NTT DoCoMo vs KDDI: The Price War


Code : COM0042

Year :

Industry : Telecommunications

Region : Japan

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: The biggest mobile player in Japan, NTT DoCoMo, was losing out in the race for 3G (third generation) mobile services. The company reduced its earnings forecast for the fiscal year 2004, in the light of a fierce price war besetting the mobile services market of Japan. DoCoMo's immediate rival in the domestic market, KDDI, had initiated a price competition in November 2003 by offering lower priced 3G services, which had enabled KDDI to add more subscribers than DoCoMo. To increase its subscriber base, DoCoMo slashed its tariff and also initiated its efforts to come out with innovative technologies for which it had been well-known in the Japanese telecom industry.

Pedagogical Objectives:

  • To discuss NTT DoCoMo's strategies to fight the price war and regain its innovative edge in the Japanese mobile services industry.

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    Keywords : NTT DoCoMo, KDDI, Price war, Mobile services in Japan, CDMA2000 (code division multiple access), W-CDMA (Wideband-Code Division Multiple Access), 3G services, Competitive scenario in the Japanese cell phone market, i-mode, FOMA (freedom of mobile multimedia access), FeliCa, Smart chips, Competitive Strategies Case Study, Telecom deregulation in Japan

    Contents :
    Competitive Scenario in the Japanese Cellular Phone Market
    About NTT Docomo and KDDI
    War on the Price Front

    Case Introduction >>

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