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  • Japanese Carrier NTT DoCoMo Developing Android-Based Phone

    NTT DoCoMo is developing an Android-based smartphone with an aim to launch it next year, a spokesperson with the Japanese operator confirmed to AFP via Business Standard. The phone could help the carrier compete with its smaller rival Softbank, which has been growing customers at a faster rate since launching the iPhone in July. An earlier report from Japanese financial newspaper the Nikkei picked up by Reuters , said that the phone would be co-developed by DoCoMo's Korean partner KT Freetel. DoCoMo owns a 10 percent stake in the Korean carrier, and in the past the two have procured handsets together to get better prices. But the company's spokesperson said that they hadn't yet decided on any partners, nor was it confirmed if the handsets would sell in Korea. The handset will be the first Android phone to be launched in Japan, where mobile devices are already among the most sophisticated in the world. DoCoMo lost out on the iPhone after months of talks with Apple ( NSDQ: AAPL ), which reportedly broke down after the Japanese carrier balked over the high revenue sharing terms that Apple was demanding to let it sell the handset exclusively. But an Android-based phone may actually prove to be a better bet for DoCoMo ( NYSE: DCM ). Though Apple has helped lure subscribers to Softbank, it hasn't sold spectacularly in Japan, where users apparently still want features particular to the local market—including mobile payments and digital broadcast TV. It's been reported that Japanese consumers who have bought the iPhone also tote around a second phone that give them access to these features--which could be potentially included in an Android-based phone. DoCoMo and Google ( NSDQ: GOOG ), meanwhile, already have an "alliance" in place, when early this year DoCoMo agreed to integrate its search and email into its content service i-Mode. The Nikkei also reported that DoCoMo would price the Android-based phone at about 20 percent lower than existing smartphones...
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  • DoCoMo Takes 26 Percent Stake in India's Tata Teleservices

    In a major move and a first by a Japanese telco into India, NTT DoCoMo ( NYSE: DCM ) is taking a 26 percent stake in local telco giant Tata Teleservices, for a price of $2.7 billion. This is surely to spur more rivalry with other local giants like Reliance, Vodafone ( NYSE: VOD ) and Airtel, and help DoCoMo expand beyond its sluggish home market as well as try and redo its disastrous forays in Europe and Asia earlier. PTI : DoCoMo has been trying to enter the Indian market for some time. Tata Teleservices has also been trying to sell part of its stake for a while and it was in talks with South Korea Telecom two years ago, but the talks failed due to disagreement over price. Tata Teleservices has 30 million subscribers, making it the sixth-largest telecom company in India on that parameter. FT : Analysts said that DoCoMo was paying a high price to get into India, however. "We're very bearish on this. Tata has been on the block for years and nearly everyone has kicked the tyres and walked away," said one, who asked not to be named in the story. He added that, at around $350 per subscriber before debt, DoCoMo was paying a substantial premium relative to IDEA Cellular, a comparable Indian network . DoCoMo defended the deal, saying that because of Tata's rapid growth, it expected to make a 15 percent return on investment over the next five to ten years. Mark Logic Digital Publishing Summit, Thursday November 6, Westin Times Square. Insight and perspective from Outsell, Gilbane, Simon & Schuster, BusinessWeek.com, more. Evening cocktail reception. Cost is complimentary. Register now!
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  • DoCoMo To Focus On Services Including Mobile Video To Boost Usage

    Japan's dominant carrier DoCoMo ( NYSE: DCM ) is betting that mobile phone services and better network infrastructure and speed will help it stay ahead of its rivals in the country's hyper-competitive market. After years of luring subscribers with deep subsidies on handsets, DoCoMo sees no more room for growth with this strategy. Instead, the company announced after its earnings repor t Friday, that they planned on launching faster networks and services including mobile video and location based services to increase how much existing subscribers use their phones to bump up ARPU rates. In September, the company announced a $66 million JV with the country's largest music and movie entertainment company Avex Entertainment (AEI) to produce and distribute on-demand mobile video content. DoCoMo, the country's incumbent carrier, has a 51.5 percent, compared to KDDI's 29 percent share, and Softbank's 19.5 percent. But its smaller competitors, and especially Softbank, have steadily chipped away at its market share. In the last quarter, Softbank added 521,400 subscribers, compared to DoCoMo's 310,000. In November 2007, DoCoMo embarked on a new plan to drop handset subsidies in favor of lower monthly tariffs. The new strategy has been a success for the carrier, helping boost revenue, and reducing churn. Related DoCoMo Net Income Climbs 37 Percent As Carrier Reduces Churn NTT DoCoMo And Avex Entertainment To Pour Up To $66 Million Into Mobile-Specific Video JV Mark Logic Digital Publishing Summit, Thursday November 6, Westin Times Square. Insight and perspective from Outsell, Gilbane, Simon & Schuster, BusinessWeek.com, more. Evening cocktail reception. Cost is complimentary. Register now!
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  • Japan's Mobile Tech Too Quirky To Succeed Overseas?

    For all of the cutting edge mobile technology that Japanese consumers have routine access to, surprisingly little of it has made its way outside of the country. Its government, however, wants to change this, and will begin an "aggressive push" to market the technology overseas, reports AP . One of the big questions, however, is how much of the country's technology can be exported. In Japan, it's common to have high-speed access to the web, to watch and record TV broadcasts, and to pay using a mobile phone. But as Masayuki Ito, official at the Ministry of Internal Affairs and Communications acknowledged, "Some critics say Japanese mobile technology tends to be quirky like the Galapagos Islands," that is, the country's isolation has given it very domestic-specific technology. One of the products Japan hopes to flog is the technology behind the FeliCa wallet phone, which debuted in 2004, and is now a standard feature in most Japanese handsets. Instead of a smart card, which is how most popular mobile phone payments work in Europe, a tiny chip called FeliCa, partly developed by Sony Corp ( NYSE: SNE ). is embedded into the phone. Some analysts believe, however, that the success of mobile payments in Japan is down to low credit card use in the country, as well as the popularity of convenience stores and vending machines. Still, there's little choice for Japanese carriers and manufacturers, who are backing the government initiative. The new campaign comes at a time when the saturated domestic handset market has begun to decline , hurt by carriers who have cut phone subsidies in favor of lower tariffs and better service, and by increasing consumer fatigue over more complex technology. Related Japan's Handset Market Drops 20 Percent; Advanced Features Hit Saturation Point? Lost In Translation: Japanese Market Not Sold On iPhone Cool Factor Japan To License Cellphone Experts Check out the best business jobs in digital media. Go here for...
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  • Earnings: NTT DoCoMo Profits Up 41 Percent; Boosted By Reduced Handset Subsidies

    NTT DoCoMo ( NYSE: DCM ) reported first quarter profits of 173.5 billion yen ($1.6 billion) in the three months ended June 30, the company said today. The 41 percent jump in profits—up from 122.8 billion yen ($1.14 billion) compared to the same period last year—was attributed to reduced handset subsidies to customers. Sales, however, were down 1.1 percent to 1.17 trillion yen ($10.8 billion). In November, DoCoMo embarked on a new pricing plan in which they cut the subsidies they pay on phones in exchange for lower priced or free calls. Customers who accepted the new tariffs were put on a monthly payment plan to pay for their phones, which "helped bolster profit in the quarter,'' President Ryuji Yamada said in a press conference. Analysts, however, questioned whether the boost form the reduced handset subsidies could last. Bloomberg reports that Deutsche Bank analyst Kenji Nishimura called the results a "matter of accounting." He noted, "DoCoMo's challenge is how to shore up its earnings once the positive effect of the installment plan dissipates and its discount offerings start depressing profit." Earnings Highlights: — Net Adds: The carrier has seen net adds stall, as its smaller rivals add at nearly twice its rate. In the 12 months ended June 30, DoCoMo added a net 783,000 subscribers, while Softbank added 2.7 million and KDDI added 1.6 million. Japan's Telecommunications Carriers Association estimates that DoCoMo currently has a 52 percent share of Japan's mobile market, as compared with KDDI's share of 29 percent, and Softbank's 18 percent slice. — Churn Rate Down: DoCoMo's churn rate fell to to .51 percent down from .85 percent a year ago, on the back of its new offers. — Aggregate APRU Down, Data ARPU Up : Aggregate ARPU for FY2008, 1Q was 5,890 yen ($55), down 10.2 percent year on year. Data ARPU was 2,330 yen ($22), up 9.9 percent yoy. Earnings Release | Presentation Check out the best business jobs in...
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  • Softbank Shifts Strategy With iPhone; Prices Device Starting At $215

    Japan's number three carrier released prices and tariffs today, saying it would sell the iPhone starting at 23,040 yen ($215), according to Reuters . Customers will also have to take out a monthly plan costing 7,280 yen ($68)—which includes unlimited data. The carrier, which has built its business on undercutting its rivals DoCoMo ( NYSE: DCM ) and KDDI, is taking a different tack with the iPhone and said that it expects the handset to lure high-paying consumers from its two competitors. CEO Masayoshi Son said, "There have been users who were just attracted to our low price, but the main point this time is feature attractiveness rather than price." Son has also predicted that the phones will be a sell-out in Japan, which analysts and even Son himself have questioned. Son said he expected the first batch of iPhones to "evaporate instantly," and that supplies "will likely be scarce for a while." DoCoMo, which was widely expected to get the iPhone deal, is still in negotiations to sell the handset. Some analysts expressed doubts over the iPhone's chances in the Japanese market, given the widespread availability of much more sophisticated devices on the market. The 8 gigabyte version of the iPhone will cost 23,040 yen ($215), while the 16 gigabyte model will sell for 34,650 yen ($322). Related Apple's iPhone in Japan: Where's DoCoMo? iPhone Roundup: KPN Calls iPhone Useless; DoCoMo Difficulties; Apple Third In Global Market What If The iPhone Weren't A Slam Dunk In Japan?
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  • Mobile Banking Forecasted To Generate Up To 62 Billion Transactions in 2012: Report

    Mobile banking is expected to be a big business in 2012 based on experiments and trials that wireless operators and members of the financial community are conducting today, according to a report released by IMS Research . The report estimates that 884 million users will conduct 62 billion mobile banking transactions in 2012. The report said a majority of the growth will come in developing countries, where mobile will be available than typical banking infrastructure. In developed countries, mobile banking will serve as an alternative and personalized means of access. The report outlined a number of wireless operators that are already offering some sort of service. For instance, Orascom Telecom, Egyptian wireless operator, is planning to offer a banking service, including money transfers, to its 70 million customers this year. Other operators that offer a mobile financial service include: NTT DoCoMo ( NYSE: DCM ), KTF, Vodafone ( NYSE: VOD ), Globe, Smart, TIM, AT&T ( NYSE: T ) and Sprint ( NYSE: S ). When broken down geographically, the report found that growth is particularly strong in Asia, the Middle East and Africa, but when added to the growth seen in Europe and the Americas, the number of new mobile banking users nearly tripled in 2007. Related SK Telecom And Citigroup Launch Mobile Banking JV Register for our EconAds seminar , June 3rd, at the New World Stages in New York City. Covering the economics of online advertising.
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  • NTT DoCoMo Plans 30 Percent Stake In Japanese Internet Company

    NTT DoCoMo ( NYSE: DCM ) is planning to invest about 10 billion yen ($94.8 million) in NTT Resonant, an Internet company that supports a Web portal called goo, and hosts digital content, such as video and music, according to Forbes , which quoted an article in the Nikkei newspaper. The investment will result in a 30 percent stake in NTT Resonant by purchasing shares in a private placement this month. The article said through its investment, it will offer its cell phone subscribers to download games, or watch high-resolution videos on a PC. This sounds a bit odd because initially you'd assume that they'd want to adapt the content for the mobile phone, however, it could be apart of the Japanese mobile phone operator's strategy of beefing up its content portfolio. In January, the largest Japanese cellphone operator, bought a 3 percent stake in Nippon Television Network for 13.3 billion yen ($111 million), and more than a year ago, it acquired a 2.6 percent stake in Fuji Television Network, Japan's biggest broadcaster. This latest investment in Resonant, which is a wholly-owned unit of NTT Communications, marks the first time that DoCoMo will invest in an NTT fixed-line service provider. Related DoCoMo Buys 3 Percent Of Nippon TV For $112 million Check out the best business jobs in digital media. Go here for paidContent.org Job Board.
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  • Napster Launches Music Video Service In Japan

    Napster ( NSDQ: NAPS ) Japan has added music videos to its unlimited over-the-air subscription service, Napster To Go. The new service is dubbed Napster Clips, and is only available on the N906iL onefone handset on DoCoMo ( NYSE: DCM ). This is Napster's first video service and operates over DoCoMo's 3G network or its Home U LAN service. DoCoMo and Napster Japan will be rolling out a co-marketing campaign with the launch of the new video service, which will coincide with the handset launch. Napster has more mobile subscribers than PC subscribers in Japan. Napster is currently the subject of a proxy battle , and AT&T ( NYSE: T ) announced last week that it would increase the number of its customers who could access Napster. Related Napster Launches Mobile Music Subscription Service In Japan Napster Shareholder-Subscribers Launch Proxy Fight Earnings: Napster Revs Up 5.7 Percent; Net Loss Narrows; Watch That Positive Cash Flow
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  • DoCoMo "Gets It", Stops Pushing Technology In Favor Of Good Service

    A couple of weeks ago we covered DoCoMo's ( NYSE: DCM ) rebranding and new strategy... Wireless Watch Japan has a video of Masao Nakamura, President and CEO of NTT DoCoMo describing what DoCoMo is going to do and why. Some quotes: "We introduced new handset purchase methods seperating the handset prices from the network service charges. We stepped into a new phase, and the age of subsidizing the handsets to offer them at cheap prices has ended." DoCoMo plans to lower handset prices, but from the translation on the video I got the impression this would be via methods other than subsidies. Another good quote suggests that DoCoMo might agree with critics of mobile carriers who argue that the telcos try to push unwanted services on their customers and don't pay enough attention to what customers actually want: "It is becoming more difficult to achieve differentiation by technology. Rather than operators deciding what we offer based on technology and functionality it is now more important to respond to designs, network quality, prices and meticulous attendance at customer counters to the individual needs of our users ." The long and the short of it is that since the Japanese mobile market is nearly saturated (over 100 million mobile users with a population of 127 million, so there's still room for growth) DoCoMo will focus on reducing churn by keeping its customers happy, figuring that will filter through to the customers of its competitors and they'll switch. http://link.brightcove.com/services/link/bcpid1184486313/bctid1504463986 The company is also merging with its 8 regional subsidiaries. ( release ) Related NTT DoCoMo Rebrands; Shifts Focus From Getting New Customers To Keeping Existing Ones Earnings: NTT DoCoMo Net Profits Up On Reduced Expenses And Costs Industry Moves: I-Mode Guru Takeshi Natsuno Quitting NTT DoCoMo: Report
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  • Earnings: NTT DoCoMo Net Profits Up On Reduced Expenses And Costs

    NTT DoCoMo ( NYSE: DCM ) released full year earnings for the period ending 31 March 2008 today. Net profits in the January-March quarter more than doubled to 114.7 yen billion ($1.38 million), thanks to reduced personnel expenses and lowered costs of selling mobile handsets, reports Marketwatch. The declined costs were able to offset DoCoMo's call charge cuts that the carrier put in place to stave off its rivals KDDI and Softbank. For the fiscal year ending March, the carrier, Japan's largest by subscriber numbers, is forecasting a net profit of 503 billion yen ($4.8 billion) on revenue of 4.678 trillion yen ($44.8 billion). ( Earnings in PDF ). Related NTT DoCoMo Profits Climb 38.4 Percent In Third Quarter
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  • Industry Moves: I-Mode Guru Takeshi Natsuno Quitting NTT DoCoMo: Report

    NTT DoCoMo ( NYSE: DCM ) is losing Takeshi Natsuno, the mastermind behind its hit mobile web service i-Mode, according to AFP , citing a source within the company. Natsuno, 43, is supposed to leave at the end of April. No specifics to where Natsuno will end up next, just that he will be working in the mobile content industry. Natsuno came to DoCoMo in 1997 from free ISP Hypernet following its flameout; he was initially tasked with trying to figure out how to turn mobile phones into mobile wallets. In 1999, DoCoMo launched i-Mode, the mobile web service that proved a hit with Japanese cell phone users. Two years after its launch, at a time when Europe was trying to overcome WAP backlash, and most US cell phone users were getting their heads around SMS, i-Mode had racked up 25 million users in Japan each paying a $3 monthly subscription charge, plus data charges. DoCoMo was also getting a 9 percent cut in revenues from content providers. Natsuno was feted as i-Mode's high priest, writing a book about the experience and giving audiences to a revolving door of mobile industry executives and journalists seeking to understand the service's appeal. Currently, i-Mode has 48 million subscribers in Japan, though it's growth has slowed substantially. It hasn't done as well outside of the country either. Just a week ago, German operator E-Plus said it would shut down i-Mode as of 1 April, becoming one of the last major European operators to kill it off. O2 UK phased out i-Mode last fall, attracting a scant 260,000 users after spending £10 million ($20 million) in licensing and marketing the service. Natsuno once said that European operators didn't give i-Mode a chance, rolling out flat rate data plans too early. Related Germany's E-Plus Phasing Out i-Mode
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