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NTTDoCoMoanditsImodeWirelessNetwork
JohnRatliff

Summary
Japansleadingwirelesstelecommunicationsprovider,NTTDoCoMo,hasattractedglobalattentionwiththe
successofitsimodeservice.ThefirstcommercialpacketswitchedwirelessInternetserviceintheworld,i
modegrewtomorethan10millionsubscribersinitsfirsteighteenmonthsofoperation.Imode,embodying
impressiveinnovationsinbothtechnologyandbusinessmodel,hasachievedfirstmoveradvantageforDoCoMo
indefininganddevelopingpracticesinmobileecommerce.
ThispaperisbasedoninterviewsandotherdatagatheredwhiletheauthorwasaVisitingResearchFellowatthe
InstituteforSocialResearchattheUniversityofTokyofrom19941996underthesponsorshipoftheFulbright
Commission.Sincethen,theresearchhascontinued,partiallyunderthesponsorshipoftheSantaClara
UniversityCenterforScience,Technology,andSociety.Thisarticleisbasedonapaperpresentedatthe28th
ResearchConferenceonCommunications,Information,andInternetPolicy,September2325,2000
(http://www.tprc.org/abstracts00/docomopap.pdfhttp://www.tprc.org/abstracts00/docomopap.pdf).

Introduction
NTTDoCoMo,thewirelesssubsidiaryofNipponTelephoneandTelegraph,hasrecentlybecomethefocusof
worldwideattentionwiththesuccessofitsimodeserviceinJapan.Demonstratinganaggressivelyinnovative
approach,DoCoMoconstructedapacketswitchednetworkalongsideitsexistingdigitalcellularnetworkto
allowaconstantconnectionwiththeInternet.Thefirstcommercialserviceofthiskindintheworld,ithas
attractedover10millionsubscribersinlessthaneighteenmonths.Butimodesinnovationisnotchiefly
technological,itisalsobasedonasophisticatedbusinessmodelthatchargesusersbytheamountofinformation
theydownloadratherthantheirtimeonline.Italsoallowsserviceproviderstochargesmall,incrementalfees
forservicesthatthenappearonDoCoMosmonthlybill,eliminatingtheneedforcreditcardbilling.This
businessmodel,embeddedinimodespacketswitchingtechnology,meansthatimodeisproducingInternet
relatedrevenueforDoCoMooutofitscorecompetenciesasatelecommunicationsserviceprovider,afeatof
greatinteresttoothertelcosaroundtheworld.Imodeisthefirstmassexperiencewithmcommerceor
mobileecommerce,andinthissensegivesDoCoMotheopportunitytoplayacentralroleinforging
institutionalrelationshipsandpracticesthatwillhelpdefinethenewsocialandtechnologicalspacecreatedby
theconvergenceofmobiletelecommunicationsandtheInternet.
DoCoMoseffortstakeplacewithinthelargercontextoftheexplosionofwirelesstelephonyasaglobal
phenomenonandtheanticipationofthemigrationofmanyInternetfunctionsfromthePCtomobiledevices.
MobileInternetconvergenceisshiftingrelativenationaltechnologicalcompetitiveness,withtheU.S.,long
dominantinPCandInternetrelatedtechnologies,seeminglyinthirdplacebehindtheEuropeanUnionand
Japan.
MakingfulluseoftheadvantagesofferedbyitsstatusasasubsidiaryofJapanslargesttelecommunica
tions
provider,DoCoMostopmanagementconstructedanovertlyentrepreneurialcorporateculture,recruitingfor
toppositionsonthebasisofmeritandcreativity.Theimodeapproachwasfoundedonacommitmentto
creatingabrandedstandardthatembodiedaninnovativebusinessmodel,featuringeffectivemethodsof
offeringandbillingservices,whichguidedtechnologicaldevelopment.Theimodestandardwasperfectly
positionedtotakefulladvantageofaJapanesedomesticmarketenvironmentthatofferedaspringboardfor
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globalcompetitivenessinwirelessInternet.Finally,DoCoMohasbeguntobuildasetofglobalpartnershipsand
alliancesbasedontheattractivenessofitsimodestandardthatdemonstratesanorganizationalflexibilityona
globallevelseldomseeninJapanesecorporations.AllofthisarguesthatNTTDoCoMowillbeabletosustain
andglobalizeitspresentfirstmoveradvantageinmobileInternettechnologiesandservice.

RevolutionaryDevelopmentofGlobalWireless
InaworldwherehightechcompetitivenesshasfocusedforagenerationonthePCInternetplatformandhas
beenconcentratedinSiliconValley,theincrediblyrapidemergenceofwirelessinthelastfewyearshasthe
potentialtoreshufflethetechnologicaldeck,leadingtonew,complexmodesofglobalhitechcompetition.[1]
#_edn1 TherapidemergenceofmobileInternetservices,facilitatedbytheimminentmovetobroadbandwireless
networks,representstheconvergenceoftwodynamictechnologiesintoanewtechnologicalandsocialspace
with,asyet,undefinedcharacteristics.Thisrapidturnofeventshasledtoareshufflingofrelativenational
technologicalcompetencies,creatingnewopportunitiesandchallenges.
Thewirelessmarkethasexperiencedstaggeringgrowthinthelastfiveyears.Inthefiveyearsbetween1994and
1999,annualmobilephonesalesgrewtenfold,from26millionunitsto278millionunits.GoldmanSachs
estimatesthatmobilephonesubscriberswillexpandfrom475millionto635millionin2000,withthenumber
reaching820millionbytheendof2001.NoothertechnologynotthePC,nottheTVhasbeenadoptedas
quickly,onsuchaglobalscale.Nowthewirelessindustryisabuzzwiththerolloutinthenextfewyearsof
broadbandThirdGeneration,or3G,wirelessnetworks.3Gpromisestomakepossiblemobilemultimedia
services,suchasstreamingaudioandvideoaswellasfullaccesstotheInternet,atspeedsofuptotwomillion
bitspersecondfarexceedingthespeedsofDSLorCableModem.MobileInternetisgenerallyviewedasthe
nextgreattechnologyplatform,onaparwiththePCitself.Therapidconvergenceofmobiletelephonyandthe
Internetintoanewindustryispartiallyamatterofcoincidencewithecommerceandamassconsumerbasefor
theInternetemergingatthesametimethatmobilephonetechnologymakeshighspeeddatatransferpossible.
ItcanbesafelysaidthattheemergenceofthemobileInternetwillchangethenatureoftheInterneteconomy,
makingthePCplatformlessimportant,andattractingmanynewuserstotheInternet.
Anewbusinessmodelisnowbeingbandiedabout:mcommerce,ormobileecommerce.Thenumberof
wirelesshandsetsintheworldalreadyfarexceedsPCs,andtheyaremuchmoreuserfriendly.Wirelessoffers
thepotentialtoaccessservicesontheInternetwithmuchlessneedtohaveknowledgeofthetechnology
deliveringthem,morelikemostpeopleusetheircar.Thepotentialtouseawirelessdevicetomakesmallvalue
paymentsoffersconvenienceforconsumerswhoinafewyearswillcommonlyusetheirmobilephoneinsteadof
acreditordebitcard.WiththeadditionofGlobalPositioningSatellite(GPS)capabilities,servicestailoredtoa
usersspecificlocationarealsoexpectedtoemerge.
ThenewmixoftechnologicalandmarketingcompetenciesembodiedinmobileInternethasalloweda
reshufflingofrelativenationalstrengths.ThereisageneralconsensusthatitistheEuropeanUnionandJapan
thatarevyingforleadershipinthisareainbothservicesandinnovation,withtheU.S.adistantthird.[2]#_edn2
Ironically,theveryadvantagesoftheU.S.inthe1990'sinPCbasedtechnologiesmayservetoinhibitits
competitivenessinmobiledataservices.
EarlyagreementinboththeEuropeanUnionandJapanonacommonstandardfordigitalwireless(GSMinthe
caseoftheEuropeanUnion,PDCinJapan)hasfacilitatedrapidinnovationandnetworkgrowth.IntheU.S.,on
theotherhand,FCCpoliciesresultinginasmanyasfourconflictingstandardsinregionalwirelessmarketshave
confusedcustomersandretardedthepaceofdevelopment.ItmayalsobearguedthatthegreatU.S.leadinPC
basedInternetusageloweredtheincentivetodevelopanotherapproach.Atanyrate,whilebroadband3G
wirelessisstillseveralyearsawayintheU.S.,NTTDoCoMowilldeployitinMayof2001,withtheEuropean
Unionfollowingin2002.And,asweshallsee,JapansleadinsuccessfulwirelessInternetserviceisevenmore
formidable.
Successfulinnovationwithanewtechnologyoccursnotwhenitisinvented,butwhenitismadeaccessibleand
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usefultosociety.Playingakeyroleindeterminingthepatternsofsocialcontextualizationandutilizationofa
majornewtechnologicalconvergence,suchaswirelessInternet,grantstheinnovatorafirstmoveradvantage
withpowerfullongtermimplications.

Imode:WhatIsIt?WhySoImportant?
NTTDoCoMolauncheditsimodeserviceonFebruary22,1999.[3]#_edn3Imodewastechnologically
interestinginthatitwasthefirstpacketbased,alwayson,mobileInternetserviceavailableintheworld.
EuropeansandAmericansareabletoaccesstheInternetfromtheircellphonesorPalmPilots,butbothofthese
systemsmustestablishanewdialupconnectioneverytime.Withimode,usersareconstantlyconnected,albeit
atamodest9600bps.Butwidebandwidthisnotthestoryhere.Itisthestructureofservicesavailable,the
easeofpayment,andtheattractionofmobilitythathavemadeimodesuchaphenomenalsuccess.
Itistheunprecedentedpopularityoftheimodeservicethathasattractedattentionworldwide.OnAugust6,
2000,lessthaneighteenmonthsafteritsinception,thenumberofimodesubscriberstopped10million,andis
growingatarateof250,000newcustomersaweek.Asaresult,imodeisnowthelargestInternetService
Provider(ISP)ofanykindinJapanthreetimeslargerthanFujitsusNiftyServe,thesecondleadingprovider.
MillionsofJapanesearegettingtheirfirstInternetexperienceontheirimodeequippedwirelessphone.
Manyofimodesuniquefeaturesspringfromthefactthatitisapacketbasednetwork,completelyseparate
fromthevoicechannelalsoonthephone.Offeringasimpledisplayoftextandcolorgraphics,imodephones
areconstantlyconnectedtoawidearrayofwebbasedservices,includingemail,financialservice,games,news
andotherformsofinformation.Userscanaffordtokeepimodeonallthetimebecausetheyarechargedfor
theamountofdatatheydownload,notperminute.Theypayaflatfeeof300Yen(about$3.00)amonth,plus
0.3Yenper128bitpacket,orabout4Yenforsendinga500letteremailor20Yenfordownloadingaweather
report.
NTTDoCoMohascarefullydesignedthemenusystemthatgreetstheusertolinktheinitialdisplaytoofficial
DoCoMocontentpartnersites,numberingabout600inAugust2000.Oneofthegreatattractionsofofficial
sitesisthatDoCoMohandlesthetransactionbilling.Butimodeisanopensystem,allowingtheusertoaccess
anycompatiblesite.Inadditiontothe1000officialimodeWebsites,therearemorethan20,000independent
sites,accessiblethroughseveralimodesearchengines.[4]#_edn4
Manydifferenttypesofservicesareofferedtoimodeusers.Inadditiontoemail,theycanbuyandsellstocks,
dotheirbanking,readnewsheadlines,andbuymovieandplanetickets.GamesoftwaremakerBandai,which
providesanewanimatedcharactereverydayasimodescreenwallpaper,offersoneofthemostpopular
services.Overtwomillionimodeusershavesignedupfortheserviceandarepaying100Yenpermonth,
nettingthecompanymorethan$20millionayear.[5]#_edn5PlansareintheworksbetweenNTTDoCoMoand
SonyComputerEntertainmenttoallowimodeuserstoplayPlayStationgameswitheachotheroverthephone.
Apositivefeedbackloopisnowinoperationforimode,withnewsubscribersandcontentandserviceproviders
drawingeachotherinatanexponentialrate.

DoCoMo:InnovativeManagementandBusinessModel
Imodessuccessisgroundedinacombinationofmarketingandtechnologicalinnovationthatisaproductofa
distinctivestrategybyNTTDoCoMosleadership,astrategythatinmanywaysrepresentsasharpbreakwith
traditionalJapanesecorporatepractices.Thisisespeciallysurprising,giventhatNTTDoCoMoisasubsidiary
ofNipponTelephoneandTelecommunicationsCo.(NTT),whichuntil1985wasagovernment
telecommunicationsmonopoly.ThoughDoCoMostockisnowtradedontheTokyoexchange,NTTstillowns67
percentofDoCoMo.[6]#_edn6
Byanystandards,NTTDoCoMoisahugecompany.Controllingalmost60percentoftheJapanesewireless
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market,ithasatotalsubscriberbaseofover50million,secondintheworldonlytoVodaphoneAirtouch.
DoCoMo's1999operatingprofitsareexpectedtohit$5billion,onrevenuesof$36billion.Evenmore
impressively,DoCoMosstocksoared,resultinginamarketcapitalizationonJuly1,2000ofalmost$250billion
dollars,greaterthanthatofparentcompanyNTT,andmakingDoCoMotheeighthlargestcompanyinthe
world.[7]#_edn7
ButDoCoMosoriginsaresomewhatmorehumble.DoCoMowasspunofffromNTTin1992,atatimewhen
Japanswirelessmarketseemedtoofferlittlepotential.Themarketwasheavilyregulated,subscriptionfees
wereextremelyhigh,andhandsetscouldnotevenbeowned,onlyleased.NTTDoCoMosfirstpresidentwas
KojiOhboshi,whohadgainedquiteareputationinNTTfornotbeingateamplayer,ofteninsharpconflictwith
hiscolleagues.[8]#_edn8HisappointmentasDoCoMopresidentwasseenasakindofpunishmentexiletoan
unpromisingdivision.Butin1994,partiallyasaresultofpressurefromtheU.S.governmentatthebehestof
MotorolaCorporation,theMinistryofPostsandTelecommunicationsliberalizedthecellphonemarket.
Individualscouldnowowncellphones,andDoCoMofacedformidablecompetitionfromanumberof
competitorswithstrongcorporatebacking.ThiswasnotafamiliarsituationforNTT,accustomedtomonopoly
status,butironically,Ohboshiprovedtobetherightpersonintherightplaceattherighttime.
Withtheadventofderegulation,theJapanesewirelessmarketexploded.Plummetingpricesandexpanding
servicesresultedinwhatwas,forseveralyears,thefastestgrowingcellularmarketintheworld.Wireless
subscribersinJapanleapedfrom2.13millionin1993to31.4millionin1997,1500%infouryears!Ithassince
againdoubled,totop60millionsubscribers.[9]#_edn9
Risingtothechallengeofaggressivemarketcompetition,Ohboshifosteredacorporatecultureinwhich
marketingdecisionscamefirstandshapedsubsequentengineeringdecisions.Inresponsetodecliningmarket
shareinthemid1990'sashiscompetitionintroducednewerandcheapervoicetechnology,Ohboshilookedfor
otherwaystodifferentiateDoCoMoservice,makingdevelopmentofaninnovativewirelessInternetservicea
toppriority.HeappointedNTTelectricalengineerKeiichiEnokitodirectthedatanetworkbusinessproject.
TheideaofapacketswitchednetworkfordataseparatefromthevoicenetworkhadbeenfloatingaroundNTT
foralongtime.Itwasatechnologicallyappealingsolution,notcrowdingvoicecircuitswithdata,makingit
possibletochargefordatatrafficbypacketratherthanbytheminute.Enokidecidedtodevelopimodeasa
dedicatedpacketnetwork(PDCP)alongsideDoCoMosexistingPDCvoicenetwork.
But,likeanytechnologicalparameter,DoCoMospacketswitchednetworkcouldhavetakenmanyconcrete
forms.FollowingOhboshisinnovativelead,fromthebeginning,decisionsaboutthecharacteroftheimode
networkwereshapedbytheprioritizationofmarketingstrategy.EnokidefiedtraditionalJapanesebusiness
practicebyreachingoutsideofNTTformarketingspecialists,manywithMBAsfromAmericanuniversities.He
recruitedMuriMatsunaga,editorofamagazineonentrepreneurialjobopportunitiesandoneofJapansfew
leadingwomenexecutives,alongwithTakeshiNatsuno,anInternetentrepreneurrunningasuccessfulstartup
(withanMBAfromtheWhartonSchoolofBusiness)todesignimodesbusinessmodel.
UnlikethetypicalJapaneseapproachinvolvinglengthyandpainstakingplanning,speedwasoftheessencein
deployingimodeasrapidlyaspossible.Thisledtoapragmaticutilizationofexistingtechnologies,ratherthan
waitingformoreelegantsolutions.First,thismeantgoingwithalowband,9.6Kpbsbandwidthandshapingthe
servicearounditslimitations.Thiswasoffsetbyimodesalwaysonfeature,eliminatingdialuptime.Butmore
daringwasDoCoMosdecisiontogowithaHypertextMarkupLanguage(HTML)basedsystemforimode
websites.WirelessApplicationProtocol(WAP)hasbeenputforwardbyaconsortiumofEuropeanand
Americanconcernsasthenewstandardforwirelesswebsites,buttheimodeteamdecidedtogowithCompact
HyperTextMarkupLanguage(CHTML),aformofHTMLwithareducedinstructionset,thuseasingthe
transitionofcontentprovidersfromtheiralreadyexistingHTMLwebsitestoimodereadycontent.
DoCoMowascarefulinitsmanagementofconsumerexpectations,neverevenmentioningthewordInternet
inmarketingimode.Rather,imodewasadvertisedasanewkindofwirelessdataservice.Bybrandingimode
asessentiallyanextensionofpreexistingmobilephoneservices,DoCoMopreventedconsumersfromexpecting
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anexperienceakintotheWorldWideWeb,completewithflashygraphics,ontheirphone,andthenfeeling
cheatedanddisappointed,aproblemencounteredintheU.S.andEuropemarketingofWirelessWebservices.
Natsuno,nowExecutiveDirectoroftheimodedivision,hassaidthathismodelforimodewasAmericaOnline
(AOL),auserfriendlymenubasedInternetportal.Agreatdealofefforthasbeenputintodesigningtheimode
portalsite,withitsmenuofsome600officialproviders.DoCoMoassistsofficialcontentproviders,helping
themcustomizetheirimodeWebsites.
ButimodeprovidessomethingthatAOLcannotoffer,apaymentstructurethathasbeenhailedasasuccessful
modelformcommerceworldwide.ThenatureofimodesseparatedatanetworkallowsDoCoMotorecord
billingdetailsforitsofficialproviders.DoCoMossystemallowsthemtochargesmallsumsandhavethe
amountshowupontheuser'sphonebill.Freedfromcreditcardcharges,servicesinvolvingsmall,incremental
charges,suchasafewcentsforanewsarticle,becomefeasible.DoCoMohandlesthebilling,andearnsanine
percentcommission.ThisistheinnovationthathascaughttheattentionoftheInternetindustryworldwide.
Sincetheemergenceofecommerce,thechallengehasbeentodevelopabusinessmodelthatactuallyresultsin
profitability.MostInternetportalsandotherserviceprovidershaveattemptedtomakemoneythrough
advertising,orthroughmarketingitsproductsonline.DoCoMo,ontheotherhand,doesn'tgenerateany
revenuesfrommobileadvertisingortransactionsexecutedonimode.Instead,itfocusesonincreasingnetwork
revenueslikeairtimefeesandcommissionsforcollectingfeesforvalueaddedservices.Inotherwords,
DoCoMohasgeneratedrevenuedirectlyoutofitscorecompetenciesasamobiletelecommunicationscarrier:
buildingwirelessnetworksandgrowingtheirsubscriberbases.
DoCoMohassuccessfullyrolledoutamobileInternetservice,gainingvaluabletechnicalandbusiness
experience,allinalowbandenvironment.ThishasplacedDoCoMoinanexcellentpositiontoprovide
leadershipinrollingoutsimilarservicesinthecomingbroadband3Gnetworks.MoreoverNTTDoCoMowill
initiatetheworldsfirst3GwirelessserviceinMay,2001intheTokyoarea,basedontheWCDMAstandard
developedbyDoCoMoandalreadyadoptedbytheEuropeanUnion,givingitfirstmoveradvantageinyet
anothertechnology.NTTDoCoMossuccessesinimodeand3GtechnologiesarebothkeytoDoCoMosglobal
strategy:buildingpartnershipsbasedonthesestandards.

DoCoMosGlobalStrategy:PartnershipsBasedonStandards
Theglobalizationoftelecommunicationshasresultedinarashofmergersandacquisitionsascompaniesflush
withhighstockevaluationsattempttocashinbyexpandingthroughpurchases.Butasyet,NTTDoCoMohas
eschewedthatstrategy.Rather,DoCoMomanagementstatesthatitisthroughthepoweroftheirtechnology
andaccruedbusinesspracticesthattheywillbeabletospreadtheirinfluenceworldwide.DoCoMomanagement
hasmadeanaggressiveattempttomovebeyondthedomestictiesitinheritedfromitsparentcompanyandto
buildaseriesofpartnershipsandcoalitionswithvariousplayersbothintheWestandinAsia,mostnotablyon
thebasisofitsimodestandard.Telecommunicationserviceproviderseverywhereareinsearchofnewrevenue
sources,asprovidingbasictelecomservicesbecomesahighlycompetitive,lowprofitproposition.Theyfind
DoCoMossuccesswiththeimodebusinessmodelveryattractive.Indevelopingimode,DoCoMohasacquired
keyexportableskillsinsettingupandmanagingmcommerceplatformsonwirelessnetworksabovealli
modespacketcommunicationsbillingsystemandtheassociatedstructuringofcontentpresentationinmenu
formonthehandset.[10]#_edn10
Acrosstheglobe,DoCoMohassetuprelationshipswithlocalwirelessprovidersandhandsetmanufacturers,as
wellasInternetcontentproviderswiththedesiretogomobile.ThisincludesallianceswithmanyU.S.firms,
includingMicrosoft,AOL,SunMicrosystemsand,mostrecentlyareportedtieupwithtelcosSBCandBellSouth
CorporationtoformajointwirelessconsortiumtorolloutimodeserviceintheU.S.[11]#_edn11 However,
DoCoMospresentoverseasstrategyisfocusedontheareathatwillseethenextmovetohighspeed,packet
switchedwirelessInternetservicestheEuropeanUnion.

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Overthelastyear,throughselectiveacquisitionsofminorityholdingsinacoupleofkeyfirms,NTTDoCoMo
hasdevelopedagrowingpresenceintheEuropeanmarketasitpreparestorollout3Gservicein2002.
DoCoMohasboughtstakesofabout20%inBritainsHutchisonTelephone,holderofaBritish3Glicense,and
DutchwirelessoperatorKPNMobileN.V.,withservicesinHolland,Belgium,Germany,andHungary.The
threecompanieshaveannouncedtheirintentiontobidfor3GlicensesinGermany,Belgium,andFrance.[12]
#_edn12DoCoMohasthussignaleditsstrategytobepartofthecreationofafourthbigplayerinEuropean
wireless,alongwithVodaphoneMannesmann,FranceTelecomOrange,andDeutscheTelecom.
However,thenewalliance,poweredbyimodessuccessinJapan,isnotgoingtowaitfor3Gin2002.The
DoCoMoKPNHutchisonalliancealsoannouncedtheirplanstointroduceimodeserviceinEuropeearlynext
yearasthesocalled2.5Gservices(GPRS),whichincludesseparatepacketswitchingcapabilitiesandis
initiatedonexistingGSMnetworks.DoCoMosexperienceinbuildingamassconsumerbaseinJapan,basedon
effectiveutilizationofexistingtechnologies,iscitedaskeytotherapiddevelopmentofanimodenetworkinthe
Europeanmarket.
OnethingthatisclearfromthesemovesisthatDoCoMosstrategyistomakeimodeaninternationally
recognizedservicebrandandaglobalstandardformobilewireless.NTTDoCoMowouldappeartobe
developingthekindsofcooperativerelationsrequiredtosuccessfullysupportsuchamove.

Conclusion:WillDoCoMosImodeEmergeasaStandard?
BothinthedomesticJapanesemarketandintheemergingglobalmarketforwirelessInternetservices,
DoCoMocanbeseentohavegainedacriticalfirstmoveradvantage.DoCoMo'sbusinessmodelisresponsible
forattractingacriticalmassofcontentandusers.Mcommerceisquicklybecomingthedominantformof
businesstoconsumerecommerceinJapanimodehasbecomethedefactostandardforJapanesee
commerce.DoCoMosorganizationalinnovationswerearesponsetotheunusuallycompetitiveenvironmentof
wirelesstelephonyinJapan.Puttingtoppriorityonmarketing,DoCoMoleadershiprecruitedmavericksto
aggressivelyinnovatebusinesspractices,atthesametimedevelopingnewtechnologies.
DoCoMohas,inimode,astandardwiththepotentialtobemarketedinternationallyinanindustrywithalmost
unlimitedgrowthpotential.Itstandsasanexpressionoftheorganiza
tional/institutionalinterfacebetween
usersandtechnologythatisattheheartofsuccessfulinnovation.Theembodimentoftheimodebusiness
modelinDoCoMosproprietarytechnologiesraisesbarrierstoentrybyimitators,whileencouraginginterested
firmstogainaccesstoimode.Moreover,DoCoMohastakenthefirststeptowardbuildinganetworkofglobal
partnershipsandalliancestosupporttheadoptionanddevelopmentoftheimodestandardasbroadband
wirelessInternetdevelops.
TheconvergenceofmobiletelephonyandtheInternetdoesindeedseemtosignalanothershiftinthebalanceof
forcesinadvancedinformationtechnologies.Thiscreatesthepossibilityforanewtrajectory,amomentwhen
outcomesareunpredictable,butcertainlywillnotjustbeanextensionofexistingpowerrelationships.Mobile
Internetconvergenceisproducingasituationwherenewtechnologicalappropriationsandrelationshipswillbe
forged.ThemostpressingquestioniswhetherornotNTTDoCoMoisflexibleanddynamicenoughasan
organizationtocontinuetoplaytheleadingroleithasforgedinJapanonaglobalscale?

Citations
[1]Telecommunications,TheWorldinYourPocket,TheEconomist(October9,1999),andAWirelessWave
II:theDataWaveUnplugged.GoldmanSachsInvestmentResearch(November10,1999).
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accordingtoKeijiTachikawa,CEOofNTTDoCoMo.
4 FiguresfromNTTDoCoMopressrelease,August7,2000,MobileCommunicationsimodestsuccess.The

Economist(March11,2000).
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http://www.japaninc.net/mag/comp/2000/06/print/jun00p_unwired.html
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GlobalCompetitiveness(Oxford:OxfordUniversityPress,1995)andStevenK.Vogel,FreerMarkets,More
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http://www.soumu.go.jp/english/http://www.soumu.go.jp/english/.
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(July14,2000).
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12DoCoMo,KPNAcquireStakesInHutchisonWirelessUnitPartnerstoBidforEurope'sNewMobile

Licenses,AsianWallStreetJournal(July13,2000).

RelatedReadings
MarieAnchordoguy.JapanataTechnologicalCrossroads:DoesChangeSupportConvergenceTheory?
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YoshioAndo.NTTDoCoMo:GlobalStrategyandEuropeanOperations(Tokyo:GoldmanSachsJapan
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KennethNeilCukier.WirelesslaImode:Japan'sNTTDoCoMo'sflashyphonesareconnectedtonew
wirelessbusinessmodels,RedHerring(June2000).
MartinFransman.,JapansComputerandCommunicationsIndustry:TheEvolutionofIndustrialGiantsand
GlobalCompetitiveness(Oxford,U.K.:OxfordUniversityPress,1995).
MartinFransman.VisionsofInnovation:TheFirmandJapan,(OxfordU.K.,OxfordUniversity
Press,1999).
Mobilecommunicationsimodestsuccess.TheEconomist(March11,2000).
JiroKokuryo.FromClosedNetworktoOpenNetwork:TransformationoftheJapaneseEconomyinthe
InformationAge.JIPDECInformatizationQuarterly105(1996).
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SantaClaraUniversityCenterforScience,Technology&SocietyNTTDoCoMoanditsImodeWirelessNetwork

JiroKokuryo.TheRoleofJapanintheITRevolution.(Tokyo,Japan:KeioUniversityGraduateSchoolof
BusinessAdministration,July2000.
WirelessWaveII:theDataWaveUnplugged.(NewYork,NY:GoldmanSachsInvestmentResearch
(November10,1999).
KozoYamamura.TheJapanesePoliticalEconomyAftertheBubble:PlusCaChange?JournalofJapanese
Studies,23:2(Summer1997),291331.

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AbouttheAuthor

JohnRatliff

JohnRatliff,who
recentlyreceivedhis
Ph.D.inSociologyfrom
theUniversityof
CaliforniaatSanDiego,
teachesinthe
anthropology/sociology
departmentatSanta
ClaraUniversity.His
responsibilitiesinclude
the"Business
Technologyand
Society"emphasis
programinSociologyat
SCU,focusingon
developmentofnew
coursesinchanging
technologies,especially
newinformationand
communications
technologies,andtheir
socialimpact.Areasof
researchandteaching
interestincludesocial
Changeand
technological
development,
comparativesociology,
focusingonJapanand
EastAsia,sociologyof
organizations,political
economyand
globalization,social
theoryandsocial
movements.His
dissertationexamined
thedevelopmentofthe
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SantaClaraUniversityCenterforScience,Technology&SocietyNTTDoCoMoanditsImodeWirelessNetwork

personalcomputerand
telecommunications
industriesinJapan
withinthecontextof
theInternetand
globalization.Ratliff
hasspentsixyearsof
hisadultlifeinJapan,
includingtwoyears
underaFulbright
dissertationfellowship.
Futureresearch
interestsinclude
businessand
educational
organizationsinSilicon
Valleyandtheir
relationshipto
emergingPacificRim
productionnetworks,
andthesocial
constructionofnew
formsofcommunity
andmoralorderin
cyberspace.

Winter2001/sts/nexus/winter2001/Nexus11.cfm
Editor'sOverview/sts/nexus/winter2001/CarlsonArticle.cfm
CSTS:WhereTechnologyandTraditionMeet/sts/nexus/winter2001/McKennaKochArticle.cfm
DimensionsofTheNetworkedSociety/sts/nexus/winter2001/CastellsArticle.cfm
SourcesofProductivityAdvanceintheTwentiethCentury:AHistoricalPerspective
/sts/nexus/winter2001/FieldArticle.cfm

TheFamilyintheNetworkedSociety/sts/nexus/winter2001/BachenArticle.cfm
NTTDoCoMoanditsImodeWirelessNetwork/sts/nexus/winter2001/RatliffArticle.cfm

http://www.scu.edu/sts/nexus/winter2001/RatliffArticle.cfm

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