WASHINGTON-The European Commission said it supports industry efforts to harmonize third-generation mobile phone standards, but refused to retreat from plans to deploy home-grown technology for a pan-European 3G network and suggested U.S. policy will discriminate against foreign manufacturers seeking to sell advanced wireless products in the United States.
“While the UMTS (Universal Mobile Telecommunications Service) decision requires that member states grant at least one license to UMTS in order to ensure, in the least-trade-restrictive manner, the availability of interoperable 3G services in the [European Union] and pan-European roaming for the benefit of consumers, this in no way prevents member states from granting licenses and assigning frequencies for the operation of systems other than UMTS,” said EU high-tech Commissioner Karel van Miert, in a July 22 letter to U.S. Trade Representative Charlene Barshefsky.
The pan-European 3G standard, backed by Finland’s Nokia Corp. and Sweden’s L.M. Ericsson, is wideband Code Division Multiple Access.
Qualcomm Inc. and Lucent Technologies Inc., two major U.S. wireless manufacturers, and others, support cdma2000 for 3G.
Some U.S. wireless officials believe the pan-European 3G plan effectively creates a trade barrier because capital is unlikely to be attracted to stand-alone mobile phone systems that cannot offer continent-wide roaming.
In early July, Barshefsky and Commerce Secretary William Daley wrote van Miert and invited the EU to join the United States in embracing a carrier-driven plan to harmonize competing 3G CDMA standards developed here and overseas.
Efforts to harmonize W-CDMA and cdma2000 are being pursued under the auspices of the Geneva-based International Telecommunication Union. By year’s end, that process is scheduled to be completed. In addition to CDMA, the ITU has endorsed a 3G Time Division Multiple Access standard.
With billions of dollars on the line, lobbying has been intense during the past 18 months by U.S. and foreign wireless firms.
The Clinton administration has threatened more than once to complain to the World Trade Organization if Europe ultimately locks out American-made wireless technology.
Today, CDMA technology has not been deployed in Europe. Instead, the EU’s 15 member states have pursued an industrial policy favoring Global System for Mobile communications technology, with equipment supply dominated by Nokia and Ericsson.
Motorola Inc., as a U.S.-based multinational wireless equipment supplier, has avoided trading verbal barbs with the EU over 3G technology.
In his July 22 correspondence, van Miert took a swipe at the United States over its disjointed 3G spectrum policy.
“I have been made aware that there may be a shortage of spectrum for new entrants, as most of the spectrum is already assigned to the PCS (personal communications services) systems,” said van Miert. “If this were the case, I would be very concerned indeed. I am also concerned to learn that the freedom of technological choice by existing PCS operators may be distorted by the current organization of these frequency bands.”
Clinton administration and wireless officials are expected to meet soon to form a response to the EU.
