DoCoMo's i-mode Goes to Hong Kong and Macau (DCM, HTX)

NTT DoCoMo Inc's (DCM) i-mode platform and services will be heading to Hong Kong and Macau via an exclusive deal with Hutchison Telecom Int'l Ltd (HTX). News of this deal actually broke earlier in The Wall Street Journal but the official announcement wasn't made until today.

This is a good sign for DoCoMo shareholders that the firm is seeking growth outside of Japan. The earnings impact will likely be limited however given the small populations of Hong Kong and Macau.

DoCoMo management claims to be well-aware of its domestic and global competition and acknowledges near-term profitability challenges, but management is looking for better operating results from next year. In the meanwhile, DoCoMo has been buying back shares at near-historic low share prices which is advantageous. It is nearing completion of its one-year buyback plan.

Marketwatch.com has news that Microsoft (MSFT) will release "very soon" a mobile version of its Windows Live Messenger application for use on DoCoMo phones. About two weeks ago Google Inc (GOOG) and KDDI (Tokyo: 9433) announced a deal to bring Google search to KDDI mobile subscribers. And as the MarketWatch article points out, "it is seen as a foregone conclusion that Vodafone Japan K.K., the country's No. 3 carrier, and Yahoo Japan, both units of Softbank Corp. (9984.TO), will soon roll out joint offerings of their own."

NTT DoCoMo Inc (DCM) 1-yr chart: