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NTT DoCoMo's i-mode Provides Competitive Edge for Second-Tier European Mobile Operators
Yankee Group, The, June 2004, Pages: 15
According to NTT DoCoMo, i-mode—an always-on integrated mobile Internet and e-mail service—is highly conducive to the development of mobile content. Revenue sharing is generous and the technology makes content development relatively easy. This rich content then drives usage and revenue. So far, its success in Europe has been only a fraction of that seen in Japan but its popularity is growing.
In this report, the Yankee Group examines the merits of European mobile network
operators adopting i-mode. The main findings are:
- i-mode should provide a nurturing environment for third-party content inEurope as it does in Japan. Revenue-sharing deals are comparable and local content dominates.
- Europe has a number of idiosyncrasies so the experience of i-mode in Japan is not directly transferable. For instance, the European market is more fractured, handset vendors have a stronger position in the value chain, and prepaid is more prominent. The compromises to the business model necessary to implement i-mode in Europe mean that penetration and ARPU will not reach the levels experienced in Japan. However, they will be impressive in the context of European data service adoption and spend.
- Implementation is not expensive.
i-mode requires adopting a brand for data, compromising the MNO’s brand. For smaller operators desperate to compete with the data service offerings of better-funded rivals, this is acceptable because it enables them to compete. For major players with the funds to develop, support and promote their own equivalent, it is not necessary.
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