NTT DoCoMo, Inc. & Mobile FeliCa Technology

Is NTT DoCoMo wise to offer its existing mobile phone rivals access to Mobile FeliCa?
I believe NTT DoCoMo's decision to offer mobile phone rivals access to Mobile FeliCa technology, its contactless integrated circuit (IC) offering, was a tough, but prudent decision. It should pay dividends as the decision moves NTT DoCoMo to the forefront of the industry by creating strong network effects as well as first-mover advantages. In this case, even though NTT DoCoMo's competition will also be using the Mobile FeliCa technology in their own products, FeliCa Networks will evolve into the standard platform on which wireless transactions are conducted. NTT DoCoMo will capitalize on their stakeholder position as a result.

Additionally, by continuing to establish relationships between different retailers, credit card companies, etc. that agree to use the Mobile FeliCa technology and by continuing to increase the number of individuals who own mobile phones that possess the Mobile FeliCa technology, the necessity of having a phone that includes Mobile FeliCa technology will increase. For instance, the agreement established with the grocery store chains that provide a 5% discount to customers for using the Mobile FeliCa technology instead of cash to pay at the checkout counter is a great example of NTT DoCoMo utilizing the Mobile FeliCa technology to capture new target audiences.

On the other hand, if NTT DoCoMo made the decision to keep Mobile FeliCa to themselves and not allow the competition to implement the IC technology into their own products, FeliCa Networks could either takeoff and become the accepted standard basically making NTT DoCoMo a stakeholder in a monopoly. On the other hand, there is the issue that if NTT DoCoMo only makes the Mobile FeliCa technology available on their own products, then they run the risk of losing a great number of customers who do not purchase NTT DoCoMo mobile phones, but would still use the Mobile FeliCa technology in their everyday lives.