Japan's premier mobile communications company, NTT DoCoMo, provides wireless voice and
data communications to many subscribers in Japan. NTT DoCoMo is the creator of W-CDMA
technology, the new de facto global industry standard, as well as the groundbreaking mobile i-
mode service. At the heart of our operations is a commitment to providing customers with cutting-
edge, cost-effective service and a belief that ongoing, focused research and development can
help us to continually reinvent the concept of mobile communications. We are also working
together with other leading organizations in a global standpoint to share our know-how and
experience for the maximum benefit of all respected parties around the world.
About NTT DoCoMo
NTT DoCoMo is the world's leading mobile communications company with more than 50 million
customers. The company provides a wide variety of leading-edge mobile multimedia services.
These include i-mode®, the world's most popular mobile internet service, which provides e-mail
and internet access to over 45 million subscribers, and FOMA®, launched in 2001 as the world's
first 3G mobile service based on W-CDMA.
In addition to wholly owned subsidiaries in Europe and North America, the company is expanding
its global reach through strategic alliances with mobile and multimedia service providers in Asia-
Pacific and Europe. NTT DoCoMo is listed on the Tokyo (9437), London (NDCM), and New York
(DCM) stock exchanges.
Our Vision for the Future
The mobile revolution that began with the invention of the cellular phone is on the verge of
transforming our world. Soon we will see the dawn of a "new global communications culture" in
which people everywhere will use mobile terminals to access multimedia services through a
borderless global network. They will also be able to communicate seamlessly with each other,
anytime and anywhere, using hundreds of futuristic services such as wireless videophone and
videoconferencing. By the year 2010, we anticipate a worldwide mobile communications market
three times the size of today's — one that is dominated by multimedia rather than voice
Based on this vision of the future, we have put the full force of NTT DoCoMo and our corporate
brand behind our current global "multimedia initiative." This initiative, which involves prodigious
R&D efforts and active partnering with overseas carriers, content providers, equipment
manufacturers, and others, will further stimulate consumer demand for communications services
and help us to thrive in the coming era of unprecedented growth.
Over the past decade, mobile communications technology has made giant strides, moving rapidly
from first-generation (1G) analog voice-only communications, to second-generation (2G) digital
voice and data communications. These 2G technologies include IS-136 (also known as US-
TDMA and Digital AMPS) in the U.S.; GSM, in Europe, which became popular worldwide; and
PDC (Personal Digital Communications) in Japan. Now, NTT DoCoMo's FOMA (Freedom Of
Mobile multimedia Access) service in Japan, a third-generation (3G) based on W-CDMA, has
shifted the mobile communication environment into the next level. The advanced new service
provides voice transmission quality on a par with fixed-line communications, with minimal
interference and noise, and supports diverse multimedia content.
Furthermore, NTT DoCoMo offers wireless LAN services enabling data transmission using PCs
or PDAs, enabling an 11Mbps high-speed data transmission using Wi-Fi.
En route from 3.5G to 4G, NTT DoCoMo is engaged in R&D to offer networks with even higher
speeds and larger capacities. Currently, HSDPA (3.5G) can achieve a transmission speed of up
to 14Mbps, even when using the same 5MHz frequency bandwidth as W-CDMA (3G). NTT
DoCoMo is aiming to deliver this service to consumers in FY2005 ending March 2006. VSF-
OFCDM (4G) achieves packet transmission with a maximum downlink of 100Mbps and maintains
high-quality reception. NTT DoCoMo succeeded with its indoor transmission experiment in
October 2002 and has succeeded in the outdoor experiments as well.
Services from NTT DoCoMo have evolved from voice calls to data communication and now offer
a linkage with brick&mortar services. Voice communication via a simple phone call was initially
the only option. Then text message communication and mobile Internet browsing became
popular. Now face-to-face communication via videophone lets users enjoy visual communication.
In the future, as convergence between existing services (paper/cash-based, etc) and mobile IT
technologies continue to expand, a truly ubiquitous world where communication is possible
anytime, anywhere, and with anyone will be realized with a mobile phone.
Mobile Phone Services
NTT DoCoMo's cellular phone service, with its high-quality transmission and efficient spectrum
utilization, offers subscribers access to many new forms of mobile communications. In addition to
high-quality voice capabilities, NTT DoCoMo provides the phenomenally popular i-mode service,
with e-mail and Internet access via high-speed packet transmissions for easy transfer of large
volumes of data. FOMA, NTT DoCoMo's 3G mobile communications platform, offers visual
communication services including videophone and i-motion video clip distribution. Furthermore, i-
mode FeliCa terminals equipped with contactless IC chips offer services that are useful in all
areas of daily life.
Cellular (mova) Services
NTT DoCoMo offers subscribers access to a wide range of services via lightweight, ultra-compact
digital cellular terminals, and a network with coverage of 99% of the Japanese population. The
first to offer a packet data communications system and network speeds of 28.8Kbps, DoCoMo's
service is also ideal for PCs, PDA (Personal Digital Assistants), and mobile computing.
Celluar (FOMA) Services
Following a trial in May 2001, NTT DoCoMo began the full-scale commercial rollout of FOMA, the
world's first 3G mobile communications service, on October 1, 2001. Based on IMT-2000-
compliant W-CDMA (Wideband Code Division Multiple Access), FOMA takes advantage of high-
speed packet communications to achieve data reception at rates of up to 384Kbps. With a
coverage area that has expanded to cover approximately 99%* of Japan's population the number
of services offered via FOMA has greatly increased.
Services such as i-motion — which combines audio and video to deliver movie previews and
more — and the Multi-access service, which allows subscribers to simultaneously use their
mobile phones for calls and data communications offer new opportunities for mobile
communications. Services targeted at corporate users such as remote monitoring for construction
sites or daycare centers, and remote learning systems via videophone are also being promoted.
In the future, NTT DoCoMo will continue to expand the FOMA service area while simultaneously
enhancing the quality of services.
*As of December, 2004
Packet Communications Services
Since its introduction in 1999, i-mode has become the core of NTT DoCoMo's packet data
communication services. Building on the tremendous success of i-mode, NTT DoCoMo launched
i-appli in January 2001, which enabled subscribers to download games and receive automatic
updates of information like stock quotes and weather. NTT DoCoMo also offers packet
communications service for corporate users. This service, named DoPa, is used for a broad
range of business applications including; fleet management, remote monitoring of parking and
other real-time monitoring applications.
New applications for the PHS service ended as of April 30, 2005
The Personal Handyphone System (PHS) service is a popular mobile phone service that relies on
numerous small relay stations. Allowing high-speed data communications at 64 Kbps, PHS
provides a comfortable mobile computing environment in which subscribers can use small, high-
performance terminals, PDAs, and notebook PCs. Terminals also function as wireless extension
handsets for home and office phones. More recently, NTT DoCoMo also added the @FreeD
service, which provides an always-on connection to the Internet via the PHS network for PDAs
and notebook PCs.
New applications for the Quickcast service ended as of June 30, 2004. This service will be terminated as of March
Quickcast is a highly versatile paging service that provides a wide range of business solutions to
meet the most demanding scale and content requirements. "Quick M" services allow users to
send simultaneous messages to individual pagers or to a prearranged group of recipients, with a
group message to as many as 200 people costing no more than a single message.
NTT DoCoMo offers a wide array of services that are leading the way to a ubiquitous network
society. Mzone wireless LAN service, for example, offers large-volume data transmission at
speeds as high as 11Mbps in train stations, cafes and other public places in the Tokyo area. NTT
DoCoMo has also launched an international roaming service, WORLD WING, on June 1, 2003.
This service allows subscribers to make and receive calls from their regular FOMA phone
numbers while traveling overseas. And international videophone call services connect Japan with
the world, making it easier than ever to stay in touch with loved ones in distant countries or
personnel working overseas.
In little more than a decade, the mobile phone has evolved from a voice-only device to a
sophisticated digital multimedia tool enjoyed by millions worldwide. Less than 2% of Japanese
consumers used mobile phones in 1992, but the figure rose to 68% by March 2004 and continues
to escalate at a meteoric rate. Many factors have fueled this explosive growth, including the
expansion of service areas, the lowering of service charges, improvements in voice quality, and
the increasing attractiveness of mobile Internet content. Mobile phones also became more
convenient and accessible thanks to various terminal advances like miniaturization, weight
reduction, and lengthened continuous standby times. Through numerous technological advances,
mobile phones now enable users to talk almost anytime, anywhere, and with anyone.
The market leadership of NTT DoCoMo has also played a significant role in the expansion of
mobile phone usage. When the company introduced i-mode mobile Internet service in February
1999, it put the Internet in user's hands and sparked a revolution — the transformation from voice
to data transmissions — that made mobile phones part of the IT infrastructure. Since then, i-mode
service has become available throughout Asia, Europe and around the world. NTT DoCoMo also
introduced 3G/FOMA service, which made high-speed, large-capacity data transmission available
at reasonable cost. This advance was followed by the spread of wireless LAN service, which
further expanded the reach of data transmissions.
Now that mobile phones are being used more for purposes other than transmission, they have
entered a new "Lifestyle Infrastructure" stage of their evolution. Employed as IC cards, two-
dimensional barcode readers, and infrared communication devices, they offer a linkage with
brick&mortar services, through services like i-mode Felica, that enhance people's lifestyles during
work and leisure time. In cooperation with various business partners, NTT DoCoMo is currently
developing creative new service that will enhance these linkages and further accelerate mobile
NTT DoCoMo introduced mobile multimedia at an early stage, not only to individual users, but
also to corporations. Designed to answer an array of corporate needs, including the need to work
unbounded by location, the introduction of mobile multimedia marked major advances such as
increased work efficiency, sales, and customer satisfaction, as well as decreased employment
costs, business expenses, and time spent traveling and working. NTT DoCoMo not only delivers
services to corporations, but also works with them in collaborative relationships that have
spawned various progressive business models.
As i-mode receives high evaluations abroad, as well as within Japan, NTT DoCoMo has
established alliances with telecommunications companies and concrete plans to cooperatively
offer i-mode worldwide. Initially available only in Europe and Asia, i-mode service is now offered
in regions worldwide.
In addition to straightforward service provision, NTT DoCoMo is engaged in various activities,
such as sponsorship of the Renault F1 Team, to acquire technical cooperation and increased
Furthermore, using the knowledge gained in providing the world's first 3G service based on W-
CDMA, FOMA, NTT DoCoMo is initiating technical cooperation and knowledge sharing, as well
as promoting the spread of the W-CDMA network and services. Efforts to realize Global Mobility
Support that will enhance user convenience is underway.
Our involvement in the launch of 3G has inspired us to work toward an exciting new society in
which people and all kinds of objects, everywhere, can connect and communicate a wealth of
information. Systems with extended information gathering power will link the office, the home, and
other destinations for enhanced convenience in all aspects of everyday life. In the future, we also
hope to incorporate information gathered by all five senses to achieve an array of services that
until now have been far beyond our imagination.
Already, NTT DoCoMo is making great progress in such fields through a variety of innovative
experiments, building know-how and techniques as we move toward exciting new business
Toward dreamlike innovations
We are striving to create an array of exciting new services - ones that will bring new kinds of
convenience for people everywhere.
In addition to FingerWhisper and Mime Speech Recognition, cutting-edge technologies previously
far beyond our imagination are in the process of development. They include a system that
enables distant objects to feel like extensions of the human body, imparting a realistic experience,
and communication chips embracing technical advancements that provide objects like household
appliances with communicative abilities.
Our scientists and researchers have a clear vision of the future. A vision uniting all of the
advances explained above and many more to create an exciting world where people can come
together, regardless of time and space, for a higher level of communication.
Do You Take DoCoMo?
Ginny Parker. Far Eastern Economic Review. Hong Kong: Jul 22,
2004.Vol.167, Iss. 29; pg. 40
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Subjects: Business conditions, Cellular telephones, Financial performance, Corporate
planning, Telecommunications industry
Classification Codes 9179 Asia & the Pacific, 2310 Planning, 8330 Broadcasting & telecommunications industry
Companies: NTT Docomo (NAICS: 517212 )
Author(s): Ginny Parker
Document types: Feature
Publication title: Far Eastern Economic Review. Hong Kong: Jul 22, 2004. Vol. 167, Iss. 29; pg. 40
Source type: Periodical
ProQuest document ID: 669242131
Text Word Count 1279
Document URL: http://proquest.umi.com/pqdweb?did=669242131&sid=4&Fmt=4&clientId=26447&RQT=309&VName=PQD
Abstract (Document Summary)
After years of steady growth, NTT DoCoMo, Japan's biggest cellphone operator, is forecasting
its first drop in revenues this fiscal year amid stiff competition from rival operator KDDI.
DoCoMo, which has pioneered some of the most advanced mobile-phone services in the world,
has failed in several overseas investments and racked up big losses. DoCoMo has also
discovered that the money to be made from mobile-Internet services - a business it practically
invented - has reached a plateau. Newly appointed President Masao Nakamura says DoCoMo
needs new sources of revenue. Smart phones could offer a solution. DoCoMo this month
launched four phones embedded with a special chip that allows them to function as a mobile
wallet, storing money , electronically along with personal data such as credit-card numbers. In
addition to getting people to shop with their phones, DoCoMo also plans to expand into the
corporate sector, coming up with services to appeal to both businesses and business people.
Full Text (1279 words)
Copyright Dow Jones & Company Inc Jul 22, 2004
Amid stiff competition in Japan, cellphone giant NTT DoCoMo is dishing up phones that double as electronic
THE AIRWAVES ARE looking bumpy for NTT DoCoMo. After '·,' years of steady growth, Japan's
biggest cellphone operator is forecasting its first drop in revenues this fiscal year amid stiff competition
from rival operator KDDI. DoCoMo, which has pioneered some of the most advanced mobile-phone
services in the world, has failed in several overseas investments and racked up big losses. DoCoMo
has also discovered that the money to be made from mobile-Internet services-a business it practically
invented-has reached a plateau.
Newly appointed President Masao Nakamura says DoCoMo needs new sources of revenue. Making
money the old-fashioned way-by signing up new customers and getting them to use their phones more
often-is no longer enough. More than 70% of Japanese already have cellphones. , And a price war
among the nation's carriers has forced DoCoMo to lower its prices and adopt fixed-rate plans that are
likely to cap revenues. "There's a limit to the business model that's based solely on increasing
customer traffic," says 59-year-old Nakamura. "What we're talking about now is a new business, one
that's not based on traffic at all."
MOBILE WALLETS: With phones like these, who needs cash?
Smart phones could offer a solution. These mobile handphones do much more than a normal phone.
They take pictures, store contacts, play music and, now, pay bills. DoCoMo this month launched four
phones embedded with a special chip that allows them to function as a mobile wallet, storing money ,
electronically along with personal data such as credit-card numbers. Price tag: about ¥25,000 ($230).
The phone's chip, called FeliCa, was developed jointly with Sony Corp.
DoCoMo has so far persuaded 39 retailers and services providers, including all Nippon Airways and
convenience-store operator am/pm Japan, to allow customers to use the FeliCa system. When buying
products with the phones, customers swipe their mobile across a sensor at the cash register. The
funds are then withdrawn from the person's bank account or the purchase is charged to a credit card.
Customers can also store money electronically on the chip itself and make payments from that.
The phones can serve as an electronic ticket at concerts and sports events, and some buildings have
been equipped with automatic locks that can be opened with the FeliCa chip. DoCoMo has an
agreement with one of Japan's major railways to allow people to use the phones soon as a train pass.
"Up until now, we've focused on entertainment," Nakamura says, referring to the wide array of content,
from videogames to ring-tones, that customers can access via DoCoMo's Net-equipped cellphones.
"While that's still important, we want to turn the cellphone into something that is absolutely essential for
SMILING NOW: Nakamura has a tough challenge ahead
But FeliCa is very much a work in progress. Currently, DoCoMo doesn't take a cut from sales retailers
make on the system. Instead, it's focused on expanding the number of stores and service providers on
the network. Nakamura says that eventually the company may charge a fee for each purchase made,
similar to a credit-card company. DoCoMo also hopes for income from licensing the FeIiCa technology
to other carriers.
"I think the service will be well received, especially if DoCoMo has a strong security system in place,"
says Masako Kuwahara, a telecoms analyst with ratings agency Standard & Poor's in Tokyo. But she
predicts it will be a while before FeIiCa starts contributing to DoCoMo's profits. "They're in the seed-
In addition to getting people to shop with their phones, DoCoMo also plans to expand into the
corporate sector, coming up with services to appeal to both businesses and business people.
Nakamura talks about a new system, already in place in some areas, that allows working mothers to
use the phones to look in on their children via cameras placed in daycare centres. he also wants
DoCoMo to come up with more corporate uses for cellphones, beyond just having salesmen use the
phones to send data back to the office.
Last week, DoCoMo launched a new hand-phone aimed at corporate customers that can be used in
the office to make calls on either cellular networks or over the Internet on wireless local-area networks.
DoCoMo made its mark on the global cellphone industry in 1999, when it launched i-mode, a service
that allowed people to surf the Internet and send and receive e-mail on their cellphones. The service,
which was a huge hit in Japan, showed the world that there was money to be made in sending data-in
addition to voice-over cellphone networks.
In 2002, the company became the world's first cellphone carrier to launch third-generation services, or
30-the equivalent of broadband Internet access for cellphones. DoCoMo's 3G milestone, however,
didn't come easily. The company spent enormous amounts of money on }G research and
development, and the service was slow to catch on with consumers.
Meanwhile, rival KDDI rolled out its own version of }G service much more smoothly than DoCoMo,
along with an array of hand-phones and a youthful ad campaign. In October 2003, the much smaller
KDDI suddenly began pulling in more new subscribers per month than DoCoMo for the first time. This
continued until june, and has left DoCoMo with a current market share of 56% compared to 58% at the
beginning of 2003. KDDI now holds 21% while the Japan operation of London-based Vodafone Group,
DoCoMo has also taken blows on the international front. Between 1999 and 2002, the company spent
about ¥1.9 trillion buying small stakes in cellphone carriers around the world. It hoped to get overseas
carriers to adopt i-mode technology and wanted to develop partnerships in 3G phone services. But the
value of DoCoMo's holdings sank when tech stocks crashed in 2001 and its partners racked up huge
bills in bidding for 3G licences. The company also found that its little stakes carried less weight than
expected. In the United States, for instance, DoCoMo ploughed some $10 billion into AT&T Wireless
Services but failed to persuade the company to use i-mode. DoCoMo has since sold its AT&T stake.
All told, DoCoMo has written down ¥1.5 trillion, or about 79%, of the value of its overseas investments.
Nakamura says he's not ruling out future capital investment or acquisitions, but he's proceeding with
caution. More likely, he says, are technological tie-ups or licensing of DoCoMo's i-mode technology. he
is bullish on opportunities for DoCoMo in Asia and on taking stakes in companies that offer peripheral
mobilephone services. As an example, he cites the company's recent decision to take a 17.6% stake
in MappointAsia (Thailand), a digital-mapping service, for $1.9 million.
Nakamura carries a rugged-looking, white Panasonic cellphone. Like Japan's hordes of cellphone-
wielding youth, he holds the phone in one hand and uses an agile thumb to work the keys. Anything
else, he says, "would make me look like an old man."
It's a good thing he's not feeling old, because he's got some fierce competition ahead of him. In 2006,
Japan will introduce number portability, which will allow customers to switch carriers without changing
phone numbers. In addition, . DoCoMo may also have to watch out for new rivals like broadband
providers eAccess and Softbank, two Japanese companies that have applied for mobile licences and
are gearing up to offer their own, potentially cut-rate cellular services.
In May, DoCoMo's subscribers to FOMA, the company's ,. 3G service, surpassed 4 million. Nakamura
is aiming for 10 million customers by March 2005. "It's war on all sides," says Nakamura. "We have to
completely reconsider what it is that our customers want."
By Ginny Parker/TOKYO