NEC Corp. said it would spend about 33.5 billion yen ($282 million) to gain full ownership of phone-making unit NEC Infrontia Corp. in its latest step to pool group resources and eliminate overlap. NEC, Japan’s third-largest electronics conglomerate which already owns 53.3 percent of NEC Infrontia, said on Thursday it would launch a tender offer for the remaining 58.9 million shares at 569 yen each, or an 18 percent premium from Thursday’s closing price.
Sachio Semmoto likes nothing more than seizing an opportunity when he spots it. Six years ago, the former electrical engineer thought he could crack open Japan’s fossilized telecom sector by connecting businesses to unused lines owned by NTT. Now, Semmoto is smelling opportunity again. On November 10, Japan’s communications ministry granted eAccess one of three new cellular licenses, opening the market to the country’s first new entrants in a dozen years.
Even before its official launch, StarHub’s i-mode has more than 50 content providers on board. The list includes MediaCorp TV, MTV, OCBC Bank, Yahoo!, Far East Flora and Zuji Singapore. StarHub hopes to attract 50,000 users within the first year, but i-mode is a unique proposition. The service requires i-mode compatible phones from the likes of Samsung and NEC, so you cannot use other 2G or 3G handsets to access the service. StarHub will reveal full details to the press tomorrow.
Web Update: 18 Nov. DoCoMo PR confirms.
NEC Electronics has announced that its uPD161833M and uPD161605M LCD driver ICs, based on its Mobile CMADSTM (Current Mode Advanced Digital Signaling) high-speed serial data transmission method, will be employed in select NEC mobile handsets from the fall of 2005. This marks the first successful implementation of cutting-edge display drivers with integrated receiver circuits, as well as the first use of NEC Electronics’ Mobile CMADS technology, designed to enhance data transmission speed, performance, and mobile handset design.
NTT DoCoMo may buy cheaper handsets made in China by NEC Corp., its No. 2 supplier, to cut costs as revenue falls. The company is also offering handsets from overseas vendors such as Nokia Oyj and LG Electronics Inc. in the coming year, Chief Financial Officer Yoshiaki Ugaki said in an interview conducted on Nov. 15. Foreign-made phones can be as much as 10,000 yen ($84) cheaper than domestic handsets used on the company’s high-speed network, he said. DoCoMo expects costs to sell new handsets to rise in the fiscal second half as more customers typically upgrade or buy new phones at the end of the business and academic year in March, Ugaki said.
Back in 1999, when I was editing Computing Japan magazine, we ran an article entitled “Third Generation Mobile: Three Groups for 3G” looking at the three groups — NTT DoCoMo, IDO-DDI (later, with KDD, KDDI) and IMT-2000 Planning Corp. (later J-Phone) — lining up for a new license. The prediction was that “success for the 3G business depends on the digital content.” Now, 7 years later, three new hopefuls are lining up in a far more mature market, and not only content but also terminals, churn, number portability and voice versus data will be significant factors.
On November 10, Japan’s Ministry of Internal Affairs and Communications said it would grant three new carriers licenses to operate in the 1.7 and 2 GHz bands; BB Mobile of Softbank Corp. and e-mobile of eAccess Ltd. will offer services based on W-CDMA technology while IPMobile Inc. will offer Japan’s first TD-CDMA-based services. The three are expected to launch later in 2006.
The three newcomers are entering a highly competitive market dominated by three existing incumbents: NTT DoCoMo Inc., KDDI Corp. and Vodafone K.K., which reported a collective 89.4 million subscribers as of October 31. The new players are expected to expand the variety of wireless services and pricing levels available, providing more choice and lowering costs — not least of all for terminals — according to one ministry quotation.
