wireless services JV with China's Stacom
Friday, June 18

SHANGHAI, Jun 18, 2004 (AFX-ASIA via COMTEX) -- Nextel Communications
(NASDAQ NXTL) is in talks with China Satellite Communication Corporation
(Satcom) to launch a joint venture to provide wireless services for
business users. The Beijing News said the two companies are planning to
expand an existing Shanghai-based network which uses iDEN, a wireless
technology designed by Motorola which, like the highly popular Xiao
Lingtong, is seen as an alternative to the traditional GSM and
CDMA-based mobile services offered by China Mobile and China Unicom. The
two sides, which began negotiations last October, have yet to reach an
agreement, and have yet to receive government approval, the report said.
Both sides have already met with leaders of the Ministry of Information
Industry, Satcom's parent, and a report has already been submitted.
Although telecommunications services remains one of the most highly
restricted markets in China, the country did agree to gradually
liberalize access to foreign companies as part of its World Trade
Organization accession agreements in 2001, but providing access only on
a joint venture basis. In 2000, AT&T launched Shanghai Symphony Telecom,
the first telecoms services joint venture in China in partnership with
China Telecom and the Shanghai government. China Satcom, one of the
mainland's six telecom service providers, recently merged with China
Unicom Guomai, the paging operations of the country's second largest
mobile operator. The joint venture will likely make use of its
pre-existing networks to launch the service, the report said. Guomai
established an iDEN network, covering 40 base stations and capable of
reaching 50,000 subscribers, for business use in Shanghai at the end of
2002. But analysts warned that the venture could face difficulties in
China's already highly competitive market for telecommunication
services. Guomai's 2003 annual report said subscribers for the network
has been expanding very slowly because people don't want to spend much
money changing networks and because of the special technical support
required. "The possible joint venture looks positive for Satcom, but how
much it can benefit from the cooperation depends on whether its future
promotion of the iDEN service is successful," said an analyst with GF
Securities.  Another challenge is that Stacom is not the only one
involved in digital wireless service business. "It will probably face
fierce competition because China Mobile and China Unicom are also
interested in exploring digital wireless services and they are much
stronger than Satcom," said Li Qian, an analyst with Ping'an Securities.
iDEN, or integrated Digital Enhanced Network,was developed by Motorola
for businesses, providing "always on" features and the functions of
two-way radios.  [email-masked] ly/dw/ng By Staff Reporter (C)
2004 XFN, Inc. All rights reserved. INDUSTRY KEYWORD: Fixed-Line
Telecommunication Services Wireless Telecommunication Services
Telecommunications Equipment Computer Hardware Semiconductors
Telecommunications Equipment Computer Services Internet Software (C)
2004 Xinhua Financial News.
http://www.infobeat.com/index.cfm?action=article&id=344871

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From: [email-masked]
Date: Sun, 04 Jul 2004 15:47:10 -0400

I guess they are going to show China how to increase profits by causing
interference to their competitors, then ask for free spectrum to correct it!

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From: Joshua Miller <[email-masked]>
Date: Sun, 4 Jul 2004 12:57:16 -0700

Hehehe, now that is funny. :-D

 
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