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Koichi Sakata Chairman Japan Telecom

Japan Telecom (JT) plans to launch its 3G services based on wideband-CDMA in the third quarter of 2001. Koichi Sakata said JT will put an emphasis on its 3G business to compete with giant NTT DoCoMo.

For launching its 3G business, JT at the end of 1998 established IMT-2000 Planning in cooperation with Nissan and AirTouch International. Sakata heads the joint-venture firm.

British Telecom, now a 15-percent stakeholder in JT, recently took a 20-percent stake in IMT-2000 Planning.

JT since last year has been conducting a series of field tests using 3G prototype equipment. To launch more practical experiments using commercial equipment, JT is scheduled to select several vendors. In addition, it will hold a separate open tender for software later.

According to Sakata, JT plans to invest between 600 billion and 800 billion yen (US$5.7 billion and US$7.65 billion) for 3G infrastructure nationwide and aims to cover 99 percent of Japan’s population by 2003.

Separate from 3G, JT is promoting its access-line business by deploying wireless local loop (WLL) and direct access fiber optics nationwide.

However, he said, neither WLL nor direct access will cover every portion of Japan, so JT is considering using its 3G network to supplement WLL and direct access for small and medium-sized cities.

Meanwhile, JT is gearing up its 2G cellular business by taking over shares that Nissan used to have in nine Tu-Ka cellular companies. Nissan has decided to withdraw from the 2G business.

JT will acquire all Nissan’s stakes in six digital Tu-Ka Group companies and will launch nationwide cellular service under the unified brand name of J-Phone. Unifying its brand and service names will allow JT to attract more users.

“We will be able to compete with NTT if we provide our services exactly meeting demands of users with high efficiency and swift response,” said Sakata.-Yaeko Mitsumori in Tokyo

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