Japan’s Docomo will launch a new company that will provide telecom infrastructure services abroad; Focus on Southeast Asia and North America

NTT Docomo Inc. has announced its plan to create a company to oversee its foreign operations in July. With the domestic mobile phone market hitting a wall, Docomo will boost sales of its enterprise services and new telecommunications infrastructure in Southeast Asia and North America, which sources say have high future growth potential.

The new company, NTT Docomo Global, is expected to consolidate the international activities of Docomo’s group companies and provide services that adopt the Internet of Things (IoT), ahead of the spread of high-speed, high-capacity 5G technology. It will also aim to obtain orders for the operation and management of systems in areas such as telemedicine and automated driving.

With a focus on Southeast Asia, which is undergoing the transition to 5G, Docomo will build a low-cost telecommunications network and provide maintenance and operations services. It will also focus on commercializing Open Radio Access Network, or Open RAN, an industry-wide standard that enables the interoperability of equipment and systems from multiple vendors.

From an economic security perspective, there is a trend in the telecommunications industry to move away from Chinese products such as those from Huawei Technologies Co. Hoping to seize this business opportunity, Docomo promotes the safety of its products.

Docomo had invested in the mobile phone division of American telecommunications giant AT&T Inc. and in an Indian telecommunications company, but has since withdrawn.

“The domestic market has its limits with a declining population,” said a senior Docomo executive. “We won’t be able to expand our business without looking at the global market.”