Monday, June 23, 2008

Tokyo Telco Bets Big on VoIP

telecom services venture Japan Communications is expected to lease wireless spectrum from NTT DoCoMo (DCM) for a new type of cell-phone service. The Tokyo company is likely to be the first operator in Japan to offer mobile handsets that can make calls on-the-go using voice-over-Internet protocol technology.

JCI's service and other mobile VoIP services like it have the potential to change drastically the economics of cellular services. Analysts say that VoIP should mean lower rates for subscribers, especially for long-distance calls. That's good news for users in Japan, where basic monthly rates average around $60 and are among the highest in the world.

JCI officials have a loftier goal: Simplify communications by routing mobile-phone calls through the same digital channels we now use to browse the Net. Microsoft (MSFT) and Cisco (CSCO) have been pushing this concept, known as "unified communications," in recent years, but hurdles remain even for these tech giants.

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