Bloomberg News

Ericsson to Supply Mobile Phone Network to EAccess

March 13, 2006

Ericsson AB, the world's largest maker of mobile-phone networks, will supply a high speed mobile phone network to eMobile Ltd., a unit of EAccess Ltd. (9427), Japan's third-largest Internet service provider, the companies said.

EMobile will be capitalized at 100 billion yen ($841 million) and will start wireless data services in April 2007 and voice services in February 2008, EAccess President Haruo Taneno said in Tokyo today. EAccess will raise between 300 billion yen and 400 billion yen by the end of April.

Japan in November granted EAccess and two other companies wireless licenses, making them the first new entrants in the country's mobile phone business in 12 years. EAccess on Nov. 24 said it would invest as much as $4 billion in the next two to four years to build a mobile phone network in Japan that allows faster downloads of games, music and other media.

The network will use ``next generation'' technology, including Ericsson's High-Speed Downlink Packet Access, or HSPDA, EAccess said in a statement published on its Web site.

Ericsson, which supplies equipment to NTT DoCoMo Inc., Japan's biggest mobile phone company; and to Vodafone K.K., the No. 3 mobile carrier, said last year it plans to start selling equipment using technology that allows for faster wireless services in Japan this year.

EAccess Chief Executive Sachio Semmoto has said the company will be able to build the network much more cheaply than its biggest rivals because it will use equipment based on open standards and because prices for routers, base stations and switches have dropped with rising sales volumes.

DoCoMo spent about $20 billion on its third-generation network, while KDDI Corp., the No. 2 mobile service, spent more than $15 billion, Semmoto said in November.

To contact the reporter for this story: Aiko Wakao in Tokyo at awakao@bloomberg.net.

To contact the editor responsible for this story: Teo Chian Wei at cwteo@bloomberg.net.


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