To: jackmore who wrote (25278 ) 8/7/2002 11:09:48 AM From: Neeka Respond to of 197210 Wednesday August 7, 5:03 am Eastern Time Reuters Company News DoCoMo keeps top spot in Japan user growth in July By Kiyoshi Takenaka TOKYO, Aug 7 (Reuters) - Japan's top wireless carrier, NTT DoCoMo Inc (Tokyo:9437.T - News), secured the top spot in user growth in July for the second month in a row as a series of new camera phones lured users, industry data showed on Wednesday. ADVERTISEMENT totalling 127,400 at the end of July, less than 10 percent of its target of 1.38 million users by March. DoCoMo, Japan's largest issue by market capitalisation, saw its customer numbers grow by 299,000 in July, compared with 113,900 new subscribers for KDDI Corp's (Tokyo:9433.T - News) "au" service. J-Phone, which is operated by Japan Telecom Holdings Co Ltd (Tokyo:9434.T - News) and its parent Vodafone Group Plc (London:VOD.L - News), gained 125,000 new users. DoCoMo launched two new camera-phones, made by Mitsubishi Electric Corp (Tokyo:6503.T - News) and Fujitsu Ltd (Tokyo:6702.T - News), in mid-July, following on from its debut camera phones, manufactured by Sharp Corp (Tokyo:6753.T - News) and launched on June 1. DoCoMo's subscriber base was also boosted by the continued popularity of its feature-packed 504 series handsets, which were released in late May and offer data transmission speeds three times faster than conventional handsets. The company fell behind KDDI and J-Phone in net subscriber growth in May for the first time due to a lack of attractive handsets. Analysts said a slowdown at KDDI, which saw its monthly net user growth fall to 113,900 in July from 131,400 in June, should not be a cause for concern since it plans to launch a series of new handsets shortly. "KDDI has lined up four new handsets for launch in September. And three of them are likely to be camera-phones. I wouldn't worry about the dip," said Jiro Yokoyama, an analyst at Tokyo Mitsubishi Securities. When J-Phone launched the world's first camera-equipped cellphones, which could take snap photos and send them via e-mail, in late 2000, it set off Japan's hottest telecoms trend since the rise of the mobile Internet. In contrast with its healthy overall growth in subscribers for July, DoCoMo only won 12,900 new subscribers for its 3G services, which offer video conferencing and fast downloads from the Internet. That compared with KDDI's 493,300 new 3G users, many of whom migrated from its second-generation services. DoCoMo's 3G operations have been suffering from poor battery life and limited coverage area. DoCoMo President Keiji Tachikawa said late last month the company stood by its target of 1.38 million 3G subscribers by March, with the coverage area steadily expanding and the release of advanced 3G handsets planned in the autumn. Japanese mobile carriers have high hopes that 3G services will become the new profit driver as the conventional mobile phone market reaches saturation. NTT DoCoMo shares closed Wednesday trade up 1.45 percent at 280,000 yen, underperforming the Nikkei average (^N225 - News), which jumped 3.51 percent. KDDI rose 3.16 percent to 359,000 yen and Japan Telecom put on 3.59 percent to 404,000 yen. DoCoMo said on Wednesday it bought back 73,254 of its own shares for 20.14 billion yen ($166.5 million) between August 1 and 7, completing its plan to acquire 870,000 of its own shares. DoCoMo needs them to conduct share swaps with regional units that it plans to make into wholly owned subsidiaries. ($1=120.95 Yen) biz.yahoo.com