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KDDI to introduce flat rate for faster 3G data service

October 24, 2003

Japanese mobile operator KDDI is to launch an improved 3G mobile service staring from November 28. The new service is based on CDMA2000 1x EV-DO technology that offers data transfer speeds of up to 2.4 mbps, six times faster than DoCoMo's 3G service at 384 kbps. KDDI's current network is only capable of 144 kbps.

KDDI will offer a tariff that enables unlimited use of data communications at a flat rate of 4,200 yen ($38) a month and aims to attract 450,000 customers by the end of the business year. The plan is aimed at heavy users and it is hoped that low end users would be encouraged to sign on and raise the average they spend.

Japan has been wary of offering flat rate mobile services because of the strain on the limited amount of spectrum available. Users to the new service has unlimited access to e-mail and data services available through KDDI's portal, including access to the Internet, but does not apply to the use of a handset to connect a notebook computer to the Internet.

KDDI is Japan's second biggest operator but is winning the next generation mobile battle against its bigger rival DoCoMo. The firm has attracted around 10 million subscribers to its 3G service while DoCoMo has about 1 million users to their 3G FOMA service. DoCoMo suffered early in its launch as their advanced handsets were much bigger in size and lacked battery life while its network had limited coverage.

KDDI's new service will initially launch only in metropolitan areas and is expected to cover 90 percent of Japan's population by September 2004.

DoCoMo plans to counter the threat by launching an advanced 3G service with transmission speeds of up to 14 mbps as early as next year.

 


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