Following the May 2 announcement that they would create a joint company for the development of future-generation mobile communications network systems, Alcatel and Fujitsu Limited have finalized agreements for the founding of Evolium(TM) SAS, an Alcatel-Fujitsu company established under French law and headquartered in Velizy near Paris.
Alcatel and Fujitsu respectively hold a 66% and 34% share in the new company.
The official agreement was signed today in Paris by Jean-Pierre Halbron, Senior Executive Vice President of Alcatel and Hiroaki Takeichi, Member of the Board & Network Systems Group President of Fujitsu Limited, in the presence of Serge Tchuruk, Chairman and CEO of Alcatel. Under the terms of this agreement, Evolium(TM) SAS will benefit from more than 2000 engineers provided by Alcatel and Fujitsu from their existing technological teams in France, Japan, Germany, Belgium and China.
Evolium(TM) SAS will be responsible for product definition and R&D of 2G and 3G mobile radio communications networks, including GSM and its various evolutions (GPRS and EDGE). A special emphasis is being placed on the development of a 3G/UMTS offering that is highly competitive in terms of performance and time to market. These UMTS solutions will be largely based on Fujitsu's experience acquired as supplier to NTT DoCoMo in Japan, which will commence the commercial operation of its 3G mobile communication service in the spring of 2001.
"Evolium(TM) SAS will enable Alcatel-Fujitsu to have a UMTS offer ahead of the competition", stated Jean-Pierre Halbron, President and Chief Financial Officer of Alcatel. "Observers agree that UMTS infrastructure represents a market estimated at 60 billion dollars over the coming 5 years. This agreement will enable us not only to strengthen Alcatel's position in the area of GSM infrastructure but also to be one of the major players in 3rd generation mobile communications systems with the aim of winning a market share in excess of 15%."
The first 3G-service offering (UMTS - R'99) will be commercially available in Europe during the first half of 2001. Extensive field trial networks will be delivered to operators in Europe as of the 4th quarter 2000. A demonstration network has already been travelling throughout Europe since June.
The products will be marketed via the existing Alcatel and Fujitsu sales networks, taking advantage of the respective strengths of both the companies. Alcatel will focus on the market corresponding to the worldwide GSM footprint, while Fujitsu will mainly address the Japanese market and some dedicated accounts in Asia-Pacific. In China, Alcatel and Fujitsu intend to work closely together in marketing the Evolium(TM) products.
In parallel, Alcatel and Fujitsu will deepen mutually-beneficial cooperation in the field of 3G core networks, terminals and applications in order to provide customers with comprehensive end-to-end solutions. In the framework of an OEM agreement, Fujitsu will distribute the mobile core networks solutions developed by Alcatel.
Hiroaki Takeichi, Member of the Board & Network Systems Group President of Fujitsu Limited, added: "Through Evolium(TM) SAS, the partnership with mobile operators throughout the world will enable us to further enhance our leading-edge expertise in 3G mobile applications and services, acquired with NTT DoCoMo."
To achieve these goals, Evolium(TM) SAS will make full use of the skills of the existing two teams. Martin Jordy, currently Vice-President Product Management & Product Development of Alcatel Mobile Communications activity, will be the Chief Executive Officer (CEO) and Eisuke Iwabuchi, General Manager of Fujitsu's Mobile Communications and Wireless Systems Division the Deputy CEO. The Board of Directors of Evolium(TM) SAS will comprise four representatives from Alcatel and two from Fujitsu.
Michel Rahier, President of Alcatel's Mobile Communications activities, who will also serve as Evolium(TM) SAS' Chairman, pointed out, "This agreement rewards the 6 months of groundwork carried out by the Alcatel and Fujitsu teams to set up the foundation of a truly operational joint company and a long-term partnership. By the 4th quarter 2000, mobile operators will have in hand the outcome of the tremendous work carried out for several months by the Alcatel and Fujitsu joint technical teams, in the shape of UMTS field trial networks. "
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