The Chinese government plans to introduce 3G cell phone services sometime in or after 2003, and NEC and Matsushita Communication aim to have handsets capable of transmitting video ready by then, the newspaper said. The paper also reported that the joint venture would be capitalized at just $2.42 million and begin with a staff of 100, expanding to around 500 by the time China offers its 3G licenses.
Matsushita is currently barred from selling cell phone handsets in China following a political gaffe. In the company’s promotional literature Taiwan was described as an independent country, a position that the Chinese vigorously disputes. However, the bar is expected to be lifted by the time the country issues its 3G licenses.
NEC and Matsushita Communication, maker of Panasonic phones joined forces in August to share the costly burden of developing 3G handset technology. They are currently the only suppliers of handsets for the world’s first 3G service, launched in Japan in October by NTT DoCoMo Inc.
