In this presentation, Mr. Fujii from Willcom, Inc. will introduce us the current application and future prospect of W-SIM concept, which is promoted heavily by Willcom, Inc. in Japan.

With beginning, there will be a simple introduction on present PHS business of Willcom, Inc.

The total number of PHS subscribers in Japan, which dropped once, started increase again in 2004, the growing tendency isn't weakened even by today. In late 2006, Softbank Mobile released fixed-charge service package for voice communication. The package service was before only a Willcom, Inc. service for PHS users in Japan. However, the break-down of so-called monopolization hasn't turned out to bring negative influence to the growth of PHS subscribers at present time. The fixed-charge service package of Softbank

Mobile does not include phone calls made from 9pm to 1am, which happens to be a peak time of using portable handset. On the contrary, fixed-charge service package provided by Willcom, Inc. is on 24-hour base, which can be considered a chance for the market to re-appraise PHS.

Willcom, Inc. introduced a new communication module concept called W-SIM to the market at the end of year 2005. It differs largely from SIM card, which only contains only simple information of a subscriber. It also unifies the wireless device in the chip. By using a W-SIM card, a handset maker no longer needs to develop a wireless device for a PHS terminal. More handset makers could join in PHS business by only produce a generally-know telephone that allows insert of a W-SIM card. We call this combination of a phone and a W-SIM card "Jacket". WillCom, Inc. is presently adopting W-SIM technology in several PHS terminals from low-end to high-end ones.

In addition, this epoch-making concept won the top award of "the Gld Prize of Good Design" in Japan. This is a great honor to Willcom, Inc., as only fifteen designs are awarded from the 2918 participating items.

Presently, the W-SIM module sold on the market are all produced from NetIndex Inc. and AlTel Inc.. Designs from the two corporations are similar, but uploaded functions of two modules are differing from each other to some extend. Because W-SIM module from AlTel is corresponding to a more advanced PHS standard called W-OAM, supporting high speed communication (204kbps) becomes possible, and quality of voice communication is also largely improved.

Now let me explain the application of "Jacket" in Japan.

At the beginning, one type of simple audio telephone called "TT" and two adapter types for data communication which are both called "DD" were designed, but presently there're nine models in total on market. Typical model includes W-ZERO3 series developed by Sharp. The series are real smart phones installed with Microsoft Windows OS on Japanese market. It created a sales miracle of over 150,000 terminals in half a yearfs time. In addition, the model designed for kids, "Papico" is now marketed by a Japanese toy maker called Bandai, and the simple model "Nico" by NetIndex, which was refined on voice and mail functions has also won high market praise.

By taking advantage of W-SIM concept and cutting the cost to minimum in developing a new mobile model, "Nico" series has developed successful marketing strategy to vitiate phone models by promoting color variation, collaborating with other models and selling private designed models in mobile supermarket.

Also, Panasonic has started selling the conference telephone system adopting W-SIM concept. By using a circuit built with W-SIM concept, conference attendees could enjoy the merit of clear voice quality, thanks to PHS, which provides as clear a voice as of fixed-line circuit. Moreover, choosing place for conference is always something free of worry.

Recently, as promotion gift for Asahi Beer, 1-Segment TV phone of waist-watch style, using W-SIM card is also under development and has become a hot topic for public discussion.

In order to spread the concept of W-SIM, Willcom, Inc. is operating a standing committee called "Willcom Core Module Forum" in Japan. You could obtain various specification related to W-SIM and consult of business opportunities with the committee. Willlcom, Inc. is also discussing the possibility to open the committee to overseas parties engaged in PHS business.

In addition, possible application of W-SIM in future can be introduced. Video camera for monitoring purpose, when combined to W-SIM technology could serve the need of remote monitoring system; Low electromagnetic wave and low power consumption featured PHS could also help in producing terminals and system specialized in remote medical application. Besides these applications, various ideas are still to be developed, and here comes the end of the presentation.