According to an announcement by Vodafone KK on June 7, 2005, the company will boost investment for its 3G mobile services during the fiscal year 2005. The company will spend 260 billion Yen (US$2.42 billion; US$1=107.7 Yen) on capital investment this fiscal year, which is significantly more than the 166.7 billion Yen (US$1.55 billion) it spent last year. The majority of this investment will go towards improving its 3G services.

This improvement will entail the building of 5,400 extra antenna base stations in the fiscal year 2005, bringing the total to 24,000 stations. Vodafone is lagging behind its two rivals, NTT DoCoMo Inc. and KDDI Corp., with regard to number of 3G subscribers and network quality.

 

Vodafone KK's announcement comes just a week after the Japanese Ministry of Internal Affairs and Communications announced that two new companies would be allowed into the 3G mobile phone market within two years, increasing competition in the market. Also, the Ministry is expected next year to number portability -- a prospect that is also encouraging Vodafone KK's investment as the operator looks to prevent churn.