To: foundation who wrote (30228 ) 12/20/2002 9:00:26 AM From: foundation Read Replies (1) | Respond to of 196611 Vodafone Stages Soft 3G Launch In Japan FT Investor December 20, 2002 Vodafone's Japanese subsidiary, J-Phone, on Friday launched its third-generation mobile phone service, but analysts are sceptical as to whether the company's 3G service will be able to lure enough customers to meet its ambitious forecasts. J-Phone's 3G service is forecast to have 1m users by the end of March, 2004. J-Phone follows NTT DoCoMo and KDDI, two larger Japanese operators, in launching a 3G service. It is the first Vodafone company to do so. But the initial service will lack the highly-popular camera phone function and regular e-mail capability, two services that have become necessities for Japanese mobile phone users. "This is going to be a very soft launch," says Bruce Kirk, telecoms analyst at KBC Securities in Tokyo. But J-Phone is the first Japanese operator to offer global roaming for its 3G users, with dual mode handsets that can operate on the 3G network and the GSM network. It will also offer global short-message services and the use of a Universal Subscriber Identity Module (USIM) card for international roaming. However, J - Phone's decision to postpone advanced data services on 3G highlights the instability of the W-CDMA standard being used in Europe and Japan. J-Phone says it chose to focus on offering a problem-free voice service on the 3G network and that content and applications would be available in September. "We want to stabilise the telecoms service, so we focused on that," said Kyoichiro Kouri, chief operating officer in charge of technology. "If we start the applications at the same time it can be very difficult." J-Phone expects the service to appeal mainly to corporate users at first. The group plans to market its global roaming service, in particular, to multi-nationals and corporate users who travel overseas a lot. The operator, which has appealed predominantly to younger Japanese users, will take advantage of Vodafone's expertise in marketing to corporations to lift the proportion of its corporate users to about 20 per cent. There will initially be three handsets available - dual mode 3G/GSM handsets from Nokia and NEC and a 3G handset from Sanyo. Only NEC phones were available for sale at the time of the launch, with the other two models to hit the shelves by the end of December. Battery standby times of between 50 and 120 hours for the 3G phones are still shorter than those for 2.5G phones and KDDI's 3G service, which offers standby times of about 250 hours.