KDDI to provide mobile, Internet tech to China Unicom

Asian Economic News, June 11, 2001

TOKYO, June 5 Kyodo

(EDS: UPDATING WITH SIGNING OF AGREEMENT)

KDDI Corp., Japan's second-largest telecom firm, on Tuesday announced the signing of an agreement to provide mobile phone and Internet connection technologies to China Unicom Ltd., China's second-largest telecom.

With the deal, signed in Beijing on Tuesday evening, China Unicom plans to introduce in China possibly by the end of this year mobile phone services based on KDDI's ''cdmaOne'' mobile format, which allows for high-quality voice and data transmission.

China Unicom will provide an international roaming service that would enable Japanese travelers with cdmaOne mobile phones to call Japan from China, KDDI said.

KDDI wants to ward off strong competition from archrival NTT DoCoMo Inc. by building a strong business foothold in China, KDDI officials said.

Industry analysts noted that China Unicom appears to be aiming at keeping an advantage in upcoming competition with major foreign telecoms, which would storm into the Chinese market once Beijing's bid to enter the World Trade Organization is approved.

China Unicom was founded in 1994. As of the end of 2000, it had 18 million subscribers, a 22% market share.