When someone from NTT DoCoMo, the Japanese operator that developed i-mode and is one of the trailblazers in mobile content, has something to say about mobile data business models, it’s always worth hearing. The Times has published an interview with Shuichiro Ichikoshi, “one of the pricinipal architects of i-mode” and a spokesperson for NTT DoCoMo, who makes some frank comments on why i-mode has largely failed abroad, small earnings for mobile content, and current trends in the Japanese market—seen by many as the model on which business plans for other regions are based:

-- Forget about mobile music, at least in Japan: “Two years ago, music on mobile phones was to be the killer app, but now, not so many people are saying so. [It is] because music downloads are too expensive.” Downloading a single track, including network costs, is about $4.

-- Flat-rate data plans are good, but if they come too early they won’t work: “European operators set the flat rate too early, even before they were able to establish the demand.” He claims this is what has stifled the i-mode business model in Europe. He also notes that flat rates are moreover too low in many cases—“in some cases as low as €6 (£4.20) per month.” This has an impact on price elasticity, setting a precedent for low revenues that will make it a major challenge to get people to pay more for premium services like mobile TV in the future.

-- In the last FY, DoCoMo’s traffic revenue was $11 billion, while content only generated $2 billion. “This means that eight years after the launch of i-mode [in Japaan]...the basic functions of talking and texting are still far more compelling to consumers than content-based services such as mobile TV, music downloads and traffic alerts,” says the article.