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Instead, it announced that it would focus more on 3G (Refer Exhibit II for a note on 3G) initiatives (developing and launching more innovative and new 3G technology products). While DoCoMo was still lauded for its well designed and executed strategic and marketing game plan that had helped it build a huge subscriber base over the years, these developments had raised many doubts about its future prospects and its ability to turn itself around.
Background NoteDoCoMo's history can be traced back to 1949, when the Ministry of Communication in Japan was split into the Ministry of Telecommunications (MTEL) and Ministry of Posts (MPosts). A few years after its formation, MTEL was renamed as Nippon Telegraph and Telephone (NTT). |
However, in the 1970s, the Ministry of International Trade and Industry (MITI) began pressurizing the Japanese government to break the NTT's monopoly, claiming that the convergence of communications required the opening up of the regulatory regime in the country.
This argument picked up momentum in the 1980s when US politicians also began exerting pressure on Japan to open gates for foreign players.
This was largely because Japanese telecommunications players were free to enter the US telecom market right from the 1970s, while the strict regulatory norms of Japan continued preventing foreign players into Japan. In the late 1980s, Japan finally decided to reform its telecom regulatory framework to allow the entry of foreign players into Japan's telecom market. To reduce its monopoly in the telecom sector, NTT's mobile communication network was spun-off in 1992 to form DoCoMo (initially named as NTT Mobile Communications Network, Inc.; the name DoCoMo was adopted in 2000).
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Case Code : BSTR049
Themes: Differentiation
Case Length : 17 Pages
Period : 1992 - 2003
Organization : NTT DoCoMo (DoCoMo) Inc
Pub Date : 2003
Teaching Note : Available
Countries : Japan
Industry : Telecommunication
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