US telecom firm to exit Japanese mobile sector
US telecom firm NextWave Wireless has decided to sell its stake in IP Mobile, becoming the second foreign firm to exit Japan's competitive mobile telephone industry, IP Mobile said on Thursday.
By Agencies |
TOKYO: US telecom firm NextWave Wireless has decided to sell its stake in IP Mobile, becoming the second foreign firm to exit Japan's competitive mobile telephone industry, IP Mobile said on Thursday.
Japanese real estate group Mori Trust Co will buy back the stake and again become the largest shareholder in the Tokyo-based cell phone firm, it said.
Last month NextWave -- a supplier of wireless broadband products, technologies and network solutions -- acquired a 69.23 per cent stake in IP Mobile from Mori Trust, becoming the top shareholder.
NextWave was only the second foreign firm to enter Japan's mobile telephone market, one of the biggest and most competitive in the world, following in the footsteps of Britain's Vodafone, which also pulled out last year.
IP Mobile was awarded a cell phone operating licence in November 2005 and was given two years to launch mobile broadband services.
California-based NextWave has reportedly concluded that it would be difficult to post a profit in the Japanese market, which is dominated by a few major mobile operators.
"It was a decision made after NextWave made a comprehensive deliberation," said IP Mobile spokeswoman Mari Sendai. "We will continue cooperative relations with NextWave's subsidiary IP Wireless."
Competition between Japan's mobile telephone operators has intensified since telecom and Internet giant Softbank acquired Vodafone K K in April last year.
Japanese real estate group Mori Trust Co will buy back the stake and again become the largest shareholder in the Tokyo-based cell phone firm, it said.
Last month NextWave -- a supplier of wireless broadband products, technologies and network solutions -- acquired a 69.23 per cent stake in IP Mobile from Mori Trust, becoming the top shareholder.
NextWave was only the second foreign firm to enter Japan's mobile telephone market, one of the biggest and most competitive in the world, following in the footsteps of Britain's Vodafone, which also pulled out last year.
IP Mobile was awarded a cell phone operating licence in November 2005 and was given two years to launch mobile broadband services.
California-based NextWave has reportedly concluded that it would be difficult to post a profit in the Japanese market, which is dominated by a few major mobile operators.
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"It was a decision made after NextWave made a comprehensive deliberation," said IP Mobile spokeswoman Mari Sendai. "We will continue cooperative relations with NextWave's subsidiary IP Wireless."
Competition between Japan's mobile telephone operators has intensified since telecom and Internet giant Softbank acquired Vodafone K K in April last year.
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