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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 169.27+1.4%Jan 12 3:59 PM EST

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To: foundation who wrote (32116)2/7/2003 8:32:45 AM
From: foundation  Read Replies (1) of 197184
 
KDDI Continues To Dominate Japanese 3G

(07/02/03, BWCS staff) Japan's number two mobile operator KDDI has increased its 3G subscriber base to 5.31 million, while NTT DoCoMo's FOMA service continues to struggle. KDDI signed up 639,000 customers to its cdma2000 1XRTT service in January of which around 73% were upgrades from its second generation cdmaOne network. KDDI has increased its overall share of new mobile customers from 13.8% in January 2002 to 24% last month.

Meanwhile DoCoMo experienced its second consecutive decline in monthly additions to its W-CDMA service; FOMA subscriptions fell to 2,600 in January from 3,000 in December and 6,600 in November. The Japanese giant now also faces competition from rival W-CDMA operator J-Phone, which having launched services in December has already garnered 4,700 subscribers. Yesterday DoCoMo's President Keiji Tachikawa told reporters that the company was unlikely to meet its revised 320,000 3G subscriber target for the end of March.

DoCoMo remains Japan's dominant mobile operator, although its share of the total market has slipped from 62.7% to 58.2% over the past twelve months. Looking at the overall Japanese market monthly subscriber additions have shrunk by just over 11%, giving an indication of the increased level of saturation. As a result the focus is moving from new subscribers to churning subscribers when they upgrade from 2.5G to 3G services. In this respect KDDI looks to have a significant window of opportunity in which to increase its market share.
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