i-mode’s global expansion is faltering

Reuters reports that both Telstra (Aus) and O2 (UK) are abandoning i-mode.

I guess this just highlights the difference between the mobile scene in Japan vs elsewhere.

I would like to point out that the following statement from an industry analyst:

 “In the i-mode business model, operators keep only a small amount of content revenue, making most of their money by charging for data network usage,” […] “But regular users of the Internet on mobiles will become increasingly dissatisfied with ‘having the meter running’ while they surf, and the trend is already moving in favour of flat-rate data tariffs.”

is misleading in that flat rate tarrifs are available with i-mode on DoCoMo, and as such the i-mode business model is not tied to a metered data service.

If the reports of the O2/Apple iPhone deal are correct, I would suggest that O2 is betting that users will embrace the “full” internet on the phone and make i-mode redundant.

I’m still not convinced that continously zooming and scrolling to read a page not optimized for a phone’s limited size is the best option for users….