KDDI lines up WiMAX allies

Teaming up with local partners and a U.S.-based chip maker, KDDI Corp. said Tuesday it will form a joint venture to bid for a license for next-generation high-speed wireless data communications services using mobile WiMAX technology.

KDDI, Japan's second-biggest mobile carrier, has been one of the first supporters to promote mobile WiMAX technology. With the wireless service, KDDI hopes to surpass bigger player NTT DoCoMo Inc. in terms of transmission speeds for wireless data communications services.

The Internal Affairs and Communications Ministry is opening up the 2.5-gigahertz frequency band for the next generation of high-speed wireless communications. The ministry began accepting applications Sept. 10 for two available allocations for new licensees.

A KDDI subsidiary called Wireless Broadband Planning K.K. will receive a capital injection Sept. 27, bringing the total to ¥850 million, up from the current ¥274 million.

After the capital injection, KDDI will own 32.26 percent; Intel Capital 17.65 percent; East Japan Railway Co. 17.65 percent; Kyocera 17.65; Daiwa Securities Group Inc. 9.8 percent and the Bank of Tokyo-Mitsubishi UFJ Ltd. 5 percent.

Intel Corp. will help develop WiMAX-ready chips for various devices, the consortium said at a news conference.

Takashi Tanaka, head of Wireless Broadband Planning, declined to comment on the venture's sales target because it has yet to obtain the license.

However, he did say his ultimate goal is to create a network that will allow users to access the Internet with laptop computers, portable video game players and cameras via its mobile WiMAX service.

Mobile WiMAX is expected to be as fast as ADSL and provide stable Internet connections in cars and trains traveling as fast as 200 kph.