Japan's KDDI, Willcom win new WiMAX licenses

TOKYO (Reuters) - Carlyle-controlled Japanese handy-phone firm Willcom Inc and a group led by mobile phone operator KDDI Corp won licenses to supply high-speed wireless Internet access on Friday.

The two have been competing with mobile carriers NTT DoCoMo Inc and Softbank Corp for licenses for WiMAX, which enables quick Internet access on laptops and other mobile devices while on the move.

In contrast to WiFi, which only works near a transmitter, WiMAX (Worldwide Interoperability for Microwave Access) provides zippy Internet access while the user is traveling by car or train.

KDDI, which will partner with firms such as Intel Corp and Kyocera Corp, and Willcom both plan to launch high-speed Internet services in 2009.

Executives have said it would be a challenge to turn a profit on the project quickly, due to the high initial costs. KDDI estimates its plan would need to spend $1.3 billion on the project by the end of the 2013 business year.

(Editing by Malcolm Whittaker)