Media & Resources

DoCoMo and KDDI pitch new mobile broadcast plans

TOKYO (Nikkei) - NTT DoCoMo Inc. (9437) and KDDI Corp. (9433) each briefed the Communications Ministry Wednesday on their competing plans for providing a next-generation mobile-device broadcasting service. With the government set to issue a single license for the next-generation service, which is scheduled to begin in spring 2012, both firms played up the merits of their business plans. DoCoMo said it would hold capital spending to 43.8 billion yen as a way to lower customer fees and encourage widespread use of the service. It estimates that monthly rates will reach around 300 yen. As for concerns that its curbs on capital investment might result in poor indoor reception, DoCoMo asserted that strong signals would ensure ample customer access. KDDI, on the other hand, intends to invest 96.1 billion yen under its strategy to build 865 base stations, about seven times the number planned by DoCoMo. This has spurred concerns that higher broadcast fees charged to content providers could prevent it from attracting enough firms. "If there aren't enough content providers, KDDI will take on the responsibility of supporting them," said a company official. The Communications Ministry is slated to review the briefings and recommend one of the providers, leaving the final decision up to Minister Kazuhiro Haraguchi, who has indicated he will make the selection in mid-August. Source from Nikkei.com - click here