DoCoMo, KDDI, 2 Others OK'd For 3.9G Cellular Service

TOKYO (Nikkei)--The Communications Ministry said Wednesday that it has approved business plans for next-generation cellular phone services submitted by NTT DoCoMo Inc. (9437), KDDI Corp. (9433), Softbank Mobile Corp. and Emobile Ltd.

Following the approval, they will likely roll out so-called 3.9G (3.9-generation) cellular phone services between September 2010 and late 2012.

The four firms plan to invest more than 1 trillion yen by the end of fiscal 2014 in base stations and other 3.9G service equipment and facilities. DoCoMo has slated 343 billion yen for the investment, while KDDI and the Softbank Corp. (9984) unit have budgeted 515 billion yen and 207.3 billion yen, respectively.

Among the four, 3.9G services are forecast to attract around 36 million subscribers, with DoCoMo projecting 17.74 million 3.9G customers. DoCoMo, KDDI and Softbank Mobile expect roughly 30% of their existing customers to switch to 3.9G services.

(The Nikkei June 11 morning edition)