Wireless Federation

KDDI Corp has reported a 24% increase in net profits in second quarter which ended 30 September. This rise is mainly due to lower handset subsidies. According to the operator, net income ascended to JPY78.7 billion in the period under review, from JPY63.3 billion in the three months to 30 September 2007, although revenues slipped 1.5% to JPY876.8 billion.

With the introduction of instalment-payment plan the company introduced in June this year helped reduce costs for phone subsidies and also enabled it to contend with lower income after it cut its tariff plans to entice subscribers away from rivals NTT DoCoMo and Softbank Mobile, media reported. KDDI repeated its from April for profit and sales revenue to augment this fiscal year. The operating profit mounted 27% y/y to JPY138.5 billion in the second quarter.

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NTT DoCoMo Inc, Japan’s top mobile phone operator, has declared its quarterly profit which rose 45 percent after it slashed incentives on handsets, and it kept its full-year forecast for small earnings growth.

DoCoMo, which has KDDI Corp and Softbank Corp as competitors in Japan’s tough mobile market, said its group operating profit totalled 296.5 billion yen ($2.75 billion) in the three months ended June, against a 203.9 billion yen profit a year earlier.

For the year to March, DoCoMo kept its profit forecast at 830 billion yen, up 2.7 percent from the previous year.

DoCoMo’s earnings were boosted by the introduction in November of an instalment payment plan, which shrank incentives paid to handset retailers and lowered the company’s cost burden.

Slower handset sales dented overall sales in the quarter, but helped profits by reducing procurement costs and distribution fees.

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Telegeography writes…According to unconfirmed reports in the Japanese Nikkei Business Daily, Softbank Mobile is looking to apply for new frequencies for wireless communications services this summer, when the Ministry of Communications allocates new spectrum. The paper says that the ministry is planning to allocate spectrum in the 2.5GHz band to two or three companies as early as the summer. Firms including NTT DoCoMo and KDDI Corp have already expressed an interest in bidding, along with an unnamed cable TV company and several local government institutions. The 2.5GHz band is one of the bands which supports WiMAX wireless broadband services and Softbank is one of a number of Japanese firms to have carried out trials of the technology.

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TOKYO (XFN-ASIA) - KDDI Corp and credit card operator JCB Co have agreed to tie up to make cellular phones that can be used as credit cards, the Nihon Keizai Shimbun reported without citing sources.

The business daily said the so-called mobile wallet service would enable subscribers to pay for purchases by simply holding the devices near sensors in stores’ cash registers.

Users will be able to make purchases of up to 20,000 yen per transaction at stores participating in JCB’s mobile wallet service, the Nihon Keizai said.

Mobile phone operators are adding new services and features to retain customers ahead of the introduction of ‘number portability’ in October where customers can continue to use the same mobile phone numbers even after they subscribe to other mobile phone companies.

Source- http://www.forbes.com

Technorati : JCB, Japan, KDDI Corp, operator
Ice Rocket : JCB, Japan, KDDI Corp, operator

TOKYO (Reuters) - Toyota Motor Corp. said on Wednesday it has developed a mobile phone with KDDI Corp. that will make it easier for drivers in Japan to use its car navigation and other services.

The phone, called “TiMO”, will go on sale at the end of October and will be sold only at the automaker’s 7,500 outlets in Japan, the companies said in a statement.

Toyota has been working closely with KDDI, in which the auto maker has an 11 percent stake, to develop new services that link cars and telecom networks.

The new handset will be compatible with Toyota’s car navigation system using Bluetooth, a wireless technology.

The companies have also developed a phone battery charger that can be attached to the driver’s armrest and will offer downloads of music and games free to TiMO users.

Drivers will also be able to connect to emergency centres by just pushing a button on the handset if they need help while on the road.

KDDI, Japan’s No.2 wireless carrier after NTT DoCoMo Inc., is keen to introduce new services before October 24, when mobile phone users will be able to keep their phone numbers when they change operators.

KDDI was formed in 2000 after a merger of three operators including a mobile phone unit backed by Toyota. Toyota is now KDDI’s second-biggest shareholder after Kyocera Corp.. The new model is based on an existing KDDI phone made by Toshiba Corp..

Source- http://today.reuters.co.uk

Technorati : Japan, KDDI Corp. Mobile, NTT Do CoMc
Ice Rocket : Japan, KDDI Corp. Mobile, NTT Do CoMc