The personal handy-phone system service that began in Tokyo,
Sapporo, and other major cities in July has now been
expanded to cover urban areas throughout the country. The
PHS gained instant popularity after its introduction owing
to its lower cost compared to cellular phones, and the
expansion of the service network is expected to make PHS
phones even more competitive.
The PHS was developed from the same technology used in
cordless phones; signals were digitalized, and the handsets
were built to be used outside the home. The PHS signal is
weaker than that of cellular phones, however, and the phones
cannot be used in moving vehicles.
An advantage of the PHS, though, is that relay stations
are relatively easy and inexpensive to install, and the
lower costs have led to phone rates that are just a fifth of
the rates charged for cellular phones.
Two telecommunication groups launched the PHS service
in 42 cities in the Kanto region and Hokkaido in July, and
by the end of August the number of PHS phone owners reached
110,000. In October the area covered by the service was
expanded to other parts of the country, and PHS phones can
now be used in approximately 120 cities around Japan.
Recently, a third company entered the PHS market in the
Kanto and Kansai regions, and it plans to go nationwide
sometime in 1996.
The three firms are pushing ahead with plans to build
more relay stations to further broaden the areas covered by
the service. The Ministry of Posts and Telecommunications
predicts that the number of PHS units will grow to 6 million
by the year 2000.
Even with its great popularity, the PHS system faces a
number of problems. First, production of the handsets have
lagged behind demand due to a shortage of memory chips,
which are also sought after by computer makers. The shortage
could persist for some time.
A second hitch is that PHS phones cannot be used to
make international calls. New software needs to be developed
before overseas calls become possible--a process that is
expected to take close to two years.
Furthermore, the various discounts usually offered for
international and long-distance calls are not yet available
for the PHS, which currently offers only a limited discount
for nighttime calls. Due to the newness of the PHS system,
the introduction of discounts for heavy users and for off-
peak hours is expected to be delayed until usage patterns
can be fully analyzed.
(The above article, edited by Japan Echo Inc., is based on domestic Japanese news sources. It is offered for reference purposes and does not necessarily represent the policy or views of the Japanese Government.)