NTT DoCoMo, Japan’s largest mobile phone carrier, said Friday in a press release that it had started testing equipment it thinks will yield download speeds of up to 300 megabits per second — nearly 100 times faster than its current cellular network.
Completion of the new network is scheduled by 2009.
Competition in Japan’s saturated mobile communications market has been driving down margins for voice services, and DoCoMo and its rival carriers are trying to capture more business by turning to data-based services, which require more bandwidth.
DoCoMo also said it would restart sales of a mobile handset made by Sony Ericsson that it had stopped because of software problems.
The company said sales would restart Saturday in Tokyo and many other parts of Japan. Users who already own the phones will be able to receive software updates to correct the problems.
DoCoMo temporarily halted sales of the phone July 4 because of the glitch that could erase stored phone numbers and other data. DoCoMo said it had received 147 complaints and sold 27,000 units of the phone.
Sony Ericsson is a joint venture between Sweden’s LM Ericsson and Japan’s Sony Corp.
Wireless Mobile Telecom Wireless News
Meru Networks has been honored with an unprecedented two “Best of Show” awards at the recent Interop Tokyo. Meru’s AirShield Security Suite won in the network communications security category, while Meru’s 3-Tier Traffic Distribution System (3TDS) won in the wireless and mobile product category. The Interop show, which showcases the latest platform products and technology for realizing optimum network environments was held in Tokyo, Japan on June 11-15, 2007.
The Interop Best of Show Awards 2007 recognize the product, solution or service that best reflect this year’s theme of “The Internet: Solutions to Accelerate Your Business.” This is the second year in a row that Meru’s innovative wireless products have been recognized at the show. In 2006, Meru Networks was a recipient of the Interop Tokyo Grand Prize for its RS-400 radio switch.
“Japanese enterprises are leaders in adopting wireless technologies to drive increased business productivity,” said Steve Troyer, vice president, product marketing, Meru Networks. “We’re excited that our products have been recognized for the second year in a row at Interop Tokyo as leading the industry in wireless and security.”
Meru’s 3TDS is an option available with the Meru System Director operating system, which provides a flexible and cost-effective approach to handling the increased network load driven by 802.11n. 3TDS will significantly reduce costs of 802.11n migration by providing a unique and effective alternative to expensive upgrades to the wired Ethernet switching backbone.
Meru’s AirShield Security Suite 2.0 is the first wireless local-area network (WLAN) security offering that simultaneously prevents RF threats while assuring application availability and continuous quality-of-service in converged voice and data networks. In addition, AirShield enables per-application, per-user firewall policy enforcement.
Wireless Mobile Telecom Wireless News
CTS International (a company held by AGF Private Equity, GIMV and Sofinnova Partners) acquires the Planet EV wireless network planning software product line from Ericsson.
The Planet EV intellectual property, technology assets and human capital acquired through this transaction will enable the newly formed group to strengthen the leading, global position of Planet EV and Ellipse Microwave Planning in the field of wireless network planning and optimization.
CTS International combines a world-wide leading position in the field of microwave planning and a solid financial foundation to the established Planet EV business. The company is committed to delivering world-class customer service and to advancing the Planet EV product through continued innovation, with a strong focus on 3G and 4G.
Philippe Catherine, CTS International CEO, said: “Planet EV is a proven solution we have successfully distributed for over 3 years. This acquisition enables us to bring together two state-of-the-art solutions in the area of network planning with a combined heritage of more than 15 years in the industry. Planet EV and Ellipse Microwave Planning customers will benefit from this transaction through ongoing investments and dedication to the network planning and optimization market.”
With 110 employees, the new organization will be headquartered in Paris and will have offices in Dallas, Ottawa, Hong Kong and Tokyo. It will serve and support a growing base of over 200 customers located in 90 countries.
This transaction is expected to close within 30 days, at which time the new organization will be launched globally with a new identity. The combined organization emerges as a leader in mobile and broadband wireless network design and optimization software solutions.
Wireless Mobile Telecom Wireless News
NTT DoCoMo Inc., Japan’s largest mobile-phone operator, said it’ll cut monthly fees by up to 50 percent for family-plan users to regain its sales lead from smaller rivals KDDI Corp. and Softbank Corp.
The discount plan, which will erase 20 billion yen ($162 million) from sales this fiscal year, may attract up to 5 million new customers, DoCoMo President Masao Nakamura said in a news briefing in Tokyo today. The amount was included in this year’s annual earnings forecast, he said.
DoCoMo needs to add users faster to avoid smaller rivals from eroding its 54 percent market share. Tokyo-based DoCoMo had the slowest subscriber growth last month among Japan’s three mobile phone networks and its stock performed worse than KDDI and Softbank this year.
Users on DoCoMo’s “Fami-wari Max'’ plan will be able to receive the biggest discount rate of the longest-subscribing member in the family, DoCoMo said in a statement. A DoCoMo user for 11 years is eligible for a monthly discount of 50 percent. The service will be available from Aug. 22.
DoCoMo estimates about 5 million customers will sign up for the plan, Nakamura told reporters. The company, with 52.8 million users in its network, added 82,700 new customers in May. KDDI added 138,500 new users while Softbank reported 162,400 new subscribers in the same month, according to figures by the Telecommunications Carriers Association.
Shares Lagging Behind
Shares of DoCoMo rose 0.5 percent to 194,000 yen today. The stock has risen 3.2 percent this year, lagging behind the 16.7 percent gain by smaller rival KDDI Corp. and performing worse than the benchmark Topix index. Softbank’s shares rose 16 percent in the same period.
Separately, a Japan telecommunications ministry study group today recommended the mobile-phone industry introduce cheaper billing plans in return for selling handsets at higher prices.
Subscribers are able to buy mobile phones with services from DoCoMo and KDDI, its closest rival in Japan, for as little as 1 yen. The service providers compensate for the losses by charging promotional fees on their monthly charges.
The ministry proposed that mobile-phone carriers should break down users’ monthly charges on the bills, detailing fees for different services and promotions, a report issued by the study group said.
The mobile-phone industry plans to introduce the new billing system in August next year.
Wireless Mobile Telecom Wireless News
Verizon Business and SoftBank Telecom have entered into a strategic alliance agreement that benefits multinational customers of both companies doing business in Japan.
The agreement, ratified at a signing ceremony in Tokyo Monday (June
25), provides customers with access to the networks and capabilities of
each company. John Killian, president, Verizon Business, and Shinichi
Koide, senior executive vice president and chief operating officer,
SoftBank Telecom, represented their companies at the event.
SoftBank Telecom is one of Japan’s largest ICT (information and
communication technology) solution companies. It has a nationwide,
fiber-optic network of more than 13,000 kilometers. Verizon Business owns
and operates one of the most expansive IP backbone networks in the world,
and provides the industry’s best portfolio of global IP and mobile devices,
services and solutions for business, government and education customers
worldwide.
Killian said: “Japan is a key strategic market for many global
businesses, as well as the headquarters location for many of the world’s
leading companies. For enterprises operating on a global scale, access to
secure and high-quality communications infrastructure is a prerequisite for
business success. This announcement is yet another demonstration of Verizon
Business’ commitment to assisting our multinational customers in achieving
their global goals. We are delighted to join with SoftBank Telecom to
deliver a seamless, high-quality communications experience that will
support the evolving business needs of all our mutual customers, both
within Japan and around the world.”
Koide added: “SoftBank Telecom has been offering ULTINA Global Service
by cooperating with various global service providers, and this partnership
enables us to meet various demands from customers who are doing business
globally, with more flexibility. SoftBank Telecom and Verizon Business
share many similar attributes in their approach to business, not least of
which is a shared belief: The client comes first. In the years ahead, we
will cultivate our mutual strengths for the benefit of our customers.”
About SoftBank Telecom
SoftBank Telecom is one of the largest ICT (Information & Communication
Technology) solution companies in Japan with a nationwide fiber-optic
network. SoftBank Telecom provides a combination of internet service, data
service, voice and telephone services, and integration services to support
and solve business challenges that business enterprises have. The company
is a 100 percent subsidiary of SoftBank Corp.
Wireless Mobile Telecom Wireless News
Verizon Business is extending the benefits of Converged Packet Architecture (CPA) into Europe and the Asia-Pacific region. CPA converges all services, whether IP or traditional data, onto one common network-access interface, allowing customers to more easily and efficiently scale bandwidth or make other adaptations.
“Our Converged Packet Architecture has allowed us to meet the growing demands of our large-business customers in the United States, and we now have the opportunity to bring its benefits to our customers in other parts of the world,” said Fred Briggs, Verizon Business executive vice president of operations and technology. “CPA provides the speed, scalability and operating efficiencies large-business customers need to quickly adapt to changing business requirements.”
In Europe, where numerous multinational companies have operations, Verizon Business will deploy CPA in 19 key cities this year, including large financial and business centers such as London, Frankfurt, Paris, Vienna, Amsterdam, Warsaw, Poland, Dublin, Madrid, Brussels and Zurich. In the Asia-Pacific region, Verizon Business is deploying CPA in five locations this year: Hong Kong, Tokyo, Singapore, Melbourne and Sydney.
Verizon Business also continues its aggressive CPA deployment in the United States bringing to 46 the number of U.S. cities that will have CPA by the end of 2007. New additions include New Orleans, Orlando, Memphis, Nashville, Milwaukee and Grand Rapids.
CPA supports a full range of legacy and next-generation services including IP, Private IP, Ethernet, private line data, voice traffic, Ethernet Virtual Private Line (EVPL) and Virtual Private LAN Service (VPLS). It provides a single packet-access connection via an Ethernet interface at speeds up to GigE. CPA is also the ideal network platform to allow customers to migrate from the older time division multiplexing (TDM) hierarchy to a packet-based technology.
Traditionally, network access requires separate lines for each service¡ªvoice, video, data or Internet¡ªalong with rigid bandwidth boundaries. By contrast, CPA relies on virtual, or logical, connections that converge all applications on a single carrier-class packet access network. As a result, CPA improves operating efficiency and reduces the number of network touch points.
“Simply put, CPA is compatible with all forms of access over any physical connection,” said Briggs. “The customer benefits from robust flow-through automation, broad global coverage, improved network performance and excellent quality of service. It’s a winning combination.”
Wireless Mobile Telecom Wireless News
Verizon Business is extending the benefits of Converged Packet Architecture (CPA) into Europe and the Asia-Pacific region. CPA converges all services, whether IP or traditional data, onto one common network-access interface, allowing customers to more easily and efficiently scale bandwidth or make other adaptations.
“Our Converged Packet Architecture has allowed us to meet the growing demands of our large-business customers in the United States, and we now have the opportunity to bring its benefits to our customers in other parts of the world,” said Fred Briggs, Verizon Business executive vice president of operations and technology. “CPA provides the speed, scalability and operating efficiencies large-business customers need to quickly adapt to changing business requirements.”
In Europe, where numerous multinational companies have operations, Verizon Business will deploy CPA in 19 key cities this year, including large financial and business centers such as London, Frankfurt, Paris, Vienna, Amsterdam, Warsaw, Poland, Dublin, Madrid, Brussels and Zurich. In the Asia-Pacific region, Verizon Business is deploying CPA in five locations this year: Hong Kong, Tokyo, Singapore, Melbourne and Sydney.
Verizon Business also continues its aggressive CPA deployment in the United States bringing to 46 the number of U.S. cities that will have CPA by the end of 2007. New additions include New Orleans, Orlando, Memphis, Nashville, Milwaukee and Grand Rapids.
CPA supports a full range of legacy and next-generation services including IP, Private IP, Ethernet, private line data, voice traffic, Ethernet Virtual Private Line (EVPL) and Virtual Private LAN Service (VPLS). It provides a single packet-access connection via an Ethernet interface at speeds up to GigE. CPA is also the ideal network platform to allow customers to migrate from the older time division multiplexing (TDM) hierarchy to a packet-based technology.
Traditionally, network access requires separate lines for each service – voice, video, data or Internet – along with rigid bandwidth boundaries. By contrast, CPA relies on virtual, or logical, connections that converge all applications on a single carrier-class packet access network. As a result, CPA improves operating efficiency and reduces the number of network touch points.
“Simply put, CPA is compatible with all forms of access over any physical connection,” said Briggs. “The customer benefits from robust flow-through automation, broad global coverage, improved network performance and excellent quality of service. It’s a winning combination.”
Wireless Mobile Telecom Wireless News
Subsidizing fancy handsets with high service fees is routine. It also stifles competition and hurts some clients. According to Business Week, Tokyo regulators are seeking a way out.
“Technology sells. That’s NTT DoCoMo’s rationale for ordering manufacturers to stuff cell phones with every gee-whiz feature possible. The latest handsets don’t just e-mail, browse the Internet, and take digital photos; they double as global positioning systems, anti-theft alarms, bar code readers, music players, TVs, and portable gaming gadgets. The downside to all the high-tech goodies is that such handsets cost more than $600 each to make.
Then why do Japanese consumers rarely pay more than a couple of hundred dollars for a new cell phone? Because DoCoMo subsidizes the cost of every handset on its network. Japan’s No. 1 wireless operator is willing to lose more than $300 per phone to make sure that consumers won’t get spooked by exorbitant prices.
DoCoMo’s rivals KDDI and Softbank spend as much as $70 more per phone than DoCoMo, according to the companies’ own estimates. The fight over customers is so fierce that, for new subscribers, operators will even offer their year-old models for as little as a penny. The tab for subsidies alone can set the operators back some $16 billion a year.
Sounds like a bonus for the common man, right? Not necessarily. The operators recoup their spending by charging consumers steep prices for air time. Though Japanese wireless operators earn only slightly more from each customer per month than their U.S. counterparts in average revenue per user—or ARPU—Japan’s per-minute connection fees can be more than five times higher.
Now the government is asking whether the subsidies do more harm than good. ”
Wireless Mobile Telecom Wireless News
Softbank, a Japanese Internet services company and mobile phone carrier, said its group net profit fell 50% for the fiscal year just ended.
Softbank, which acquired Vodafone’s Japan unit last April, said net income for the year totaled 28.8 billion yen ($240 million), down by half from the 57.6 billion yen the year before.
But the Tokyo-based company also said group revenue more than doubled in the fiscal year through March, buoyed by its purchase of British cellular giant Vodafone Group’s Japan operations.
Sales jumped to 2.544 trillion yen ($21.2 billion) for the fiscal year, up from 1.11 trillion yen a year earlier.
Softbank reported results after the close of trade on the Tokyo Stock Exchange, where its stock finished down 1.09% to 2,700 yen ($22.50).
Wireless Mobile Telecom Wireless News
Japan’s No. 1 mobile carrier testing faster network
