DoCoMo’s Potential Stake in AT&T Wireless Signals Positive Direction for the US Carrier, Says The Strategis Group

NTT DoCoMo’s anticipated purchase of a minority stake in AT&T Wireless speaks volumes about the Japanese carrier’s global ambitions, according to market research firm The Strategis Group.  With partnership agreements already in place in 13 markets across the globe, the U.S. appears to be at the top of NTT’s priority list.  “NTT DoCoMo’s wireless data service, i-mode, has fast become the top success story in the world of mobile Internet, placing Japan at the forefront of the nascent wireless Internet industry.  AT&T Wireless clearly stands to benefit from NTT’s success in this space,” notes Elizabeth Harr Bricksin, Vice President of International Operations at The Strategis Group.

Just how successful has NTT been?  I-mode is the largest wireless Internet service in world, with almost 12 million subscribers today, and charting growth rates of 4% per week, or 10% per month.  This is phenomenal when compared to growth on Japan’s second generation (2G) networks, which is about 1% per month.  NTT has about 70% of the Japanese wireless Internet market, while the total user base in Japan (approximately 20 million wireless Internet users) represents 40% of the world total.

NTT currently has partial ownership in carriers in the Netherlands, Hong Kong, the Philippines, and Brazil, as well as a roaming agreement with SK Telecom of South Korea.  In further efforts to push its own strategy for next generation communications, NTT has begun conducting W-CDMA field tests in Finland, China, Indonesia, Malaysia, South Korea, and Italy.  “The US represents an important market for NTT in terms of rolling out a global network.  Acquiring stake in an American carrier allows NTT to leverage their wireless Internet expertise in the untapped US market,” says Harr Bricksin.

The mobile Internet market is full of uncertainty in many regions of the globe, especially the United States. The Strategis Group, in conjunction with Professor Jeffrey Funk of Kobe University in Japan, has released two new reports that provide an in-depth look at Japan’s mobile Internet market: Japan Mobile Internet:  Business Models & Applications and Japan Mobile Internet:  Technology, Competition, & Alliances.  Using NTT DoCoMo as a model, the reports analyze best business practices and shed light on what works and what doesn’t work in the mobile Internet business.


[ Home | Contact | MobiChat | Experts database | Let's do it ]

Comments to the content of this page can be posted on the MobiChat discussion group

logo.gif (1569 bytes)