Partner begins 3.5G test

Partner Communications will test a system using high-speed downlink packet access technology, in cooperation with Nortel.

Israeli wireless company Partner Communications (Nasdaq: PTNR; TASE: PTNR; LSE: PCCD) announced today that it had begun test operation of a network using high-speed downlink packet access (HSDPA) technology, also called 3.5G. The test is in cooperation with Nortel (NYSE, TSX: NT), which provides Partner’s 3G infrastructure. Partner’s 3G network, launched last December, is still only beginning. Partner supplies only one device adapted to the new technology, and it currently has 20,000 3G subscribers.

Partner says that commercial launching of HSDPA technology is slated for 2006. At this stage, however, there is still no end-user device adapted to the HSDPA network. Furthermore, devices adapted to 3G are still very limited. Nevertheless, Parter regards positioning itself on the cutting edge of technology as important, and is therefore pushing the new technology, although very few cellular operators around the world are conducting similar tests.

HSDPA technology runs on wideband code division multiple access (WCDMA) networks (an access technology used on 3G networks) the same networks used by Partner and Cellcom.

Cellcom is in the advanced stages of a tender to choose a supplier for a 3G network that will support HSDPA technology in the initial phase. Partner says that upgrading its 3G network to HSDPA will be easy, and requires only an inexpensive change in software. Today’s announcement is part of the contest between Partner and Cellcom over technological supremacy; practical use of this technology is still far in the future.

Published by Globes [online] - www.globes.co.il - on May 23, 2005

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