Economics of 3G may not add up, says i-Mode



NTT DoCoMo - the provider of the always-on mobile Internet service that has taken Japan by storm - has warned there may be too little revenue from third...



NTT DoCoMo - the provider of the always-on mobile Internet service that has taken Japan by storm - has warned there may be too little revenue from third generation (3G) mobile services.

The company's Keiichi Enoki said 3G was not suited to rich media like sound and video clips and hinted that telecoms operators in Europe, which have shelled out £60bn for 3G licences, would find it hard to generate sufficient revenues from the investment.

DoCoMo's i-Mode mobile phone service has signed up more than 15 million users in Japan in less than two years and expects to have 20 million by the end of 2000. In an interview with the Financial Times, Enoki said revenues per user were beginning to level off.

Youth market to lap up iMode

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