Toshiba and Siemens scrap 3G alliance

Toshiba and Siemens have scrapped an alliance to develop next-generation mobile handsets because of the constant delays in rolling out third-generation networks in Europe.

The companies were set to introduce handsets based on the Wideband Code-Division Multiple Access (WCDMA) standard early next year, but the lack of supporting networks has caused the plug to be pulled.

It is not clear whether either company will be pursuing developments separately.

Had the plan gone ahead, the firms would have faced stiff competition from Japanese telco NTT DoCoMo, which already has WCDMA products available and plans to start up a European service late next year.

Siemens said that earnings for its telecoms kit and handset division would have to be pushed back another year, following a drop in demand.