Motorola inks 3G deal with Hutchison Whampoa

Motorola this week became the primary third-generation device supplier for Hutchison Whampoa in one of the first 3G device deals of its kind. The three-year contract is estimated to be worth over $700 million.

“This is significant for the industry, because we are starting to see more non-Nokia people out there trumpeting the viability of 3G as early as the second half of next year,” said Bryan Prohm, senior analyst at Gartner Dataquest. “Up until now, Nokia was the only real aggressive W-CDMA supporter.”

Motorola expects to begin delivering the devices early in the third quarter of 2002.

The devices will support third-party developed applications and provide connection to the Internet via GSM, general packet radio service and universal mobile telecommunications service wireless networks. The devices are expected to transition among 2, 2.5 and 3G systems seamlessly.

“This is great for Motorola, because one of their most prominent public objectives is to achieve and maintain a leadership position in 2.5 and 3G,” Prohm said. “The company is building on top of the fact that they also were the first to deliver GPRS handsets.”

Per the agreement, Motorola will supply 3G devices in Hutchison’s key markets, including Australia, Austria, Italy, Sweden and the United Kingdom.