To: engineer who wrote (686 ) 8/10/1999 11:29:00 AM From: RoseCampion Read Replies (1) | Respond to of 13582
NTT DoCoMo getting crushed by CDMA and reduced to 'targeting housewives'...from Bloomberg: (note boldface paragraphs): NTT DoCoMo Plans Marketing Change to Boost Subscribers Tokyo, Aug. 10 (Bloomberg) -- NTT Mobile Communications Network Inc., Japan's dominant cellular phone operator, will revamp its marketing strategy following signs smaller competitors may be picking up a growing share of new subscribers. NTT DoCoMo, as the company is better known, plans to target specific types of users with each of its various mobile phone systems, Yoshinori Uda, senior executive vice president, told Bloomberg News. ``We have launched various services without really thinking about how we are going to market them,' Uda said. ``That's why our competitors were successful.' NTT DoCoMo signed up 48.4 percent of Japan's new mobile phone subscribers in the three months through June 30, down from almost 60 percent in the 12 months through last March. The figure bounced back to 57 percent in July, after the company dropped the price of handsets for its i-mode data phone service. The earlier decline came after IDO Corp., Japan's fourth- largest cellular phone operator, launched a new service based on cdmaOne technology. IDO, the cellular phone unit of Toyota Motor Corp., is appealing to NTT DoCoMo's customers, especially business people, who are unhappy with the sound quality of NTT DoCoMo's service. NTT DoCoMo, which has 57 percent of Japan's 44.8 million cellular phone users, is running out of frequencies. That forces it to cut in half bandwidth for individual users when airwaves are overloaded, degrading sound quality. Other operators, meanwhile, are focusing on smaller market segments. Japan Telecom Co., the nation's fourth-largest telecommunications carrier, is targeting Japan's affluent teenagers in the major metropolitan areas of Tokyo, Osaka and Nagoya with its J-Phone companies. To counter rivals' moves, NTT DoCoMo will target business users with its Doccimo dual-system mobile phone. Doccimo allows users to switch between two mobile phone technologies -- cellular and personal handy-phone system (PHS) -- to take advantage of the strengths of each. Doccimo phones use cellular technology to cover a wider geographic area, and PHS in subway stations. PHS phones also have a larger data transmission capacity, suitable for connecting personal computers to the Internet. With its less expensive PHS service alone, NTT DoCoMo will target housewives, who use mobile phones less often, Uda said. NTT DoCoMo will eventually launch new advertisements for its i-mode service, Uda said. With the i-mode services, users can sell stocks, made bank transfers, check movie schedules and send e-mail. I-mode phone users rose to 1 million in the five months through Aug. 8. NTT DoCoMo shares rose 20,000 yen, or 1.2 percent, to 1.7 million yen. The shares have gained 83 percent since the beginning of the year. Aug/10/1999 5:20 (C) Copyright 1999 Bloomberg L.P. Any redistribution of Bloomberg content, including by framing or similar means, is expressly prohibited without the prior written consent of Bloomberg L.P. Any reference to the material must be properly attributed to Bloomberg News. The information herein was obtained from sources which Bloomberg L.P. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.(C) Copyright 1999 Bloomberg L.P. BLOOMBERG, Bloomberg News, Bloomberg Financial Markets, Bloomberg Television, Bloomberg News Radio are trademarks, tradenames and service marks of Bloomberg L.P.