UQ Communications

WBPK Receives Authorization to Establish Base Transceiver Station in the 2.5GHz Frequency Band

Wireless Broadband Planning Inc.

Tokyo, December 21, 2007: Wireless Broadband Planning Inc. filed an application on October 11, 2007, to the Minister of Internal Affairs and Communications for approval of a plan to establish a base station that uses the 2.5 GHz-band frequency (hereinafter "establishment plan") with the aim of conducting a wide array of wireless broadband business operations utilizing mobile WiMAX technology.
On December 21, the Ministry of Internal Affairs and Communications' Radio Regulatory Council reported to the Minister of Internal Affairs and Communications that it has ruled our plan is appropriate, for the plan being duly approved by the Minister today.

We feel that the issuance of this approval reflects the Ministry's high overall assessment of (1) the appropriateness and reliability of our business plan aimed at making wireless broadband widespread; and (2) the extensive activities carried out thus far by each of the investing companies pertaining to the development and standardization of mobile WiMAX technology in pursuit of diverse telecommunication services availability in Japan and other countries.

Going forward, in line with our business plan, UQ will launch, within 2009, wireless broadband business operations based on mobile WiMAX technology. We will capitalize on the network's open nature to create and expand new markets, and push the business forward to make diverse broadband services available to customers, thereby working to enhance Japan's international competitiveness, further developing and invigorating the information communications market, and fully contributing to the development of business and society.


Wireless Broadband Planning Inc.

Wireless Broadband Planning is a company established by KDDI CORPORATION, Intel Capital Corporation, East Japan Railway Company, KYOCERA Corporation, Daiwa Securities Group Inc., and the Bank of Tokyo-Mitsubishi UFJ, Ltd. with the aim of obtaining a business license for mobile WiMAX services that use 2.5 GHz-band frequency. After obtaining said license, it will promptly shift to becoming an operational company, and establish a business setup for launching mobile WiMAX services in 2009.

Overview of the business plan

Planned launch of services

Trial service: February 2009
Commercial services: Summer of 2009

Area to be covered

Over 90% as of the end of FY2012 (population coverage rate)

Anticipated number of subscribers

Approximately 5.6 million (as of the end of FY2013)

Anticipated income

Approximately \145 billion (FY2013)

Scale of facility investments

Approximately \144 billion (cumulative total up to FY2013)

Business goal

Post positive operating income for a single business year, four years after business launch

Corporate scale

Currently: 41 employees
April 2008: Approximately 100 people
Increase of staff planned in the medium term to about 700 people