ACCA to Partner with DoCoMo for WiMax

ACCA Networks and DoCoMo have announced their basic agreement to partner in a joint venture, ACCA Wireless Co., Ltd., for the provision of broadband wireless services based on mobile WiMAX technology. The arrangement has been made necessary by the ministry’s decision not to grant 2.5GHz spectrum rights directly to existing operators of 3G mobile services, such as DoCoMo, in order to encourage new market entrants. The companies will prepare to apply for the 2.5GHz broadband wireless access license and develop business after the license acquisition.

DoCoMo’s stake in ACCA Wireless will be limited to no more than one-third, according to ministry stipulations, since DoCoMo is an existing operator of 3G services. Under the agreement, ACCA Wireless would be recapitalized at about 72 billion yen, of which DoCoMo would provide about 19 billion yen for a stake of less than the 33.3% ceiling. ACCA Networks would invest about 30 billion yen, which would exceed the minimum 40% requirement for managerial control of ACCA Wireless as a consolidated subsidiary. Additional partners will be sought.