Mike Gauba: Q4 - DoCoMo's control over handset design of limited value for 3G
Last week Mike Gauba presented his proposition that Bouygues Telecoms' success with i-mode was not proof of the strength of the i-mode business model.
Previously he explained his definition of i-mode, as a prelude to explaining why he believes that its success was an accident (and therefore implying that its accidental success is the reason that success has not been forthcoming elsewhere).
For example, he says that i-mode is a convergence of applications, with each application enjoying only a diluted focus. The diluted focus also limits the appreciation of an application and hence it’s perceived value.
As I write, I am more and more convinced that the greatest challenge to Bouygues Telecom or other western i-mode operators in Europe is breaking away from the marketing rules/framework imposed by NTT DoCoMo, says Gauba.
This week we ask about the relationship between DoCoMo and the handset makers - a key element of the i-mode business mode.
iCF: DoCoMo has a focus on the user experience and lifestyle, which is why they have exercised strong control over handset design and integration - isn't this one of the key strengths of the model ?
Mike Gauba: This is indeed the key strength of DoCoMo’s model but it does not generate sufficient value to achieve success.
Also the value delivered is static in nature and is not able to address the changing challenges during the customer life cycle.
The functionality of the handset should synergize with that of the application to generate high user value (Mantra 2 of the Success Model). I must also acknowledge that NTT DoCoMo has developed handset specifications for downloading and running applications that they want their handset manufacturers to rigorously follow.
However all this generates a limited synergy because these specifications are limited to key applications and the handset is primarily designed for voice.
An over-emphasis on the handset design makes me wonder, when will the operators shed their 2G mindsets?
Good handset design is very important in 2G because voice lacks differentiation and the operators use handsets to differentiate their service offerings. But that is not true with other mobile commerce applications where there is a tremendous scope for differentiation.
Here in Australia, a very senior 3G manager mentioned to me that unless they have handsets with the five letter word (Nokia) on them, they cannot launch their 3G services.
At this, I told myself, no wonder some 2G operators are not able to make a success of 3G!
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