DOCOMO buying Guam Cable Operator

The proposed purchase of Guam's cable TV service provider by NTT DOCOMO, the parent company of Guam-based DOCOMO Pacific, illustrates a couple of themes in the global telecom  business. First, expansion often must come from "out of territory" assets, as most "home markets" are intensely competitive and offer relatively tough growth prospects.

So expansion out of market is a logical step. The other theme is the choice of network platforms out of market that are different from those of the home market. Most out of market expansion tends to rely on wireless, rather than fixed network facilities, for example.

The proposed purchase of MCV Guam Holding Corp., which does business as MCV Broadband, might seem to be out of character. It isn't. MCV Broadband has the largest mobile market share on Guam. Nor is NTT unfamiliar with the Guam market. 

NTT DOCOMO's entry into the Guam market began when it bought GuamCell, SaipanCell and HafaTel for about $71 million in 2006.

Nor is competition in the Japan domestic market unrelated. Many would say MCV Broadband's main competitor is GTA TeleGuam. 

The principal owner of GTA TeleGuam is Advantage Partners LLP, the largest private equity investment firm based in Japan.