=DJ INTERVIEW: DoCoMo To Soon Offer Two New 3G Videophones
By Ron Harui Of DOW JONES NEWSWIRES
TOKYO (Dow Jones)--Hoping to attract more gadget-crazy Japanese consumers to its third-generation mobile phone service, NTT DoCoMo Inc. (DCM or 9437) will launch two new 3G videophone handset models within weeks, the company's president said Friday.
The new mobile phones will likely offer video clip e-mailing and longer battery life on top of features such as a built-in camera already offered in the handsets that have proven wildly popular with young Japanese.
"They'll be coming out very soon. We're now preparing for a (product) release in summer," DoCoMo President and Chief Executive Keiji Tachikawa told Dow Jones Newswires in an interview.
Tachikawa said the new 3G videophone handsets will be manufactured by Fujitsu Ltd. (J.FUT or 6702) and NEC Corp. (NIPNY or 6701). DoCoMo's current 3G videophone handset is made by Matsushita Electric Industrial Co.'s (MC or 6752) Panasonic Mobile Communications.
DoCoMo is eager to make a splash with its newest 3G videophone handsets to entice more subscribers into using data communications such as its popular "i-motion" mail service. The new value-added services would help DoCoMo generate more revenue, possibly boosting its bottom line.
3G Service Picking Up
The company's current 3G videophone handset can e-mail up to 24 seconds of video clips taken by its built-in cameras and can record and transmit video clips while people are talking on the phone. It also has a standby time of 180 hours - the battery life of a phone when it is turned on, in motion but not in use.
The snazzy functions and improved hardware on the current 3G videophone helped DoCoMo exceed its March-end forecast of 320,000 3G users.
Aside from the videophone, DoCoMo has marketed since the start of this year new 3G cellphone handsets that are cheaper, lighter and operate longer than older 3G handsets - a strategy that has lured close to 500,000 3G users, Tachikawa said.
The strong demand follows a slow start.
DoCoMo's 3G service, launched in October 2001, had met with a cool reception until the beginning of this year, mainly due to network glitches, handset problems and limited coverage.
The company hopes to sign up 1.46 million 3G users this fiscal year, more than four-fold the 330,000 3G users it had at the end of March.
To further widen the appeal of its 3G service, which it calls "FOMA", DoCoMo plans to expand its coverage area to 99% of Japan's populated areas by the end of next March, Tachikawa said. Previously, DoCoMo had forecast that its 3G service would cover 97% of the nation by next March. Its 3G service is already available to some 91% of consumers.
DoCoMo is one of only a few commercial 3G service operators in the world using W-CDMA 3G technology that enables data transmission at speeds of up to 384 kilobits per second, much faster than current-generation wireless technology.
Download Phone Repair Software
Japan's mobile phone giant is also considering a new wireless service that will enable consumers to download applications such as those that resolve software glitches in their cellphones, Tachikawa said.
"We're now mulling this," he said. "Next year, it'll likely be possible to do this."
By allowing consumers to wirelessly fix or upgrade their phones, DoCoMo hopes to increase user-friendliness of its cellphones. "For instance, you wouldn't have to bring your cellphone to a shop or you wouldn't have to exchange your cellphone for another one," Tachikawa said,
Mobile phone operators and manufacturers now rely on phone shops and product recalls to fix mobile phones. That can be a big inconvenience for customers, as they sometimes have to take their phones to the shop, often leaving them with the repairman for several days.
A self-service, wireless repair application would also help DoCoMo cut huge costs related to product recalls, which could hurt its brand image and customer loyalty.
-By Ron Harui, Dow Jones Newswires; 813-5255-2942; ron.harui@dowjones.com
(END) Dow Jones Newswires
05-30-03 0751ET
