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Qualcomm and Teleepoch Enter Into a 3G CDMA Subscriber Unit License Agreement, October 6, 2007

MTN chooses Cambridge Broadband Networks for multi-service wireless network in Rwanda, October 6, 2007

Brazilian government to publish 3G bidding rules soon, October 6, 2007

KTF 3G service suffers from technical problems, October 6, 2007

Argentina’s Personal lunches 3G service in Rosario, October 6, 2007

Russia has it's first 3G network, October 6, 2007

AT&T could drop Alcatel-Lucent as 3G mobile network supplier, October 6, 2007

Enea Extends License Agreement with ZTE for 3G Handsets, October 2, 2007

LG to unveil premium handsets in Brazil, October 2, 2007

KTF 3G subscribers doubled in less than 3 months, October 2, 2007

3G policy in India will be non-uniform, October 2, 2007

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DoCoMo Downgrades 3G Forecasts Again

September 5, 2002 - source: BWCS

The President of NTT DoCoMo has stated that the company may miss its end of fiscal year 3G subscriber target for the second year running. DoCoMo had expected to have signed up 1.38 million FOMA subscribers by 31 March 2003. However with just 127,400 customers at the end of July DoCoMo would have to see a significant increase in its monthly take-up rate to have any hope of meeting its target. In March this year FOMA subscriptions were 61,000 short of their 150,000 target.

Since its launch in October 2001 FOMA has added an average of 11,581 customers per month and during the second quarter of 2002 its monthly net additions dropped sharply from 16,100 in April to 6,800 in May and just 2,200 in June. This decline came largely in response to the April launch of KDDI’s rival 3G service, which is priced lower than FOMA and also provides superior coverage and backwards compatibility with second generation CDMA services. Average monthly subscriptions for KDDI’s CDMA2000 service are running at 410,975.

Following a reduction in its service pricing FOMA subscriptions increased to 12,900 in July. However in order to meet its March 2003 target DoCoMo would need 3G monthly additions to reach five-fold that of FOMA’s best-ever month consistently for the next eight months (including August). Although the latest round of tariff reductions appear to have a positive effect on 3G take-up,with FOMA’s average revenue per user dropping below that of second generation services DoCoMo will not be keen to undertake further price cuts.

For a company so used to soaring subscriber figures consumer apathy towards FOMA represents a new challenge for DoCoMo and one that you can be sure that it is already working hard behind the scenes to overcome.

 


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