Japan Government Gives Vodafone OK On 1.7GHz W-CDMA Experiments

TOKYO -(Dow Jones)- Vodafone Group Plc.'s (VOD) Japanese unit said Monday Japan's government has granted it approval to operate W-CDMA experimental radio stations on the 1.7GHz frequency band, a step toward increasing its capacity ahead of an expected rise in third-generation traffic.

With the license, Vodafone K.K. (9434.TO) said it will be able to begin constructing radio stations at planned sites and measure radio characteristics. The telecommunications company plans to acquire a field test license once inspections are passed, Vodafone said in a statement.

Vodafone currently offers 3G services in Japan on the 2GHz frequency band. In pursing 1.7MHz bandwidth, it aims to boost the capacity of its 3G network, a pressing issue for the company as it attracts more customers to its 3G services and as customers increasingly use their mobile phones for data-heavy uses, such as transmitting photos and video and downloading music.

Vodafone lags far behind NTT DoCoMo Inc. (9437.TO) and KDDI Corp. (9433.TO) in the Japanese market, and lost subscribers on a net basis for the fifth straight month in May.

But Vodafone has been making some progress in the 3G market. The number of its 3G customers has been increasing since it launched those services in Japan in December 2002, with the company gaining a net 114,400 3G subscribers in May for a total of about 1.173 million.

-By Arran Scott, Dow Jones Newswires; 813-5255-2929; arran.scott@dowjones.com

-Edited by Chris Gallagher

(END) Dow Jones Newswires"

Posted to the site on 4th July 2005