May 18 (Bloomberg) -- Toshiba Corp., Japan's biggest chipmaker, and Nortel Networks Corp. said they will jointly develop base stations for high-speed WiMax technology, tapping a market they estimate at $4 billion in three years.
Toshiba's sales of the gear will probably total $100 million in the year ending March 31, 2011, Shunichi Kimura, corporate vice president of Toshiba, said at a news conference in Tokyo today. The Tokyo-based company aims to capture 25 percent of the $400 million Japanese market for the devices by 2010, he said.
The announcement comes as Asian nations prepare to roll out WiMax services, benefiting equipment suppliers such as Nortel and Toshiba. Dialog Telekom Ltd., Sri Lanka's biggest mobile-phone operator, said yesterday it plans to offer WiMax services in the capital, Colombo, from next week.
``If you can satisfy the Japanese market, it will serve you very well in other markets around the world,'' Nick Vreugdenhil, president of Nortel Japan, a unit of North America's largest telephone equipment maker, said at the briefing.
The base stations will be for both Japanese and overseas markets, the companies said in a statement. Toshiba and Nortel said they plan to begin selling small-sized stations in 2008.
WiMax supports data transfers of up to 40 megabits per second, more than 10 times the fastest speed currently available on mobile phones, across a range as wide as 3 kilometers, according to the Web site of the WiMax Forum, an industry group.
Nortel and Toshiba said they jointly took part in the Japanese government's WiMax trials in December 2006 and March this year.
Toshiba forecast last month that net income in the 12 months ending March 31 would decline 13 percent to 120 billion yen ($989 million) as earnings a year earlier were inflated by gains from share sales. Revenue will increase 5 percent to 7.5 trillion yen.
Shares of Toshiba fell 2 yen to 876 yen in Tokyo. Nortel shares rose 48 cents to $24.31 at 4 p.m. on the New York Stock Exchange.
http://www.bloomberg.com/apps/news?pid=20601082&sid=avrnBeinoPIQ&refer=canada
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Good on Dialog
Toshiba's sales of the gear will probably total $100 million in the year ending March 31, 2011, Shunichi Kimura, corporate vice president of Toshiba, said at a news conference in Tokyo today. The Tokyo-based company aims to capture 25 percent of the $400 million Japanese market for the devices by 2010, he said.
The announcement comes as Asian nations prepare to roll out WiMax services, benefiting equipment suppliers such as Nortel and Toshiba. Dialog Telekom Ltd., Sri Lanka's biggest mobile-phone operator, said yesterday it plans to offer WiMax services in the capital, Colombo, from next week.
``If you can satisfy the Japanese market, it will serve you very well in other markets around the world,'' Nick Vreugdenhil, president of Nortel Japan, a unit of North America's largest telephone equipment maker, said at the briefing.
The base stations will be for both Japanese and overseas markets, the companies said in a statement. Toshiba and Nortel said they plan to begin selling small-sized stations in 2008.
WiMax supports data transfers of up to 40 megabits per second, more than 10 times the fastest speed currently available on mobile phones, across a range as wide as 3 kilometers, according to the Web site of the WiMax Forum, an industry group.
Nortel and Toshiba said they jointly took part in the Japanese government's WiMax trials in December 2006 and March this year.
Toshiba forecast last month that net income in the 12 months ending March 31 would decline 13 percent to 120 billion yen ($989 million) as earnings a year earlier were inflated by gains from share sales. Revenue will increase 5 percent to 7.5 trillion yen.
Shares of Toshiba fell 2 yen to 876 yen in Tokyo. Nortel shares rose 48 cents to $24.31 at 4 p.m. on the New York Stock Exchange.
http://www.bloomberg.com/apps/news?pid=20601082&sid=avrnBeinoPIQ&refer=canada
............................................................
Good on Dialog
