KPN sees i-mode as bridge to faster data
Reuters, Apr 4 2002
AMSTERDAM, April 4 (Reuters) - Dutch telecoms group KPN said on Thursday it will launch the long-awaited European version of the i-mode mobile Internet platform in its home market on April 18, hoping to use it as bridge to more lucrative data services.
Royal KPN NV, which nearly buried itself in debt as it acquired expensive telecoms assets and next-generation mobile licences, began offering i-mode services in Germany last month through its E-Plus subsidiary.
The Dutch operator reiterated that it hopes to have one million European i-mode subscribers next year, seeking to squeeze more money from its clients as they access multimedia services via enhanced handsets.
KPN and other carriers hope i-mode will convince clients to switch to more data-intensive services, such as streaming music and video, when they become available in coming years.
In Japan, where NTT DoCoMo pioneered the service, i-mode has over 30 million subscribers. Japan's top mobile phone group has 15 percent of KPN's wireless unit, KPN Mobile.
"We see i-mode as a paradigm switch from speech to data... It is a gigantic step towards mobile data," Cees van den Heijkant, the head of KPN Mobile, told a news conference.
KPN expects each i-mode customer to spend 6-8 euros more a month and hopes the new service will prevent clients switching carriers, while snatching more subscribers from rivals.
COMPETITORS WATCHING CLOSELY
I-mode could prove key for KPN in Germany, giving E-Plus a much needed boost in its battle against Deutsche Telekom and Vodafone, which dominate Europe's largest and most competitive market.
Hoping to steal KPN's thunder, Vodafone is revamping its Vizzavi Web portal to compete with i-mode. KPN said it was eager for more competitors offering content for mobile devices.
"The sooner they come the better. With more competition we will see more content and with more content, even more customers," said Twan Cats, who oversees KPN's contact with i-mode content providers.
After the flop of text-based mobile Internet in Europe, which was built with Wireless Application Protocol (WAP), operators are trying to develop more user-friendly content with trusted partners to avoid disappointing customers yet again.
Europe's i-mode has started with over 60 official content partners offering news, weather forecasts, soft porn, games, music, screensavers, maps and transport schedules.
KPN said it would also welcome unsanctioned providers, but users would be warned if surfing unofficial sites.
I-mode, unlike the much maligned WAP, uses higher speed General Packet Radio Service (GPRS) networks, an upgrade of the GSM network and a predecessor to third-generation services that operators hope to roll out in the coming years.
KPN currently offers i-mode handsets produced by Japan's NEC Corp., but hopes to offer one made by Toshiba later this year. The operator said it is also holding talks with European makers about possible co-operation.
Analysts expect next-generation phones to sport HTML browsers that would display content from i-mode, which uses a scaled down version of the Internet-standard language. |
