MOBILE CONTENT: KPN Starts First European I-mode Tests
Content Control Is Key To Saving Ailing Operator, writes Arthur Graaff, 19 December 2001
KPN, the heavily burdened Dutch telecoms operator, will start the first practical i-mode tests in Europe through its KPN Mobile joint venture with Japanese NTT DoCoMo with some 60 national and international content sites on 20 December, the group announced.
KPN Mobile says it is already sure of a strong supply of content and will take an active role in guaranteeing its quality.
Agreements have been struck with content providers in the field of information, communication, entertainment and transactions.
The international providers include Reuters, Eurosport, Endemol, Cybird, Hudson and Hallmark.
A local bank and leading supermarket chain will also participate.
Mr. Takeshi Natsuno, Managing Director of i-mode Strategy Department of NTT DoCoMo said: 'Users judge the value of mobile internet services by the quality of content. It is crucial to encourage content providers to create high-quality content.'
KPN Mobile and the content providers will offer certified i-mode content through strict agreements concerning user-friendliness and customer service, even forcing services to update and provide significant added value for the customer.
KPN Mobile speaks of 'a great deal of interest among content providers' and says it has reached agreements with more than 100 parties.
But KPN Mobile will not venture into any predictions on numbers of users, and only points to its current 13.5 million customer base in the Netherlands, Germany and Belgium, where the mobile phone market is relatively mature.
Troubled mother KPN though is desperately looking for new successes.
Concerning the time needed for positive results, Mark de Jong, Executive ice President Corporate Development of KPN Mobile, will only comment
that ‘Just as in Japan, it will take some time before i-mode can enjoy the widespread success we expect it to have here’.
Mr De Jong would not elaborate, as 'forward looking statements' are not allowed in this period after a recent KPN stock issue.
Since the start in 1998, Japan currently has 2900 specific i-mode sites and over 50,000 enabled sites serving 30 million mostly younger subscribers on a population of 120 million people.
The start in Holland is with a group of a few dozen 'friendly users', while in the course of January normal clients will be selected for further tests and the definitive reality check will take place in the spring.
KPN Mobile will charge 15% for handling payments through their phone bills, while DoCoMo handles the money for only 9%, but KPN Mobile did not give an explanation for this figure.
The billing model has proven to be the key to financial success foor NTT DoCoMo.
The success of i-mode in Japan is based upon simple to use technology for operators
as well as end users, ease of payment through the telecoms operator, and the relatively long commuter journeys Japanese have to make in crowded trains, that hardly leave any possibility for reading or speaking over the phone.
The Dutch GPRS network and the new i-mode handsets have been updated
NEC from Japan will supply KPN Mobile with N21i GSM-compatible handsets, specially developed for the European market.
The sets have a screen of 120 by 160 pixels, 10 line lcd colour display and improved sound quality of ringing tunes. Apart from browsing, users can transmit e-mails of maximum 1000 characters (some 150 words) and SMSes up to 160 characters.
The built-in i-mode browser enables users to read both i-mode-compatible HTML and WML content. Users can gain access to all i-mode services with this handset.
It is expected that around 60 certified sites will be available in the Netherlands for the definitive launch in spring, next to non-certified sites.
Sites can or be visited for free or for a monthly subscription, while also small ad hoc payments will be possible.
In addition to certified providers, non-certified providers existing of companies as well as individuals can set up sites, that will be free for access.
KPN Mobile expects 'a significant number of independent sites', but is not able to substantiate this yet. In the first weeks of January the practical test will also start in Germany, where KPN Mobile owns mobile operator E-Plus.
Belgium, KPN Mobile's other target market with its subsidiary KPN Orange, will have to wait until the GPRS-network is ready, which will be in some months.
Mother KPN is under great strain to develop new profit centers, following near disastrous overbidding for the UMTS-licences over a year ago and running up debts to the tune of 23 million euro while subsequently losing the trust of the stock exchange.
Over the last three months, KPN's CEO PaulSmit has been replaced by the president, who then received elaborate stock options while annoucing 4000 redundancies as well as pay cuts.
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