(keitai-l) Today DoCoMo's pessimism

From: Guillaume Desmartin <g.desmartin_at_wstadium.com>
Date: 11/24/00
Message-ID: <056a01c05630$70b5de80$2301a8c0@wstadium.com>
Hi all,

Here is an interview available on Financial Times web site.
What do you think ?


"DoCoMo sounds alarm on 3G
By Dan Roberts and Michiyo Nakamoto in Toyko
Published: November 22 2000 21:39GMT | Last Updated: November 23 2000
17:45GMT


Third-generation mobile networks may not provide the revenue growth many
European telecoms companies are counting on, according to NTT DoCoMo, the
Japanese phone operator that pioneered mobile internet access.

Keiichi Enoki, who runs DoCoMo's successful i-mode internet service, says
operators will struggle to justify the more than E100bn ($85bn) they have
spent on 3G licences in Europe.

"I don't think the business model will fundamentally change from 2G to 3G.
The essence of the cellular phone business will be the same," said Mr Enoki
in an interview. DoCoMo, which is testing 3G technology, is finding that it
is unsuitable for carrying large video or sound clips, one of the services
that could provide new revenue streams for mobile operators.

The new technology provides faster data speeds than 2G, allowing colour
video and high-quality music to be sent to mobile handsets. Sustained bursts
of multimedia data consume large amounts of the radio spectrum and DoCoMo
says it will be too costly to download large files, such as pop videos, to
handsets.

Mr Enoki said: "The conclusion is that we will perhaps offer short video
clips of 10 to 15 seconds and previews of music that people can purchase to
download at home through their PCs or TVs."

Mr Enoki said operators could best hope to increase revenue by charging
commission on these transactions as well as from advertising.

Japan will be the first country to offer 3G services next year. Its
experience contrasts with the approach of operators such as Vodafone in the
UK, which plans to download songs over mobile networks. DoCoMo says phones
will be used to order multimedia content, which will be delivered over
other, more cost-effective, telecoms networks.

DoCoMo's pessimism about the potential of 3G technology could damage
confidence in Europe just as investors are questioning the huge levels of
debt generated by set-up costs."




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Received on Fri Nov 24 18:07:26 2000