docomo (report and analysis)

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Docomo pioneered the mobile internet by introducing i-Mode to Japan's market on February 22, 1999, and was the first operator to bring 3G to market. While Docomo has been less successful to capture global value from these pioneering developments, Docomo is one of the most successful and admired mobile operators. This report presents many financial and market data together with analysis, and also gives a thorough overview of Docomo's pioneering i-Mode services.

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docomo (report and analysis)

  1. 1. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 20141 Version 29 of May 13, 2014 ! by Gerhard Fasol PhD, Eurotechnology Japan KK http://www.eurotechnology.com/ fasol@eurotechnology.com this is a free version of the report with selected pages. purchase and download the full report here: http://www.eurotechnology.com/store/docomo/ NTT DOCOMO
  2. 2. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 EXECUTIVE SUMMARY • Docomo pioneered many mobile communication services, and created the first successful mobile internet, i-Mode which was introduced on February 22, 1999.With i-Mode and mobile Java applications and the “official i-Mode Menu” Docomo created a mobile eco-system very close to Apple’s and Google’s Android ecosystem, but based on a packet switched 2G network. Docomo then built the first and most advanced 3G mobile network globally. For this pioneering work, Docomo was globally admired, and in the expectation of global growth, Docomo achieved very high market valuations. • However, Docomo did not succeed to build global business of any scale based on i-Mode or other successes. Docomo invested in KPN-Wireless,AT&T-Wireless,Three/Hutchinson, and introduced i-Mode to many countries all over the world from USA, many EU countries, in Russia and Australia, however, most of these investments failed and were written off at large losses, approximately US$ 10 billion losses in total. In March 2014, Docomo announced to terminate participation in a joint venture withTATA in India, withdrawing from India. • That said, today with approx. 63 million subscribers, steady annual revenues ofYEN 4500 billion (US$ 45 billion) and steady annual net income ofYEN 500 billion (US$ 5 billion) is a stable, very successful and admirable mobile operator, one of the world’s most important. • However NTT-Docomo has now been overtaken in terms of global number of subscribers, annual revenues, operating income and net income by the SoftBank Group. • What will the future bring? I think Docomo has a choice of either remaining a mainly Japanese domestic operation, in which case we can expect Docomo’s revenues and income to slowly fall in tune with Japan’s falling population numbers, or on the other hand, if Docomo follows SoftBank’s example, Docomo could also use Japan-know-how to make acquisitions outside Japan. However in that case, Docomo will need to find ways of making overseas investments successful. 2
  3. 3. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 NTT-DOCOMO REPORT -VERSION OVERVIEW 3 Version Date Revision and comments 1 started as i-Mode report 2 3 4 5 August 26, 2003 6 June 15, 2004 7 8 October 4, 2004 9 10 Subscribe to this report, and we will regularly send you the latest versions. ! subscription, monthly payment, you can end the subscription any time (no refunds): ! subscription, annual payment, you can end the subscription any time (no refunds):
  4. 4. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 NTT-DOCOMO REPORT -VERSION OVERVIEW 4 Version Date Revision and comments 11 started as i-Mode report 12 January 22, 2005 13 14 15 16 January 2, 2006 17 18 19 20 Subscribe to this report, and we will regularly send you the latest versions. ! subscription, monthly payment, you can end the subscription any time (no refunds): ! subscription, annual payment, you can end the subscription any time (no refunds):
  5. 5. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 NTT-DOCOMO REPORT -VERSION OVERVIEW 5 Version Date Revision and comments 21 22 January 22, 2009 23 May 18, 2009 24 May 20, 2009 25 June 1, 2009 26 27 December 13, 2010 28 January 6, 2011 29 May 12, 2014 update, reformat 30 Subscribe to this report, and we will regularly send you the latest versions. ! subscription, monthly payment, you can end the subscription any time (no refunds): ! subscription, annual payment, you can end the subscription any time (no refunds):
  6. 6. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 LICENSE 6 Thank you for purchasing licenses to our reports, and for your cooperation with our licensing conditions. Only through your purchases can we continue to produce high-quality market reports from Japan ! INTHE CASE OF SINGLE LICENSE: If you have purchased a single copy license of this report, you are not permitted to copy this report except for a single back- up copy ! INTHE CASE OF CORPORATE LICENSE: in the case that your company has purchased a corporate license, you may distribute this report inside your company including protected corporate information servers locked to the outside, but you cannot distribute this report outside your company ! ANNUAL SUBSCRIPTION: we offer annual subscriptions for a particular report, and also for all our reports in one single transaction at a great discount - please contact us for details. Corporations subscribing will receive all updates at the time of publication, so that you can be sure to have the latest up-to-date information ! This research report comes without any warranty of any kind.The authors and Eurotechnology Japan K. K. do not warrant that the information in this report is without error, nor that the information serves any particular purpose. For legal advice please consult properly licensed legal professionals, for investment advice please consult properly licensed financial advisors.Trademarks mentioned are the property of their owners.
 Eurotechnology is a trademark or registered trademark in Japan and other countries.
  7. 7. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 AGENDA • Japan’s telecom industry – overview • NTT and NTT-DoCoMo • Financial results • Wireless markets • market shares, subscriber numbers and trends • Spectrum allocation and base stations • 3G • Handsets • The i-mode eco-system • “Official” and “un-official” (“katte”) i-Mode sites • Search on i-Mode • Mobile music on i-Mode • Mobile games • Mobile commerce • Mobile banking • Mobile payments and keitai-credit • Mobile media and information • Mobile manga and e-books • Messaging and email • E-moji • Advertising and marketing • Why is i-Mode so successful in Japan? • Summary 7
  8. 8. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 NTT-DOCOMO 8
  9. 9. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 20149 NTT docomo docomo = do communications over the mobile network Founded August 14, 1991 as NTT Mobile Communications Planning Co. April 1992 named NTT DoCoMo, July 1993 split from NTT Founder Headquarters Tokyo Stock Exchange TokyoTSE 9437 (IPO: October 22, 1998), NYSE: DCM (IPO: March 2002), LSE: NDCM (IPO: March 2002) Consolidated sales YEN 4240 Billion (US$ 47.5 Billion) (FY2011, ended March 31, 2012) Number of employees 23,289, consolidated (March 2012) Major share holders NTT (66.65%) (since Japan’s Ministry of Finance owns 32.6% of NTT, the Ministry of Finance owns 21.7% of NTT docomo via NTT) Major business areas mobile communications
  10. 10. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 HISTORY OF NTT-DOCOMO •July 1, 1968: NTT starts “Pocket Bell” Service, paging service •December 3, 1979: NTT starts car telephone service (mobile phones in cars) •November 1985: NTT sets up “mobile telephone business division” •October 1988: NTT mobile communications KK regional companies founded •1990-1993: regional NTT mobile communications companies formed and restructured •October 22, 1998: NTT mobile communications network KK (エヌ・ティ・ティ移 動通信網(株)), IPO onTokyo Stock Exchange •April 1, 2000: Company name changed to NTT Docomo •October 1, 2013: official company name changed to 株式会社NTTドコモ (KK NTT Docomo) 10
  11. 11. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 STATE OWNERSHIP OF NTT AND NTT DOCOMO •as of March 31, 2012, the Japanese State via the Ministry of Finance owns 32.6% of the NTT Holding company, Nippon Telegraph andTelephone Corporation (NTT Corporation). •NTT Corporation owns 63.32% of NTT Docomo. •Thus the effective State ownership of NTT Docomo via NTT and via the Ministry of Finance is 20.64% 11
  12. 12. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 DOCOMO WITHINTHE NTT GROUP
 
 NIPPONTELEGRAPH ANDTELEPHONE CORPORATION 12
  13. 13. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 NTT • Founded April 1, 1985 as a result of privatizing the nationally owned telephone operations • One on of the world’s largest telecommunications companies • Largest share holder:The Government of Japan • Discussions about reform of the group structure are continuing • Major NTT Group companies • NTT Communications (100% owned by NTT) • NTT East (100% owned by NTT) • NTT West (100% owned by NTT) • NTT DoCoMo (65.3% owned by NTT) • NTT Data ( 54.2% owned by NTT) • Other companies • NTT Business Associe • NTT Electronics • NTT AdvancedTechnology • NTT Facilities • NTT Leasing • NTT Urban Development • NTT Advertising • NTT Comware • NTT Software • NTTAFTY • NTT Resonant • and many more 13
  14. 14. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 COMPARING NTT-DOCOMO AND NTT MARKET CAP •NTT is traded on theTokyo Stock Exchange (Code 9432), and on May 12, 2014, NTT’s market cap isYEN 6498.5 billion. •NTT owns 63.32% of NTT Docomo. •NTT Docomo is traded on theTokyo Stock Exchange (Code 9437). On May 12, 2014 NTT Docomo’s market cap isYEN 7154.2 billion. •Subtracting the value of NTT’s share of NTT Docomo (63.32% x YEN 7154.2 billion) from NTT’s market cap (YEN 6498.5 billion) we obtain:YEN 1968.46%. •Thus on May 12, 2014, about 70% of NTT’s market cap is the value of NTT’s holding of NTT-Docomo - thus NTT-Docomo is the most valuable part of the NTT Group. 14
  15. 15. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 DOCOMO’S MARKET LANDSCAPE:
 JAPAN’S MOBILE INDUSTRY 15 For a general report on Japan’s telecom industry see: http://www.eurotechnology.com/store/jcomm/
  16. 16. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 DOCOMO’S FINANCIALS COMPAREDTO JAPAN’S COMPETING MOBILE OPERATORS 19
  17. 17. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 ANNUAL NET (AFTERTAX) INCOME OFTHETOPTHREE CARRIERS •NTT-Docomo’s net income peaked around 2005, and has been falling rapidly following the peak in 2005. Recently, net income has stabilized. •SoftBank through rapid growth of net income has recently exceeded NTT-Docomo in terms of net income. •NTT-Docomo’s losses during the 2001-2003 period are about US$ 10 billion in total, and are due to writing off failed investments in KPN-Wireless,AT&T Wireless, and Hutchinson Wireless during the “telecom bubble”. 22 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 200 0 200 400 600 800 annualnet incomeyearYENBillion Annual net income of Japan's mobile operators in YEN Billion DoCoMo KDDI SoftBankVodafone Japan US$ 2 Bill US$ 4 Bill US$ 6 Bill US$ 8 Bill iPhone SoftBank July 11, 2008 iPhone 4S KDDI Oct 14, 2011 i Mode Feb 22, 1999 iPhone 5 Softbank KDDI Sept 21, 2012 c2014EurotechnologyJapanKK www.eurotechnology.com
  18. 18. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 QUARTERLY FINANCIAL RESULTS
 DOCOMO COMPAREDTO COMPETITORS 23
  19. 19. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 QUARTERLY NET INCOME • NTT-Docomo achieves regular quarterly net income on the order ofYEN 120 billion (US$ 1.2 billion) per quarter. • While annual net income is fairly stable, there are strong fluctuations in quarterly net income data, caused by investment flows, handset purchases, the big peak in new handset purchases and new subscribers registrations in March of each year and other factors. 26 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 100 0 100 200 300 netincomequarterYENBillion iPhone SoftBank July 11, 2008 iPhone 4S KDDI Oct 14, 2011 Quarterly net income loss of Japan's mobile operators DoCoMo KDDI SoftBank Vodafone Japan US$ 1 Billion US$ 2 Billion c2014EurotechnologyJapanKK www.eurotechnology.com iPhone 5 Softbank KDDI Sept 21, 2012 SoftBank acquires Vodafone KK March 17, 2006
  20. 20. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 DOCOMO’S MARKET POSITION:
 SUBSCRIBER NUMBERS AND MARKET SHARE
 29
  21. 21. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 MARKET SHARES • NTT-Docomo currently has a market share of approx. 40.8% in terms of subscription numbers in Japan’s mobile communications market • NTT-Docomo’s market share is continuously falling, e.g. market share dropped from 42.0% in April 2013 to 40.8% in March 2014, one year later. • All carriers are looking outside Japan for growth, however most major overseas investments by NTT-Docomo have failed and NTT- Docomo has withdrawn from most major overseas investments and often also written off the investments. 31 DoCoMo 40.8 KDDI UQ 28.9 UQ SoftBank eM Willc WSP 30.3 eMobile Willc.WSP Mobile Operator group market shares March 31, 2014 DoCoMo 42.0 KDDI UQ 28.7 UQ SoftBank eM Willc WSP 29.3 eMobile Willc.WSP Mobile Operator group market shares April 30, 2013
  22. 22. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 DOCOMO IS CONTINUOUSLY LOSING MARKET SHARE • Docomo’s growth of market share has been continuously in the red since 2010, Docomo is losing market share. 36 Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014 Jan 2015 0.004 0.003 0.002 0.001 0 0.001 0.002 0.003 monthly changeofmarketshare Growth fall of subscriptions market shares of Japan's mobile operators DoCoMo KDDI SoftBank eMobile Willcom UQ iPhone 4S SoftBank KDDI Oct 14, 2011 c2014EurotechnologyJapanKK www.eurotechnology.com
  23. 23. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 DOCOMO’S SPECTRUM AND BASE STATIONS-
 HOW MANY BASE STATION DOES DOCOMO DEPLOY? 37 More details and frequent updates of Japan’s base station markets in our J-COMM report series: http://www.eurotechnology.com/store/jcomm/
  24. 24. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 LTE 47
  25. 25. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 DOCOMO’S SERVICES 50
  26. 26. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 DOCOMO SERVICES • Docomo has a long tradition and much experience in developing services tuned to the needs of Japanese customers • Since February 22, 1999 Docomo operated i-Mode mobile internet services based on “Galake” traditional Japanese-only handsets. • With the emergency and success of smart-phones Docomo developed a suite of services which are tuned to smartphones and can replace some of the functionality of i-Mode, and generate corresponding income for Docomo, and provide services tuned to the preferences of Docomo’s Japanese subscribers. • Docomo does not hesitate to market these services quite intensively, for example when customers approach Docomo stores for handset repairs, handset replacements, upgrades and at other opportunities. 51
  27. 27. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 DOCOMO’S PHONES (TRADITIONAL JAPANESE “GALAKE” PHONES) 53
  28. 28. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 “GALAKE” PHONESVS SMART PHONES • For many years Docomo’s the control of handsets was a core part of Docomo’s business model. • Docomo dictated the specifications of handset to four core handset makers, and to a number of other Japanese handset makers. In the 1990s there were about 17 Japanese mobile phone makers competing for Docomo’s favor, and access to Docomo’s customers. Docomo purchases the handsets from manufacturers and then sells the handsets to Docomo customers. Handsets are specific to Docomo’s requirements, include DoComo-specific services such as i-Mode, and were locked to Docomo’s network. Handset makers created beautiful “Japan-only” Galapagos - islands keitai = “Galapagos keitai” = Galake. • This model could work as long as the main value of mobile phone handsets was hardware, and software was a minor issue. However, smartphones are are computers, where the main value consist of the software, and the developer community, and the application development platform, and where global scale is necessary to spread costs and developer communities. • Docomo had some of these components in place with i-Mode, and provided an excellent demonstration of the potential of the mobile internet, but Docomo and Docomo’s suppliers lacked global scale, depth of software development capabilities, and lacked the support of a global developer base. • Docomo attempted for a long time to escape a relationship with Apple, where Docomo would be the junior partner. Docomo as the incumbent in Japan, has never been the junior party to anyone in Japan, except maybe to majority shareholder NTT. Docomo subscribers started to vote with their feet, and in order to stop the loss of subscribers to competitors, Docomo in autumn 2013 finally started to offer iPhone 5s and iPhone 5c. • Today still a large fraction of handsets are very advanced, but old-style “Galake” mobile phones, and slowly but surely subscribers move over to smartphones.This is transition from very advanced Galake feature phones to smart phones is slow but steady. • In the following sections we will explain some of Docomo’s Galake phones. 54
  29. 29. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 DOCOMO’S 900I SERIES • This photograph shows DoCoMo’s 900i series in October 2006 • The 900i FOMA series are DoCoMo’s top line handsets, most include FeliCa chips for mobile payment, and increasingly also GPS. • Street prices are usually in theYEN 20,000-YEN 30,000 range including subsidies, higher for the newest models, and lower for older models, and when discounts are applied. • Manufacturers are: • NEC • Panasonic • SHARP • SONY-Ericsson • Mitsubishi Electric • Fujitsu 55
  30. 30. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 DOCOMO’S NEW SERIES 58
  31. 31. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 DOCOMO’S NEW HANDSET SEGMENTATION IN FOUR SERIES • Smart • Style • Pro • Prime 59
  32. 32. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 DOCOMO’S SEGMENTS: STYLE / PRIME / SMART / PRO • From autumn 2008 DoCoMo introduces a new segmentation for handsets 60
  33. 33. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 PHONES FORTHE SILVER MARKET 61
  34. 34. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 THE I-MODE ECO-SYSTEM 64
  35. 35. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 I-MODE IN A NUT-SHELL: • i-Mode’s portal reminds of elements of AOL’s portal services. i-Mode gives access to the open internet + to DoCoMo’s i-Mode portal services 68 Menu-List Weather & News Weather i-Menu (Macromedia Flash Format) inside Camera for video-calls and self/group-portraits (c)2004EurotechnologyJapanKK www.eurotechnology.com
  36. 36. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 THE I-MODE USER INTERFACE
 ANDTHE I-MODE DIRECTORY HIERARCHY 71
  37. 37. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 THE “OFFICIAL” I-MODE MENU LIST 82
  38. 38. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 “NON-OFFICIAL” (“KATTE”) 
 I-MODE SITES 86
  39. 39. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 THE ENGLISH I-MODE MENU 88
  40. 40. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 SEARCH ON I-MODE 90
  41. 41. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 MOBILE MUSIC ON I-MODE 93
  42. 42. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 CHAKU-MELO (RING-TONES) ON I-MODE 99
  43. 43. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 CHAKU-UTA (TRUE-SOUND) ON I-MODE 102
  44. 44. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 MUSIC SALES AND MUSIC INFORMATION 
 ON I-MODE 106
  45. 45. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 MOBILE GAMES 111 More about games, mobile games and Japan’s games sector: http://www.eurotechnology.com/store/jgames/
  46. 46. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 DOCOMO PROMOTES SQUARE ENIX 119
  47. 47. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 TRANSACTIONS, BANKING, M-COMMERCE,
 AND M-PAYMENTS 120 More about mobile payment and mobile transactions: •http://www.eurotechnology.com/store/mobilepayment/ •http://www.eurotechnology.com/store/walletphone/ •http://www.eurotechnology.com/store/suica/ •http://www.eurotechnology.com/store/cmode/
  48. 48. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 MOBILE AUCTIONS 133
  49. 49. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 DOCOMO’S 
 STRATEGIC INVESTMENT IN 
 RAKUTEN AUCTIONS 135
  50. 50. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 PHONES ASTRAINTICKETS • For more information on mobile phones as train tickets: • http://www.eurotechnology.com/store/suica/ 138
  51. 51. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 MOBILE BANKING • For more information on mobile money and mobile banking, see: http://www.eurotechnology.com/store/mobilepay/ 140
  52. 52. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 TOKYO-MITSUBISHI-UFJ 
 MOBILE BANKING AND EDY 141
  53. 53. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 MOBILE PAYMENTS AND 
 KEITAI CREDIT IN JAPAN • For more information on mobile payment systems see: • http://www.eurotechnology.com/store/mobilepay/ • http://www.eurotechnology.com/store/suica/ 151
  54. 54. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 MOBILE MEDIA AND INFORMATION • For more about Japan’s media sector • http://www.eurotechnology.com/store/jmedia/ 158
  55. 55. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 MOBILE MANGA AND BOOKS • For more about Japan’s media sector • http://www.eurotechnology.com/store/jmedia/ 163
  56. 56. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 LOCATION BASED SERVICES (LBS) • For more about location based services (LBS) in Japan: • http://www.eurotechnology.com/store/location/ 167
  57. 57. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 I-MODE EMAIL AND MESSAGING 173
  58. 58. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 E-MOJI 176
  59. 59. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 ADVERTISING AND MARKETING ON I-MODE 179
  60. 60. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 MOBILETV • More on MobileTV in our mobileTV report: • http://www.eurotechnology.com/store/mobiletv/ 187
  61. 61. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 BEETV • More on MobileTV in our mobileTV report: http://www.eurotechnology.com/store/mobiletv/ 191
  62. 62. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 ADVERTISINGTHE START OF BEETV 192
  63. 63. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 WHY WAS I-MODE SO SUCCESSFUL IN JAPAN? 197
  64. 64. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 SUMMARY 202
  65. 65. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 SUMMARY 203 • With approx. 63 million subscribers, steady annual revenues ofYEN 4500 billion (US$ 45 billion) and steady annual net income ofYEN 500 billion (US$ 5 billion) is a stable, very successful and admirable mobile operator, one of the world’s most important, however NTT-Docomo has not been overtaken in terms of global number of subscribers, annual revenues, operating income and net income by the SoftBank Group. • Docomo pioneered many mobile communication services, and created the first successful mobile internet, i-Mode which was introduced on February 22, 1999.With i-Mode and mobile Java applications and the “official i-Mode Menu” Docomo created a mobile eco-system very close to Apple’s and Google’s Android ecosystem, but based on a packet switched 2G network. Docomo then built the first and most advanced 3G mobile network globally. For this pioneering work, Docomo was globally admired, and in the expectation of global growth, Docomo achieved very high market valuations. • However, Docomo did not succeed to build global business of any scale based on i-Mode or other successes. Docomo invested in KPN-Wireless,AT&T-Wireless,Three/Hutchinson, and introduced i-Mode to many countries all over the world from USA, many EU countries, in Russia and Australia, however, most of these investments failed and were written off at large losses, approximately US$ 10 billion losses in total. In March 2014, Docomo announced to terminate participation in a joint venture withTATA in India, withdrawing from India. • What will the future bring? I think Docomo has a choice of either remaining a mainly Japanese domestic operation, in which case we can expect Docomo’s revenues and income to slowly fall in tune with Japan’s falling population numbers, or on the other hand, if Docomo follows SoftBank’s example, Docomo could also use Japan-know-how to make acquisitions outside Japan. However in that case, Docomo will need to find ways of making overseas investments successful.
  66. 66. (c) 2014 Eurotechnology Japan KK www.eurotechnology.com NTT Docomo (Version 29) May 13, 2014 CONTACT AND MORE INFORMATION 204 Contact •Gerhard Fasol PhD •Eurotechnology Japan KK,Tokyo, Japan •http://www.eurotechnology.com/ •Mobile +81-90-8594-6291 •fasol@eurotechnology.com •gfasol@gmail.com ! More information: •reports:http://www.eurotechnology.com/store/ •twitter: http://twitter.com/gfasol/ •website: http://www.eurotechnology.com/ •personal site: http://fasol.com

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