In June 1998, NTT Mobile Communications Network, Inc. (NTT DoCoMo), the biggest cellular and pager carrier in Japan, decided to inherit the PHS business of its subsidiary known generally as the NTT Personal Group.
The following is an interview on this issue with spokespeople from the International Affairs Office and Public Relations Office at NTT Central Personal Communications Network Inc.

Q What were factors behind the NTT Personal Group’s decision?
A: Armed with low charges and compact, light-weight terminals, PHS service has steadily expanded since its inauguration in July 1995, giving rise to the boom in personal communications. However, we have seen a decline in subscribers since October 1997, due in part to the necessary removal of subscribers with payment problems. Since the decline in subscribers forced us to revise our business strategy, we have sought decisive solutions, while continuing to provide new and satisfactory services to our customers and while improving the group’s financial health.
We finally reached the conclusion that it would be better for NTT DoCoMo to integrate the PHS operation into its services than maintain NTT Personal Group separately. This seemed inevitable if we were to enhance customer satisfaction with service quality, and at the same time keep pace with the rapid technological changes in wireless communications, when competition is growing intensely in the mobile communications market.

Q Why did NTT DoCoMo choose to take over NTT Personal group’s business?
A: NTT DoCoMo will be able to offer a full range of mobile communications services from PHS and cellular to pager, so expanding customer choice. We also thought that PHS service as a whole will become much more attractive to customers if NTT DoCoMo can combine cellular and PHS technologies and improve them.

Q When will the operational control of NTT Personal Group be transferred to NTT DoCoMo?
A: That will be after relevant ministries and agencies accept our notifications and grant us approvals. We want the transfer to be completed by December 1998.

Q Do you plan to continue improving radiowave reception conditions inside your service areas?
A: Yes, of course, we do. We will continue to improve the connectivity of PHS calls by maintaining sufficient communications channels, improving network functions, and expanding antenna coverage. To expand antenna coverage, we will increase antenna power and install antennas in higher locations than before.

Q What will happen to the subscribers of NTT Personal group service?
A: Our customers are able to use the PHS service as it is. Certainly, they don’t need any troublesome procedures. We and NTT DoCoMo are also considering to offer discounts or special services for those subscribing to PHS service with us and to cellular or paging service with NTT DoCoMo.

Q Will you provide higher speed data transmission services?
A: Currently, 32-kbit/s data transmission service is available. We are working to put 64-kbit/s data transmission service into service.

Q Will you market a dual-mode terminal for both PHS and cellular services?
A: We are conducting R&D on dual-mode terminals. Our aim is to integrate strong technological features of cellular, which is superior in mobility and the wider-area coverage, and PHS, which has strengths in data transmission and low service charges. We may also incorporate a paging function (reception only) into the terminals.