DoCoMo Sees Finance as Key to Growth
NTT DoCoMo aims to expand in finance and other industries to offset slowing growth in mobile phone services. “If DoCoMo is a mobile phone company in five years, our growth will be limited,” said Takeshi Natsuno, DoCoMo’s vice president of multimedia services, said in an interview. “My expectation is to make DoCoMo a more diversified company.” Natsuno, who oversaw the debut of i-mode in 1999, last month introduced the DCMX credit card service that lets customers use handsets to pay for goods and services such as groceries and taxis. The company expects the service to generate as much as 100 billion yen ($912 million) in annual sales in three years.
DCMX: Is it a phone that can buy stuff or a credit card that can make calls? NTT DoCoMo is hoping that millions of spend-free consumers won’t know or care about the distinction and will simply use the new ‘DCMX’ credit-card phone for, well, pretty much everything. For small, daily purchases — like a six-pack and a take-out bento lunch — use the phone’s e-money FeliCa chip with no authentication required; for larger buys (a cool Louis Vuitton bag from the Omotesando boutique), use the DCMX credit-card function with a swipe and a PIN code; later, the phone will eyeball you for biometric authorization. “We wish to combine telecoms with financial services,” says DoCoMo’s Mr i-mode, Takeshi Natsuno, in today’s video program — and if there’s a cellco anywhere in the world that can afford the value-chain coordination costs to deploy a workable phone/credit card combo, it has to be NTT DoCoMo.DCMX is a logical progression from the carrier’s popular ‘o-saifu keitai’ IC-chip handsets that can store value onboard for small, daily purchases, and the launch announcement confirms DoCoMo’s strategic course aiming squarely at making the network-connected phone the payment method of choice for millions of Japanese. Maybe one day something this useful will be offered by carriers elsewhere? 
Today’s WWJ video is full of gorgeous, uhm.. mobiles. This fall, DoCoMo introduced their new 701i models using… models. The 
In a deal that puts a new spin on mobile music promotion in the Japanese market, DoCoMo announced a partnership with Tower Records Japan opting to buy 42 percent of the music retailer for 12.8 billion yen ($109 million). Scheduled to go through by late November, the deal will make DoCoMo Tower’s single largest shareholder. The music retailer operates 78 Tower Records stores and 31 Wave music outlets. Tower’s motto in Japan is "The Best Place to Find Music" but will DoCoMo find it the best place to create musical revenue?