It’s some way from the freely usable cellular pocket computer, but NEC Corp in Japan has replaced the hard disk in its PC-Note 9801 handheld version of its market-dominating PC-9801 personal computer and replaced it with a modem and transceiver that enables it to send and receive data by radio. At present it is available only in Tokyo, because communication is via a network of Teleterminal node transmitter-receivers installed around Tokyo by Japan City Media Inc, which are linked to a central store and forward host computer. Facsimile send and receive is planned for later. The 6 lbs 10oz RC-9801 transmits and receives at 9,600bps, supports Multi-Channel Access method – the ability to select a vacant channel – and efficient packet switching with error correction. It has a 12MHz 80386SX, 640Kb memory, RAM drive usable as expandable memory to a maximum of 1.6Mb, and has a floppy drive cannot connect to a hard disk. Because of the 12Kb buffer in the radio telecommunications unit and efficiency permitted by the separate power supplies for the personal computer and the radio element, it is able to receive messages even when the notebook is switched off. The communications support is via software, using Hayes commands, with an ID for the City Media service instead of a phone number. The Japan City Media service operates in the 23 wards of central Tokyo and has been slow to take off, with the president admitting to only 850 terminals currently in use by 50 contracting companies. However, it recently received a boost when Coca-Cola signed up for machines for its employees who refill vending machines, who will transmit sales data back to their head office computer. NEC says that it sees great potential in the service, however it is being very cautious and planning to make only 5,000 machines in the first year. The RC-9801 is just over $4,000, more than double the price for a PC-9801 Note, but the City Media service itself appears to be priced to compete with pocket bells as pagers are called in Japan, the basic fee being $17.50 with packets of data at less than a cent a time. NEC is considering marketing the machine internationally. AT&T Co is already developing a laptop that includes a cellular phone at its joint venture with Marubeni Corp and Matsushita Electric Industrial Co, and Toshiba Corp plans one for June. As for NEC’s PC-Note 9801, 4m had been sold by the weekend.