Japan's NTT DoCoMo will launch the world's first third-generation mobile phone service today, hoping to snap up six million domestic subscribers by March 2004 as well as conquering the European and American markets.
Capable of downloading 40 times more data than that of the popular i-mode -- a mobile phone service providing Internet access -- users will be able to surf the Web while on the phone as well as seeing pictures of who they are speaking to. In the long run, it will also be possible to watch films and listen to music on DoCoMo's 3G handsets.
Christened FOMA (freedom of mobile multi-media access), the service will initially be limited to a 30km radius around the center of Tokyo and some other specified zones in the capital.
NTT DoCoMo, Japan's first mobile phone operator, intends to sell 150,000 handsets by March 2001 and to sign up six million 3G subscribers by March 2004.
The company also plans to invest ?1,000 billion (US$8.4 billion) into the network during the first three years of service while expecting no returns on its money for the first four years.
In December 3G mobile phone services will be available to people in the cities of Osaka, Kyoto and Nagoya, the company said. By Spring 2002, the network will be extended to other major cities before the entire country is covered two years later, the company said.
NTT DoCoMo is also looking to spread its 3G wings beyond the shores of Japan.
"In Europe, we hope to start third generation service by the end of this year or early next year," said NTT DoCoMo spokeswoman Junko Miyazaki.
"In the US, we have been working to make the service available. But we have not set any date for the US launch."
The company has said it could expand abroad in partnership with KPN Mobile NV of the Netherlands, Britain's Hutchison 3G UK Holdings and Hutchison Telephone of Hong Kong, as well as ATT Wireless in the US.
The commercial launch of FOMA was delayed in May because of technical problems. Even now the downloading of music and videos clip will not be available until Spring 2002 because they presently take too long to download, Miyazaki said.
The first users will be able to access any Internet site, receive and send e-mails, see images of who they are talking to, as well as using their handset to take photographs and play electronic games.
Hironobu Sawake, an analyst at JP Morgan, believes that because of the high price of the terminals -- approximately ?66,500 (US$558.8) for the NEC terminal and ?95,700 for the Panasonic version which can also be used as a video camera -- the new service will initially only appeal to professionals.
The stated objective of signing up 150,000 subscribers this year is "very small" compared to NTT DoCoMo's current 38 million subscriber base, said Sawake, adding that the targeted six million subscribers by March 2004 was reasonable.
"The benefit of being first is very important for know how," he said, estimating that J-Phone, the mobile branch of Japan Telecom, with the assistance of the British giant Vodafone, would be the next to enter the market.
"It's good to have strong competitors. Vodafone might bring new services or fee structures to the Japanese market by using their experience and know-how," NTT DoCoMo president Keiji Tachikawa said recently.
Takayoshi Koike, an analyst at Societe Generale Securities, estimates that in three years increases to NTT DoCoMo's subscribers base will ground to a halt.
RSS