DoCoMo spotlights wireless success

NEW YORK – The wide maturity gap between the wireless markets in the U.S. and Japan was highlighted Friday during NTT DoCoMo USA CEO Nobuharu Ono’s keynote address at CeBIT America, during which he spotlighted an array of popular Japanese DoCoMo products that won’t be arriving in the U.S. any time soon.

Ono used his speech to discuss NTT DoCoMo’s success in creating new revenue streams by inventing multimedia products and services to take advantage of its voice and data network. If the company limited its offerings to voice services, its potential Japanese customer base would max out at 120 million, the total of Japan’s human population. But by offering wireless data services that can be tapped through devices such as handheld computers, automobile PCs, set-top boxes and video monitoring systems, NTT DoCoMo dramatically expands its sales opportunities, Ono said.

The linchpin of NTT DoCoMo’s strategy for future growth is its third generation (3G) network and the Foma service that taps it. Introduced in 2001, Foma has attracted customers more slowly than anticipated, but has recently begun turning the corner and meeting NTT DoCoMo’s expectations, Ono said. Many of the technical issues that initially inhibited adoption — including the network’s scant coverage, and the problems of clunkiness and low battery life that plagued Foma-compatible devices — are fading, he said.

Despite early setbacks, NTT DoCoMo remains bullish on the promise of Foma and 3G. Today, 20 percent of the company’s revenue comes from data services. By 2010, 70 percent to 80 percent of NTT DoCoMo’s revenue will be drawn from such services, Ono predicted.

While Japanese customers are embracing the cutting edge of wireless technologies, using their phones to send video clips, buy sodas from vending machines, and snap photos that can be printed out on machines at convenience stores, the U.S. is on a slower upgrade path with its wireless infrastructure. AT&T Wireless Services Inc., in which NTT DoCoMo is an investor, said last year it slowed its U.S. 3G plans, and expects to offer full 3G support in just four cities by the end of 2004.

Meanwhile, NTT DoCoMo has 90 percent of Japan’s populated areas covered with its 3G service, and will be focusing on adding access to underground areas such as subways and shopping strips. While U.S. customers are accustomed to losing wireless access when they head below ground, the Japanese have for years enjoyed subterranean service, Ono noted.

“We have a plan to expand [3G] area coverage twice as fast as we expanded the second-generation network,” he said. “Two years from now, we will have the same indoor coverage for Foma that we currently have for second-generation.”

Ono also highlighted in his talk several new gadgets that take advantage of DoCoMo’s offerings. One hot seller is the company’s Wristomo watch-phone. When NTT DoCoMo offered the first batch of 1,000 Wristomos for sale online, the lot sold out in 10 minutes, Ono said. The second lot of 1,000 offered lasted just six minutes.

“As you can imagine, it is an interesting accessory for the young and trendy, and the new Dick Tracy wannabes,” he said.