Willcom Mulls Bidding For 2.0 GHz Band For High-Speed PHS

TOKYO -(Dow Jones)- Willcom Inc. said Tuesday it is considering bidding for use of a 2.0 gigahertz frequency band to launch its next-generation, high-speed personal handyphone system, or PHS, services.

However, the company hasn't made any concrete decisions yet as it needs to study various issues such as what kind of technology to use and what kind of services it can offer, a spokeswoman at Willcom said.

Japan's Ministry of International Affairs and Communications has said it plans to release a 1.7 GHz band to up to two new entrants and release a 2.0 GHz band to one new entrant. After receiving public comments by July 4, the government is expected to allocate the frequency bands for third-generation mobile phone services later this year.

Willcom, formerly called DDI Pocket Inc., is Japan's largest operator of PHS services. U.S. private equity giant Carlyle Group L.P. (CAY.XX) and Kyocera Corp. (6971.TO) acquired the PHS company from KDDI Corp. (9433.TO) last year.

IP Mobile Inc., a startup company aiming to offer mobile broadband service, has already announced a plan to use the 2.0GHz band. Accordingly, Willcom is likely to enter stiff competition for the only one license available, if it decides to bid for the band.

Separately, the Nihon Keizai Shimbun reported in its Tuesday morning edition that mobile phone giant NTT DoCoMo Inc. (9437.TO) is considering partly opening its cellular phone network to new market entrants in response to their requests.

Softbank Corp. (9984.TO) and others intending to enter this market have been demanding that existing service providers open their networks in order to level the playing field.

But a spokesman at NTT DoCoMo said "we are not studying the matter (as reported in Nikkei)."

NTT DoCoMo has insisted companies should establish their own telecommunications networks and the company kept intact such a stance, he said.

-By Natsuo Nishio and Hiroyuki Kachi, Dow Jones Newswires; 813-5255-2929;natsuo.nishio@dowjones.com; hiroyuki.kachi@dowjones.com

-Edited by Shawn Schroter

(END) Dow Jones Newswires"

Posted to the site on 21st June 2005