Newsletter
Newsletter

Newsletter

When Japanese Carriers Buy Content

At lunch today, I almost choked on my okonomiyaki. But it wasn’t the fried noodles, vegetables, bits of squid, or pancake-like dough that comprise this Hiroshima delicacy (only rarely reproduced with any satisfaction in the Tokyo area) that caused my trouble; it was an involuntary reaction to my lunch-mate’s comment that DoCoMo looks like it’s becoming “a media company.” Whew!! Regular readers of this newsmagazine will know that one of my themesin the past couple of issues has been how Big D is morphing from an engineering-centric technology company into a media player, just like one-time ISP AOL has.

i-mode Becomes (Sadly) a Global Brand

A little-noticed PR release came out of North Hollywood on July 29 announcing that Walt Disney Internet Group and KG Telecom had agreed to distribute Disney mobile wireless content to KG Telecom wireless subscribers. KG Telecom will be the first operator to launch Disney content on thei-mode platform in the Chinese market, and the agreement allows KGTelecom’s customers in Taiwan to subscribe to downloadable content, such as screen savers and ring tones, based on Disney’s lineup of popular characters including Mickey Mouse, Minnie Mouse, Donald Duck (WWJ’s favorite — Ed.), Goofy, and Snow White.

Why is J-Phone hurting so bad?

The drop in ARPU could be related to the fact that both DoCoMo and KDDI now have camera-equipped keitais on the market (although DoCoMo’s isn’t Java-enabled). Are we seeing the end of the camera-phone bubble? If so, there’s little else on the horizon to serve as the next market booster — except, of course, 3G speed-optimized services (and KDDI’s got the better network right now).

Java vs. Picture Mail

We think that the market heavyweight, NTT DoCoMo, gets a better payback by spreading Java far and wide (at a low marginal cost), while eschewing pricey gadgets and add-ons (or making the consumer pay for same when desired; we note that DoCoMo’s SH251i is selling for 5,000 yen more than J-Phone’s high-end Sharp Sha-mail handset).

DoCoMo's Hidden 9 Percent

Neale contacted DoCoMo IR, who helped clarify where the 9 percent lives in DoCoMo accounts. In the English version of the Consolidated Financial Statements (8 May 2002), under “(2) Consolidated Statements of Income” (page 16), there’s a section titled, “Operating income from other businesses.” This includes the 9 percent (Aha!!), and amounted to 45,272 million yen in FY2002.