DoCoMo-Hutch Essar deal to launch i-mode service in India called off

DoCoMo and Hutchison Essar, called off a deal to launch mobile Internet services in India using DoCoMo's technology due to U.K.-based operator Vodafone Group's bid for a controlling stake in Hutchison Essar, a major Indian operator.

NTT DoCoMo is Japan's dominant cellular provider but has seen profits fall as it competes with rivals in the saturated domestic market. While the financial hit from Monday's canceled deal will be small, it is symbolic of how the company has generally struggled to establish new sources of income.

DoCoMo's i-mode service includes technology that lets users send email and view online content via mobile phones. In December, the company and Hutchison Essar had agreed to launch the service in India this year. The company may now considering various other options in India, including tie-ups with other Indian carriers.
India is one of the world's fastest growing telecommunications markets, with about 206 million subscribers currently. Japan has more than 100 million users, but growth is largely stagnant.