J-Phone plans to spent $5.74billion on 3G roll-out

date: June 14, 2001

Shigenobu Kuroda, senior managing director for J-Phone said the company plans to spend $5.74 billion on its 3G roll-out early next year.

J-Phone received a 3G license for free last year after a beauty contest from the Japanese government along with NTT DoCoMo and KDDI.

While J-Phone originally intended to launch its 3G service at the end of this year, the operator has since pushed back the commercial launch date to June 2002.

“Our original schedule was based on the September version of the 3G specification,” said Kuroda. “Then another version came out in December, so in order to keep to the global standard, we decided to put back our launch date.”

Nokia, Ericsson and NEC are the suppliers to J-Phone’s system, according to Kuroda.

While 3G will enable faster internet access and video streaming, Kuroda says customer spending will remain about the same due to the spending power of its main target market segment of teens and youths.

“There will be a limit to how much they can spend,” Kuroda says.

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