Japanese giant seeks UK partners

DoCoMo was keen to push its wireless technology into the UK

Japanese phone giant NTT DoCoMo is seeking new partners for its "i-mode"mobile internet services after the collapse of its 3G venture in the UK.

The mobile services provider took a near 90% loss when it sold its 20% stake in 3 UK, a tie-up with Hong Kong conglomerate Hutchinson Whampoa.

This means 3 UK, which launched third-generation mobiles in Europe, has lost two out of its three shareholders.

The firm has only attracted a fifth of the customers it had hoped for.

However, the fledgling third-generation contender, forced to slash call prices in a bid to lure more custom, played down the sell-off.

"This doesn't alter 3 UK's business plan or its financial position," a spokesman said.

Two down

Meanwhile, Hutchinson Whampoa, which gambled $22bn (£12.02bn) on investing in 3G, shrugged off DoCoMo's decision to cut its losses.

The company, controlled by Asia's richest businessman Li Ka-shing, has already bought out 3 UK's other shareholder, Dutch-owned KPN, after it refused to pay its share of a £1bn funding call from 3 UK.

"Hutchinson is happy to be able to increase our interest in 3 UK at very attractive terms and, at the same time, maintain our close relationship with DoCoMo," said managing director Canning Fox.

The cost to Hutchinson will be $221m ($120m).

Investment banks such as Nomura calculate that spiralling operating losses from Hutchinson's loss-making 3G ventures could reach $2.7bn (£1.47bn) this year.

Potential partners

DoCoMo originally invested in 3 UK to encourage 3G take-up in Europe, but also vital to its business strategy was that firms adopted its wireless i-mode internet technology.

But 3 UK failed to do this.

Now the Japanese company hopes to attract other potential UK partners to its i-mode technology.

"We will talk to UK mobile operators to offer our i-mode service. That could be Orange, T-Mobile or mmO2, but we can't say now which company we will talk to," said DoCoMo spokesman Takuo Suzuki.

The company refused to comment on a report by the Financial Times which said talks with some of the above had already begun.