Japan allocates 1.7GHz spectrum for new entrants

ADSL providers Softbank BB and E-Access have a chance to enter the wireless phone market as soon as in the second half of 2006. They will challenge three national carriers NTT DoCoMo, KDDI and Vodafone KK, if the Ministry of Internal Affairs and Communications frees up a radio spectrum in the 1.7GHz band.

The government authorities announced plans to divide the 1.7GHz band, consisting of 35MHz, into two parts. They intend to allocate the first 15MHz in favor of the two new entrants, while the remaining 20MHz are planned for the use in Tokyo-Nagoya-Osaka metropolitan area by the existing wireless carriers.

The existing wireless carriers expect the government’s decision with a discomfort, because they fear the new entrants will aggressively cut the prices in order to attract customers. As a result, a price war will intensify, undermining the revenue of the three existing carriers.

Source: Yomiuri Shimbun

KDDI brings Iridium back after a five-year break

Starting 1st of June, KDDI Network & Solutions revived the satellite phone service Iridium in Japan after a five-year break.

Iridium service uses satellites to cover the entire Earth to provide connectivity and is extremely useful in the remote parts of the globe where traditional telephone or cellular networks do not exist.

The service was stopped in 2000 due to the slow uptake in subscriber numbers, but the demand is on a rise again, taking into account the high fault tolerance and reliability of the service during the natural disasters, when the only connectivity option left is a satellite phone.

KDDI sells Iridium handset at JPY241,500 ($2,236), with monthly service plan costing JPY6,000 ($55). Communication charges for Iridium-to-Iridium calls are JPY105 ($0.97) per minute, while calls to PSTN or cell phones are charged at JPY165 ($1.52) per minute.

Source: KDDI Network & Solutions