1) Both companies will make a joint effort to achieve global standardization for the next-generation mobile communications system.

2) Both companies will support Wideband CDMA (W-CDMA) as proposed by the ETSI group. This proposal is recognized as identical to ARIB W-CDMA based on current discussions between the Association of Radio Industries and Businesses (ARIB) and the European Telecommunications Standards Institute (ETSI).

3) Both companies will support a core network that is based on the evolved GSM network, while taking into account the interface with the PDC network.

4) Working groups will be set up in order to promote technical cooperation between the two companies for implementation of the next-generation mobile communications system.

NTT DoCoMo firmly believes the activities based on this MoU will contribute to the standardization initiatives of the International Telecommunication Union (ITU), ARIB, the Telecommunication Technology Committee (TTC), and ETSI.

2. NTT DoCoMo's commitment and position on the next-generation mobile communications system

1) With an early implementation of the next-generation mobile communications system as its goal, NTT DoCoMo successfully demonstrated 2-Mbps radio transmission in October 1996 as a part of the preliminary tests for W-CDMA technology.

2) NTT DoCoMo is preparing for field trials, in conjunction with ten equipment suppliers from both Japan and abroad. In addition, it is inviting various mobile network operators around the world to participate.

3) NTT DoCoMo now has good prospects for establishing a radio access scheme that combines the advantages of both ARIB W-CDMA and ETSI W-CDMA ( group) proposals.

4) W-CDMA is flexible enough to handle services with the variety of transmission bit rates required for the next-generation system. It also has the advantage of making efficient use of the radio spectrum, and enables us to use smaller terminals with lower output power. Thus, NTT DoCoMo endorses a system that combines both the W-CDMA technologies currently being studied in Japan and Europe.

5) NTT DoCoMo also believes that it is important to develop a next-generation network that provides a smooth migration from the existing mobile networks, and seeks to standardize and implement a universal system with such a feature.

6) With a view to maintaining continuity with the existing GSM, which has more than 50 million users in over 100 countries around the world, and achieving affinity with the PDC networks, which have over 23 million users in Japan, NTT DoCoMo further believes that its first step toward this goal should be to endorse a core network established with enhanced GSM network technologies taking into consideration the interfaces with the PDC network.

7) NTT DoCoMo will continue to actively cooperate with the domestic standardization activities of the Ministry of Posts and Telecommunications of Japan, and proactively contribute toward ITU and other global standardization activities in conjunction with countries in Asia, Oceania, Europe, and North America.

Telecom Italia Mobile is the largest cellular operator in Europe and supports both GSM and TACS. Its sales reached about 7.348 trillion lira (about 497 billion yen) in 1996. Telecom Italia Mobile is also well-known as one of the leading companies providing advanced services backed by intelligent network technologies.

Please see the attachments for further details:

1. Signed an agreement with SK Telecom Co., Ltd. (Republic of Korea) for cooperation in the development of the next-generation mobile communications system (April 1996).

2. Successfully demonstrated 2-Mbps transmission in a W-CDMA field trial (October 1996).

3. Promoted W-CDMA system field trials in an open manner (press release in April 1997).

Equipment suppliers for the joint development are as follows:

Throughout the development work, other equipment suppliers are being invited to participate in the trial. Some of them have already planned on joining.

4. Participated in Asia Telecom '97 in Singapore and demonstrated W-CDMA capabilities (June 1997).

5. Signed an MoU with PT Telekomunikasi (Republic of Indonesia) for cooperation in the development of the next-generation mobile communications system (July 1997).

6. Signed an Agreement with Japan Telecom for cooperation in the development of the next-generation mobile communications system (September 1997).

7. Will participate in P.T./Wireless Comm China '97 in Beijing and will demonstrate W-CDMA capabilities (scheduled for November 1997).

8. Will complete construction of DoCoMo R&D Center (scheduled for March 1998) at Yokosuka Research Park (YRP) near Tokyo. The Center will offer an open environment to participants from foreign countries for joint research and development. In addition to NTT DoCoMo, twenty-seven organizations, including leading companies in the telecommunications field from all over the world, plan to participate in YRP. Thus, the research park, which opened on October 16, will become a center for joint R&D on a global scale, where W-CDMA will be one of the most significant R&D subjects.

9. Overseas operators invited to participate in the field trials (Refer to Attachment 3).

2. Company Name:

3. CEO:

4. Capital:

 
5. Main Shareholder:

6. Establishment:

7. No. of Employees:

8. Sales (1996):

 
9. Net Income # (1996):

 
10. No. of Subscribers:

 

11. Market Share:

TIM-Telecom Italia Mobile

Vito Gamberale

256 million USD (Approx. 31 billion)
(Exchange rate as of October 24: 1 USD = 121.1)

Telecom Italia (52.66%)

July 1995

6,400

7,348 billion lira (Approx. 497 billion)
(Exchange rate as of October 24: 100 lira = 6.76)

930 billion lira (Approx. 63 billion)
(Exchange rate as of October 24: 100 lira = 6.76)

Digital (GSM) 4,500,000
Analog (TACS900) 3,500,000
(Total 8,000,000 as of September 1997)

82.0%
(As of August 1997)