Hokkaido Telecommunications Network Co., Inc. (HOTnet) launched Japan's first PHS-based fixed-charge Internet service from April 2000. Dubbed the "HOTCN (Computer Network) Fixed-Charge Dial-up Service," this is an Internet connection service using PHS as the access line. As charges for both the Internet connection and communications are fixed, users can enjoy the service, which uses PIAFS 32 kbit/s data transmission, without worrying about time or charges. The monthly charge is 4,800 yen, with the Internet connection and communications charges combined.
HOTnet is a New Common Carrier (NCC) affiliated with an electric power company and it has been providing leased line service, frame relay service and ISDN service. In November 1999, HOTnet took over the PHS business of its subsidiary, ASTEL Hokkaido. Since this new service is provided as part of the company's dedicated Internet connection service "HOTCN" which has long been in operation, users are not billed for PHS monthly basic charge. Users can access the service by dialing the special service number. HOTnet is also renting out PHS terminals dedicated to the service at 1,000 yen per month.
The figure shows the image of HOTCN Fixed-Charge Dial-up Service. Calls to the special service number are forwarded to the access server via bypass terminals in order to reduce the load on ISDN switches.

Fig. PHS-based fixed-charge Internet service