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NEC & Panasonic team for 3G/3.5G cellphones

IT Industry - Strategy

NEC Corporation and Panasonic Mobile Communications Co will set up a joint venture to develop mobile handsets based on a common software and hardware platform.
The move co-incides with the formation, along with TI of a major R&D joint venture to develop the underlying hardware and software platforms and chipsets for 3G/3.5G phones, and beyond.

Through the joint venture, NEC and Panasonic Mobile intend to reinforce their existing collaboration. They say that the development of common middleware, applications and hardware platform will enable them to avoid duplication of development efforts, leading to greater efficiency and enhanced development capabilities, and a reduction in both fixed and variable costs.

"This will equip NEC and Panasonic Mobile with a solid technology platform to stay at the top of innovation in functionality and communication speed as the industry moves to 3.5G and 3.9G technologies towards 2010, while simultaneously focusing resources on differentiation."

The JV will be established in early October, 2006 and will be capitalized at 100 million yen ($US865,000). NEC and Panasonic Mobile will each hold 50 percent.

The JV will: plan and develop of a common software platform and a common hardware platform; design and evaluate a common application CPU and integrated system LSI; source design and evaluate key devices; design and manufacture an evaluation board; and jointly develop mobile handsets.

The two companies hope to exploit synergies between NEC's expertise in communications and computer technologies and Panasonic's strength in consumer electronics and audio visual products. NEC and Panasonic Mobile will independently manufacture and sell, under their respective brands, handsets based on the output of the JV.

NEC, Matsushita and Panasonic Mobile started collaboration on the development of mobile phones in August 2001 to produce, in 2004, handsets for NTT DoCoMo's 3G FOMA service. These use a Linux based middleware platform jointly developed by NTT DoCoMo, NEC, and Panasonic Mobile.