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Presented by:
Sajad Ahmad Dar (A-30)
Pankaj Dhiman (A-28)
Brijesh Kumar (A-29)
Chanchal Jha (A-26)
Introduction
 History of NTT DOCOMO is the history of mobile communication in
Japan itself.
 Telecom started in 1949 whe...
Cont…
 The name Docomo was adopted in 2000.
 DOCOMO began its operations in July 1992.
 The initial fortfolio included ...
Cont…
Differentiation strategy adopted………
 Launched Do Pa in March 1997.
Beat the competition……..
 I-Mode launched in ...
Success Story Of DOCOMO: I-Mode
 I-mode became an instant success resulting a phenomenal
growth in subscribers.
 Generat...
Business Model
 DoCoMo adapted AOL’S packet billing model.
 E-commerce traction on I-mode
 Never even mentioning the wo...
DoCoMo- Beyond I-Mode
Launch of “Freedom of mobile multimedia access
(FOMA), a 3G service.
Riding on the success wave of...
DoCoMo Problems Aplenty
Losses written-off. Bottom line affected.
Postponement of launch of FOMA.
Problems with trial p...
After the launch of FOMA
 Customer complaints continued.
 FOMAs subscriber base amounted to only 89000 by the end
of mar...
Life after the loss
 Cut off in the salaries of top executives by 10%-20% for a year.
 In April 2002, KDDI launched CDMA...
Back In Business
 In Jun2002 DoCoMo launched its first photo handset based on 2G
network.
 In Jan. 2003 DoCoMo reduced i...
Signs of Revival
 DoCoMo’s 3G initiative showed signs of revival.
 Company covered 90% of Japan’s population by the end ...
Current position
 What happened to DoCoMo (in terms of subscriber base )
after 2002
 FOMA subscriber base increased from...
NTT DOCOMO spin off
NTT DOCOMO spin off
NTT DOCOMO spin off
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NTT DOCOMO spin off

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NTT DOCOMO spin off

  1. 1. Presented by: Sajad Ahmad Dar (A-30) Pankaj Dhiman (A-28) Brijesh Kumar (A-29) Chanchal Jha (A-26)
  2. 2. Introduction  History of NTT DOCOMO is the history of mobile communication in Japan itself.  Telecom started in 1949 when Ministry of Communication in Japan split into MTEL and Mop.  MTEL was renamed as NTT & was a monopoly for telecommunication in Japan.  In the late 1980’s Japan finally decided to reform its telecom regulatory framework to allow foreign companies into Japan.  NTT’s mobile communication network was spun-off in 1992 to form DoCoMo (initially named as NTT Mobile Communications Network.
  3. 3. Cont…  The name Docomo was adopted in 2000.  DOCOMO began its operations in July 1992.  The initial fortfolio included Mobile Phones, car phone, etc.  Docomo registered drastic decline in sales between 1992-94.  April 1994– launches its own handsets and reduces initial subscription fees in Dec. 1996.  Growing demand for mobile telecom services in Japan during the mid 1990s.  Emerges as market leader in 1997.
  4. 4. Cont… Differentiation strategy adopted………  Launched Do Pa in March 1997. Beat the competition……..  I-Mode launched in 22nd February 1999. DoCoMo launched I-mode, a revolutionary product, which changed the market dynamics overnight.
  5. 5. Success Story Of DOCOMO: I-Mode  I-mode became an instant success resulting a phenomenal growth in subscribers.  Generated 30% higher revenues per subscribers.  DoCoMo announced its global strategy to establish it self as global player.  I-Mode popularity attained a new altitude.  The subscribes base in Japan accounted for more than 60% (18.1 million ) of the 30 million mobile internet customers in the world.  I-mode phones are constantly connected to a wide array of web -based services.
  6. 6. Business Model  DoCoMo adapted AOL’S packet billing model.  E-commerce traction on I-mode  Never even mentioning the world “Internet’’ in marketing I- mode.  It was a Win-Win-Win situation for all.  It chose not be just a gatekeeper between content companies and customer.  Multiple point contact with customers.  External factors such as PC penetration was very low.  I-mode came at right time, in right place, with right content.
  7. 7. DoCoMo- Beyond I-Mode Launch of “Freedom of mobile multimedia access (FOMA), a 3G service. Riding on the success wave of I-Mode. Hurdles in entering Global Arena. But DoCoMo still going Global.
  8. 8. DoCoMo Problems Aplenty Losses written-off. Bottom line affected. Postponement of launch of FOMA. Problems with trial package provided to customers. But the inevitable happened- 3G launched.
  9. 9. After the launch of FOMA  Customer complaints continued.  FOMAs subscriber base amounted to only 89000 by the end of march 2002, much below the expected 150000.  Due to increase in competition the net subscriber base was 31,7% lower in Dec.2001 than in Dec.2002.  Docomo still dominated the market with 59% market share followed by KDDI and Vodafone J- phone with 17.7%.  Docomo offered various subsidies.  Biggest loss was 116.19 billion yen.
  10. 10. Life after the loss  Cut off in the salaries of top executives by 10%-20% for a year.  In April 2002, KDDI launched CDMA2002lx, its 3G service.  Problems to convince its partner wireless companies.  Docomo stake fell by 33.8%.  Offered discounts and free roaming services.  The performance of I-Mode launched in other countries was far from satisfactory.
  11. 11. Back In Business  In Jun2002 DoCoMo launched its first photo handset based on 2G network.  In Jan. 2003 DoCoMo reduced its promotional expenditure on 3G network.  By Feb. 2003 aggressively marketed FOMA handsets  In March 2003 company launched new handset P2102V.  In April 2003 announced launch of new handset F661i with GPS system.  In April 2003 company launched a ‘Wrist watch with phone.  Announced plans to launch six new 2G camera phones.
  12. 12. Signs of Revival  DoCoMo’s 3G initiative showed signs of revival.  Company covered 90% of Japan’s population by the end of April 2003.  DoCoMo bounced back on profit on account of its successful new launches with consolidated net profit of $1.83 billion for the year end.  Subscriber based amounted to cover 41 million.  Company’s share prices increased to $2000 in April 2003 from $1700 in March 2003.
  13. 13. Current position  What happened to DoCoMo (in terms of subscriber base ) after 2002  FOMA subscriber base increased from 41011 as on 31 March 2002 to 54601 as on 31 March 2009.  I-Mode subscription has increased from 32156 as on 31 March 2002 to 48474 as on 31 March 2009.

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