Manufacturers not ready for DoCoMo 3G
Manufacturers not ready for DoCoMo 3G launch
By Michiyo Nakamoto and Alexandra Harney in Tokyo
Published: March 12 2001 21:50GMT | Last Updated: March 12 2001 23:07GMT
Only two out of 11 handset manufacturers that signed contracts will be ready for the
launch of NTT DoCoMo's third generation mobile phone service in May, according to Keiji Tachikawa, DoCoMo president.
Between them, Matsushita Communications Industrial and NEC are to launch four
handsets, including a phone that can take and send video, Mr Tachikawa said.
DoCoMo had signed contracts for the launch of 16 handsets but some will take another
two years to develop, Mr Tachikawa said.
The absence of Nokia, the world's leading mobile handset manufacturer, and Ericsson, from the list of handset suppliers is an embarrassment to the European industry. Both companies have spent several years and large amounts of money developing the handsets with DoCoMo.
Vodafone of the UK said it would not be able to roll out its 2.5G service as planned, due to
a lack of equipment.
"The number of functions is increasing. Software is very big in Japanese handsets so it
requires more time," said an executive at one handset manufacturer.
MCI has been working on 3G technology for nearly seven years. It spends about
Y5bn-Y6bn ($42m-$50m) a year on research and development, and has devoted about 1,000 people to the project. "If the business does not take off in three or four years, we will not be able to continue investments," said Fujio Sasaki, general manager in MCI's engineering department in charge of 3G handsets.
Part of the reason for the high development cost is that nearly everything, from the
software to the semiconductors and the base stations, has been developed for 3G and needs to be tested for interconnectivity and bugs.
The new phones take 1.5 times as long and cost between three and four times as much to
make as existing internet-capable phones.
DoCoMo expects to sell only 150,000 handsets in the first year. "The service will be for
niche users in the beginning," said Ben Nakamura, associate senior vice-president of NEC's mobile terminals operations.
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