Phone venture announced

Phone venture announced

LONDON (AFP): Britain's Cable and Wireless plc announced
yesterday a joint venture with Nippon Telegraph and Telephone
Corp. (NTT), trading house Itochu Corp., and Hong Kong
Telecommunications Ltd. to promote Japan's personal handyphone
system (PHS) in Asia.

PHS International, which will be based in Hong Kong, will
initially "target Asian countries most suited to the technology",
Cable and Wireless said in a statement.

Cable and Wireless and NTT/NTT Mobile Communications Network
will each hold a 27 percent stake in the venture, while Hong Kong
Telecom and Itochu will each have 23 percent. The four companies
will make an initial investment of US$4 million, with the total
divided according to their shareholdings.

PHS telephones are smaller and cheaper than conventional
cellular telephones but do not allow communications to and from
fast-moving vehicles. The product is aimed at the mass consumer
market.

The digital PHS network was developed in Japan, where 100,000
handsets have already been sold since its launch two months ago.
The country should yield a total customer base of 40 million by
2010, Cable and Wireless said.