DoCoMo: The Japanese Wireless Telecom Leader

In early 2001, though DoCoMo still remained the largest company in Japan by its market capitalization and the second largest mobile phone company in the world (after Vodafone), it was facing problems on account of its aggressive overseas investment drive. With wireless stocks plummeting across the world during early 2001, DoCoMo was forced to write off $7.7 billion, due to the decline in the value of its investments in various foreign wireless companies. Meanwhile, DoCoMo was facing problems in launching FOMA. The launch, originally scheduled in May 2001 had to be postponed by 5 months. The company also announced that it would launch a 'mini trial' service of FOMA in the introductory phase, by providing it to about 4,000 customers in Tokyo...

DoCoMo's decision to continue with its global strategy met with apprehension in the markets, though the Government of Japan gave it support stating that DoCoMo was Japan's "flag bearer" in the global arena.

In the words of Hiroyuki Arai, Director, Parliament Telecom Policymaking Committee, "DoCoMo is our flag bearer. If the company takes its time getting into the global arena, we will lose our lead to American or other foreign companies. Without that kind of commitment from Japanese companies, our economy will never recover." However, the company's management had to face the wrath of its shareholders in July 2002...