Japan's telecommunication regulators said Friday they will allow two newcomers into the mobile phone market for the first time in 12 years to prompt more competition in a realm dominated by three top providers.
Although the regulators did not name the two, Internet service providers Softbank Corp. and eAccess Ltd. have already expressed an interest in entering the mobile phone-service market.
Industry sources said their entry is almost certain because their expertise in the field, as well as the feasibility of their business plans, will probably meet government requirements.
On Friday, the Internal Affairs and Communications Ministry announced a plan to give two firms nationwide radio bands for third-generation mobile phone services. After scrutinizing applications, the ministry plans to issue licenses by the end of the year.
The first entrants into the mobile market in 12 years are expected to stir up even fiercer competition for market leaders NTT DoCoMo Inc., Vodafone KK and KDDI Corp.
The ministry plans to release a 1.7 gigahertz band, including a 15 MHz bandwidth for nationwide mobile phone services, and allocate 5 MHz each to two new market entrants.
The remaining 5 MHz will be distributed to mobile phone-service providers to help them deal with demand from the growing number of customers.
In addition, a 20 MHz bandwidth available in the Tokyo, Nagoya and Osaka areas will be allocated to new and existing mobile phone firms in accordance with their needs.
The ministry also plans to give a 2.0 gigahertz band to one new entrant in the market.
IP Mobile Inc. has announced a plan to use the 2.0 gigahertz band for mobile broadband services.