"DoCoMo Rising"

Business Week, May 22, 2000, pp. 66-67.

 

Synopsis:

Mergers among major players in Europe's telecommunications industry are not happening as fast as planned. Due to political difficulties, many planed mergers have been cancelled. Such mating problems among European companies become an opportunity for Japan's NTT DoCoMo, the world's biggest mobile operator.

 

This article introduces the recent alliance between DoCoMo and KPN, the Dutch national phone company. The alliance looks like a win-win situation for both companies. By paying up to $4.5 billion in cash for a 15% stake in KPN's mobile unit, DoCoMo is getting a much-needed toehold in the European market. The benefits KPN expects include getting financial backing for European expansion. This article also points out some pitfalls for both companies.

 

Full-text Article: http://www.businessweek.com/@@noXQ4mQQp5aPtwQA/premium/00_21/b3682166.htm

More information on this subject can be found at: http://www.kagan.com/archive/reuters/2000/05/09/2000050935tcm.html

 

Text connection:

Chapter 8 "Regional Economic Integration" (pp.253-254).