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(Update) Softbank Applies for Mobile Telecom Service License

Posted on: Monday, 5 September 2005, 18:00 CDT

Tokyo, Sept. 5 (Jiji Press)--Internet business company Softbank Corp. on Monday applied to the Japanese government for a license to start mobile communications services.

Softbank hopes to start a mobile phone service by the end of 2007 and obtain subscriptions totaling 10 million within several years, President Masayoshi Son told reporters.

The Ministry of Internal Affairs and Communications will make available 1.7-gigahertz and 2-GHz frequency bands for mobile communications services.

Softbank, the first company to apply for a license, is seeking to use the 1.7-GHz frequency band to provide services nationwide.

Softbank plans initially to offer data communications services in large cities from fiscal 2006, and to launch voice communications services later after developing base station networks.

The company aims to curb its capital spending to several tens of billions of yen by leasing telecommunications equipment. It is also considering developing a dual-use handset with both third- generation mobile phone and wireless local area network capabilities.

Following the application to the government, Son told reporters that everything is ready. He ruled out the issuance of corporate bonds to raise funds to finance the new business, saying that Softbank has sufficient cash reserves.

The winners of the respective licenses are to be selected by the end of the year. Along with Softbank, broadband line supplier eAccess Ltd. is expected to be among the other applicants.END

Source: Jiji Press English News Service

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