Ottawa Business Journal
America Online and mobile phone giant NTT DoCoMo signed a US$100-million deal Wednesday which will align AOL's Internet services with DoCoMo's mobile Internet access.
The deal will see NTT DoCoMo pay $100 million for a 42.3% stake in AOL Japan. It will give AOL an entry to the market for Internet access provided through mobile phones, called i-mode. DoCoMo service will include wireless access to AOL instant messaging and e-mail.
"We hope to converge our fixed and mobile Internet services and spread them on a global scale," said NTT DoCoMo president Keiji Tachikawa.
The companies plan to develop a way of integrating AOL's content with DoCoMo's format.
DoCoMo is Japan's leader in Internet access through mobile telephones. AOL is also looking to DoCoMo to bump up its subscriber rate in Japan.
AOL will reduce its stake in the Japanese unit to 40.3% from 50%. Trading company Mitsui & Co. and publisher Nihon Keizai Shimbun Inc. will together retain a 17.4% stake.
The two companies also plan to set up a joint venture in the United States in a bid to promote the i-mode services throughout the world.
NTT DoCoMo commands a 55% share of the worldwide mobile phone market, second only to Vodafone.
