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Wireless Broadband Planning Company (WBPK) Established to pursue Mobile WiMAX Business

Establishment of a mobile WiMAX business planning company



KDDI CORPORATION
Intel Capital Corporation
East Japan Railway Company
KYOCERA Corporation
Daiwa Securities Group Inc.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Wireless Broadband Planning Inc.


Tokyo, September 18, 2007: KDDI Corporation (representative: Representative President and Chairman Tadashi Onodera; hereinafter "KDDI"), Intel Corporation (representative: President and CEO Paul Otellini; hereinafter "Intel"), East Japan Railway Company (representative: Representative President Satoshi Seino; hereinafter "JR East Japan"), Kyocera Corporation (representative: Representative Executive President: Makoto Kawamura; hereinafter "Kyocera"), Daiwa Securities Group Inc. (representative: Representative Executive President Shigeharu Suzuki; hereinafter "Daiwa Securities Group Inc."), and the Bank of Tokyo-Mitsubishi UFJ, Ltd. (representative: President Nobuo Kuroyanagi; hereinafter "The Bank of Tokyo-Mitsubishi UFJ") today agreed to invest in Wireless Broadband Planning Inc. (hereinafter "the new company") which was established with the aim of obtaining authorization for a plan to establish a base station featuring a 2.5 GHz broadband mobile wireless access system (hereinafter "BWA") that uses the mobile WiMAX technology (hereinafter "business license"), and to cooperate in managing wireless broadband business operations after said business license has been issued. In line with this agreement, the new company will apply for a business license, and, as soon as a license is issued, work to launch wireless broadband business operations as soon as possible by making maximum use of the strengths of each investing company.


KDDI took notice of mobile WiMAX technology in 2003, ahead of other companies, and contributed to establishing an international standard at a committee of the Institute of Electrical and Electronics Engineers, Inc. of the US (IEEE) and the WiMAX Forum (Separate Sheet 1). In 2006, the company conducted Japan's first demonstration experiment in Osaka (Separate Sheet 2), aimed at applying the technology to practical use. KDDI also has accumulated extensive technological capabilities and expertise over the years, including the building of telecommunications infrastructures as well as operation and maintenance. It intends to pass on these management resources to the new company, and make them its strengths in terms of business operations.


Intel will capitalize on its technology leadership to promote the global spread of mobile WiMAX and development of compatible devices and equipment, and spearhead the move to create markets for mobile WiMAX on a global scale. Intel also plans to invest in the new company through Intel Capital, its strategic investment arm. Intel Capital is already investing in mobile WiMAX projects in various countries around the world.


JR East Japan possesses an extensive customer base, mostly in the Tokyo metropolitan area. Assets include an in-house infrastructure in the form of a railroad network spanning approximately 7,500 km; railway stations that serve as a base for people's everyday lives; and approximately 16 million passengers each day, which is the largest number anywhere in the world.

Moreover, by receiving funds from Kyocera, Daiwa Securities Group Inc., and the Bank of Tokyo-Mitsubishi UFJ, the new company will establish a stable financial base for rapidly building a mobile WiMAX network.


As such, the new company will possess technologies and expertise pertaining to mobile WiMAX and communications businesses. It will also be equipped with the ability to swiftly start business in the wireless broadband market and to unveil global operations such as international roaming services, as well as a stable management base.


As soon as a business license has been granted, the new company will promptly launch wireless broadband business operations, strengthen its alliance with MVNOs, create & grow new markets, and push the business forward to make diverse broadband services available to customers.

By so doing, the new company will enhance Japan's international competitiveness, help to further develop and invigorate the information communications market, and contribute significantly to the development of business and society.


An overview of the new company is shown below.

Overview of the company

Name

Wireless Broadband Planning Inc.

Location of head office

3-10-10 Iidabashi, Chiyoda-ku, Tokyo

Capital*1

850 million yen

Shareholders*2

KDDI CORPORATION (32.26%)
Intel Capital Corporation (17.65%)
East Japan Railway Company (17.65%)
KYOCERA Corporation (17.65%)
Daiwa Securities Group Inc. (9.8%)
The Bank of Tokyo-Mitsubishi UFJ (5%)

Planned date of capital increase completion

September 27, 2007 *3*4

President and CEO

Takashi Tanaka (KDDI)

*1 \274.2 million as of today.
*2 KDDI owns 100% shares as of today.
*3 The date of corporate establishment will be August 29, 2007.
*4 The capital is planned to be increased further after a business license is acquired..

Send inquiries from the press to:

KDDI CORPORATION

Sakurai and Watanabe, the Public Relations Department

TEL: (03)3378-0690

Intel Corporation

Mizuno, Public Relations Office

TEL: (03)5223-9244

East Japan Railway Company

Terui and Mori, Public Relations Department

TEL: (03)5334-1300

KYOCERA Corporation

Head Office Public Relations Section, Public Relations Office

TEL: (075)604-3514

Tokyo Public Relations Section

TEL: (03)3274-1577

Daiwa Securities Group Inc.

Kaneko, Kurihara, Misawa and Fuchinoue, Public Relations Department

TEL: (03)3243-3177

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Public Relations Department

TEL: (03)3240-2950

Wireless Broadband Planning Inc.


TEL: (03)6678-0690

Separate Sheet 1

Standardization activities at the WiMAX Forum


To promote the use of WiMAX technology for mobile devices, KDDI has since 2005 been taking part in the WiMAX Forum, established in 2001 for the purpose of applying this technology to fixed communications. The company has contributed to realizing mobile WiMAX by collaborating with Sprint Nextel and other communications carriers in various countries.


Today, the WiMAX Forum has over 500 corporate members including communications equipment vendors and communications carriers, and has become an internationally influential organization for promoting standardization. In recognition of KDDI's vigorous leadership and standardization activities, the Forum selected KDDI executive director Hideo Okinaka in July 2006 as a board member, and made KDDI the only Japanese communications carrier to receive this honor. Since then, in addition to conventional technological activities, KDDI has taken part in the Forum's decision-making processes as one of the fifteen board member corporations, and contributed to promoting the global spread and development of WiMAX.

KDDI has also actively carried out programs aimed at encouraging the growth and development of WiMAX technology in Japan. For example, it has led the Forum's activities to help make WiMAX standards comply with Japan's wireless standards environment , and to ensure WiMAX-compatible terminals manufactured all over the world are also freely available for use in Japan. Through these achievements, KDDI has contributed to the development and expansion of Japan's communications industry as well.

At the IEEE 802.16 Committee that determines WiMAX Forum's standardization specifications, or more specifically, for the Relay Task Group which works to standardize WiMAX as IEEE 802.16e's expanded technology, Mitsuo Nohara of the KDDI Research Institute was appointed chairman of the IEEE-802.16TG. As Japan's first communications carrier to take on this role, KDDI has also contributed to standardization activities at the IEEE.


WiMAX Forum
The official name is the Worldwide Interoperability for Microwave Access Forum.


The Forum was established in 2001, led by Intel and other corporations, with the goal of adopting the technologies approved by The Institute of Electrical and Electronics Engineers, Inc. (IEEE), implementing global-scale dissemination activities and technological discussions, and establishing various specifications. It is a non-profit corporation that tests the compatibility and interoperability of various companies' communications devices for meeting WiMAX installation specifications, and issues authorizations. Over 500 companies currently take part in this Forum.


IEEE
The official name is The Institute of Electrical and Electronic Engineers, Inc.


The IEEE is the world's largest professional association in the electric and electronic sector. It was launched in 1963 following a merger between the American Institute of Electrical Engineers (AIEE) and the Institute of Radio Engineers (IRE). Headquartered in New York, it has over 380,000 members in 150 countries worldwide. It holds conferences and meetings on electronics, publishes books and journals, and conducts technological standardization activities. Major international standards include IEEE 802.16 (WiMAX), IEEE 802.3(Ethernet), IEEE 802.11 (wireless LAN), and others.

Overview of the WiMAX Forum

WiMAX Forum (Worldwide Interoperability for Microwave Access Forum)

Established

2001

Purpose

A non-profit organization engaged in spreading and promoting broadband wireless access networks, and confirming their compatibility and interconnectivity.

Participants

Approximately 500 companies including communications carriers, equipment and parts manufacturers, and system integrators

Board

Airspan Networks, Alcatel-Lucent, Alvarion, Aperto Networks, AT&T, BT,
Fujitsu, Intel, KDDI, KT, Motorola, Nokia, Samsung, SprintNextel, ZTE (communications carriers are underlined)

Others

KDDI executive director Okinaka was inaugurated board member in July 2006, to show the company's status as the leading promoter in Japan

WiMAX standardization's relationship diagram

WiMAX標準化関係図

Separate Sheet 2

Overview of Mobile WiMAX's pilot tests

KDDI became the first Japanese company to develop a testing system for mobile WiMAX that meets the IEEE802.16e standard, and began carrying out demonstration experiments in downtown Osaka City from May 2005, aimed at evaluating the system's performance, among other items.
The experiments evaluated the yet-unknown basic performance and functions of the mobile WiMAX system, including communications speed under a mobile environment as well as high-speed handovers between base stations. The tests confirmed mobile WiMAX's high practicality even in an urban environment, and the company released the findings in February 2006 to telecommunications carriers, scientists, and members of the press

In the latter half of 2006, KDDI investigated mobile WiMAX's performance when multiple terminals were used simultaneously, and examined multi-antenna technology (Note) that enhances frequency efficiency. At the same time, it worked to improve a transmitter's distortion properties considered a challenge in broadband wireless communications and to enhance efficiency, and succeeded in attaining the world's highest power efficiency (general power efficiency of 30%), thereby making the base station facilities more compact and energy-efficient.

As seen, KDDI has been performing technological development ahead of all other companies and disclosing information on experiments to arouse Japanese people's interest in mobile WiMAX and to motivate the vendors to carry out development activities. At the same time, it has been aggressively feeding back the results of their experiments to IEEE802.16e standardization activities and to proposals at the WiMAX Forum for establishing installation specifications, thereby contributing greatly to mobile WiMAX's technological development and growth.

(Note) Multi-antenna technologies
Besides the Multi-Input, Multi-Output (MIMO) technology that uses multiple antennae to stabilize or double wireless transmission speed, multi-antenna technologies include beam-forming technology that directs radio wave beams to the desired direction by combining multiple antenna arrays, and spatial multiplexing technology that makes use of this technology.
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