Viewpoint
Viewpoint

Viewpoint

Mobile TV Solution Coming?

On top of launching full-scale digital-satellite-to-mobile-terminal broadcasting services on July 1, Mobile Broadcasting Corp. (MBCO) and its main technology backer Toshiba Corp. are making a strong, and they believe attractive, push to generate digital broadcasting revenue streams for Japan’s wireless carriers in April 2006 when DoCoMo, KDDI, and perhaps Vodafone K.K. will unleash mobiles with digital TV tuners on them. Talking to Shigekazu Hori, vice president and general manger of Toshiba Corp.’s Network Services & Contents Control Center last week, the planets could finally be aligning for a tailor-made revenue model that will finally convince Japan’s carriers to equip mobile phones with television. And, of course, as mentioned by DoCoMo’s Keiji Tachikawa last week, the fact that MPEG-4 standards have been settled and H.264 is coming doesn’t hurt either.

DoCoMo Partially Denies Hutchinson 3UK Pullout

NTT DoCoMo has denied media reports here that it is pulling out its stake in Hutchinson 3G UK Holdings Ltd. after Hutchinson failed to roll out i-mode. In a statement today, DoCoMo said it “has made no decision about ending its investment in Hutchison 3G UK Holdings Limited,” but stopped short of fully denying local reports that it was pulling the plug on its July 2000-acquired 20% interest in Hutchison 3GUK for about 186 billion yen, the book value of which has withered to under 40 billion yen as the joint venture struggled to launch its 3G service.

DoCoMo 3G FOMA Goes (partially) Flat Rate June 1

It’s official: the switch to flat rate for packet communications by NTT DoCoMo starts on June 1 at 3,900 yen per month—300 yen cheaper than KDDI. Is this the start of a new era of price wars that rapidly commoditize 3G services—reminiscent of what happened on Japan’s ADSL market a few years ago? Not if DoCoMo president Keiji Tachikawa can help it. Our first observation today was how few subscribers the flat rate will apply to—only heavy users who are used to price plans starting at 6,700 yen. The second point was DoCoMo’s opinion that perhaps only a third of heavy users might take advantage of the flat rate option this year.

Fujitsu, Mitsubishi Forge 3G Handset Alliance

Here’s one for the books: Symbian OS proponent Fujitsu and Mitsubishi (which makes decent handsets for the domestic market but is unknown outside of Japan) have announced that they are getting together to develop new FOMA handsets. The press release today appears to be dressed up in terms of Fujitsu offering its expertise to Mitsubishi with Symbian, but it also hints that the two will combine on hardware development too. Given the fact that Fujitsu is a leading proponent of Symbian, and that DoCoMo president Keiji Tachikawa hinted that Symbian will be the OS of choice, the announcement looks as if Mitsubishi has figured the lay of the land and jumped on the bandwagon.

KDDI vs. DoCoMo: FOMA Forging On?

Last Friday’s monthly report released by the Telecommunications Carriers Association contained more grief for NTT DoCoMo’s 3G planners: While the carrier’s FOMA subscriber base grew by a healthy 15% in February, bolstered no doubt by the 900i-series handsets, KDDI yet again handily beat DoCoMo. While we aren’t reviewing our measure of confidence in the 900i-series, even after Big D admitted that the “best 3G phones in the world” were suffering from software bugs and had to recall nearly 70,000 Fujitsu handsets, we do note that NTT DoCoMo in Kyushu ‘fessed up last Friday to padding its subs figures so as to avoid the distinction of being the first DoCoMo sales region to actually suffer a (Gasp! Grrr!) net decrease in subscribers, according to Kyodo.

i-Mode's Owner in Hold Mode on Cingular

At last week’s regular press conference, DoCoMo president Keichi Tachikawa managed to confirm most of what we wrote about in last week’s WWJ Viewpoint DoCoMo: New 3G Plans for USA?. Most importantly, someone in the U.S. is still obligated to roll out third-gen W-CDMA services because this was grandfathered into DoCoMo’s original contract with AT&T Wireless. Tachikawa said last week that the phones have already been ordered! However, DoCoMo is still in hold mode about how it will approach the purchase of its stake in AT&T Wireless Services by Cingular Wireless LLC (should the deal be approved later in the year). One option on the table is for DoCoMo to invest in Cingular.