Dear readers of the newsletter and members of PHS MoU Group, I would like to take this opportunity to deliver a message to you for 1999.

* History
Nearly two and half years have passed since we started this group on July 3, 1996, and during this period, we have achieved steady progress towards our goal of worldwide deployment. On the other hand, PHS public service in Japan, which was launched in 1995 and recorded rapid, unprecedented growth, is coming to an important turning point. PHS operators have re-evaluated, or changed their organizational model and structure in order to strengthen their management and service.

* Restructuring
The PHS operators have enhanced their networks and launched various new services, especially in the field of data transmission. Due to these enhancements, their traffic has increased steadily, and data transmission usage, in particular, has seen rapid growth. Though some PHS users have been switching over to cellular service, there are staunch PHS fans whose number, as we are seeing, is steadily growing.

* Renewed Growth
We expect that PHS-use, as a digital cordless phone in home and office environments, will see some growth during this year. The PHS operators are clearly identifying and advertising features that are unique to PHS, such as its high communication qualities, already available high speed data transmission, etc. to differentiate PHS from cellular service. Data transmission capability will expand with the commercialization of the world's first high speed 64kbit/s mobile service. A more versatile and diverse location information service, in addition to other information services will also become available. I expect PHS to re-enter the path of upward growth this year.

* Challenge
The year 1995, the year PHS public service was launched in Japan, was the 100th anniversary of Marconi's invention of radio communication. During those 100 years, many engineers have challenged their inventions with new technologies. PHS is one of the most promising technologies to fulfill the vision of these challenges. PHS is a crucial technology for the mobile multi-media era in the years to come. Though the business circumstances may not be favorable for us just yet, I know that the PHS MoU Group will make steady progress and achieve milestones through the collaboration of all of our members and all other concerned organizations.