Telecommunications

May 2008

DoCoMo To Offer Cell Phone Service Via Broadband Home Lines
NTT DoCoMo Inc. will start offering next month a cellular phone service that uses household broadband connections to reduce calling fees and make it easier to transmit and receive content. The new plan will be available to subscribers of either B Flet's fiber-optic or Flet's ADSL services offered by Nippon Telegraph and Telephone Corp.. Cell phone signals will connect to a household wireless LAN (local-area network) through a router. The new service, called Home U, will cost 1,029 yen a month. Calls to mobile or land-line phones will be about 30% cheaper than existing services, and calls between Home U subscribers will be free. Services combining wireless and land-line capabilities are expected to become the mainstream. (The Nikkei; Wednesday, May 28, 2008)

Sony Ericsson Chief Setting Sights On Europe, Emerging Markets
Sony Ericsson Mobile Communications AB intends to aggressively expand its sales networks and take other steps to boost sales in Europe and emerging markets, President Hideki Komiyama told The Nikkei recently. "It's a pressing matter to bolster our operations in the main European market as well as the emerging markets, which are growing," said the head of the major U.K.-based cellular phone manufacturer. The global cell phone market continues to expand, but Sony Ericsson's earnings growth has slowed considerably. The firm aims to revamp its global strategy by clearly identifying which regions to focus on. Sony Ericsson ranked fourth in the global cell phone market last year, but its area of strength, high-end handsets, took a hit from the European economic slowdown. In addition, the company has been struggling in India in part "because of Nokia Corp., which entered the market earlier," Komiyama said. His firm set up production and development sites there last year. Sony Ericsson is now establishing sales firms and extending its reach in such emerging markets as India, and aims to make a comeback in the U.S. and Europe by launching a premium brand. In other regions, it plans to become more selective in receiving orders based on profitability. Although the Japanese market accounts for less than 5% of Sony Ericsson's worldwide sales, major Japanese cell phone service company NTT DoCoMo Inc. (9437) had demanded handsets with highly advanced technologies, putting a heavy burden on the manufacturer. "We will stop developing products that are to be released next year" by DoCoMo in Japan, Komiyama said. (The Nikkei; Monday, May 19, 2008)