Japan’s Docomo to Launch New Firm to Provide Telecom Infrastructure Services Overseas; Focus to be on Southeast Asia, North America

REUTERS/File photo
The logo of NTT Docomo is displayed at its shop in Tokyo, Japan.

NTT Docomo Inc. has announced its plan to establish a company to supervise its overseas businesses in July. With its domestic cell phone market hitting a wall, Docomo will strengthen sales of its corporate services and new telecommunications infrastructure in Southeast Asia and North America, which have high future growth potential, according to sources.

The new company, NTT Docomo Global, is expected to consolidate the international businesses of Docomo’s group companies and provide services that apply the internet of things (IoT) in anticipation of the spread of the high-speed, high-capacity 5G technology. It will also aim to get orders for system operation and management in fields such as telemedicine and automated driving.

With a focus on Southeast Asia, which is undergoing the transition to 5G, Docomo will construct a low-cost telecommunication network and provide maintenance and operation services. It will also focus on marketing Open Radio Access Network, or Open RAN, an industry-wide standard that enables the interoperability of equipment and systems from multiple vendors.

From the perspective of economic security, there is a trend in the telecommunications industry of moving away from Chinese products such as those made by Huawei Technologies Co. Hoping to capture this business opportunity, Docomo is promoting the safety of its products.

Docomo had invested in the cell phone division of U.S. telecommunications giant AT&T Inc. and in an Indian telecommunications carrier, but has since withdrawn.

“The domestic market has its limits with a declining population,” a senior Docomo executive said. “We won’t be able to expand our business without looking at the global market.”