TOKYO - The Japanese government gave licenses Friday for future high-speed wireless Internet services to KDDI Corp. and Willcom Inc., which is owned by U.S. investment fund Carlyle Group.
The decision for the 2.5 gigahertz broadband WiMax services is a victory for the telecommunications companies and a defeat for major mobile phone carriers NTT DoCoMo and Softbank Corp., which had also sought the license.
WiMax, a technology that allows speedy transmission of wireless data over long distances, is viewed as an attractive connection for future wireless devices, allowing users instantaneous access to the Internet while they're on the go, riding a commuter train, for example.
The Japanese government maintains tight controls over wireless services and earlier said it would allow only two companies to do WiMax.
Other companies won't be banned from offering WiMax services, but they will have to lease the frequencies from KDDI or Willcom.
KDDI is promising WiMax services for 2009, targeting 5.6 million users by 2013, with tests starting in February. By the end of 2012, WiMax will cover 90 percent of Japan's geographic area, according to a company release.
WiMax is already available in parts of the U.S., South Korea and other nations but has not yet started in Japan.
Similar to the Wi-Fi standard used at home and coffee shop hot spots, WiMax has much greater range and enables data transmission at higher speeds.
Softbank, which was planning to work with Internet services provider eAccess Ltd. has submitted a complaint to the telecommunications ministry about the decision, according to Japan's top business daily the Nikkei, opening a new chapter in Softbank's continued battle with the government over control of telecommunications.
Softbank President Masayoshi Son has repeatedly contested such government controls as holding back Japan's technological and economic growth.
The government has said it is weighing quality and the ability to cover areas with the services in picking the companies for WiMax.
KDDI is leading a group of companies, including Intel Corp. of the U.S., East Japan Railway Co., a major train operator, and Japanese electronics maker Kyocera Corp., for the WiMax business.
