DoCoMo calls off deal with Hutch
The co’s move comes days after govt gave Vodafone the thumbs up to acquire a controlling stake in HEL.
By TNN |
NEW DELHI: Call it the Vodafone effect. Japanese mobile phone giant NTT DoCoMo on Monday annulled its contract with Hutch Essar (HEL) to provide its ‘i-mode’ mobile internet service.
Reason: Change in ownership of India’s fourth largest telecom company. In December 2006, DoCoMo and HEL had signed an agreement to launch this service in India by 2007-end.
DoCoMo’s move comes days after the government gave Vodafone the thumbs up to acquire a controlling stake in HEL. According to industry sources, there could be more call-offs in the value-added services (VAS) space. This is because Vodafone, already a strong player in VAS, plans to extend its expertise and global tie-ups to India, sources said.
In fact, the contract with DoCoMo was terminated as Vodafone already provides similar services in Europe and will extend them to India, sources said.
Echoing similar views, DoCoMo said, “Due to the changes in business environment, both the companies concluded that it would be difficult to launch i-mode service at this time and agreed not to proceed.” DoCoMo is Vodafone’s rival in the global VAS and 3G applications space.
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Under the deal with HEL, NTT DoCoMo was to license patented technologies and the knowhow for Hutch to offer i-mode on GSM, GPRS and W-CDMA networks. This would have enabled HEL customers to enjoy access to rich content, which includes e-mail, games and other entertainment services. HEL customers are unlikely to miss out on any fun. According to sources, Vodafone would soon launch its value-added services in India, including Vodafone Live (its global content platform), its mobile payments platform and its extensive business portfolio that encompass wireless office and mobile money transfers.
Other VAS applications likely to be launched here include Vodafone Passport, a simple roaming price plan, Vodafone Simply, a straightforward voice and data package and the Vodafone Mobile ConnectCard for laptops which makes wireless internet access possible.
Vodafone’s partnerships for VAS are with the largest players, including YouTube for videos, MySpace for social networking, Google for search, Yahoo for instant messaging and eBay for online buying and selling.
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