L M Ericsson Telefon AB has scored a remarkable breakthrough into the Japanese market with the signing by Nippon Telegraph & Telephone Corp of a letter of intent for a joint venture for the development of the digital cellular telephone system for Japan. Terms were not disclosed, but Ericsson says it is the first time NTT has conducted such an effort with a European company and also the biggest contract that NTT has placed with a company in Europe. NTT currently has only 400,000 subscribers to its analogue cellular service, but demand for service on the digital cellular system, which will use parts of both the European Groupe Speciale Mobile and the US Advanced Digital Cellular standards, is expected to be much higher. The partners aim to have the design completed and ready to go by the start of 1992.
