The wide maturity gap between the wireless markets in
the US and Japan was highlighted during a keynote address by chief
executive officer Nobuharu Ono at CeBIT America, where he noted
that Japanese DoCoMo products would not be arriving in the US in
the near future.
Ono said NTT DoCoMo created revenue streams by inventing
multimedia products and services to take advantage of its voice and
data network.
If the company limited its offerings to voice services, its
potential Japanese customer base would reach 120 million, the total
of Japan's population. But by offering wireless data services that
can be tapped through devices such as handheld computers,
automobile PCs, set-top boxes and video monitoring systems, NTT
DoCoMo dramatically expands its sales opportunities.
The key to NTT DoCoMo's strategy for future growth is its
third-generation (3G) network and the Foma service.
Introduced in 2001, Foma has attracted customers more slowly
than anticipated, but has recently begun meeting NTT DoCoMo's
expectations. Many of the technical issues that initially inhibited
adoption - including the network's scant coverage, and the problems
of clunkiness and low battery life that plagued Foma-compatible
devices - are fading, Ono said.
Today, 20% of the company's revenue comes from data services. By
2010, 70% to 80% of NTT DoCoMo's revenue will be drawn from such
services, he predicted.
While Japanese customers embrace the cutting edge of wireless
technologies, the US is slower to upgrade its wireless
infrastructure.
AT&T Wireless Services, in which NTT DoCoMo is an investor,
said last year it slowed its US 3G plans, and expected to offer
full 3G support in just four cities by the end of 2004.
Meanwhile, NTT DoCoMo has 90% of Japan's populated areas covered
with its 3G service, and will focus on adding access to underground
areas such as subways and shopping malls.
"We have a plan to expand [3G] area coverage twice as fast as we
expanded the second-generation network," he said. "Two years from
now, we will have the same indoor coverage for Foma that we have
for [the] second generation."
Ono also highlighted several gadgets that take advantage of
DoCoMo's offerings, including the Wristomo watch-phone. The
company's first batch of 1,000 Wristomos were sold out in 10
minutes. The second lot of 1,000 offered lasted just six
minutes.
Stacy Cowley writes for IDG News Service