mmO2 and NTT DoCoMo are reportedly planning to launch a UK i-mode mobile service.
According to the Financial Times, the Japanese mobile giant and its new partner will announce their intentions next week, prior to a service launch in the new year.
It remains unclear whether mmO2 will launch i-mode on all of its European networks or just in the UK. While O2 Ireland could reasonably be expected to adopt i-mode, the company faces a significant hurdle to launching the service in Germany where Royal KPN currently owns sole rights to run i-mode on its E-Plus network.
However, recent speculation has suggested that DoCoMo has been pushing KPN to renegotiate its contract to allow in O2, despite the Netherlands-based operator considering i-mode to be an important service differentiator in the competitive German market.
O2’s recently found respectability in Germany, which saw the UK-based operator boost its subscriber base in the country by 27% to 6.67 million in its most recent half year, will only have helped persuade DoCoMo to renew its efforts to cajole KPN into backing down.
A launch of i-mode by O2 would also fit well with the mobile strategy of supposed suitor Telefonica. The Spanish incumbent already offers i-mode through its own mobile arm, Telefonica Moviles Espana. Telefonica has recently been touted as a possible buyer for mmO2.
In total, the three O2 networks would increase the potential European subscriber base for i-mode by about 22 million. To date, i-mode has only about 3 million subscribers in Europe. Even a small percentage of O2 converts would considerably boost that number.
DoCoMo’s previous effort to establish i-mode in Britain foundered after Hutchison 3G UK declined to develop the service. The 3 operator’s reluctance to adopt i-mode was seen a significant motivating factor behind DoCoMo’s May decision to sell its 20% stake in H3G UK back to its parent organization Hutchison Whampoa Ltd, for GBP120 million.
