Matsushita reorg puts 3G Linux phones first

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Dec. 12, 2005

[Updated Dec. 12] -- Japanese phone vendor Matsushita (Panasonic) is going global with its 3G Linux mobile phone technology. The company has abandoned its GSM efforts, citing "severe" competition, in order to focus on marketing its proven Linux 3G phone technology in both domestic Japanese and international markets.

3G or "third generation" networks provide theoretical Internet access speeds of 1.5Mbps or greater -- about the same speed as DSL (digital subscriber line) or cable modem networks. Japan arguably leads the world in 3G mobile technology. About 30 million 3G subscribers there use the technology daily, primarily to share multimedia content created by phone users themselves -- i.e., photo- and voice-enhanced emails and short messages. Music download services are also well established in Japan.

Panasonic developed its Linux-based mobile technology for Japan's 3G market in partnership with silicon and electronics vendor NEC. NEC's silicon division has recently worked to create mobile phone chips capable of supporting multiple baseband technologies, in order to support multiple global networks.

Panasonic's P902i Linux handset
(details)

Both Panasonic and NEC produce Linux-powered 900-series phones that are marketed by NTT DoCoMo in Japan. DoCoMo, Japan's largest phone company, appears to be finding success in the Japanese 3G market after a slow start -- strong sales of Linux phones in Japan have recently helped Linux surge ahead of Microsoft's Windows Mobile platform in the global smartphone market.

In a statement issued today, Matsushita said, "By concentrating resources into next-generation mobile terminal technologies, as well as unifying platforms and core technologies for the Japanese and overseas markets, Panasonic Mobile aims to improve development efficiency and product competitiveness."

Among the casualties of Matsushita's reorg are a US facility in Georgia where 228 workers developed UMTS terminals using non-Linux OSes, and a manufacturing facility in Laguna, Republic of the Phillippines that employed 842. Layoffs and reassignments will also affect workers at Matsushita facilities in Pardubice-Stare Civice, Czech Republic, and in Berkshire County, UK.

Panasonic Ventures recently opened an embedded Linux incubator at its Digital Concepts Center in San Jose, Calif. The Technology Collaboration Center (aka Linux Collaboration Center) hopes to host and collaborate with four or five consumer electronics Linux startups, in exchange for first right-of-refusal on up to 10 percent of the startup's next institutional funding round.

Both Panasonic and DoCoMo have invested in MontaVista, a supplier of a Linux-based mobile phone software framework.

Matsushita will continue sales and service activities in support of its current GSM products, it said.

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