While wireless operators worldwide have formed joint ventures and made strategic acquisitions and investments, Japan’s NTT DoCoMo has remained in Japan, developing wideband Code Division Multiple Access technology and bringing wireless data services to the masses.
Now it appears the world’s largest mobile-phone operator is embarking on an international strategy.
Earlier this month, DoCoMo caught the industry off guard by acquiring a 15-percent stake in Dutch company KPN Mobile N.V. for about $4.5 billion. KPN Mobile N.V. owns Dutch wireless operator KPN Mobile as well as stakes in five additional wireless operators in Europe and Indonesia.
Reports last week indicated that DoCoMo also was looking at taking a 15- to 20-percent stake in VoiceStream Wireless Corp. and a 10- to 20-percent interest in South Korean operator SK Telecom.
“It’s strategy is to take 10 (percent) to 20-percent minority stakes in international carriers,” said Kate Lye, an analyst with UBS Warburg L.L.C. who covers DoCoMo in Japan. “It recognizes its lack of experience in the international markets and therefore wants to be quite cautious in its approach at this point.”
This strategy allows DoCoMo to nominate representatives to international companies’ boards and influence IMT-2000 technology decisions. It plans to become the first company in the world to launch a commercial third-generation network in May 2001. However, the flavor of W-CDMA technology it plans to launch is slightly different than the European version. DoCoMo’s iMode wireless Internet service has about 6 million users, the largest wireless data subscriber base in the world. As carriers try to find a way to sell wireless Internet service, many point to iMode’s success.
VoiceStream’s shares jumped last week on Japanese reports that DoCoMo was planning to take a stake in the carrier. Reports said DoCoMo’s move is part of its strategy to set up a global services network ahead of its May 2001 launch of W-CDMA technology.
DoCoMo and SK Telecom, a cdmaOne operator, have had a close working relationship since 1996, when the two signed a protocol to promote exchange between the two companies, primarily in technology and service. The two companies signed an international roaming agreement in 1997.
