Company Visit Report No.4 "Japan Radio Corporation"




Visited Company : Japan Radio Co., Ltd. (JRC)
Date of Interview : January 27 (Fri.), 2006
Interviewee : Mr. Hideki Kaibazawa, Chief Executive, PHS Business Unit






Q. Please let us know of your brief company profile.
A.

JRC has 90 years history since its inauguration in 1915 and started with the development of wireless communication equipment. Even at present, wireless application products including radar system are still our main products. We also have a big share in marine-related market (equipment and vessels). As for the PHS related products, those are controlled by our PHS Business Unit originated from mobile communication equipment. Analog car telephones for Southeast Asia, car telephones and cellular phones for North America and Europe etc. are the roots of our PHS business. At the beginning of the PHS service started in 1995, we've been supplying our products to ASTEL Corporation (ASTEL), however, at present, our customer is WILLCOM, Inc. (WILLCOM) only. Cell Station (CS) equipment and onsite cordless telephones have also been developed once, however, at present, we are manufacturing handsets only. Please refer to the separate section for the details of our latest handsets. Our headquarters is located in Shinjuku-ku and the other offices and organizations are in Mitaka-shi. The PHS related products are being manufactured by Ueda JRC in the same group and New Japan Radio Co., Ltd. (NJRC) is manufacturing semiconductors.

Q. What are your company features and the differences from ordinary companies?

A.

Our company has a long history and had military wireless communication industry experience so we have a professional wireless technology for vessel equipment. In one word, JRC is the technology-oriented company and adopting new technologies for the PHS as well earlier than other companies.

Example :

We have adopted antenna diversity(Note), dual RF system high-speed handover technology etc. positively and we also hold patents on those.

(Note : To install two sets of wireless and antenna portion to enable switching to a better receiver.)

Q. What are your competitors as well as your business strategies against them ?

A.

All companies developing the PHS terminals are our competitors. At present, we are manufacturing handsets only and not data cards so Kyocera Corporation (Kyocera), SANYO Electric Co., Ltd. (SANYO) and NetIndex Inc. (NetIndex) would be our competitors especially. Strategically, we'd run our business by stressing our specific features which our competitors don't have. It should be attractive to the purchasers if they are able to choose among different terminals with various features. Fingerprints certification would certainly be a strong strategic point.

Q.

Please let us know of your company policy as the leader of the PHS business sector.

A.

To create excellent products by concentrating our full wisdom and originality, to contribute to the wealthy society and to support the expansion of communications between our customers by our telecommunication equipment would be our company policy. We are also targeting the corporate users, so we'd be willing to support such companies' growth as well.

Q

Please let us know of your stock of knowledge, attitude and world view of the PHS business as the leader for progressing it.

A. My motto is "Everything is possible if tried. Everything is not possible if not tried. Don't try to find an excuse, but to find a solution for that.".

Q. What is your company's social contribution policy (vision) ?

A.

To contribute to the communication world through the PHS business and to install the communication security capability into the PHS related equipment in the following two steps.
* Firstly, to realize high security level of the PHS handsets using fingerprints sensor.
* Secondly, to build a system enabling an outside access to the office by fingerprints security system.

Q. Mr. Hoshino, how do you feel about Mr. Kaibazawa as your boss ?

A.

I think that Mr. Kaibazawa is a "never-giveup" or "undaunted" person All staffs involved in the PHS business seemed to have understood and shared his such spirit.

Q. The number of R&D engineers would be quite important so could you tell us your R&D lineup ?

A.

We have an R&D team composed of mainly in-house hardware/software and mechanical engineers amounting to approximately 200 persons in total including affiliate and contracted software development companies.
In addition to the above, from 50 to 100 evaluation engineers will join a team depending on the development situation.

Q.

What is your view of the domestic/international division of work and outsourcing and further, what specific organization do you have?

A.

We have shifted a production for Chinese market to China entirely. All necessary technologies are to be transferred to the local entity. Recent technical development in China is really remarkable and the local production of voice terminals has become possible without our assistance.

Q.

What is the reason why you've decided to develop and sell the PHS and what is your present main product and product lineups?

A.

The PHS emerged in 1995 in a period where car telephones were shifting to the cellular phones and we've decided to select that because that would be promising. Actually we already started the cellular related business before then so we've been dealing with the PHS as part of such.

Q. What are your customer companies?

A. Currently only WILLCOM is our main customer.

Q. What products are expected to be developed by your company 3, 5 and 10 years from now?

A.

It's useless to predict the future communication world 10 years from now because the technology innovation is so rapid. Notebook PCs will entirely be replaced with wireless communication terminals and there will be no necessity to carry notebook PC on a business trip etc. accordingly.
Keyboard or display monitor will be foldable or rollable type when not in use. The PHS will have been shifted from enhanced to the next generation model within 3 to 5 years. Besides the PHS, almost all trunked radio system related equipment are still analogue and those will be switched to digital around then to make a big business chance.

Q. Do you think that the PHS can coexist with future generation cellular phones as they evolve into 3G, 3.5G, 4G?

A.

We think that the PHS isn't competing with the cellular phone and high-functionality PHS will be shifting to the next generation PHS so it can sufficiently coexist with the future cellular phones. The PHS will be developing in a different direction compared with the cellular phones.

Q. What do you think the present problems and the future view of the PHS?

A.

Every telecom manufacturer will be forced to pay a huge development expense than at present in the future as the products are enhanced more so an establishment of the joint development system with other manufacturers will become necessary as a solution to the above. The form of business "business cooperation" will surely emerge in the future because each member manufacturer accepts the common core design and the final product can be differentiated by the design of other portion than that. JRC is also seeking such solution.

Example :

We think that this joint development system will be similar to that of semiconductors. Japan shouldn't consider only Japan but the whole world to proceed with business from now on.



     Mr. Kaibazawa is a non-talkative person becoming to the PHS sector leader of the company having a long history of 90 years and we were impressed by his slow, calm and majestic way of speaking. We believe that what he explained "business cooperation" will be realized steadily and surely. We'd like to express our special thanks for his receiving our interview of this time.