Japan Willcom, China Netcom to cooperate in telecoms

Japanese mobile provider Willcom Inc may cooperate with China Netcom<906>, the second largest fixed-line operator in China, to expand its low-cost phone business in Asia, Nikkei Business Daily reported on Sunday.

Willcom will provide the "packet communication" technology, which makes the mobile phone service operator to charge the users for the amount of data transmitted rather than for monthly tariff. The two companies are also planning to provide roaming service before the 2008 Beijing Olympics to satisfy the demand from Japanese subscribers for visiting the event.

Willcom offers the simpler and cheaper personal handy system (PHS) in Japan, which is quite popular in Asia. But in China PHS communications are limited to telephone and e-mail, without internet access. China Netcom, who has about 30million PHS subscribers, is considering introducing PHS services with internet access.

Willcom is ready to sign a technology consulting agreement with China Netcom and send engineers as needed.