Goin' Mobile Japan

Trendwatch:UQ WiMAX started in Japan

On February 26, UQ Communications Inc. started offering its UQ WiMAX service, based on IEEE802.16e standard, in the Tokyo metropolitan area, Yokohama and Kawasaki. Back in February 2008, the company completed raising 17 billion Yen ($173 million) in capital from KDDI (32.26%), Intel (17.65%), JR East (17.65%), Kyocera (17.65%), Daiwa Security (9.8%) and Tokyo Mitsubishi UFJ Bank (5%) and now they are ready to do business.

www.uqwimax.jp/english/news_release/200902261.html (English site)
www.uqwimax.jp/english/news_release/200803031.html (English site)

Communication speeds of UQ WiMAX will be up to 40Mbps downstream and 10Mpbs up stream. 4 compatible PC devices are currently available with UBS and PCMCIA interfaces from NEC and Shinsei/Modacom. The service is free during the trial period, which lasts until June 30, and the monthly fee will be a flat rate of 4,480 yen ($45) after the trial expires.

www.uqwimax.jp/english/news_release/200902031.html

Along with the launch of UQ WiMAX, JR East, one of the shareholders, announced that they would provide UQ WiMAX reception at 44 major stations in Tokyo, Kawasaki and Yokohama where millions of passengers commute daily. WiMAX service is available at platforms, inside buildings, underground concourses and even in trains via 160 transmitters (please see the article dated February 3). Moreover, major JR stations incorporate or connect with shopping malls, restaurants and business offices so improved connectivity will lead to the development of new services and applications using wireless broadband.

Map of 44 stations in Tokyo area

www.jreast.co.jp/press/2008/20090114.pdf (Japanese site)

UQ WiMAX is also available to MVNOs. Nifty announced that they would start their own service this summer (Please see the article dated February 4). More MVNOs, such as BIGLOBE and WICOM in Hokkaido, are expected to start offering service with UQ Communications later this year.

While some of the attention has already shifted to LTE (defined 3.9G in Japan) (please see articles dated January 23 and February 17), WiMAX (defined 3.5G in Japan) is now an active market in Japan. Characteristics of Japanese lifestyle, such as the extensive use trains and the ability to quickly adapt to new technologies and services, may lead to quick adoption of WiMAX, as opposed to XOHM in US. Also, other alliances of UQ Communications, such as Intel and big financial partners, may be able to drive quick and aggressive adoption. Mr. Kanzumasa Yosghida, president of Intel K.K. said, “Committed to the expansion of WiMAX service, Intel continues to collaborate with PC manufacturers to expand the market for products that take advantage of WiMAX, including notebook PCs based on IntelR CentrinoR 2 processor technology with built-in WiMAX capabilities.” We shall see how WiMAX and associated business becomes more pervasive in Japan throughout this year.