| July 12 2001
TOKYO - NTT DoCoMo, Japan's dominant wireless carrier, said on Tuesday it
would repair about 100,000 Web-enabled cell phones, the latest in a series of
recent technical snafus to dog Japan's cutting-edge mobile services.
DoCoMo said it would also temporarily stop sales of the Panasonic phones, made
by Matsushita Communication Industrial Co Ltd. (MCI), after it found they were
unable to receive incoming calls at certain geographical locations.
This was the second technical glitch in five months to hit the Panasonic P503i
Hyper series, which connects to DoCoMo's popular ``i-mode'' Internet service and
uses the Java computer language (news - web sites) to enable games and other
advanced applications.
Launched in January, the P503i Hyper has become a standard part of DoCoMo's
product line-up with more than 800,000 units sold.
Japan's handset makers have been hit by a series of costly recalls in recent
months as they struggle with increasingly complex software and technology for
the sophisticated functions and Internet connections that have put Japan at the
forefront of global mobile technology.
``As handsets become more advanced, more and more points need to be checked and
there are many things that cannot be anticipated,'' said Toru Hinata, a manager
in DoCoMo's public relations department.
Mark Berman, telecoms analyst at Credit Suisse First Boston, said the impact of
the latest incident, if any, would be primarily psychological.
ANOTHER BLOW
``It's another blow for sentiment but in reality, in terms of the numbers, it's
a minor incident,'' he said. ``It affects only about 2.5 percent of Java-enabled
handsets out there.
``Investors will be upset,'' he added. ``It certainly doesn't help Matsushita.
DoCoMo is probably quite upset with them.''
In Japan, where carriers work very closely with their vendors, DoCoMo and
Matsushita, Japan's biggest handset maker, have collaborated closely on product
development and research.
The series of setbacks for Java and Internet-enabled phones deals another blow
to Japan's reputation as a leader in wireless technology. It was smudged when
DoCoMo delayed by four months, until October 1, the commercial launch of
third-generation (3G) mobile services that will offer videoconferencing and
other futuristic functions.
That is still set, however, to be the world's first commercial 3G launch.
DoCoMo gave no estimates for the cost of the repairs and had yet to determine
who would pay for them, although such costs are usually shouldered by the
manufacturers.
DoCoMo said the problems, which sometimes prevented outside calls from going
through, were caused by a design flaw in the phone's microprocessor, developed
by MCI, although the glitch could be fixed without replacing the faulty part.
Last week Sony Corp (news - web sites) announced its third recall in as many
months of handsets in Japan, estimating the series of slip-ups, which in some
cases required replacing the entire phone, would cost it an estimated 12 billion
yen ($96 million).
MCI's shares on Tuesday managed a modest bounce with the rest of the Japanese
high-tech sector, ending 1.63 percent higher at 5,000 yen after slipping to a
33-month low on Monday. The company's shares have been hit hard by a persistent
slump in demand for cell phones.
NTT DoCoMo's shares ended up 1.47 percent at 2.07 million yen.
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See i-mode main page
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