Groups led by Japan's three mobile phone carriers — Softbank Corp., KDDI Corp. and NTT DoCoMo Inc. — applied Thursday for licenses to provide next-generation, high-speed WiMAX wireless telecommunications services.
An advance on Wi-Fi, WiMAX covers greater distances and allows point-to-point connections that bypass "last mile" cable and DSL, much like a mobile phone.
WiMAX users with laptops, mobile phones and other electronic devices can also transmit huge amounts of data while on the move, such as in a car or on a train.
The three groups are also vying with Willcom Inc., a personal handy-phone system operator, which filed with the Ministry of Internal Affairs and Communications for a WiMAX license on Sept. 28.
The ministry plans to grant two licenses by the end of the year.
NTT DoCoMo, the industry leader, has teamed up with broadband service provider ACCA Networks Co. to acquire a WiMAX license.
The smallest operator, Softbank, has forged an alliance with ADSL provider eAccess Ltd., Goldman Sachs Group Inc. and Temasek Holdings PTE based in Singapore, as well as Internet firms NEC Biglobe Ltd., So-net Entertainment Corp., Nifty Corp. and FreeBit Co.
Softbank outstripped its competitors in securing more new subscribers for the fifth straight month in September. Meanwhile, KDDI has teamed up with Intel Corp.'s venture capital arm Intel Capital, East Japan Railway Co., Kyocera Corp., Daiwa Securities Group Inc. and Bank of Tokyo Mitsubishi UFJ Ltd.
The ministry has said it will grant licenses to nonmobile phone carriers. These companies, however, would have to provide services through other companies in which they owned a one-third stake or less.