NTT DoCoMo’s I-mode:developing win-win relationship for mobile

commerce
What does DoCoMo mean?
• DoCoMo is a trademark of the NTT DoCoMo
corporation of Japan, used in its home market
and in India in partnership with Tata
Teleservices. NTT Docomo, Inc. is the
predominant mobile phone operator in Japan.
The name is officially an abbreviation of the
phrase, “do communications over the mobile
network”, and is also from a compound word
dokomo, meaning “everywhere” in Japanese.
• Launched in 1999, NTT DoCoMo’s i-mode
service is a success in Japan, with subscribers
numbering more than 38.65 million.
Consequently, many operators have looked to
it as a wireless Internet role model.
• Telecom 99 in geneva ,the industry event for
the telecommunication sectors.
• Today, NTT DoCoMo is one of the most valuable telecom
companies in the world.
• It was formed in July 1992, when the cellular
communications services of Nippon Telegraph and
Telephone (NTT) were carved out from the former
telecom monopolist’s other lines of business.
• NTT DoCoMo operates cellular networks based on the
Japanese personal digital communication (PDC) and
wideband code division multiple access (WCDMA)
standards. On 1 December 1998, it took over NTT’s
unprofitable Personal HandyPhone System (PHS), with the
aim of turning it around within five years. NTT DoCoMo
also operates a paging service and paging equipment sales
business (Quickcast) and an international dialing service.
• In October 2001, NTT DoCoMo became the
first cellular operator in the world to offer
commercial 3G services (based on WCDMA)
called Freedom of Mobile Multimedia Access
(FOMA). Initially, the service was available
only in the Tokyo metropolitan area,
Yokohama and Kawasaki. However, by March
2004,the service is expected to cover 99
percent of the population nationwide.
• The company’s i-mode wireless Internet service —
launched in February 1999 .
• wireless Internet service based on Wireless Application
Protocol (WAP). The service enables Internet access via
small, lightweight and trendy cellular handsets replete
with color screens and Java-capabilities. Initial problems,
such as network outages in 1999 (due to NTT DoCoMo
grossly underestimating the demand for i-mode
services) and faulty handsets, were rapidly resolved, and
i-mode has not looked back since.
• Technology
• i-mode is basically Internet access service operating
on a packet-based network (PDC-P) overlaid on top
of NTT DoCoMo’s PDC cellular system (see the figure
“i-mode Network Architecture”). Connections
accessing the Internet are routed through an i-mode
gateway, as opposed to a voice call, which is routed
to the normal public switched telephone network. i-
mode access is now also available on the FOMA
network.
• A packet –switched network(PDC-P) for
wireless internet services is seen as essential.
This packet –switch n/w has several positive
effects for the end-user.
• always-on connection allows for quick access
to internet services, by removing the need for
a lengthy circuit-switched “dial-up” and “log-
on” process.
• End-user pay per packet (128 bytes) of
information downlaod rather than for the
number of minutes online.
• In January 2001, NTT DoCoMo launched its “i-appli” service
applications that include video games and online financial
services. This service is available on Java-based handsets.
Users can download and store a variety of dynamic and
graphics-rich applications via these new handsets.
• The i-appli handsets also feature Secure Socket Layer (SSL)
protocol that provides encryption for secure transmission of
personal information. As such, the new phones can also be
used for financial services and m-commerce.
• i-mode handsets are far more advanced than those of the
Global System for Mobile Communications/general packet
radio service (GSM/GPRS) world, and they have contributed
to the service’s popularity.
• GSM-gobal system for mobile communication(originally
from Groupe Spécial Mobile)
i-mode Network Architecture
Win-win strategic model
• As NTT DoCoMo is a mobile phone operator
with a pre-existing billing relationship with a
customer, it possible to collect payment on
behalf of content provider for their services.
• NTT DoCoMo and the content provider work
together to create a win-win relationship for
both parties.
The right services
Brand building and media mix
 Customer relationship management

• CRM has variety of meaning and can be used

to express multitude of services. In this case
of i-mode ,CRM can be described to provide
support for one’s customers, with useful
online services in the mobile environment.
 Online retail
• Issues overlap with the fixed-line internet,
including distribution system, payment method
and brand familiarity and comfort
• The payment system for goods on i-mode is up
to the retailer and many use common methods
such as credit cards, bank transfers or cash on
delivery.
Premium content
b2b
advertising
• Monocular units or googles can be used with
magnifying glasses to enlarge small display .
• Sound is another form of output from wireless
devices
Wireless device usability
We can use mobile
• Reading text on small devices ,the size found
on many mobile phones can be difficult.
• Rapid serial visual presentation(RSVP),which serially
presents one or more words at a time at fixed place on a
screen, is another options for preventing text on a small
screen.
• Bernard,chaparro and russel (2000) compared
RSVP)against presenting three lines of text at a time and
10 lines at time on a simulated small-screen interface.
• Overall reading comprehension levels were about the
same for the RSVP and 10 lines methods which were
marginally higher than the three-line method’s
comprehension levels.
• Variations of RSVP are also being investigated
for use on small-screen devices, and may
provide better presentation alternatives.
Adaptive RSVP allows the exposure time for
each word or group of words to vary based on
word length and familiarity .Sonified RSVP
attaches appropriate sounds to group of text.
• Sticky-enotes which allow userto type
message and attach to their location.
• We can have features like time,temparture
,weather report.
• Mobile computing devices can “see ,hear and
feel”
• Input by device not by user.(power off )
Developer issue
• Safety is another issue.
• E-Mail
• i-mode allows subscribers to send e-mails to i-mode cellular phones and Internet e-
mail addresses.
• Messages of up to 250 full-size or 500 half-size characters can be sent. Pictograms
are supported by email.
• Group e-mails (up to 12 recipients) are also available. E-mail charges are calculated
based on the
• amount of data transmitted and not by airtime. The cost of sending an e-mail
ranges from ¥0.9/message
• to ¥4.2 per message. Receiving an e-mail will incur charges ranging from
¥0.9/message to ¥2.1/message.
• E-mail service supporting photo attachments (“i-shot”) is also available since June
2002. The cost for an imode
• user to receive an “i-shot” URL is ¥2-3 and approximately ¥17 to download a photo.
• Entertainment Services
• a) Ringing Melodies Download and Karaoke
• Subscribers are able to download ringing melodies, access karaoke releases,
access music chart
• rankings and obtain music lyrics from content providers, such as Sega, Yamaha,
Bandai and Kyocera
• Multimedia.
• b) Cellular Phone Screen Savers
• Animated cartoon characters can be downloaded to the i-mode phone. Popular
sites include Charappa!
• (Sesame Street Characters and Japanese cartoons), Always Snoopy (Peanuts
characters), i-Disney
• (Disney characters) and the Standby Display Collection (photos of pin-up girls
and pets).
• Games/Gaming
• Game sites include those from Hudson, Bandai, Takara, Panasonic and
Namco. There are a wide variety
• of board games, shooting, racing, sports, slot machine games, simulation
and role-playing games. i-mode
• phones can also be fully linked to the popular arcade game Virtua Fighter
4 (VF.NET).
• d) Fortunetelling
• Various options are available including horoscopes, tarot reading and
voice analysis. Users can also get
• advice on friendship and compatibility anytime. Content providers include
So-net, Bandai, i-Disney and
• NEC.
• NTT DoCoMo: i-mode Wireless Internet Services
• © 2003 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
• DPRO-96594
• 3 September 2003 15
• a) Mobile Banking
• Mobile banking sites offer full-banking services, including fund transfer, account balance
confirmation and
• withdrawal records. Sites for mobile banking include those of UFJ Bank, Sumitomo Mitsui Banking,
Bank
• of Tokyo-Mitsubishi, Mizuho Bank, Resona Bank, Saitama Resona Bank and Citibank.
• b) Credit Card/Securities/Insurance
• Subscribers are able to receive stock movement information as and when they want it, conduct
stock
• trading, check their credit card bill and pay their life insurance contracts. Participating companies
include
• Daiwa Securities, Nomura Securities, Visa, JCB Cards, Nippon Life Insurance and Meiji Life
Insurance.
• c) Travel Services
• Services such as airline confirmation, hotel reservations and car rental are available. Partners
include
• Japan Airlines, All Nippon Airways, Northwest Airlines and Nippon Rent-A-Car. Routes and
travel
• conditions can also be accessed easily, as are public transportation route
information/timetable and town
• information.
• d) Ticket Booking
• Concert information and ticket purchases for concerts and sports events are available from
PIA, Lawson
• Ticket, E-Plus and others.
• e) Mobile Commerce (m-commerce)
• i-mode subscribers are able to order games, CDs, video compact discs (VCDs), books and
magazines
• online. Sites include those from HMV, Itochu, Kinokuniya, Cybird and Neowing.
• Gourmet/Lifestyle Info
• This category includes restaurant guides, mobile telephone directory (Yellow Pages), dictionary search
• (portable dictionary), business listings and Japanese cooking recipes. You can also access beauty and
• health information, shopping and package inquiries (FedEx, Nippon Express and Yamato Transport).
• Information Services
• This category provides news (for example, Nikkei, Asahi Shimbun, CNN, Dow Jones and Bloomberg),
• weather forecasts, sports news, television program listings, location services, car navigation (“i-navi”) and
• much more. The “i-area” service links local area content from i-mode menu sites and i-mode handsets to
• enable users to access information about the area they are in.
• In April 2002, the “c-mode” service was launched, and it is expanding nationwide. This is a cooperation
• between Coca-Cola, Itochu and NTT DoCoMo to provide services such as “C-mo” (vending machines that
• function as information terminals equipped with computers, display, speakers and printers) and “Club
Cmode”
• (purchase of admission tickets to amusement centers, and pay-per-download maps and content).
• Users need to access the Club C-mode site to select the services desired. A two-dimensional bar code (C
• Ticket) will then be sent to the handset, and users need only to display the bar code at C-mo units for
• authentication to complete the purchase.
• Apart from consumer services, i-mode also offers
NTT DoCoMo: i-mode Wireless Internet
Services
• NTT DoCoMo Strengths
• • NTT DoCoMo is the largest cellular operator in Japan, and it enjoys unmatched economies of scale.
• Its i-mode wireless Internet service has the largest subscriber base.
• • It wields tremendous power over its phone suppliers and partners. This is also due to the large imode
• subscriber base.
• • It is cash rich and is capable of embarking on overseas expansion without much trouble. The fact that
• it did not have to pay for its 3G license in Japan liberates it from financial woes currently plaguing
• European cellular operators.
• • It has a global presence in the form of minority stakes in European, American and Asian cellular
• operators.
• • It has a valuable and well-known brand name.
• • Its strength in marketing and basic R&D complements its excellent management team.
• • It has strong partnership/alliances with many companies, allowing it to access competencies it does
• not own itself.
• NTT DoCoMo Limitations
• • NTT DoCoMo lacks international experience. This could be a weakness in its efforts to
export i-mode
• overseas.
• • Having already achieved a dominant position in the local market that is already slowing
down, NTT
• DoCoMo will find it increasingly difficult to maintain revenue growth. It will have to look to
new
• ventures, like the wireless Internet or overseas opportunities, as well as focusing on the
business
• user segment and M2M market in Japan.
• • It had to write off 962.3 billion yen for its two consecutive financial years due to losses in
its foreign
• investments, such as AT&T Wireless (U.S.), KPN Mobile (the Netherlands), KG
Telecommunications
• (Taiwan) and Hutchison 3G UK Holdings (U.K.).