On 11 June 2004 Telstra, the largest Australian fixed line and mobile carrier, potentially became the first telco in the English-speaking world to deploy NTT DoCoMo's i-mode.
The announcement is unique in that Telstra is the first i-mode® licensee to operate both GSM and CDMA networks. To date, DoCoMo has licensed i-mode technology only to GSM-based carriers. E-Plus in Germany, KPN Mobile in the Netherlands, Base in Belgium, Bouygues Telecom in France, Telefonica Moviles in Spain, Wind Telecomunicazioni in Italy, and Far EasTone in Taiwan also license i-mode technology. Most recently, Cosmote Mobile Telecommunications, the leading and largest mobile operator in Greece, signed an i-mode alliance and intends to launch in advance of the "Athens 2004" Olympic Games.
Previous relationships in English-speaking markets such as with Hutchison 3 UK and AT&T in the US have faltered. Telstra however is believed to have an aggressive roll-out schedule and deployment is all but certain.
Announcing the partnership at a press conference, Telstra Group managing director, Ted Pretty, said the deal would see the telco paying the Japanese several million dollars upfront for the i-mode® service, plus a royalty payment based on take-up.
i-mode, Pretty said, would boost non-voice traffic by 30 per cent.
However analysts were not convinced that the i-mode service would contribute much revenue growth to Telstra and were less than enthusiastic about its take-up outside of Japan.
"Overall the deal doesn't make a massive difference to Telstra's revenue base. It's very small in the scheme of things," one analyst said.
However, the analysts have failed to appreciate the nature and value of the DoCoMo i-mode business ecosystem, which was in one part validated shortly after the Telstra announcment by the formation of the Open Mobile Terminal Platform Alliance (see this report Why the Open Mobile Terminal Platform Alliance is a Win for the i-mode Business Model).
- for more analysis of Telstra's announcement read here.
- read here Why the Analysts Have It Wrong About Telstra's new i-mode Alliance
To understand better why the Analysts HAVE IT WRONG! Read the FULL FREE White Paper at www.digitalinvestor.com.au
More Telco Free White Papers at www.digitalinvestor.com.auWhat's your take on Telstra bringing i-mode to Australia - do you agree with the sceptics or do you believe this is an unprecedented new opportunity for Telstra and the local mobile community? Post your Comments.
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