All eyes on DoCoMo with 3G launch imminent

date: September 20, 2001 - source: OVUM.com

Next month should see a landmark event in the mobile industry - the launch of the first major 3G service, courtesy of NTT DoCoMo, which has sought permission from the appropriate ministry to operate from 1 October within the Tokyo area. DoCoMo's FOMA - which stands for Freedom of Mobile multimedia Access - promises a true 3G experience, with landline voice quality, 384k bit/s packet download, and a 64k bits/s digital videophone option.

Based on the W-CDMA standard, FOMA can also handle DoCoMo's highly successful i-mode service, which has now reached 60% of its home user base. If anyone were to choose a market in which to roll out 3G, it is surely to this audience of switched on packet communications users. There have been considerable teething problems during the trial, particularly concerning high speed transmission, that have delayed the launch - but DoCoMo seems to be in a hurry to get FOMA out in the open.

As Eirwen Nichols, principal consultant at Ovum, points out, the rush is also for more pragmatic reasons. "One of the main drivers for the urgency is to add more capacity for voice - the existing 2G networks are saturated, particularly in densely populated areas such as Tokyo," she says. "Although there will be some high speed data applications, I suspect the company won't be pushing them too hard to start off with."

Another reason to be first is competition. The country's two other mobile operators are also preparing 3G launches for next year. "There are also opportunities for Japan's mobile equipment and infrastructure makers to gain ground elsewhere in the world," adds Nichols. "Japan's 2G PDC technology is not used elsewhere, so manufacturers have not been able to capitalise on external sales. The 3G market puts them in a much stronger position.

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