MOSCOW, July 24 (Prime-Tass) -- Russia?s largest mobile operator Mobile TeleSystems (MTS) has suspended all investments in i-mode service until September, MTS' spokesman Kirill Alyavdin said, Vedomosti business daily reported Monday.
MTS does not plan to undertake any activities linked with the service until September, Alyavdin said, adding that that the operator would continue supporting the service for its existing subscribers, the daily reported.
MTS launched a promotional campaign for the service in September 2005 and hoped to sign up more than 150,000 users in the first six months. Alyavdin said that at the moment about 100,000 people used the service, the daily reported.
Alyavdin attributed the company's failure to meet its target to a lack of "interesting, advanced mobile handsets supporting i-mode," the daily reported.
At the moment, the service is supported by seven mobile handset models that are sold in Russia, the daily reported.
MTS has halted its advertising campaign and shut down its Web site dedicated to i-mode, Alyavdin said, adding that MTS was analyzing the situation and was holding negotiations with its partner in the service's promotion, Japan's NTT DoCoMo.
MTS did not disclose the amount of its investments in the service. Analysts surveyed by the daily estimated investments at about U.S. $20 million, while monthly revenue from the service's subscribers stood at about $150,000.
i-mode service was first launched in Japan in 1999 and is popular in the country. i-mode users get access to the Internet through a special portal, containing links to entertainment and informational content. The service also includes a mail client.
MTS had a total of about 48 million users in Russia as of June 30, according to Advanced Communications & Media (AC&M).
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Posted to the site on 24th July 2006
Posted to: www.cellular-news.com/story/18442.php