NTT DoCoMo to Offer Low-Priced Nokia Handsets for 3G Mobile Phone Services

Strategic Insights -

Japan's leading mobile carrier, NTT DoCoMo, plans to market low-priced handsets from Nokia in a bid to attract more customers to its 3G FOMA service. The move comes as NTT DoCoMo seeks to capitalize on Nokia's global market share and expertise in developing affordable mobile devices. The partnership is expected to benefit both companies, as Nokia's presence in the Japanese market is set to increase while NTT DoCoMo aims to expand its customer base.

Key Takeaways:

  • NTT DoCoMo will start marketing low-priced Nokia handsets for its 3G mobile phone services in 2004.
  • The partnership is aimed at enticing more customers to NTT DoCoMo's 3G FOMA service, which currently procures all handsets from domestic producers.
  • Nokia will supply handsets with basic 3G functions, including Internet connectivity, high-speed data communications, and videophone capabilities.
  • NTT DoCoMo had previously used Nokia handsets for its second-generation services and has maintained a cooperative relationship with the Finnish mobile giant since 2001.
  • The partnership marks a shift in NTT DoCoMo's strategy, as the company moves away from relying exclusively on domestic producers.
  • NTT DoCoMo's decision to partner with Nokia is likely driven by the mobile giant's global market share and its expertise in developing affordable mobile devices.

Statistics:

  • NTT DoCoMo plans to offer low-priced Nokia handsets with basic 3G functions.
  • Nokia handsets will account for roughly one-third of the global market for cell phones.
  • The partnership between NTT DoCoMo and Nokia is expected to increase Nokia's presence in the Japanese market.
  • NTT DoCoMo currently procures all its handsets from domestic producers in Japan.
  • The first Nokia handsets for the 3G mobile phone services are expected to be launched in 2004.

Sources:

  • "NTT DoCoMo to market low-priced handsets from Nokia." Nihon Keizai Shimbun, Feb. 20, 2004.
  • "NTT DoCoMo, Nokia sign no deal on handsets for Japan." Kyodo News International, Feb. 20, 2004.
  • "NTT DoCoMo and Nokia cooperate on mobile phones in 2001." Nihon Keizai Shimbun, Oct. 2001.