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Japan DoCoMo to Abandon SIM Lock by 2011. Really?

Jul 7, ’10 3:04 AM
Author Categories Analysis, News Tags , , , , , , ,

There’s been a surge of articles today about NTT DoCoMo, Japan’s largest operator, apparently announcing it would go SIM lock free by next year.

Heck, even its shares were up almost 1.7% at the Nikkei 225 -actually outpacing it.

Much ado about nothing?

We’ll see. The plan is still “under consideration“, it’s unclear if all handsets will be included and what would be the exact conditions.

One thing is for sure though, DoCoMo wants in on the iPhone action. That’s what it’s all about.

Let me jog your memory. Last April, under the freshly-elected DPJ Government, Japan’s Ministry of Internal Affairs and Communications sparked a debate with its intent of rendering the whole mobile industry SIM lock free.

Following that month’s meeting with the big three, the government set a deadline for the public to give it feedback. That was June 23 -and, yes, it’s Japan, you could send your opinion by fax.

It’s all over now. The guidelines for 2011 are about to be finalized. The schedule is not lost on DoCoMo.

But we’re talking about guidelines. Yup, guidelines, not regulation. If you fancy reading the preliminary ones in Japanese, here’s the official document [PDF], but basically, they’re saying one thing: “we’d love it if you could unlock your SIMs, but just love it, right?, we’re not forcing you in any way”.

Hey, did you really think that government would take a stand with KDDI raising its network compatibility issues, Softbank pestering against it -projecting a doomsday with soaring costs in handsets-, DoCoMo being more lenient about customer’s choice and an onslaught of faxes?

Anyway, here are my thoughts: DoCoMo is probably the operator that has the least to lose in such a move. It has the better network, the largest -and very loyal- customer base (around 56m) and it doesn’t have the iPhone -nor the iPad. Yes, I know, some of you hate that thing, but it is shaking the mobile market in Japan: Softbank knows it and is adamant not to let this SIM lock free craze go without a fight.

I urge you to read SoftBankSucks’ coverage of the SIM-lock debate for more: part 1, part 2, part 3 & part 4.

In the end, you have it all. Guidelines, a saturated market, a shaken industry and the battle for the smartphones.

Good drama.

  • SBS

    Hey good news, if they actually follow through with it.

    Thanks for the link. For anyone wanting to a quick and dirty translation of the preliminary guidelines, I have it here.
    http://softbanksucks.blogspot.com/2010/06/communications-ministry-soliciting.html

    I haven’t read the final guidelines, but I assume very little, if anything, changed.

  • SBS

    Thinking about it some, this strategy indeed makes perfect sense for Docomo, who is getting killed by all the hype around SB’s Apple products. Like I said, Docomo comes across as the “good guy” who is thinking and caring about customers.

    (Though as I also said, Docomo could easily use their muscle against unlocking, and probably would, if they already had what they want).

    How about a killer HTC LTE-capable Android handset rolling out on Docomo next year, with the option for unlocking (depending on subsidy, contract, cancelation terms, etc.) with a corresponding ad campaign touting speed and openness while portraying the “other guy” as slow and closed, evil and greedy.

    It actually makes so much sense that it is hard to believe that Docomo is actually considering it. Something must be wrong… ;-)

  • Paul Papadimitriou

    I think DoCoMo knows what it’s doing. The very loyal customer base with the best network around gives it a lot of muscle in the battle.

    It didn’t say that all its handsets would be unlocked either. It could only be some of them.

    The thing is, if it does that by itself and other operators go down the IMEI check route, it’s pretty useless. How would one grab a DoCoMo phone and use it with another carrier if it voids the data plan?

    I’ve heard the argument that DoCoMo would be doing this in order to ramp up international sales. I don’t buy it. First, DoCoMo doesn’t directly manufactures handsets. Then, it’s not as if it requires a whole different factory to manufacture unlocked handsets. Nokia knows how to do both with one line.

    Again, great read on your blog, I really enjoyed it.

  • http://mobileinjapan.com/2010/08/05/1-in-4-docomo-japan-subscribers-wants-the-iphone/ 1 In 4 DoCoMo Japan Subscribers Wants The iPhone « Mobile in Japan

    [...] the study gets more interesting since it asked what people would do when the SIM unlock guidelines become reality. Will they switch? The status quo is favored by 30% of those interviewed. Loyalty is [...]

  • http://mobileinjapan.com/2010/08/06/b-mobile-releases-micro-sim-for-unlocked-iphone-and-ipad-in-japan/ B-Mobile Releases MicroSIM for Unlocked iPhone and iPad in Japan « Mobile in Japan

    [...] matter the recent debate about a general SIM unlock in the country, SoftBank won’t bulge. There’s no way you can legally unlock your [...]

  • http://mobileinjapan.com/2010/10/20/5-million-iphone-sold-in-japan/ 5 Million iPhone Sold in Japan « Mobile in Japan

    [...] and tablets were on everybody’s booth -and lips. One could even argue that the whole SIM lock debate is partially to blame on the [...]

  • Saw Han Ming

    Is this official?