The Bad News Continues To Mount For I-Mode
By Ingrid Lunden - Wed 18 Jul 2007 02:44 AM PST
Now that O2 and Telstra have let the cat out of the bag about i-mode, news is leaking out about other markets where the DoCoMo-backed mobile Internet standard has not been living up to expectations. The IHT says i-mode has 50 million users in Japan, but it has failed to reach even 8 million subscribers across its 17 franchises outside its home market.
Despite the many teething problems that KPN had in working with DoCoMo (including DoCoMo making a $4.7 billion write-off of its investment in the company in 2002), the Dutch incumbent was the first mobile operator outside Japan to launch i-mode in 2001, and it is still promoting it. But developers say i-mode has been disappointing. “I think it’s fair to say i-mode has not caught on in the Netherlands like people originally thought it would,” Richard Hazenberg, the chief executive of Mobile Excellence International, a local maker and distributor of mobile Internet games, tells the IHT. Another developer in Germany, where the service is offered over KPN’s E-Plus network, says his feeling is that “i-mode is on its way out.”
But it is not all doom and gloom just yet. A person close to KPN says he thinks the operator will probably continue to run the service alongside its other mobile Internet offerings. And Italy’s Wind has taken a different approach to the service: it offers i-mode under a flat-rate plan of €6 per month and has “strong backing” for the service, which could mean that it will continue to use it long after O2 stops supporting the service in 2009.
Wind’s flat-rate approach may have helped drive usage in Italy, but data pricing doesn’t really come up as a major issue in the article. What seems to be more of a sticking point is that i-mode was a closed system that required a lot of extra work on the part of developers to create services, and that there was a shortage of handsets that could be sold to offer the product.
Plus, for consumers, the “walled garden” style of mobile Internet access is increasingly being seen as an interim solution, especially as more operators start to offer the Web directly on phones, courtesy of search companies like Google and Yahoo helping navigate users to mobile-friendly sites, and device makers like Apple upping the ante on viewing full Web pages.
Posted in: Companies, i-Mode, Operators, DoCoMo, Countries, Europe





