NTT DoCoMo to Eliminate Second Generation by 2012 for 3G Ser

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NTT DoCoMo said it will stop offering second-generation service by 2012 as third generation (3G) technology featuring Internet and real-time video goes mainstream. The move is in part to cut costs for the firm, even though some 85 percent or 40 million of NTT DoCoMo's current subscribers are on second-generation handsets.


NTT DoCoMo was a pioneer in 3G, in 2001 introducing its Foma brand whose latest models feature videophones for face-to-face communication and can trasmit e-mail messages of up to 10,000 characters. The elimination of second-generation service would force customers of Japan's largest operator to switch to the more advanced, more costly handsets.


Despite its success in Japan, 3G has yet to gain mass acceptance in most of the world, with questions raised about whether many consumers will pay premium price for hi-tech features. It is, however, expected to be the technology of choice in handsets in the future due to the networks abilties to support demanding resource initiatives such as streaming video, etc.


In early November, British mobile telephone giant Vodafone became the first of Europe's major players to launch mass-market third-generation services, hoping to steal a march on its rivals ahead of the crucial Christmas sales period. Vodafone said it was targeting over 10 million 3G customers by March 2006. NTT DoCoMo, by contrast, expects some 10.8 customers by the end of March 2005.

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Taiwan's telecommunications industry will need at least another two years before third-generation (3G) mobile phone services generate meaningful revenues, an industry chief executive was quoted in the Financial Times as saying.

The assessment of a market with one of the world's highest mobile phone penetration rates highlights lingering doubts over when the technology, in which network operators worldwide have invested billions of dollars, will reach critical mass, the newspaper said.



Taiwan Cellular's 3G network will be ready to begin commercial operations in mid-2005, he said. The company had earlier planned to start operations this year. Chunghwa Telecom, Taiwan's largest mobile operator, and major rival FarEastone Telecommunications Co, have also delayed the launch of their 3G services. Taiwan Cellular will invest a total of 10 billion Taiwan dollars (310 million dollars) in 3G infrastructure. While five billion Taiwan dollars in capital expenditure has been budgeted for 2003-2005, the bulk of this outlay will be spent next year.