Dutch mobile phone operator KPN Mobile and its Japanese partner NTT
DoCoMo have shelved plans to form a joint venture company for a
European version of Japan's popular mobile Internet service,
I-mode.
Instead, KPN will license the I-mode technology for its Dutch and
Belgian networks and plans to do the same in Germany. It was
necessary to abandon the joint venture to avoid further delay of
the European I-mode launch, KPN said.
"A licensing agreement is much less complex. We prefer it because
of the speed," said KPN spokesman Marinus Potman, adding that a
future joint venture had not been ruled out.
Launch of the European version of I-mode is now planned for late in
Q1 or sometime in the Q2 next year in Germany and the Netherlands,
with Belgium following some two months later. The decision to
license will mean a slight delay on the planned launch date, Potman
admitted.
"We said we would launch late this year or early next year. Now it
will be in spring of next year," he said.
KPN and NTT DoCoMo ran into practical problems setting up the
European joint venture, according to Potman. Responsibility for
server operation, operation of the main menu and portal services
and development of a pan-European brand was to be shared, but this
was found to be unworkable.
"We discovered that organising content for the services is a local
affair. Each operator will manage its own I-mode service," said
Potman.
The joint venture, first announced in January, was supposed to be
established in March and also included Italy's Telecom Italia
Mobile as a partner. KPN was to own 75% of the equity with a $90m
investment. NTT planned to invest $50m and would hold the remaining
shares.