DoCoMo to lift stake in Hutch

NTT DoCoMo is lifting its stake in Hutchison Telephone in a bid to steer its 3G launch in Hong Kong

In this story: Buying a board seat Picky phones RELATED STORIES, SITES

By CNN's Kristie Lu Stout

TOKYO, Japan (CNN) -- NTT DoCoMo said it would lift its stake in Hong Kong's Hutchison Telephone in a bid for stronger management participation.

Japan's leading mobile operator said it would pay $30.44 million for an additional 6.37 percent stake in the company, bringing its total stake to 25.37 percent.

In a separate announcement, DoCoMo said it would offer cell phones that automatically pick the clearest frequencies, addressing complaints of poor sound quality.

Buying a board seat

"We want to enhance DoCoMo's strength in management participation so we decided to increase the stake and get the additional right to have a board member," DoCoMo spokesperson Yuki Isono told CNN.

DoCoMo will buy the additional shares in Hutchison Telephone from its parent, Hutchison Whampoa. As a result, Hutchison Whampoa's stake in the telecom arm will drop to 74.63 percent.

DoCoMo hopes to leverage its board seat to accelerate the launch of third generation wireless services in the Hong Kong market.

"We are considering positive participation in Hutchison's business with a view of introducing the 3G and mobile multimedia service," said Isono.

DoCoMo, Japan's largest company by market capitalization, expects to be the first in the world to begin fast third-generation, or 3G, wireless services on May 30 when it begins its introductory service.

Last week, the mobile carrier started its campaign to recruit 4,000 test users of the introductory service, following news of a delayed commercial launch that was originally scheduled for this month.

Picky phones

DoCoMo also has plans to offer cell phones that automatically pick clear frequencies, according to the Nihon Keizai Shimbun.

The new handsets, to be available by the start of next year, would placate concerns about connection difficulties and poor sound quality.

The Nihon Keizai Shimbun reported that the mobile phone launch is a move to inoculate NTT DoCoMo from intensifying competition in the mobile market, especially after news of Vodafone's increased control in J-Phone.

The company declined to respond to the Nihon Keizai Shimbun report.

NTT DoCoMo has over 36 million mobile subscribers and more than 90 percent of its total subscriber base can access the I-mode mobile Internet data service.

Telecom NZ to invest in Hutch 3G
May 11, 2001
Vodafone buys BT's J-Phone stake
May 2, 2001
DoCoMo says nationwide 3G by 2002
April 26, 2001
DoCoMo posts record $3 billion profit
May 9, 2001

NTT DoCoMo Net
Hutchison Telephone HK (Orange)

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