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Carriers

SoftBank to Trial WiMAX

Motorola announced that the company has reached agreement with SoftBank for the deployment of a WiMAX (IEEE 802.16e-2005) trial network in Tokyo. Motorola will supply the end-to-end trial system including access points, an access network, and prototype WiMAX mobile handheld devices. Expected to begin in September 2006, the five-month trial will focus on performance of WiMAX in the 2.5GHz spectrum with regards to throughput and range, as well as the speed of network handovers between access points.

Number Portability Spooks Investors

The next several months could be very bumpy for Japan’s Big 3 cellular service providers. First, KDDI Corp. just reported record Q1 earnings but failed to see a further rise in its share price since it also warned of uncertainty in the 3rd and 4th quarters, which is when number portability becomes available. Strong earnings were priced in given recent strength in retaining subscribers. KDDI understandably left its full year forecast in place projecting a lower y-o-y net profit on higher revenue. However, that does allow it to raise its forecast this autumn if number portability is not as severe as anticipated. Its shares lost 2.15% on the day.

eMobile Taps Huawei Network

Chinese top telecom equipment maker Huawei Technologies clinched a deal with Japanese mobile operator eMobile to deploy an all Internet Protocol (IP)-based radio-access network. Initially, Huawei will help eMobile deploy the network around the cities of Sendai, Sapporo and Hiroshima. The deal with eMobile is the first for Huawei in Japan.

KDDI Posts Strong Quarterly Results

Japanese telco KDDI has reported net income of JPY75.7 billion (USD652.2 million) for the three months to the end of June, up 44% compared with the corresponding period last year. The mobile division continues to comfortably outperform the fixed line business, with net income from wireless services up 35% to JPY77.8 billion compared with a net loss from the wireline division of JPY4.1 billion. Overall sales were up 12% to JPY798.4 billion. For the full year to March 2007 KDDI expects sales to come in at JPY735 billion (up 19% year-on-year) and net income to drop 2.4% to JPY186 billion.

DoCoMo Announces 9 Search Partners

DoCoMo just announced that their users will be able to do keyword searches from the top page of the Japanese i-mode menu for easier access to official i-mode sites. In addition, the search results page will provide links to nine search engines so users can view non-official i-mode sites and other websites with the same keyword. The new service will be offered from October. No special set-up is required, and the search box will be automatically displayed from the service launch according to the statement.

DoCoMo to Offer AirTight SpectraGaurd

AirTight Networks has announced that DoCoMo Engineering Shikoku has signed an agreement to resell SpectraGuard wireless intrusion prevention solutions (WIPS) in Japan. DoCoMo Engineering Shikoku is the first Japanese reseller signed by Active Inc. — AirTight Networks’ distributor for the Japanese market. “Japan is an important market for our company, and there is no better endorsement for AirTight Networks than to have DoCoMo Engineering Shikoku reselling our solutions,” said Dennis Tsu, vice president of marketing at AirTight Networks.