Eurotechnology Japan KK
New 100Mbps next-gen PHS network for Japan
SoftBank in charge - foreign makers invest    Dec. 16, 2010
Greetings!,  with the usual Midas-touch, Masayoshi Son's Softbank is creating a new 100Mbps national wireless network in Japan from the ashes of Japan's bankrupt 5th largest mobile phone operator Willcom.

Masayoshi Son's new company "Wireless City Planning Inc." has acquired the best assets of Willcom, which is under bankruptcy protection. To satisfy Japanese regulator requirements Softbank invests 33.3%, a further 33.3% comes from the investment fund Advantage Partners LLP, and five global base station makers will invest 6.7% each: LM Ericsson, Nokia-Siemens-Networks, Alcatel-Lucent, Huawei and ZTE.

For a number of reasons, including their relatively late entry into the market, foreign base station makers only have a relatively small share of Japan's very large and rapidly developing wireless base station market (for an analysis and statistics of Japan's base station market see our JCOMM-report). Foreign base station makers' investment into this new network operator is significant, but competition will be very severe.

Those foreign base station makers who invest appropriately in Japan, and adapt their global management structures to the necessities of Japan's large and exploding base station market - and associated service markets - will have a good chance to increase their (currently very small) market shares. 

Follow us on Twitter Find us on Facebook
From NTT's wireless local loop to 100Mbps next generation
Wireless City Planning Inc's 100 Mbps overview
Softbank's plan to build a 100Mbps network (from our Softbank report)

PHS was developed in the 1980s by NTT Labs for wireless local loop access to replace copper wires and for ISDN speeds. At its peak many companies offered PHS services in Japan, China, Thailand, South America including Brazil and other countries. Today in Japan only Willcom remains. Price pressure and the need to invest in next generation networks to replace the outdated PHS infrastructure drove Willcom into bankruptcy protection, and into the arms of the Softbank group. Softbank now mapped out a plan to realize a 100Mbps national network based on Willcom's best assets. Read details and analysis in our Softbank-report.
Almost a UK worth of base stations...
Wireless City Planning Inc's base stations
New 100Mbps next-gen PHS compared to established networks

Wireless City Planning Inc's planned network will have almost as many base stations as some very large EU countries - but it's a relatively small addition to Japan's huge wireless networks.
Competition will increase for new entrants, e.g. eMobile
Next-gen PHS compared to other new entrants
Next-gen PHS compared to other new entrants

Wireless City Planning's network will increase competitive pressure on new market entrants such as UQ and eMobile.
::: About us :::
Founded in 1996/1997 in Tokyo, Eurotechnology Japan KK focuses on telecommunications and environmental industries. We work on M&A and help foreign companies grow in Japan, we help Japanese companies globalize, and we have advised about 100 investment fund managers over the years on technology industries. Our founder Gerhard Fasol works with Japan's telecom industry since 1984.
Need more information?
- Watch  video clips of live interviews on CNBC,
- follow us on Twitter,
- subscribe to our VIP newsletters,
- purchase or subscribe to our reports,
- or send us email because we need your feedback.

Sincerely,
Your Eurotechnology-Japan Team
Eurotechnology Japan K. K.
::: (c) 2010 Eurotechnology Japan KK. All Rights Reserved.  :::