To enable mass market consumers in Japan and around the world to access convenient and easy-to-use interactive features and content anywhere, anytime and any way they choose, this alliance will:
- Launch a senior level working group initiative and establish an investment committee to drive the development of next-generation technologies to seamlessly integrate fixed-line and wireless services.
- Make NTT DoCoMo a partner in the AOL Japan joint venture with America Online, Mitsui & Co., Ltd. and Nihon Keizai Shimbun, Inc. (Nikkei);
- Feature AOL Mail and AOL Instant Messenger on NTT DoCoMo's i-mode mobile Internet service; and
- Cross-promote the AOL and i-mode Internet services in Japan.
Dr. Keiji Tachikawa, President and Chief Executive Officer of NTT DoCoMo, said: "We are truly excited about the great potential of this global strategic alliance with America Online. As the world's leader in PC-based services and a pioneer in extending their convenience to new devices, America Online is the ideal partner to pursue our shared vision of seamlessly integrated Internet services -- Fixed Mobile Convergence (FMC) - across both fixed-line and wireless platforms. This alliance will become a key element of our global strategy to lead the convergence of PC-based and mobile services to benefit consumers worldwide. Through this alliance, we will work together to create brand new services in the field of Fixed-Mobile Convergence -with our joint venture, AOL Japan, as the first testing ground -- and to extend them around the world."
Bob Pittman, President and Chief Operating Officer of America Online, said: "NTT DoCoMo's success with its i-mode mobile Internet service has been nothing short of extraordinary, and we are delighted that this world-class company has chosen America Online as its partner. This strategic alliance joins two tremendous brands and marks a major step for both our Japanese joint venture and our AOL Anywhere strategy. Building on AOL Japan's strong foundation, NTT DoCoMo will be the catalyst for taking the service to the next level of success in one of the world's biggest and fastest-growing Internet markets. We are just as focused on developing next-generation convergence technologies that will make the Internet experience even more convenient, easy to use and central to people's everyday lives."
Senior Level Working Group Initiative/Investment Committee
NTT DoCoMo and America Online said that they will launch a joint working group initiative to focus on creating an AOL-NTT DoCoMo gateway portal for wireless carriers and developing next-generation convergence technologies, applications and services worldwide.
The companies are also establishing an Investment Committee, which will invest in the cutting-edge companies that are driving the convergence of fixed-line and mobile platforms.
The companies said that both the senior level working group initiative and Investment Committee will be a complement to their already existing wireless alliances and any future partnerships worldwide.
The AOL Japan Joint Venture
Under a new agreement, NTT DoCoMo becomes an AOL Japan partner, with equity ownership of 42.3%, which includes a cash contribution of approximately US$100M for shares of AOL Japan.
In addition to the purchase of equity in AOL Japan, NTT DoCoMo will also feature AOL Mail and AOL Instant Messenger on its i-mode service with more than 12 million subscribers. And, NTT DoCoMo will market AOL Japan as its preferred ISP in its popular DoCoMo shops nationwide and cross-promote AOL Japan to NTT DoCoMo's wireless voice and data subscribers through a full range of innovative initiatives.
In addition to NTT DoCoMo's 42.3% holding, America Online will now hold 40.3% in the AOL Japan joint venture, with 17.4% being shared between original joint venture partners, Mitsui and Nikkei.
About NTT DoCoMo
NTT DoCoMo is Japan's largest mobile communications company with a market capitalization of US$279 billion. As of August 2000, the Company had more than 32 million cellular subscribers. It had consolidated operating revenue of 3.7 trillion yen (approximately US$34.7 billion) in fiscal 1999 (year ended 31 March 2000). NTT DoCoMo was formed in July 1992 to take over the mobile communications operations and sales of Nippon Telegraph and Telephone (NTT). NTT DoCoMo provides nationwide services, including cellular, PHS, paging, satellite mobile communications and in-flight telephone services. The Company also has subsidiaries in the United States, France and Brazil. In February 1999 NTT DoCoMo launched its i-mode service, which provides continuous connection with the Internet via mobile phones. The number of subscribers to the service exceeded 12 million by August 2000. NTT DoCoMo plans to introduce third-generation mobile communications services based on its W-CDMA system in May 2001. The UMTS services planned to be introduced in Europe will be based upon NTT DoCoMo's W-CDMA technology.
About America Online, Inc.
Founded in 1985, America Online, Inc. is the world's leader in interactive services, Web brands, Internet technologies and e-commerce services.
About Mitsui & Co.,Ltd.
Japan's largest "Sogo shosha", or general trading company, has the experiences, network and know-how to develop and implement solutions for any projects across a remarkably broad range of industries. The company is taking up a leading role in Japan's fast development of IT, telecommunication and the satellite broadcasting business sector.
About Nihon Keizai Shimbun, Inc.
Established in 1876, NIKKEI, based in Tokyo, Japan, publishes the world's largest business daily in terms of circulation, The Nihon Keizai Shimbun, and supplies comprehensive economic news through mediums, ranging from electronic media and data services to broadcasting, publishing, and special events.
About AOL Japan
Launched in 1997, the AOL Japan service provides its members with a unique online experience for the whole family that combines AOL's hallmark ease-of-use, convenience and state-of-the-start features and functionality with a broad range of Japanese-language content, as well as local customer service, billing and management. The AOL Japan service offers seamless access to the Internet and 19 exclusive channels of local and international online content including Shopping, Travel, Women, Business & Money, Games, News, and a Kids Only channel. To ensure a uniquely Japanese look and feel, AOL Japan provides content from strong local content partners including Bandai, Sega, Nomura Securities and All Nippon Airways.
