ACCA Wireless, ACCA Networks and NTT DoCoMo Agree on Strategic Partnership to Acquire 2.5GHz Broadband Wireless Access License

(Business News & Technology News, 3 Sep 2007)

ACCA Networks Co. Ltd and NTT DoCoMo, Inc. recently announced their basic agreement to partner in a joint venture, ACCA Wireless Co. Ltd, for the provision of broadband wireless services based on mobile WiMAX technology.

The arrangement has been made necessary by the ministry's decision not to grant 2.5GHz spectrum rights directly to existing operators of third-generation mobile services, such as DoCoMo, in order to encourage new market entrants.

ACCA Networks will provide overall management of ACCA Wireless, such as operation of high-speed wired infrastructure and sales of broadband wireless services. DoCoMo will help construct the wireless access network and provide technical assistance.

ACCA Networks agreed to the partnership based on DoCoMo's extensive experience and know-how in mobile technologies. DoCoMo, which has been pursuing the launch of 2.5GHz broadband wireless services, sees a good fit with ACCA Networks' goal to provide services with globally standardized technologies through open, cooperative relationships that leverage each partner's strengths.

DoCoMo's stake in ACCA Wireless will be limited to no more than one-third, according to ministry stipulations, since DoCoMo is an existing operator of 3G services. Under the agreement, ACCA Wireless would be recapitalized at about 72 billion yen, of which DoCoMo would provide about 19 billion yen for a stake of less than the 33.3 percent ceiling. ACCA Networks would invest about 30 billion yen, which would exceed the minimum 40 percent requirement for managerial control of ACCA Wireless as a consolidated subsidiary. Additional partners will be sought.

Both companies, as business partners, will accelerate preparations to apply for the 2.5GHz broadband wireless access license and develop business after the license acquisition.

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