AirTouch joins new Japanese cellular company in Hokkaido

Business Wire, July 25, 1995

SAN FRANCISCO--(BUSINESS WIRE)--July 25, 1995--Enhancing its position in the fast-growing Japanese cellular market, AirTouch Communications (NYSE:ATI) today announced that it is a partner in a new company being formed to provide cellular service in Hokkaido, an island in northern Japan.

AirTouch International will own a 4.5% percent interest in Digital TU-KA Hokkaido Co., Ltd. The new company, which will be based in Sapporo City, plans to build a 1.5 GHz digital cellular system that will use the Japanese Digital Cellular (JDC) technical standard. The network is expected to start service in 1997. There are approximately 6 million people in the region.

AirTouch International also holds a 15% share in Tokyo Digital Phone, and 13% interests in Kansai Digital Phone and Central Japan Digital Phone. These three companies, which began commercial service in 1994, grew nearly 50% during the last three months, and now serve a total of more than 417,000 customers.

"Japan is one of the world's fastest growing cellular markets, but penetration rates are only about one-third as high as in the United States," said Arun Sarin, president and chief executive officer of AirTouch International. "We know from our experience in Tokyo, Osaka and Nagoya that Japanese customers are very eager to enjoy the benefits of wireless communications, and working with our partners, we're ready to meet that demand."

Sarin noted that, through its partnerships, AirTouch is the largest American cellular operator in Japan and has been integrally involved in designing and building the networks for the Digital Phone Group companies in Tokyo, Osaka, and Nagoya.

Digital TU-KA Hokkaido includes partners from two separate groups that have established cellular ventures in Japan: the TU-KA Phone Group, and the Digital Phone Group. The new company is being formed to enable the partners to provide nationwide mobile communications services throughout Japan. As part of that effort, the TU-KA Phone Group and the Digital Phone Group have previously joined together to form three cellular companies that will offer service in the Kyushu, Chugoku, and Tohoku areas. AirTouch owns 4.5% shares in each company.

The other major partners in Digital TU-KA Hokkaido and their ownership interests are: Japan Telecom (23%), Nissan Motor Co. (23%), Hitachi, Ltd. (5.5%), Hokkaido Railway Co. (5.5%), Nippon Steel Corp. (5%), Toyota Motor Corp. (5%), and GTE Mobile Communications International (4.5%). The company has a total of 41 shareholders.

Through its seven Japanese cellular ventures, AirTouch will serve regions with over 110 million people, or nearly 90% of the Japanese population. The country's cellular penetration rate is about 3.5%, compared with roughly 10% in the United States.

AirTouch Communications is a global wireless communications company, with interests in cellular, paging, personal communications services, satellite, and other operations in the United States and 11 other nations: Belgium, Canada, France, Germany, Italy, Japan, Portugal, South Korea, Spain, Sweden, and Thailand. The company, which is based in San Francisco, serves over 4 million customers worldwide.

CONTACT: AirTouch Communications

Susan Rosenberg, 510/210-3910