O2 plans to introduce a new mobile data system, called ‘Revolution’, to rival i-mode. At present there are very few market competitors, with NTT DoCoMo’s i-mode far ahead in terms of revenues. O2 believes it can cash in on some of this market share by offering a system similar to i-mode.
O2 will provide a service that collates wireless content for its network subscribers, but it will only keep just over 10% of the revenues generated for itself and divide the rest among the service and content providers. This will undercut NTT DoCoMo, which currently keeps 15% of the revenues generated from i-mode. Users of the O2 service will also have to pay a fee per download.
This is good news for consumers as it will help to keep the mobile data market competitive. There had been fears that operators were stunting market growth by delaying the introduction of data services.