European firms and the European Union will invest some 2 billion euros ($2.61 billion) in wireless research aimed at keeping the continent's lead as mobile communications develop, an industry executive said on Friday. Wireless industry executives told Reuters last week that around 1 billion euros was earmarked for such investments, a figure that is contingent upon a matching investment from the EU, said Magnus Madfors, the chairman of the eMobility alliance steering board.

The organisation will propose where the funds should be spent.

"I would say we will be in the same ballpark," Madfors told Reuters, referring to the figure of around 2 billion euros spread over four years.

The investment will come from major names in the telecommunications field such as Nokia, Ericsson and Alcatel and mobile operators such as Vodafone, Deutsche Telekom and Telefonica.

Madfors said that over 100 more parties had expressed interest in joining the programme.

EU Information Society Commissioner Viviane Reding is set to announce the initiative on March 18 in Brussels along with industry officials.

Copyright Reuters, 2005