Dr.Sanda

     Today Ifd like to share with you my vision of PHS.
     Many in the telecommunications and computer industries believe that the three elements gTransporth, gContenth and gHardwareh are converging and that the market is driving this convergence. Moreover, software development companies, semiconductor manufacturers and telecommunications equipment manufacturers would likely answer gYesh if asked whether third generation (3G) electrical devices would be promoted by greater information access and interconnectivity.

     Observing this movement from the standpoint of equipment suppliers, you might assume that convergence is indeed taking place. But what about the user? In fact, from the userfs standpoint, convergence is still far from a reality. Differences in industry culture have led to significant gaps between IT, information sources, hardware, and the software backed by the computer industries. Users are unable to enjoy the fruits of convergence because to them these differences are unacceptable.

     Deregulation was born in the telecommunications industries with Judge Greenfs decision to break up AT&T. From a horizontal point of view, more competition will lead to greater freedom in the market. From a vertical point of view, the above mentioned gTransporth, gContenth and gHardwareh are phenomena which have by now been deregulated worldwide with small exceptions. Naturally, deregulation requires an open market and free entry for competitors. However, with the exception of DDI POCKET, Inc. , network carriers are building barriers to keep out new-comers. This is the unfortunate situation in the wireless industries today and it absolutely must change.

     Over the past two years, Japan Communications Inc. (JCI) has been introducing the concept of the gcommunication batteryh. Our vision is to make network services as easy to use as a battery. Today there is a space for a battery in a PC or other electronic devices. But what about the gcommunication batteryh? A wide array of the products we use in our daily lives can be equipped with this gcommunication batteryh or gserviceh.

     In order for this to become an effective solution for users, the network service must be embedded in the products as well as in the hardware itself. The technical knowledge and network of the carriers is actually vital. However, carriers tend to approach solutions only from their own point of view and not that of the users.

     JCI buys PHS network capacity from DDI POCKET in order to provide our customers with user-oriented solutions. What we should do is to provide the services that the users really want and need.

     We are now considering shifting to a 1Mbps PHS service based on QAM (Quadrature Amplitude Modulation) technology at a mere one-tenth the cost of a 3G system that has yet to be fully installed. At first, we didnft expect PHS to be so powerful although we recognized its advantages based on the slow progress and economic feasibility challenges of 3G. We now recognize PHS as a legitimate wireless solution and expect it to continue to be so for the next ten years and beyond.