Reports in the Japanese business press have suggested that publisher Bandai Namco is about to announce the launch of a new mobile gaming device, which would be aimed at the children’s market and launched with mobile network operator Willcom. The new service, Kids Mobile, would be co-launched by Bandai Namco and Willcom, a Japanese mobile operator which was spun out of major operator KDDI in mid-2004, and is now co-owned by Kyocera and the Carlyle Group.
As WWJ predicted last month, the latest Telecommunication Carriers Association numbers confirm that DoCoMo has indeed gone on to ‘Grab [the] 3G Lead from KDDI.’ OK — so the news isn’t startling given that the trend for the past several months has been growing in DoCoMo’s favor. The news that has been below almost everyone’s radar screens, however, is the exceptional performance of upstart PHS carrier Willcom and its success in attracting new customers compared to third-place 3G carrier Vodafone. The folks over at Willcom posted a net subscriber gain of 80,200 in January compared to Vodafone’s paltry 17,600 result.
Sonus Networks, Inc., a leading supplier of service provider Voice over IP (VoIP) infrastructure solutions, announced today that WILLCOM, Inc., a major Japanese provider of wireless data and voice services and the largest operator employing Personal Handyphone System (PHS) technology in Japan, has selected Sonus Networks as the foundation for its new nationwide long-distance network to support WILLCOM’s PHS system. This agreement marks the development of Japan’s largest VoIP network for PHS subscribers. WILLCOM will utilize key components of the Sonus solution including the GSX9000 Open Services Switch, the PSX(TM) Call Routing Server, and the Sonus Insight(TM) Management System, which includes the Element Management System (EMS).
Kyocera Corporation, along with its subsidiary, Kyocera Wireless Corp., and Nokia Corporation, along with its subsidiary Nokia Inc., today announced that they have entered into a patent license agreement. Under the terms of the agreement, Kyocera is licensed under Nokia’s essential patents, and some additional patents, relating to CDMA, PHS and PDC standards. Kyocera will pay royalties to Nokia for all Kyocera CDMA mobile phone and module products. Reciprocally, Nokia is licensed under all of Kyocera’s essential patents, and some additional patents, relating to all standards and covering all Nokia mobile phone, module and infrastructure products.
CIAJ’s Research and Statistics Committee has compiled its annual mid-term demand forecast. A slowdown in new subscribers pulled the growth rate of cellular handsets down, a break in capital investments by fixed telecommunication carriers decreased demand for modems and central office switching systems, and the transition to multipurpose equipment had a negative impact on facsimiles for business-use. On the other hand, continued healthy growth was seen for business and personal multipurpose equipment, optic communication equipment and routers. Strong interest in security and contingency planning for disasters pushed demand up for fixed communication equipment and other consumer equipment, migration of public PHS users to new carriers, and PHS subscriber growth due to new services contributed to the CIAJ forecast of flat overall growth at 4,138.5 billion yen (negative growth of 0.4% over the previous year) for FY2005. The midterm outlook for the telecommunication equipment market from mid FY2006 onward expects steady market growth, with further migration from 2G to 3G mobile communications, the transition from ADSL to FTTH, the switch to IP, and the lasting popularity of multipurpose equipment.
“Despite the high prices, there were huge line-ups waiting to buy the new Willcom PHSes,” said my Kiwi pal in an email last night. It looks like some of Willcom’s PHS phones appear to be selling well on the strength of flat-rate voice and data and handsets that are at least comparable to the high-end 3G cellular models from the Big Three carriers. Is this a hint of price destruction to come when the new licensees jump into the market in 2006?
“It normally takes about 20 minutes to get a new phone, but the wait for the new Willcom models on the first day of sales was over an hour and a half. A day or two later and the long lines have vanished,” added Keith Wilkinson, a long-time Japan hand and a keen watcher of all things electronic.
He was referring to the WX300K, WX310K and WX310SA, from Kyocera and Sanyo, as initially reported by WWJ in October, the first in a new series of PHS models. PHS is the shorter-range, non-cellular standard that has enjoyed a resurgence in popularity due to lower costs of usage and flat-rate pricing. According to Willcom, phones could be reserved starting on 11 November, and became or will become available in shops on the 18th (WX300K, silver and ochre), the 25th (WX310K, silver & pink; WX310SA, silver & red) and the 30th (WX310K, other color).
