Vodafone KK to up spending on 3G

June 12, 2005

Japan's Vodafone KK said it would increase spending by 50% to $2.4 billion this business year to improve it mobile phone business and 3G service.

The company plans to build 5,400 antenna base stations in the year to March 2006 to increase network coverage.

"Improvements of networks are a vital step to fight back in 3G (third-generation) services, in which we have slightly lagged behind our competitors," a Vodafone spokesman said.

Vodafone KK, Japan's third-largest mobile operator, has been losing ground to it competitors NTT DoCoMo and KDDI. It has struggled to keep up with its rivals following a delay in launching 3G services.

The company lost customers since the beginning of the year. Chairman Shiro Tsuda blamed poor customer growth in part on the popularity of rivals' flat-rate plans and family discounts.

Competition is expected to intensify next year in the near-saturated Japanese mobile phone market as the government aims to add three new entrants into the mobile phone market and introduce number portability.