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NTT mobile

Getting on with launching new innovations into the
mobile marketplace while most competitors dither

TELECOM OPERATORS

Profile: NTT DOCOMO

As the predominant mobile phone operator in Japan NTT DoCoMo is aptly named, reflecting both the Japanese ‘dokomo’, meaning ‘everywhere’ and the English phrase, ‘Do Communications Over the Mobile Network.’ Given that it has 54% of the Japanese market and its brand and service brands such as i-mode are synonymous with the phenomenal growth of Japan’s mobile phone industry, it certainly lives up to its name. Originating as a spin-off from the incumbent national telephone company NTT in 1992 the DoCoMo business provided its first cellular phone service in the same year and has been growing ever since. It is now one of the world’s largest wireless operators and has pioneered a number of major innovations. In 1999 NTT DoCoMo launched the i-mode platform to stimulate the use of mobile internet services in a flattening market for voice communication and two years later became the first global telecom operator to offer third generation (3G) mobile phone services. While over 60% of the company’s customers have now switched to 3G, the i-mode platform turned out to be a greater initial success, providing a good level of functionality to a wide range of customers. As it faces an increasingly mature market, DoCoMo sees innovation as the means of maintaining its market leadership and profitability.

In a market where talk of innovation dominates, NTT DoCoMo has been getting on with the job. Key to its success is the provision of easy-to-use advanced mobile network services such as the development of e-commerce offerings such as the ‘Osaifu-Keitai’ or digital wallet. This allows a mobile phone to function as a cash card, credit card, train or plain ticket. By the end of March 2008, the company had 4 million subscribers for its new credit card business and 250,000 payment terminals in convenience stores, fast food outlets and other shops. Not bad for a mobile network operator. Access to DoCoMo’s customers, about 40% of Japan's population and more than half of its mobile phone users, has even convinced the traditionally conservative McDonald’s to use the wallet functionality as the basis for a loyalty-based membership club. DoCoMo already counts multiple urban transit systems, convenience stores, Coca-Cola vending machines and some online shopping sites among those that offer its payment network, but McDonald's is a very high-profile addition for the company.

DoCoMo owns a stake in the network that processes and clears the transactions, so as this service gains size and scale, it offers another potential revenue generator for the company. DoCoMo also provides innovative e-commerce services for business users and has teamed up with Casio Computer Co to provide digital payment systems, mainly for its 'iD' mobile-based e-wallet services. This provides digital payment and customer relationship management services, enabling owners of shops and restaurants to manage and analyse their sales information.

In parallel with these developments NTT DoCoMo is also changing from being a technology-driven provider to an organisation that responds to consumer needs. This, despite the fact that it already boasts one of the highest customer satisfaction scores of any operator and has the lowest churn rates in the industry today. A good example of this is the i-Channel news feed which offers a keyword search service to makes it easier to find and use information. This service is free and boasts over 5m users. The development of a 4G phone, mobile advertising, location services, push-to-talk walkie talkies, child-safety phones, the provisions of games that rely more on customers moving the handset as per Nintendo’s Wii, not to mention the Wellness Phone which gives health checks, measures calories, and even offers a breathalyzer are all on DoCoMo’s agenda. Looking forward with a strong domestic position and eager customer base NTT DoCoMo is set to continue its role as a pioneering operator, one able to work with equipment suppliers to enable the next generation of services ahead of the pack and so set the standards for future growth.

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