| Sunday May 27 2001
NTT DoCoMo's I-mode, the wildly successful
Japanese wireless content service, might begin charging content providers that
wish to be carried on its service, a senior DoCoMo official revealed on Monday.
Kiyoyuki Tsujimura, managing director of NTT DoCoMo's global business
department, acknowledged in a speech that DoCoMo is considering charging I-mode
content providers, which it has not done during the past several years while it
built a customer base of some 23 million users.
Tsujimura and many analysts agree that allowing content providers to put their
material – from horoscopes to news updates to daily online soap operas – on
I-mode for free has been a critical factor in the service's success.
The only charge that a company providing content
to I-mode absorbs is for billing – typically 9 percent of the transaction.
Thus, if a content company such as Bloomberg charges users 100 yen per month,
Bloomberg will receive 91 yen.
Compared with widespread practice in the U.S. and Europe, where content
companies have sometimes gone bankrupt paying network providers to carry their
material, I-mode's policy has been quite generous. As a result, traditional and
startup content firms have been eager to work with DoCoMo.
According to Tsujimura, about 1,600 sites now
provide some material exclusively through I-mode, and at least 30 percent of
those sites charge customers for access. Tsujimura also says that half of
I-mode's 23 million users pay for at least one content site, making I-mode's
paying customer base as large as some of the world's biggest ISPs.
Tsujimura acknowledged that his company is "still nervous, still cautious
about our relationship with content providers," and that forcing them to
pay "might hurt our relationship."
The possibility of charging content companies
also has implications for I-mode's attempts to bring its services into the U.S.
and Europe.
Still, he insisted that I-mode has now grown so powerful that it can afford to
assert itself.
"You should stay quiet regarding content
providers until you have 20 million customers," he said in response to a
question from TheStandard.com. "It's a negotiation power game."
Tsujimura made his comments at a conference on the wireless Internet hosted by
the Economist
Latest iMode News
2 million i-mode users outside Japan
E-Plus has 440,000 i-mode customers
NTT DoCoMo trials contactless payment
NTT DoCoMo to Raise Transmission Speed of i-mode, DoPa
Services
CMG Selected for Roll-Out of i-mode
Services in Europe
iMode
Launches Location
Services
DoCoMo's I-mode delay in Europe
DoCoMo
Handsets Hit by New Snafu
DoCoMo's I-mode
might begin charging content providers
DoCoMo
Aims to Start 4G Cellular Service in 2006
DoCoMo lowers rates for rivals
Ericsson to Sell
I-Mode Phones in Japan in November
Sony to link PlayStation to iMode
See i-mode main page
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