Sajad Ahmad Dar (A-30)
Pankaj Dhiman (A-28)
Brijesh Kumar (A-29)
Chanchal Jha (A-26)
History of NTT DOCOMO is the history of mobile communication in
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 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.
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
Emerges as market leader in 1997.
Differentiation strategy adopted………
Launched Do Pa in March 1997.
Beat the competition……..
I-Mode launched in 22nd February
DoCoMo launched I-mode, a revolutionary product,
which changed the market dynamics overnight.
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
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
I-mode phones are constantly connected to a wide array of
web -based services.
DoCoMo adapted AOL’S packet billing model.
E-commerce traction on I-mode
Never even mentioning the world “Internet’’ in marketing I-
It was a Win-Win-Win situation for all.
It chose not be just a gatekeeper between content companies
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.
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.
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.
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.
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
Back In Business
In Jun2002 DoCoMo launched its first photo handset based on 2G
In Jan. 2003 DoCoMo reduced its promotional expenditure on 3G
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
In April 2003 company launched a ‘Wrist watch with phone.
Announced plans to launch six new 2G camera phones.
Signs of Revival
DoCoMo’s 3G initiative showed signs of revival.
Company covered 90% of Japan’s population by the end of
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.
What happened to DoCoMo (in terms of subscriber base )
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.