TOKYO-J-Phone Group, Japan’s second-largest mobile phone company, plans to merge its nine member firms into three companies later this year. The announcement follows the company’s application for a third-generation license to the Ministry of Posts and Telecommunications earlier this month.
The move is aimed at strengthening the group’s management before it begins its International Mobile Telecommunication-2000 investments. The carrier plans to begin 3G services in third-quarter 2001.
Five of the carrier’s nine member firms will merge into J-Phone West Company Ltd., covering western and southern Japan. Three others will be streamlined into J-Phone East Company Ltd. to serve the eastern and northern areas. The remaining firm is J-Phone Tokai Company Ltd., covering central Japan, the report said.
The nine units will issue new shares in May. J-Phone will hold a 51.22-percent stake in J-Phone East and a 50.57-percent stake in J-Phone West.
J-Phone had 7.78 million cellular subscribers at the end of January, substantially behind market leader NTT DoCoMo, which had 28 million subscribers at the end of January.
J-Phone is owned by Japan Telecom, Vodafone AirTouch plc and British Telecom.
