Japan Mobile-Phone Operator to Shift Global Strategy to Technological Tie-Ups
Posted on: Wednesday, 26 May 2004, 06:00 CDT
May 24--TOKYO -- NTT DoCoMo Inc. will shift its global strategy in the mobile phone business from capital investment to technological tie-ups, after suffering huge losses on its investments in overseas mobile phone operators, Nippon Telegraph and Telephone Corp. President Norio Wada said Monday.
"It is possible we will have partners through technological tie-ups or business affiliations," Wada said in an interview with Kyodo News, adding that spending a huge amount of money is not the only way to promote its global operations.
NTT DoCoMo, the biggest mobile phone operator in Japan and most profitable firm in the group led by the nation's largest telecommunications company, invested heavily in AT & T Wireless Services Inc. of the United States and other mobile phone service companies abroad to disseminate third generation mobile phones compatible with its i-mode and FOMA mobile Internet services. Such investments amounted to about 1.9 trillion yen at one time.
But the burst of the so-called Internet technology bubble caused a huge appraisal loss on its securities holdings and as a result depressed its consolidated group companies' earnings.
Wada's comments suggest that NTT DoCoMo, which has already decided to sell its equity stake of 16 percent in AT&T, is likely to seek technological tie-ups with the largest U.S. mobile phone service firm to be created through the purchase of AT&T Wireless by Cingular Wireless LLC.
Meanwhile, asked about China, considered the most crucial market in NTT DoCoMo's global strategy, Wada said it is still too early to talk about a specific strategy for the country.
"As the country's mobile phone system has not been decided yet, every company is just at the wait-and-see stage," he said.
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To see more of Kyodo News International, go to http://www.kyodonews.com
(c) 2004, Kyodo News International, Tokyo. Distributed by Knight Ridder/Tribune Business News. For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.
DCM, 9437, NTT, 9432, T, AWE, BLS, SBC,
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