I-Mode Will Drive 3G Growth in Europe
NTT DoCoMo’s i-mode business model has been successful in Japan
creating new data-centric revenues from the creation of compelling
customized content and in delivering that content into a narrowband
wireless environment through selective service offerings and by
targeting niche market sectors through “culturally acceptable”
content models. The European Market is in much need of a reliable
and ready-proven service to stimulate not only growth in data ARPU
(Average Revenue Per User) but which will also increase profit margins.
Operators in Europe ( U.K., Germany, Netherlands, Italy, and France)
may adopt i-mode as soon as
third-generation (3G) networks are launched in 2003 or 2004, says
Tarifica.
However, operators will have to invest more for the deployment of i-mode. A
new study by Tarifica, a communications and media consultancy,
suggests that i-mode will be a key driver of 3G in Europe and a
surprise market entrant over the next six months, and later in the
U.S.
For more information: http://www.tarifica.com/reports/i-mode.asp
Mobileinfo Comments and Advisory: There is a
reasonable chance that reconstituted i-Mode service will catch on in
Europe. Key factor for success of i-Mode services will be the adaptation of i-Mode
service to the cultural needs of the European consumers.
Transplantation of i-Mode, as is, may not work in Europe. It
is more unlikely in North America. Adoption of new technology is always
dependent on alternative modes of providing similar entertainment or
business value. We must be cognizant of the fact that major reason
for i-Mode's success is its adoption by younger Japanese crowd for
whom it is more entertainment than anything else. Same age group has
many alternative and more fulfilling means of entertainment in
Europe and in North America.
We should also stress that i-Mode is not an
application. It is a particular protocol for wireless applications.
Ultimately, it is what service and content are at the end of i-Mode
pipe that will determine its success.
