To: John Carragher who wrote (6446 ) 9/20/2003 3:15:31 PM From: John Carragher Respond to of 12231 DoCoMo says UK i-mode pact with Hutchison still on (Adds DoCoMo comments, background, latest share price) TOKYO, Sept 16 (Reuters) - Japan's NTT DoCoMo Inc said on Tuesday talks are still under way with Hong Kong conglomerate Hutchison Whampoa Ltd on the launch of "i-mode" mobile Internet service by their British venture, 3 UK. The comments come after the Financial Times reported that DoCoMo was considering taking on a new partner in Britain amid signs that 3 UK does not want the i-mode technology. A decision by 3 UK not to proceed with i-mode would be a blow to the overseas strategy of Japan's top mobile phone operator as it would leave a hole in DoCoMo's strategy in Europe's key mobile market. 3 UK, a new telecoms venture offering Europe's first commercial third-generation (3G) service, is 65 percent owned by Hutchison. DoCoMo has a 20 percent stake, and Dutch operator KPN owns the remainder. "Talks are continuing between DoCoMo and Hutchison on the introduction of i-mode. We have no plans at the moment to seek a new UK partner," a DoCoMo spokeswoman said. "3 UK has just achieved its first target of launching a 3G service based on W-CDMA technology. It cannot make advances on multiple fronts at the same time." I-mode, DoCoMo's flagship mobile Internet technology, allows users to access the Internet on matchbook-sized screens on their handsets and send or receive e-mail. The service has nearly 40 million subscribers in Japan. DoCoMo also has i-mode partners in Spain, Italy, France, Germany, Belgium, the Netherlands and Taiwan, with overseas users totalling about 750,000. The Financial Times said people within 3 UK had indicated that the company had no intention of adopting i-mode, saying it would prefer to promote its current "3" branded services such as football video clips and bar and restaurant reviews. The developments signal a deterioration in relations between 3 UK's partner investors and Hutchison, the paper said. DoCoMo has been helping the venture so far and in April agreed to provide 200 million pounds ($320 million) as a shareholder loan. KPN (Amsterdam: KPN.AS - news) declined to stump up its 150 million pound share, leading to a legal battle with Hutchison. Shares in DoCoMo closed Tuesday trade in Toyko up 1.04 percent at 291,000 yen, underperforming the key Nikkei average's 1.63 percent gain.