The companies had agreed to combine forces in November 2000 and develop the 3G technology for handsets that would support the first dual-mode GSM/WCDMA. They had planned the launch of the new handsets at the start of 2002, but this forecast is looking increasingly unlikely.

Reports that Toshiba have scrapped plans to send 100 engineers to Siemens in Germany were denied by a spokesperson for Toshiba. The company did admit however that they were, continuing to talk with Siemens, even though the original announcement was made some time ago.

Toshiba have been under pressure recently having also had to cut its US handset shipment estimates from 6 million to 3 million.