Playing politics: Soviet deal shows pitfalls and potential of international telecommunications business

Article Abstract:

The fact that a political coup occurred on the eve of the signing of a major cellular telephone system contract between U S West Communications Inc and the Soviet Union shows the importance of understanding a country's power structure when conducting international business. The U S West contract to install and operate three international gateway switches in Moscow, St. Petersburg and Kiev is going forward despite the Aug 1991 coup because U S West how to negotiate as the Soviets do. Negotiating involves working with top and middle managers, several ministries and officials in the republics to build trust. The involvement of top U S West officers and a core group of negotiators was key to demonstrating the company's commitment to Soviet projects. The three switches, which enable the Soviet Union to add 23,000 international circuits, are an $18 million investment over two years to U S West, but the company will receive 16 percent of revenues from calls funneled through the new switches for a 15-year period.

Telecommunications services industry, Telecommunications industry, Contracts, Political aspects, International trade, Negotiations, U S West Communications Inc., Soviet Union, Activism, Political protest, Vendor Relations, Mobile Phones, Political Issue, Negotiation

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Digital standard's approval clouded by patent dispute

Article Abstract:

Manufacturers of cellular-telephone equipment and providers of cellular service who are members of the Telecommunications Industry Assn vote overwhelmingly to approve code division multiple access (CDMA) as a standard for digital wireless communication. CDMA decomposes messages into tiny bits, labels each with its own code, and transmits many messages at once throughout a band of the radio spectrum. Competitors to CDMA include broadband CDMA and time division multiple access (TDMA). The stakes in the standards battle are high: cellular providers will spend billions of dollars over the next several years to install digital equipment. InterDigital Communications Corp, which holds many patents for broadband CDMA and TDMA, has sued Qualcomm Inc, which developed the CDMA technology. Qualcomm has responded by filing a patent-infringement suit of its own against InterDigital.

Standards, Cellular telephone services industry, Cellular telephone services, Standard, Standardization, Cellular telephone equipment industry, Digital communications, Digital audio broadcasting, Lawsuits, Digital Communication, Telecommunications Industry Association

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