Business Services Industry
SOFTWARE BOOSTS CELL PHONE DEVELOPMENT COSTS IN JAPAN.
AsiaPulse News, January, 2003
TOKYO, Jan 16 Asia Pulse - The complex software installed in 3G (third-generation) cellular phone handsets has boosted handset development costs, prompting NTT DoCoMo Inc. (TSE:9437) to give aid to manufacturers.
DoCoMo will be providing about 4 billion yen (US$33.8 million) in aid per handset model this fiscal year to manufacturers that make handsets for its FOMA 3G cell phone service.
When second-generation handsets debuted on the market in 1993, development costs stood at about 1 billion yen per model.
But costs have surged to about 10 billion yen per model for FOMA, causing a heavy burden on Japanese manufacturers already battered by the information technology market slump.
The newest handsets are equipped with a total of several...
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