Word: motorola
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Scarcely had Hosokawa settled back in Tokyo than the White House struck. It announced that Japan had failed to comply with previous trade agreements by denying Motorola fair access to Japan's cellular-phone market. "This is a clear-cut and serious case of a failure by Japan to live up to its commitments," said U.S. Trade Representative Mickey Kantor. He promised that within a month his office would publish a list of Japanese companies that would be punished -- probably through tariffs -- if the situation is not remedied. One day later, Washington's case was bolstered by new Commerce Department...
...cellular-phone problem illustrates how even the most competitive American products -- Motorola claims 40% of the global cellular market -- can be tripped up in Japan. In 1987, when it privatized the national phone company, Nippon Telegraph & Telephone, Japan's government divided the country into two cellular-phone regions, with NTT operating in both and one fully private competitor in each. Though it has flourished elsewhere in Japan, Motorola maintains that it has been handicapped in the Tokyo-Nagoya corridor, the more profitable of the two areas, where its phones are incompatible with the NTT transmitting system...
...part of an agreement to give Motorola "comparable market access" -- reached in 1989 after Washington threatened reprisals -- the Japanese government provided the company a slice of the cellular-phone bandwidth in the Tokyo-Nagoya region. There was a catch: Motorola's new transmitting equipment would have to be installed by IDO, the wholly private cellular operator in that area. Called upon to build facilities for a competitor, IDO dragged its feet. In 1992, at Motorola's request, Washington sought and gained a follow-up agreement to speed construction...
...tech companies have figured out how to profitably rebuild the antiquated dispatching system into an advanced cellular-telephone network that can take on the likes of AT&T and the giant Baby Bells. Upstart Nextel Communications sent shock waves through the industry last week when it agreed to buy Motorola's SMR frequencies for $1.8 billion...
With the 2,500 radio frequencies acquired from Motorola, Nextel will have the potential to serve 180 million customers in 21 states, including 45 of the 50 largest cities. That would give the Rutherford, New Jersey, company access to nearly three times the number of customers now covered by McCaw Cellular , Communications, the nation's biggest cellular operator, which is being acquired by AT&T for $12.6 billion. Even though it will cost at least $2.5 billion to rebuild the SMR system into a cellular network, Nextel, which is backed by Comcast Corp. and Japan's Matsushita & Nippon Telegraph...