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Cell phone firms tap Japan
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March 30, 2000: 10:06 a.m. ET
Vodafone, BT and Japan Telecom pour $6.6B in high-speed mobile phone push
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LONDON (CNNfn) - Vodafone Airtouch, British Telecom and Japan Telecom, jockeying to land mobile-phone licenses in Japan, jointly agreed Thursday to raise ¥700 billion ($6.6 billion) to develop the next generation of high-speed cellular phone service in Japan.
The investment builds on a three-year joint venture linking the companies, and will involve the purchase of stakes of 50 percent or more in nine regional J-Phone companies. British Telecom spokesman Jon Salmon said the companies would sell shares in Tokyo in May to raise the ¥700 billion.
The move comes as companies maneuver for position in Japan's cellular phone market, which is dominated by NTT Mobile Communications Network, better known as NTT DoCoMo. The partners are among the companies gearing up for Japan's third-generation mobile phone licensing process, set to start on April 3.
Japan Telecom, Vodafone and BT will effectively blend their longstanding venture known as IMT-2000, which focused on Japan's second-generation licensing process, with the J-Phone companies for the new round of licensing. J-Phone will be the beneficiary of the capital increase through the share offer, and it will be the vehicle through which the companies vie for licenses.
"The main purpose is to integrate the [second-generation] and [third-generation] operations ... which makes us a far better competitor," said Melissa Stimpson, an spokesperson at Vodafone Airtouch.
Vodafone owns a 26 percent stake in IMT-2000, and BT has 20 percent. Japan Telecom - the third-biggest phone company in Japan, which was founded by a consortium of railroad companies in 1984 -- has about 50 percent. British Telecom owns about 15 percent of Japan Telecom itself. Vodafone owns between 20-29 percent in the nine J-Phone group companies already.
In afternoon in London trading, shares of Vodafone (VOD) fell 4.9 percent amid a broad sell-off across European markets. British Telecom (BT-A) shed 4.9 percent. In Tokyo trading on Thursday, shares of Japan Telecom closed down 1.1 percent. 
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