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KDDI expands international roaming services: Other Japanese operators restricted by technology

TOKYO-KDDI, the sole cdmaOne operator in Japan, has been expanding its international roaming services, fully using its universally standardized cdmaOne technology.

In January, KDDI launched international roaming services in Canada in cooperation with Telus Mobility, a major Canadian carrier. Canada will become the fifth country in which KDDI provides international roaming services, following Korea, Hong Kong, the United States and Australia. According to Junzo Ishizuka, a KDDI spokesman, a total of 53,000 Japanese are using the KDDI Global Passport roaming service.

Telus Mobility is a leading mobile operator in Alberta, Canada, with 2 million subscribers. Like KDDI, Telus is providing services based on cdmaOne technology using the 800 MHz band. Initially, the roaming service will be available in 16 cities in British Columbia and Alberta. KDDI is planning to expand the service to other areas.

Communications charges are 330 yen (US$2.89) per minute for a call from Canada to any foreign country and 250 yen (US$2.19) per minute for a call within Canada.

Users need to purchase Global Passport-enabled cellular phones. Only one type of terminal, the

cdmaOne C111SA manufactured by Sanyo Denki, currently is available for the service. It is selling at retail stores for between 2,000 and 3,000 yen (US$17.50 and US$26) per unit.

No additional charges, only registration, are necessary to subscribe to the service.

KDDI plans to further expand its international roaming services using cdmaOne technology. The Japanese carrier also announced it will expand international roaming service areas in the Untied States from its current 14 cities to 45 cities along the East and West coasts. In the United States, KDDI has been working with Verizon Wireless, the country’s largest mobile carrier and a cdmaOne operator.

In Asia, KDDI offers international roaming services in Korea, Hong Kong and Australia. KDDI launched the services in Korea and Hong Kong last April, working with Shinsegi Telecom in Korea and Hutchison Telephone in Hong Kong.

Targeting the 2000 Sydney Olympic Games in September, KDDI launched its roaming service in Australia in cooperation with Telstra, the country’s largest operator.

KDDI is planning to deepen its relationships with these roaming partners by seeking financial relationships. To gear up its effort in seeking a partner, KDDI last October established a global strategy division under Yusai Okuyama, KDDI president. Okuyama said his firm would kick off its negotiations with potential cdmaOne partners in the beginning of 2001.

Competing roaming offerings

Other Japanese mobile carriers’ international roaming services are limited partly because they are based on Japan’s unique PDC system. NTT DoCoMo provides international roaming services only in Korea, and J-Phone, the mobile unit of Japan Telecom, has not launched international roaming services.

NTT DoCoMo last September launched roaming services in Korea in cooperation with SK Telecom, the country’s largest mobile operator. NTT DoCoMo does not have plans to expand its international roaming services in the second generation, which is based on PDC technology. The carrier is expected to launch international roaming services using its next-generation wideband-CDMA (W-CDMA) technology. NTT DoCoMo is scheduled to launch third-generation (3G) services in May, earlier than any other carrier in the world.

Because other carriers in Europe and Asia plan to launch 3G services based on W-CDMA technology, it will be possible for NTT DoCoMo to provide international roaming services once 3G services start in these regions.

According to Takumi Suzuki, an NTT DoCoMo spokesman, the carrier will provide roaming services with its partners-Hutchison Telephone in Hong Kong, KPN Mobile in the Netherlands, KPN 3G in Britain and KG Telecom in Taiwan-once dual-mode W-CDMA and GSM terminals are available.

In the United States, NTT DoCoMo plans to launch roaming services using dual-mode-W-CDMA and GSM/General Packet Radio Service (GPRS)-dual-browser i-mode and Wireless Application Protocol (WAP) terminals, capitalizing on its partnership with AT&T Wireless in 2002. In November, NTT DoCoMo and AT&T concluded an agreement whereby NTT DoCoMo will assume 16 percent of AT&T Wireless, the third-largest mobile carrier in the United States.

J-Phone is going to begin international roaming services through its relationships with British Telecommunications and Vodafone Group once 3G services are launched. Late last year, Vodafone announced it will acquire a stake in Japan Telecom from two Japan Railroad companies. Because of the deal, Vodafone, the world’s largest carrier, will become the second-largest shareholder of Japan Telecom. Separately, Vodafone and BT hold stakes of 26 percent and 20 percent, respectively in J-Phone Communications.

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