Feeds

DoCoMo defies telecoms slump

But a lot rests on 3G and i-Mode taking off

  • alert
  • submit to reddit

Designing a Defense for Mobile Applications

NTT DoCoMo, the Japanese telecoms company, has defied the tired telecoms market by announcing a 26 per cent jump in revenues to Y4,686 billion (£27.1 billion) this year compared to last. Net profit leaped 45 per cent to Y366 billion (£2.1 billion).

The focus obviously falls on the company's extremely successful i-Mode mobile service which has wiped the floor with the West's WAP effort to tie the Internet in with phones. i-Mode contributed just over seven per cent of the company's total revenue and this is set to grow in future years.

However, its president Keiji Tachikawa made a point of saying he expected the i-Mode service to reach saturation soon - he puts this at 80 per cent penetration (it's currently at around 60 per cent). In terms of people, we're talking is 30 million subscribers.

So while i-Mode and NTT DoCoMo have managed to ride over this year's telecoms slump thanks to having a good product that works, it is really 3G networks that the company needs to keep on earning. Although a huge question mark hangs over the next-generation technology, there are many folk going out of their way to get it working.

DoCoMo was hoping to be the first with a 3G network this month but has put it back to later in the year. BT tried and failed with Manx Telecom on the Isle of Man. Vodafone is still at the basic testing stage. Plus other competitors have decided to ignore WAP protocols and provide a Westernised version of i-Mode.

The company has taken stakes in various 3G licence holders in Europe and Asia as well as in AT&T Wireless in the States.

If DoCoMo can work faster and better than the market, particularly in Europe, this may just be the first of many years where it outshines its rivals. If it falls behind, it will not only miss a chance of 3G leadership but will also see its current customer base drift away. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.