Establishment of "KDD WinStar Corporation" and Application for
Approval of its Business
--- Offering of Local Access Service with FWA ---
|[Press Release 1999-001]||January 5, 1999|
KDD, in its joint endeavor with WinStar Communications, Inc. (Main Office: New York, U.S.A.; Chairman & CEO: William Rouhana) ("WinStar") in the U.S.A. and Sumitomo Corporation (Main Office: Chiyoda-ku, Tokyo; President: Kenji Miyahara), established "KDD WinStar Corporation" and applied today for approval of its Type I Telecommunications Business and for a radio stations license. The joint venture will start to offer a high-speed wireless access service using the Fixed Wireless Access (FWA) system from May this year.
KDD WinStar is capitalized at 1 billion yen as of its service inauguration, invested by KDD with 550 million yen (55%), by WinStar with 350 million yen (35%) through WinStar International, its wholly-owned U.S. subsidiary, and by Sumitomo Corporation with 100 million yen (10%).
In September last year, the Ministry of Posts and Telecommunications unveiled its basic concept regarding technical conditions including frequency allocation to the FWA, with a view to facilitate competition in the local telecommunications market and to enable wireless-based broadband information interchange such as multi-media communications and others with great potential demand. Based on this concept, the three companies have been conducting a customer survey for a joint business opportunity and, considering that the FWA would provide faster means for implementing circuits and changing transmission speeds compared with wired access lines while giving more economical service options due to lower costs in establishing links, and that such characteristics have gained eager expectations from the customers, they found enough feasibility to justify the establishment of a new corporation.
KDD WinStar, making the best use of the advanced wireless technology provided by KDD and business experience and operational expertise accumulated by WinStar as one of the largest FWA operators in the U.S.A., will furnish economical high-speed wireless access using "Point-to-Point System" or "Point-to-Multipoint System"(Note) mainly for business customers with large-volume data transmission needs including Internet service providers, while accommodating varied customer needs, such as establishing domestic and/or global networks, through integrated offering with KDD's telecommunication services.
Point-to-Multipoint System: A system enabling wireless access from a base station to multiple users at a speed up to 10Mbps.
(In Case of Point-to-Multipoint System)
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