NEW EDIG

[cksla]

Unwired world
07/29/2005

By KOJI NISHIMURA

The Asahi Shimbun

From global banking at the touch of a button to letters from home with video and voice, it's a wired, wired world.

Don't bet on it.

Telecom providers are out to pull the plug. They see the future, and it is wireless.

It is also a savage struggle for bandwidth.

Companies already offering wireless communication services such as providers of public wireless networks, cellphones and personal handy-phone system (PHS) are competing to expand their areas of coverage as well as data transmission speeds.

Other companies are aggressively vying for channels to provide a new range of services. All that competition should mean a wealth of choice and convenience for consumers.

However, expansion of services will require allocation of new radio frequency bands.

One company considering establishing a wireless network is Livedoor Co.

In June, Livedoor announced a plan to set up a wireless network to cover the area within East Japan Railway's Yamanote Line, which circumscribes central Tokyo.

Senior Vice President Tomoki Terui said earlier this month, "The age has arrived in which you can carry the Internet with you."

Livedoor's plan would enable users to connect to its wireless network from anywhere in the Yamanote loop. Now, users of wireless local area networks (WLANs) have to be near a base station.

Nippon Telegraph and Telephone Corp. said this month that its group companies involved separately in wireless networks will in the future share base stations. It will also increase the number of stations.

Internet service provider Softbank BB Corp. has also decided to move into the wireless network business as part of its plans to expand its telecommunications operations.

One strength of WLAN is data transmission speed matching that of ADSL (asymmetric digital subscriber line) services without fixed lines.

That speed enables users to receive video images through the Internet.

One disadvantage of WLAN is that it cannot be used by a person in motion.

Cellphones have the advantage in terms of mobility.

However, because cellphone base stations cover a wide area, many users end up sharing the same frequency band, making it difficult to increase data transmission speed.

To overcome that weakness, several companies, such as NTT DoCoMo Inc., KDDI Corp.'s au service and Vodafone KK, are planning to introduce in the next fiscal year what they call the 3.5-generation cellphone, which would be faster than current third-generation cellphones.

DoCoMo and Vodafone plan to increase the data transmission speed by about tenfold in the 3.5-generation models.

For PHS, a major selling point is that users can remain constantly connected to the Internet for a flat monthly rate. It is a service that is not offered with cellphones.

Like cellphones, PHS service falls short in terms of broadband speed, but Willcom Inc., the largest PHS service company, plans to increase data transmission speed by up to six times by 2007.

However, Willcom President Yoichiro Yatsurugi said his company would step up efforts to develop the next-generation PHS since the faster speed would still be slower than 3.5-generation cellphones.

A new development that could intensify competition is technology that emits radio signals over a large area, so-called metropolitan area networks (MAN).

One such technology is WiMAX being marketed globally by Intel Corp. of the United States.

The technology allows users to maintain data transmission speeds similar to ADSL even while in a vehicle traveling at 120 kph.

WiMAX's wide coverage combined with a function that automatically switches from one base station to another makes it convenient for travelers.

In Japan, Yozan Inc. and Heisei Denden Co. have announced business plans utilizing WiMAX technology. KDDI has also started experiments with the technology.

Another promising technology is iBurst, developed in part by Kyocera Corp. A single base station using this technology can cover an area with a radius of several dozens of kilometers.

Livedoor said it will use the iBurst technology to supplement its wireless network.

During experiments, the technology enabled use of the popular Skype Internet phone software from a moving vehicle.

Industry experts said both technologies have the potential to become hits.

Technological advantage is not the only factor that will determine which standard comes out on top. The central government's allocation of radio spectrums will determine who the players are.

The Ministry of Internal Affairs and Communications is planning to allocate a license in the 2-gigahertz band mainly for third-generation cellphones.

While they are not in the cellphone field, both Livedoor and Willcom have asked the government to open the competition to iBurst technology as well as the next-generation PHS.

Although industry experts predict a low probability that those new technologies will win the upcoming allocation, an executive with a cellphone company said, "There is a public relations effect simply from their expressing an interest."

These experts feel that Livedoor and Willcom may be laying the groundwork for future allocations in different bands.

New technology such as WiMAX and iBurst could be critical in winning future allocations.

KDDI President Tadashi Onodera said, "Since (WiMAX) emits a strong radio signal over a wide area, it will require a special frequency under the license system to guarantee quality by avoiding mixed transmissions or interference."

Because WLAN transmitters cover a small area, licenses are not required to install base stations.

It will not be easy to satisfy demand for spectrum since broadcasters already monopolize frequency bands for transmission of visual images.

A study group under the Ministry of Internal Affairs and Communications is planning to compile a report by the end of the year on the transmission methods best suited for different uses as well as the date when such methods should be introduced.

So far, the study group has received 72 different methods from 44 companies for inclusion in the final report. That report might be the guideline for government's policy on radio spectrum allocation in the near future.(IHT/Asahi: July 29,2005)