KDDI Corp. and smaller rival Willcom Inc. won the endorsement of a government advisory panel Friday to offer wireless broadband Internet access in the country.
The KDDI-led group and Willcom have faster and broader plans to install equipment than other candidates, the Radio Regulatory Council said in a statement.
The license would help KDDI, Japan's second-largest mobile phone carrier, join South Korea's SK Telecom Co. and Taiwan's Far Eastone Telecommunications Co. in offering wireless Internet based on so-called WiMax technology. The standard can deliver data about 13 times the speed of Tokyo-based KDDI's fastest wireless network.
Wireless Broadband Planning Inc., a newly established company 32 percent owned by KDDI, will invest ¥144 billion over six years to build a network, the venture said last month. It forecast the investment will help generate about ¥145 billion in sales in the year ending in March 2014.
The other members of Wireless Broadband include Intel Corp., Kyocera Corp. and East Japan Railway Co. KDDI and Intel both hold seats on the board of the WiMax Forum industry group.
Reston, Va.-based Sprint Nextel Corp. and Clearwire Corp. earlier this year gave up plans to jointly build a high-speed wireless network after investors questioned whether the investment was justifiable. Sprint said it may spin off its planned WiMax service and seek investors.
The ministry has said it would issue a license to as many as two groups. A group including NTT DoCoMo Inc. and a business formed by Softbank Corp. and eAccess Ltd. also applied for licenses.
Minister of Internal Affairs and Communications Hiroya Masuda said Nov. 16 the ministry may decide on the license recipient by year's end.
KDDI shares rose 2.8 percent. Softbank's stock climbed 4.7 percent, while eAccess climbed 5.1 percent. Japan's benchmark Nikkei 225 stock average advanced 1.5 percent.