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Mm02 May Introduce i-mode in UK
Author: Jeremy C. Wright, Staff Writer
Thursday, 25 November 2004, 18:46 GMT

UK carrier MmO2 is negotiating with NTT DoCoMo to launch a mobile internet service in the UK based on the Japanese company's i-mode.

i-mode is NTT DoCoMo's mobile internet access system. i-mode is also a whole multi-billion Dollar eco-system about 30% of Japan’s population use as a regular part of their day for email, booking travel, checking weather and other daily tasks.

Because there are only 3 million i-mode users in Europe, Mm02’s new plan will drastically affect the European i-mode ecosystem by more than doubling the size of the community.

The companies are working on a deal, still to be finalised, for DoCoMo to provide mmO2 with data distribution, content development services and other know-how. A version of the i-mode service will be introduced in the UK on mm02's GPRS handsets next year, and later, on 3G handsets, according to an industry source that declined to be named.

Yesterday DoCoMo admitted it was studying the possibility of offering an i-mode service in the UK but said that no agreement had been reached. It did not mention mmO2.

However, one analyst went much further.

"It's a done deal," said Kirk Boodry, telecom analyst with Dresdner Kleinwort Wasserstein in Tokyo.

For Mm02, an i-mode deal would allow it to significantly ramp up its content offering as it prepares for a 3G launch next year.

Some analysts believe that smaller operators such as Mm02 are turning to data services alliances such as i-mode in an effort to compete with the major operators such as Vodafone, which are able to negotiate better deals on content because of their bigger global footprints.

Although i-mode has been offered in Europe since 2002, at the end of June there were only an estimated 3m users. So far, the biggest markets for i-mode in Europe have been France and Germany, with 800,000 and 850,000 subscribers respectively at the latest count.

European mobile phone manufacturers are extremely influential; the lack of handsets supporting i-mode has hampered its adoption. DoCoMo has also struggled in Europe against Vodafone's similar but more popular service, Vodafone Live!

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