Softbank wins right to trial 3G in Japan

April 30, 2005 - source: BWCS

Japanese ISP and would-be mobile player, Softbank Corp, announced yesterday that it has been granted permission to begin trials of a next generation mobile phone system. The company said it plans to push ahead with a limited pilot scheme more or less immediately.

According to a press statement from Softbank, the Japanese telecoms ministry has given it permission to start testing high-speed mobile data services using the 1.7GHz frequency band. Softbank says it hopes to begin full commercial operations by the beginning of 2007.

In January of this year, the Japanese press made much of the fact that Softbank was said to be considering buying some of the mobile interests of KDDI, in exchange for US$1.98 billion in cash. KDDI, which operates the "au" mobile phone service, the second largest in Japan, also owns over 90% of three regional Tu-Ka operators. It is these which Softbank is reported to be after.

While no-one from either company would confirm that a deal is on the way, it is known that KDDI has been looking at ways of disposing of the smaller operators for some time. It had been thought that it would simply float the three regional companies off, but the chance of a one-off, quick sale may appeal to it. From Softbank's point of view, the deal represents a way to fast-track its entry into the Japanese mobile market.

Tu-Ka's three companies control a total of 3.6 million customers, some 4.2% of the Japanese mobile market.