20 April, 2024
 
 
Unlimited Wireless Internet!

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DOCOMO
 
> 58.79m
AU
 
> 33.53m
SOFTBANK
 
> 26.62m
EMOBILE
 
> 3.5m
PHS
 
> 4.1m
TOTAL
 
> 123.04m
OTHERS
W-MODULE:
 
> 5.39m
PREPAY:
 
> 1.27m
BWA (UQ):
 
> 1.16m
TOTAL
 
> 7.82m
Updated 9/7/2011
 
for February 16-20, 2004
 

3G MOBILE LAUNCHES J-STYLE/ NOKIA 3G IN JAPAN? / JAPAN BB / IMODE GLOBAL...
 
 
3G MOBILE LAUNCHES, J-STYLE
As the global wireless industry is wheeling and dealing toward hefty front-page corporate consolidation, Japanese network operators and device manufacturers have been steadily launching a stream of advanced telecom gadgets, 3G and otherwise, in the unified and synchronized manner that exemplifies the J. market and sets it apart from many others. DoCoMo's most recent 3G FOMA "900i" series of handsets came in a highly orchestrated, coordinated launch style with devices from 5 manufacturers (er, should be 6--where's the SONY ERICSSON!?), all incorporating special feature upgrades that collectively market the FOMA service as a whole - including 2 megapixel cameras, fingerprint sensors, external memory cards, motion video download, high speed, longer battery life and more. Net result: consumers know what FOMA is, and that it is something cool they want to check out. Even if you don't know Japanese, you should check them out too on the flashy Flash site devoted to these slick devices at 900i.

NOKIA 3G IN JAPAN?
Nokia also reported it is talking to DoCoMo to join the 3G line-up. If it happens, it will be the first DoCoMo Nokia since the classic sliding NM502i (launched in March 2000), now a mobile museum collectible. It will also be interesting to see Nokia march in lockstep to the same development drumbeat as the other Japanese handset manufacturers, dictated by DoCoMo, quite the opposite of Nokia's reputed relationship with operators elsewhere in the world (where it dominates, that is). We expect a Nokia 3G phone will be a distinctively "foreign" addition to the FOMA line-up.

JAPAN BB
Once again, Japan is steaming ahead with broadband. Japan's DSL subscribers exceeded 10.6 million in January, led in gains by upstart Yahoo! BB, which gained 122,000 to hold its market share at 36%. MMJ is watching broadband closely, as it is soon to become another key media pipeline in Japan's data infrastructure, and a delivery channel for more integrated content services.

IMODE GLOBAL...
This past week had two international stories with a Japan angle worth looking at. DoCoMo may be wondering where the Cingular buyout of ATTW leaves its international strategy, but it is a lot happier not to see its $10 billion cash investment being sold off at a 30% discount to rival Vodafone (which has previously styled itself the 'NTT DoCoMo of the global market'). Still, the potentially brighter outlook on the Cingular acquisition (DoCoMo may still collaborate on 3G development in the US) must still somehow clear away the haze that hung around its partnership with ATTW (which did not use the DoCoMo i-mode brand exactly...will DoCoMo/i-mode ever acquire a real international footprint, or just a paw print? ). Meanwhile, the KPN group announced its sale of 1 million i-mode handsets in Germany, the Netherlands and Belgium, two years after launch, with Vodafone gaining about twice as many users in half the time. MMJ has some good strategic advice for DoCoMo, but they will have to come and ask us for it...



for January 31-February 4, 2004
 

Korea/Japan Mobile Broacasting / Hello Mobile Spam!
 
 
Giles Richter, MMJ


Korean mobile operators have reasserted their commitment to advanced multimedia services with the announced launch of data broadcasting services to mobile phones. Mobile Broadcasting Corp and Korea's SK Telecom Co Ltd will both begin services in July broadcasting multiple channels of audio and video programming to mobile devices from a jointly owned communications satellite.

To some this may look simply like a way of hanging another function on a phone so it can be used just as a portable radio or TV. Japan mobile watchers know that the significance of this trend is potentially much bigger, as broadcast services are linked to mobile content services so that users can seamlessly purchase content via their phones (ringtones or wallpaper) after watching or hearing about it via mobile broadcast programming. Japan's Vodafone KK mobile TV is not networked in this way, but KDDI's mobile FM radio-enabled Sanyo is.

This kind of functionality may be a bit far off in markets like the US, where the emphasis is on whether users really want to watch mobile TV/video on their phone, and what the battery drain is. The future direction of mobile broadcasting will be toward enhanced mobile shopping both for digital content and other products and services.



Hello Mobile Spam - You Ain't Seen Nuthin' Yet
Reuters is reporting on the growth of SMS-based mobile spam in Asia. Mobile spam is old news in Japan, where the early arrival of IP-based email 4 years ago opened up an entirely new frontier for marketers and purveyors of spam.

SMS-based spam is still one shade less unpleasant than mobile email spam, since at least the spammer bears the cost of sending the junk. Japanese mobile email is billed to the packet data fee of the recipient unless sent through special authorized free messaging channels--which is rarely used by spammers.

In both cases, users are the victims, and despite outward concerns over corporate image, mobile phone operators are the *biggest* beneficiaries, collecting millions and billions of dollars for transport data fees. And they are also the sole gatekeepers of their data networks with the capability to protect their users from spam assault.

It was not until public and legal pressure was placed on Japanese operators that they started taking steps to protect customers, such as educating users, or giving users the ability to filter out Internet-originating email or email from blacklisted domains from reaching their phones. In addition, anti-spam laws similar to those on the Internet that allow the prosecution of ISPs or messaging enablers that carry spam are a necessary tool for cracking down and protecting customers.

SMS spam is also pretty tame compared to mobile email spam, which can trigger all kinds of nasty behavior on smart mobile phones, like dialing the police or fee-based numbers when a user clicks on trick URLs.

Japan has been relatively tame in this way, but the spam plot is likely to thicken as the tech level of phones globally rises and mobile users become more vulnerable to MyDoom-like messages.

Stay tuned! And remember MMJ Headlines is an opt-in service, soon to be available via your mobile!







for September 19-26, 2003
 

Vodafone's tv-cellphone / KDDI's radio-phone / NEC's hybrid speaker-screen
 
 
By Kevin J. Smith, Mobile Media Japan, Tokyo


This week in Japan we saw the second and third largest carriers, KDDI and Vodafone, step up their bids to capture the next "big app" for mobile. Vodafone will introduce a tv-cellphone product to the mobile market, hoping to repeat the kind of success it showed with its pioneering camera-phone service. But will KDDI's new FM radio service steal the spotlight? We are also seeing continued innovation in the area of cell-phone sound systems with a product from NEC Corp that turns the mobile LCD screen into a speaker.

Vodafone's Japanese mobile unit developing tv-cellphone for December launch

Vodafone K.K. plans launch cellphones featuring a built-in television tuner as early as December. The new service would be the first of its kind in Japan, and none of Vodafone's rivals currently have plans to introduce a mobile television service. Vodafone was the world's first company to offer mobile phones with a built-in digital camera function, creating a global trend so popular that virtually every new handset model for the Japanese market now includes a camera. The idea of TV in phones raises questions about how this strategy will relate to Vodafonefs yet-to-be launched 3G services, which are anticipated to feature downloadable movies on phones.

Japan's KDDI to launch cell phone FM radio service soon

Japan's KDDI Corp. is set to launch a new service to enable subscribers to enjoy FM radio programs on their mobile phones. Joining with 53 FM radio stations, KDDI will kick off the operation later this year and present mobile phones equipped with tuners. Subscribers will need to insert earphones into their mobile phones to listen to the programs. The service will be free of charge, but payment is required if subscribers want to download music as ringing melody. The direct linkage between radio broadcast services and downloadable music on mobile terminals will showcase the low cost of delivering music via conventional broadcast networks, while leveraging the handset as a personalized purchase, delivery and playback device.

Turning Mobile Phone Screens into Speakers

Authentic Ltd, a subsidiary of NEC Corp of Japan involved in the development of acoustic products, has miniaturized the SoundVu slat speaker system which emits sound by vibrating the front panel of an LCD. The new SoundVu design is a bit larger than two inches in the diagonal and only 5mm thick. The firm's prior SoundVu product was announced in fall 2002, and used in NEC's Valuestar FS and T series of desktop personal computers. The model has attracted considerable attention on the market with its ability to emit sound from its LCD screen.


for November 9-September 18, 2003
 

PHS to China/ DoCoMo bug fixing / Japan Hotspots heat up
 
 

By Kevin J. Smith, Mobile Media Japan, Tokyo


This week in Japan, domestic handset manufacturers showed more signs of moving their PHS operations to China, NTT DoCoMo continued its rollout of initiatives geared toward streamlining its network and defending its market share, and Intel Corp announced its goal to double the amount of Wireless Access Points in Japan by December of this year. 

PHS Manufacturers Eye China as Domestic Market "Matures"
As the domestic PHS market reaches saturation, and in the face of a maturing market in which income from calling plans is leveling off, telecommunications equipment manufacturers are looking increasingly to shift their PHS operations to China. The moves come at a time when local Japanese operators are cooling to the PHS business, with NTT DoCoMo freezing the development of new PHS handsets,  and KDDI Corp negotiating with Kyocera Corp and others to sell its subsidiary, leading PHS operator DDI Pocket Inc.  But MMJ thinks PHS is hot stuff, a seriously unvalued connectivity solution that only looks outmoded because Japan is already talking about 4G and ubiquity. But there is still plenty of growth for PHS elsewhere.


NTT DoCoMo to fix bugs via Wireless Patching Network
By 2004, NTT DoCoMo will adopt a new system for fixing handset software bugs, which have plagued Japanese operators and handset manufacturers increasingly since the launch of mobile Internet services.

The new patch system will rely on users to fix handset problems themselves over-the-air by downloading a patch, similar to the update function offered by Microsoft for Windows. The solution is expected cut costs and reduce expensive recalls, which require users to bring or send the handset to a retail store for repair or replacement. DoCoMo’s new system will use data transmitted at low bandwidths, with the bug-fixing programs compressed and distributed to patch the software problems on the phones.  The move is a first among Japanese operators, and coming from the market leader, it sounds like a loud acknowledgement that the leading mobile market is likely to see more fancy-yet-buggy handset in the future, so why not be prepared...hold on to your handsets!


Wireless Access points in Japan to double by December
Intel Corp, the world’s biggest computer-chip maker, expects the number of cafes, airports and other areas where consumers can get wireless access to the internet in Japan to double by December. The number of hotspots will double to 7,000 by the end of the year from about 3,500, according to Greg Pearson, co-president of Intel’s Japan business. Intel is spending US$300 million globally this year to promote its new Centrino chips that allow notebook users wireless access to the Internet. The company is betting that as users flip open their notebooks and sip their lattes while surfing the Web in cafes around Japan, demand will rise for mobile computers with wireless capabilities. Intel expects that by 2005, 80 percent of notebooks sold will be able to access the Internet without having to plug into fixed access points. Demand for wireless access will help spur global notebook sales by 15 percent this year, said Pearson.





for September 5-10, 2003
 

DoCoMo Local Strategies / KDDI GPS in Thailand / Taito and Nokia
 
 

By Kevin J. Smith, Mobile Media Japan, Tokyo


This week in Japan saw NTT DoCoMo make a number of moves to salvage faltering subscriber numbers. Meanwhile KDDI stepped up its international profile by acquiring the contract from Hutchinson CAT to construct a gpsOne system in Thailand. Finally, we saw a deepening of collaboration between content providers and hardware manufacturers to offer  various new types of content, including Cell Phone Karaoke.

NTT DoCoMo’s latest competitive strategy

Call discounts
In an effort to increase 3G FOMA uptake, DoCoMo declared that effective October 1, 2003, all “Yu Yu” Call discounts of up to 30% will be extended to include 3G FOMA videophone, M-stage V-Live video streaming or M-stage Visual Net videoconferencing for calls to designated phone numbers . The Yu Yu Call discount service has been available for both 2G mova and FOMA voice calls for a basic monthly fee of 180 Japanese yen. 30% is deducted from call charges to designated DoCoMo numbers, and a 10% discount applies to calls to designated non-DoCoMo numbers and fixed-line phones. The move by DoCoMo is aimed to encourage users to explore the fun and benefits of video calling. A video call on FOMA is on average 65% more expensive to make than a voice call, hence DoCoMo can generate more revenues per call per minute.

Rollover minutes
NTT DoCoMo will also begin rolling over customers’ unused monthly dialing and communications allowances for up to two months beginning in November. The “two-month carryover” plan applies to all mova and FOMA subscribers and will be automatically instituted for subscribers.

Mobile Internet Phones for the elderly or Technologically challenged
NTT DoCoMo will also launch a new handset model that reads aloud Internet text content and is equipped with a pedometer, functions seen to lure senior citizens and people feel otherwise technologically challenged. According to a DoCoMo spokesperson the flip-type handsets, manufactured by Fujitsu Ltd and estimated to retail for 30,000-40,000 yen ($257-$343), will be the world’s first cell phone handsets with a pedometer function. 

MMJ thinks this is a brilliant mobile innovation, since you would never be able to use a pedometer with a fixed line phone – just try it! You won’t get far.

The new Internet-capable handsets also come with large-sized text display and a simple e-mailing function.

Hutchison CAT Awards Global Positioning System (gpsOne) Contract to KDDI

KDDI announced a contract with Hutchison CAT Wireless Multimedia Ltd., a leading cellular phone carrier in Thailand, for the construction of a high-precision global positioning system (GPS). The contract is based on the gpsOne (TM) system which KDDI presently offers in Japan in cooperation with NEC as EZ NAVI, and is worth a total of approximately 1 billion yen. In constructing the new system, KDDI will cooperate with Snap Track, Inc., regarding the gpsOne (TM) system license and technological support. KDDI will also receive cooperation from Qualcomm, Inc. relating to the technological support associated with the CDMA system.

Taito, Nokia to Join Hands on Cell Phone Karaoke

Taito Corp, a Japanese game software developer, will offer an application using its karaoke data format, "Sequential Display Object Format" (SDOF) for Nokia’s GSM-compatible mobile phone "Nokia 3300." The two firms also will jointly distribute karaoke contents online.

The joint undertaking is based on the "Early Access Project," Nokia’s new product application/service advance development project as part of "Forum Nokia," the Finnish firm’s program for content developers. Taito also has provided "Club Nokia" with Java-compatible game contents. "Club Nokia" is a distribution service for GSM mobile phones.

This project was started in response to a call by Nokia to keep an eye on the steadily expanding karaoke market in Southeast Asia, and then the development project was launched. The target areas will include China, Hong Kong, Singapore, Taiwan and other parts of Asia where the two firms expect wider use of karaoke by mobile phones in the coming years



for August 31-September 5, 2003
 

au's 9 million 3G subs / DoCoMo's Melody Call / Vodaphone K.K.'s Global Nokia
 
 

By Kevin J. Smith, Mobile Media Japan, Tokyo


Last week in Japan we saw the advance of KDDI's 3G numbers, continued globalization of the wireless industry with the import of the Korean "melody call" service and J-phone's continued movement into the global market with the adoption of a multi-regional handset.



KDDI's 'au' hits 15 million subscribers



KDDI's au service reached 15 million subscribers as of Mid-August. KDDI, which first launched it's mobile Internet services in April 1999 finished upgrading its network to the next- generation CDMA2001x protocol in April of 2002. Current subscriber statistics show that as of August 26th, Au 3G has 9.156 million subscribers. This means that two-thirds of their subscribers are using next-generation handsets, dwarfing the 3G numbers of rivals NTT DoCoMo's FOMA service and recently deployed 3G services from Vodafone K.K.Among the reasons for KDDI's success in migrating users to advanced handsets are the upgrade of its existing CDMA2000 network and cleverly-marketed, low-cost handsets. Both NTT DoCoMo and Vodafone K.K. rely on PDC networks for 2G and W-CDMA networks for their 3G services.



NTT DoCoMo introduces "Melody Call" service to Japan



As of September 1st, NTT DoCoMo has introduced the "Melody Call" service to its 2G PDC and 3rd generation FOMA subscribers. The service, originally created in Korea, allows an individual to hear the musical selection of their choice instead of the standard ringing sound when making a call. The service has two options: the "Basic Course" for 100 yen a month and the "Enjoy Course" for 200 yen a month. The basic option provides up to 20 musical selections to choose from while the Enjoy course has an additional 3,000 musical and voice selections to choose from.



J-Phone begins to sell Nokia's Bluetooth Dual 3G-GSMMobile Phone Handset



As part of its continued globalization, Vodafone K.K. (formerly known as J-Phone has begun selling Nokia's V-NM701 handset. This particular handset can be used not only in Japan, but in Europe, the Oceania region and Asian countries. The V-NM701 comprises a Nokia 6650 handset and a USIM card, the Vodafone Global Standard Card. It has Bluetooth and IrDA interfaces that allow users to easily connect outside equipment such as notebook PCs and PDAs. It marks the first time J-Phone has carried a Bluetooth equipped phone, a standard in recent European phones that has never really taken off in Japan. Unlike previous Nokia-branded flip-type handsets sold by J-Phone, which were manufactured by Sanyo, the phone is actually manufactured by Nokia, and sports classic Nokia design features. Still true to the J-Phone tradition, the handset comes equipped with a 320,000-pixel camera. It weighs about 141g, can be used for up to 190 minutes when using it in the W-CDMA mode and about 260 minutes in the GSM mode.





for June 9-16, 2003
 

LCD Patent Violation / New KDDI Ambition / NTT's Faster-than-WLAN / Digital TV
 
 
Japan's wireless industry continued to make large strides on the development front. So fast, perhaps, that it seems to occasionally forgets to cover bases on the patent side:


Japanese Handset Manufacturers Face Potential LCD Patent Violation
A surprising investigative report by Nikkei revealed that many Japanese handset manufacturers may be violating a March 14th "Patent on Mobile Phone with Two Screens" (Patent No. 2408154). The patent, held by Nagoya-based ADC Technology, Inc., could put many Japanese manufacturers in violation of cell phone models with a main display and a sub-display. If the patent holds, companies violating the patent may be forced to pay licensing fees and potentially damages if the company seeks to enforce the patent. ADC Technology has already formally warned domestic manufacturers of the violation, as well as operators including NTT DoCoMo, KDDI and J-Phone. The companies are apparently seeking strategies to avoid the patent. Most insightful however, was a quote by ADC Technology President Kazumi Mizuguchi: "The idea of doing business with intellectual property rights typically represented by patents is not included in the management strategy of many leading Japanese companies. Patents are not given to people who put technology into practical use, but are given to people who first come up with original technical ideas."


KDDI's Ambitions Extend Beyond Cell Phones
This week the Nihon Keizai Shimbun reported KDDI Corp.'s relationship with Alps Electric Co Ltd, Kyocera Corp and others to design a multi-use module to enable different types of devices to exchange data wirelessly via KDDI's (apparently using KDDI's CDMA2000 1x network). Faced with a saturated cell phone market, KDDI is considering new businesses that will demand wireless communication modules that can be installed in digital cameras, game machines, power meters and other equipment. KDDI plans to charge communication and service fees for the module, and is projecting revenues of over 100 billion yen for the next fiscal year. To date, KDDI has embedded a wireless module in Pioneer Corp.'s autombile navigation system and launched a corresponding service for maps and entertainment information.


NTT Unveils Yet Another Super High-Speed Communication Technology
Nippon Telegraph and Telephone Corp announced the development of a new wirless high-speed trasmission technology the allows for data transferring close to that of fiber-optic networks. The technology's 80Mbps speeds, roughly seven times faster than outdoor WLAN, will allow the simultaneous receipt of 10 cnhannels of high-resolution images as well as Internet access. Also significant is its range of 700 meters, much further than the 100 meters found in most WLAN devices. NTT has not priced the service yet, but it is expected to be around 5,000 yen per month, making it affordable for most households.


Digital Broadcast Satellite Gaining Momentum
Although not exactly mobile phone related, shipments of Digital Broadcast Satellite Systems (external tuners and TV sets with built-in tuners) reached 2 million, according to The Japan Electronics and Information Technology Industries Association (JEITA). The addition of the shipments of plasma TVs with built-in tuners has helped brings the total shipments of digital broadcast satellite reception systems to 2,025,000.



for May 30-June 6, 2003
 

MPEG LA / Purikura / DoCoMo Does Commerce / CMOS Demand
 
 
An abundance of interesting news this week.

MPEG LA
Follow-up to our previous commentary on MPEG LA licensing issue. MPEG LA responded to the letter from the Mobile Content Forum and Association of Media in Digital (AMD) by meeting mobile industry representatives in Tokyo. At present, the patent licensing issue has brought MPEG-4 under scrutiny as a mobile video standard in Japan, especially as it is the main mobile video technology used by major players such as NTT DoCoMo Inc.'s i-motion service and KDDI Corp.'s ezmovie service. The letter from the Japanese mobile industry to MPEG LA requested that MPEG LA reconsider its licensing fee structure and reporting requirements to fit conditions in the Japanese market. Discussions between MPEG LA and Japanese content providers are underway.

Purikura
After a few train rides in Tokyo, one is bound to spot a teenager whose cell phone is decorated with miniature photo stickers of friends. The J-pop-culture relic, produced be "Purikura" machines have made a full scale transition to wireless. Over the past year, the list of companies and locations allowing mobile users with camera phones to publish personalized pictures on printers that sometimes look like giant cell phones. The list of companies offering similar services suggest they may be onto something: NEC Mobiling, Ltd., Omron Corp., Mitsubishi Electric Corp, Fuji Photo Film Co, Konica Corp. (with Bandai Networks), and Eastman Kodak Co.all have released printing-related camera phone services at thousands of locations across Japan. The services tend to range from 100yen to 600yen, depending on the offering. As time goes on, it will be interesting to see how much money these services actually bring in.


NTT DoCoMo's "DoCommerce"
There is a muted rumble growing as mobile commerce trials in Japan quietly continue as background news. There have been two fairly inocuous infrared payment tests by both NTT DoCoMo and KDDI, and the NTT DoCoMo "DoCommerce" trial adds to the notion that paying for goods via a handset may one day be a big business. The DoCommerce trial will look at how 2G and 3G subscribers use their handset to conduct online mobile shopping. The online charges made during the trial will show up on a subscriber's monthly phone invoice. The trial will last for six weeks from June 26, and incorporate only 20 virtual online stores as sales outlets. The new service will be available to all 38 million i-mode subscribers, which definitely makes it one of the more significant mobile commerce trials taking place in Japan. DoCommerce is aiming at individual subscriber purchases in the 1,000 (minimum) -10,000 yen per month range for participating users.


Demand for Camera Sensor Modules
As covered in past weeklies, there is ongoing pressure on camera phone component suppliers to meet demand for mobile camera parts. The latest announcement by Fujitsu Ltd to increase production of camera sensor modules for mobile handsets from the current 500,000 units a month to 1.0-1.5 million units signals the global appetite for camera phones has plenty of growth ahead. According to Fujitsu, the increase will focus on CMOS (complementary metal-oxide semiconductor) sensors, including those featuring 1 millioin pixels. The demand will be met by farming out more production to outside affiliates. Fujitsu started mass production in April, and is expecting their mobile CMOS sales to hit 25 billion yen in fiscal 2003 from virtually zero just one year ago.


The Dog Told Me To Do It
By far the most interesting wireless development this month comes from Takara Co, Ltd, Matsushita Electric Industrial Co, Ltd and Index Corp revealing they have gotten more serious about a service called "Bowlingual" -- a communication tool that tells the pet owner how a dog is feeling. A wireless microphone embedded in the Bowlingual terminal picks up then analyzes dog barks and transmits the results to a dog owner at a distance via a special device (transmitter/receiver) placed inside or outside the house. Owners can check how their pets are doing from anywhere using either a cell phone or a special device.


for May 23-29, 2003
 

1 Megapixel Handsets / Ferrari Infrared / i-mode vs. V Live! subs / Touch Panels
 
 


If you had the opportunity to stroll by an electronics store in Tokyo this week, you likely saw hand-drawn signs alerting customers that Vodafone's new megapixel J-SH53 camera phone by Sharp would be "in stock this weekend!" The press releases coming out of KDDI, NTT DoCoMo and Vodafone (J-Phone's new name is emblazoned on its new handset) all competed for the limelight with their megapixel camera phones. Vodafone may be the winner because it at least guaranteed a limited stock to selected stores. What is striking is not who comes in first, but rather how closely similar the product strategies of these competing operators have become with regard to their camera phones. It seems hard to believe that just 18 months ago, NTT DoCoMo seemed to question the value of the embedded camera phone seemed in no hurry to a model of its own. Today, NTT DoCoMo outsells its rivals in camera phones. The first camera phone release three years was a controversial move, but today the 1 megapixel camera phone has become a much-anticipated milestone.


Ferrari Infrared

Apart from the megapixel camera phone, one of the cooolest products to pop-up this week is a new toy car that can be guided by an NEC-compatible phone. The toy car was a coordinated effort by Konami and NEC using the infrared communication capabilities of built into both NTT DoCoMo's "mova N504iS" and J-Phone's "J-N51" handsets. In an ironic twist, it's very possible a DoCoMo N504iS owner will go to a toy store and buy this model Ferrari F2002 car which sports a big Vodafone logo on the side panel (see picture in the NEC press release). Nonetheless, these look like very fun toys. Also check out the nicely designed Konami Web site.


i-mode vs. V Live! Signup Numbers

Some useful data out this week on NTT DoCoMo's i-mode vs. Vodafone's Live subscribers outside Japan (compiled by International Herald Tribune / The Enquirer May 2003):


i-Mode

· European i-mode launch: 14 months ago

· Total European i-mode users: 455,000

· KPN i-mode users: 137,000

· E-Plus i-mode users: 140,000

· BASE i-mode users: 8,000

· Bouygues Telecom SA i-mode users: 170,000

· Prepaid offering: Vodafone Live! (Europe) offers prepaid; i-mode does not

· Taiwan i-mode users: 95,000



Vodafone Live!

· Vodafone Live! launch: 8 months ago

· Vodafone Germany Live! users: 405,000

· Vodafone Italy Live! users: 227,000

· Vodafone UK Live! users: 240,000

· Available in 10 countries, with over a 1 million Vodafone Live! users



Touch Panels on Phones

On the development front, a very insightful article by Nikkei's NEAsia Online looks at the evolving use of touch panels in mobile phones. Currently, a wide variety of firms are experimenting with new uses of thin touch panels, including Matsushita Electronic Components, Fujitsu Component, Sony EMCS Corp and are expecting volume production to pick up before the end of 2003. This article is interesting in that it looks at the different characteristics that are taking shape between US and Japanese product demands - notably that PDA's and smart phones using touch panels are much more appropriate in the US than Japan. Until recently, the Japanese market has been hesitant to adopt this path, since domestic electronics firms released equivalent functions in the late 1990's but failed to find a hit. New interest in using touch panels is coming from Japan's mobile handset manufacturers, that are trying to look beyond new components and study how touch panels would change the way users interact with their phones.




for May 2-9, 2003
 

MPEG-4 Mess / 2002 Handset Sales / WLAN Doubles / Science Fair
 
 
The industry returned from the national "Golden Week" holidays to a flurry of activity. First up is the fiasco dropped on mobile content providers just before their holiday began:

MPEG-4 Licensing Mess Hits Japanese Mobile
In a confusing move, US-based MPEG LA, LLC, which manages the collective MPEG related patents for the MPEG-4 visual compression standard, delivered a 47-page agreement (in English) to befuddled Japanese content providers laying out new terms for paying royalties on video download content formatted in MEG-4. The document was allegedly broadcast-faxed by mobile operator KDDI -- which has settled on MPEG-4 for delivering mobile video downloads -- and which also happens to be an MPEG-4 patent holder, along with numerous other Japanese and foreign companies. Japanese content providers were shocked to read MPEG LA could ask them to pay from 25 cents per user up to US$1,000,000 per year, depending on the volume and manner in which users download content. Japanese content providers have been given 30 days to sign the agreement in order to take advantage of an "early bird" special that waives royalties until the end of 2003. Some say Japan's budding video-download market won't bear the high royalities, which will either erase profits or drive up content costs. The development risks driving content companies away from download services that use MPEG-4, or toward other compression formats such as Office Noa's "Nancy" video codec (used by J-Phone) or other alternatives.

Top 2002 handset manufacturers in Japan:

(published by the Dataquest unit of Gartner Japan)
NEC topped 2002; Panasonic Mobile Communications Co, Ltd was the second largest Sharp Corp moved up from 5th to 3rd. Toshiba Corp was 4th and Mitsubishi Electric Corp was 5th.
Top 2002 camera-phone manufacturers: Sharp was the market leader with a 36.2% share in the camera phone market. Sanyo Electric Co, Ltd was second in sales and NEC third.
Domestic cell phone sales: declined 3.0% from the previous year to 39,390,000 units, recording a year-on-year decrease for two consecutive years. Fourth quarter 2002 sales increased 34.0% to 10,700,000 units, achieving a quarter-on-quarter increase for the first time in the past eight quarters. Gartner estimates that new purchases of cell phones will decline further in 2003.
Camera phone sales: Unit sales of camera phones accounted for 15.7% of total cell phone unit sales in the first quarter, but increased the share to 57.3% in the fourth quarter. They accounted for 36.4% for the whole of 2002.


WLAN in Japan Doubles

Japan's Internet access providers had a combined 9,397,426 broadband subscribers as of the end of March, more than double the 3,861,195 figure of a year ago, the telecom ministry said Wednesday in a preliminary report. Most of the high-speed access contracts were for the asymmetric digital subscriber line (ADSL) service, which came to 7.02 million, up from 2.38 million a year earlier. These were followed by Net access via cable television at 2.07 million, compared with 1.46 million a year before, and the so-called fiber-to-the-home (FTTH) service, or Net access via fiber optics, at 305,387, up from 26,400. The figures give Japan a near 20 per cent broadband penetration, according to DigiTimes. The market for wireless broadband communications services in Japan is projected to reach 92 trillion yen in ten years, according to recent estimates made this week by an advisory panel to the telecom minister.

For two excellent NYT articles comparing US, Korea, Japan broadband growth, see:

Japan Goes High Speed: A Tenfold Increase in Connections
America's Broadband Dream Is Alive in Korea


Science Fair

WLAN/PHS/Cellular Merge: The Communications Research Laboratory, a government-affiliated research institute, has developed a method that enables a single wireless device to use different technologies to transmit data cellular telephone, PHS (personal handyphone system) or wireless LAN (local area network), automatically choosing the most appropriate one for a given situation. The technology is the result of a private-public partnership that included such firms as KDDI Corp and the Matsushita Electric Industrial Co Ltd group. The institute aims to commercialize the technology in two to three years.


RFID Tags in Books: Dai Nippon Printing Co, Ltd, NTT Corp, and Sun Microsystems Inc jointly developed a system that utilizes a radio frequency identification (RFID) tag implanted in books for the publishing industry. It enables booksellers to construct a supply chain management (SCM) system as well as monitor shoppers' in-store behavior. It is still unknown whether the publishing industry will introduce RFID tags, because as many as 6 billion books are being distributed annually in Japan.


New Sharp GX20 for Europe: New streamlined Sharp based on European market needs. Interesting article detailing how improvements are resulting in a handset better than the Japanese original: "Sharp packs new GX20 phone with high-spec features"




















for April 22-29, 2003
 

Japan's Asia Push / Sony Ericsson / Swivel 3G KDDI Phone & New J-Phone Handset
 
 
Scott Murff, Mobile Media Japan, Tokyo


Usually we don't focus on occasional announcements of Japanese corporate efforts abroad - a single week's event does not necessarily constitute a trend. Yet this week is interesting because of the wide range of activities Japanese wireless companies are conducting overseas, highlighting the ways that firms are becoming more comfortable tailoring their domestic market wins to suit challenges abroad.


Recent overseas developments:


  • CHINA: Mitsui & Co Ltd took a 25% stake in Shanghai Guangdian Liquid Crystal Display Co Ltd., which produces color LCDs for mobile phones. Mitsui will help Shanghai Guangdian LCD sell products to Japanese mobile phone manufacturers operating in China.



  • CHINA: Sharp Corp, pioneer of Japan's camera phones, will start selling camera-phones in China this month, expanding beyond established markets in Japan and Europe. Sharp will initially supply 100,000 camera-phones to Beijing-based Datang Telecom Technology Co. Ltd , a major Chinese telecoms equipment supplier.



  • CHINA/KOREA: Yokohama-based PalmNet launched Linux-based handheld computer sporting Wi-Fi, a mobile phone and a camera, the result of collaboration between China, Korea and Japan. The device is aimed at manufacturers and vendors who may wish to include customized hardware and services. The firm is aiming to ship 150,000 units of the product by the next March and is also looking the possibility of bringing the product to Korea and China.



  • HK / SINGAPORE: NTT DoCoMo Inc is slated to transfer advanced third-generation (3G) cell phone technology enabling teleconferencing and other high-speed functions to major cell phone firms in Singapore and Hong Kong.




  • EUROPE: NEC and Siemens Information and Communication Mobile (Siemens mobile) have completed the first phase of Europe's first commercial 3G radio network for Hutchison 3G UK, trading as 3. The 3G infrastructure partners have helped ensure that 3 UK is the first company to bring next generation wireless communications to UK mobile users.



  • Mixed Messages: Sony Ericsson


    The combined hardware expertise and marketing sensibilities of Ericsson and Sony seemed like an ideal match as a new company, but ever since its inception the company seems unable to put forth a unified image for the press to latch onto. This week was no different. Three angles make the case in point:


    (TAIWAN): Market Data: Shipment volume of Taiwanese mobile phones grew a strong 138% in the first quarter of 2003 to reach 10.5 million units, according to the Market Intelligence Center (MIC) of Taiwan. MIC said contracts from Sony Ericsson are expected to constitute the major driver for Taiwanese mobile phone industry development in the first half of 2003. "Sony Ericsson will likely step up orders to Taiwanese manufacturers in a bid to reclaim between 7% to 10% worldwide market share. Outsourcing will allow Sony Ericsson to expand product lines in response to Nokia, Motorola, and Samsung's full product portfolios and rapid handset rollouts."


    (JAPAN): Glowing Sony Ericsson interview: "WWJ sits down to look into the design process that animates Japan's ubercool handset industry. We ask about product planning, design peculiarities of the Japanese market, development for overseas, and about new technologies - like removable memory and swivel cameras. Sony Ericsson is one of Japan's top handset factories and their new-last-week 505i handset for DoCoMo is the only one with a 1.3-megapixel camera. If there's something these folks don't know about creating handsets, it's not worth knowing."


    (UK): Analysts: Sony Ericsson, the world's fifth-largest mobile phone maker, faced fresh questions about its future on Thursday after seeing its market share fall and losses come in above expectations in the first quarter. But the group, jointly owned by Sony of Japan and Ericsson of Sweden, said it was sticking to a forecast of a profit for the full year, even though analysts are increasingly sceptical about the target being met. "All the figures that the company presented in the first quarter were disappointing. Unless there is a dramatic improvement in the second quarter, it is increasingly likely that Ericsson will want to withdraw from the joint venture," said Jussi Uskola, analyst at Nordea Securities. (Financial Times)


    Swivel 3G KDDI Phone & New J-Phone Handset


    KDDI Corp. and Okinawa Cellular: launching sales of the new Movie Mail-compatible handset A5305K in mid-May of this year. Manufactured by Kyocera Corp., the handset allows users to shoot and send seamless movies and is part of a new lineup of third-generation mobile phones (CDMA 2000 1x).


    Check out this picture that shows KDDI's swivel design


    J-Phone: launched the J-SH53 by Sharp, which comes with a built-in CCD mobile camera capable of photographing 1 million effective pixels for high-quality pictures.


    A cool shot of a new high-end J-Phone with nice screen











    for April 9-16, 2003
     

    Strains of Camera Phone Demand / Payment Trials / Dating Censorship
     
     
    The two most prominent themes in foreign coverage of Japan's wireless scene have been the recent release of megapixel camera phones and handset payment trials getting underway. In both cases, NTT DoCoMo's rivals released similar alternatives either before or at the same time DoCoMo, but they were for the most part overshadowed by the achievements of NTT DoCoMo.

    This is especially interesting to see in terms of megapixel camera phones. Up to now camera phones have been an almost exclusive J-Phone / Vodafone success story. But with DoCoMo having now sold 9 million camera phones as of April 5 (as opposed to the 9.015 million J-Phone sold as of March 15), DoCoMo is set to turn the tide on J-Phone's "#1 in camera phones" marketing campaign in Japan. Furthermore, this last round of announcements suggests that for the first time NTT DoCoMo is now working hard to set itself as the trend setter in camera phones with multiple 1 megapixel-plus camera phones, both here in Japan and in public perception abroad.

    Strains of Camera Phone Demand

    One development Nikkei recently reported is an ongoing shortage of camera phone lenses: "Camera-equipped cell phones, which debuted in late 2000, made up roughly 33.7 percent of total cell phone shipments in the first half of fiscal 2002, according to the Multimedia Research Institute. The figure reportedly jumped to 70 percent in the second half, and shipments of camera-equipped cell phones are estimated to have totaled more than 20 million units for the entire fiscal year."

    According to the article, 1 megapixel phones require special glass lenses, the same lenses that are used in consumer digital cameras, which are also seeing production stretched to the limit (shipments grew 66 percent to 24.55 million units in 2002, surpassing the Camera & Imaging Products Association's earlier estimate by about 5 million units). If the high-end megapixel camera phones prove popular, there may be delays in fulfilling demand.

    Payment Trials

    This past month KDDI and NTT DoCoMo began trials for new payment services. While NTT DoCoMo gained much of the spotlight in the press, both are worth noting. Both trials are roughly the same size, focus and duration (i.e. having partner banks trial a few hundred of their own customers). While NTT DoCoMo claims Visa as its main partner and KDDI teamed up with domestic powerhouose JCB Co., both will be offering credit card transaction payments via infrared terminals on the phone. The technology will be introduced to market in the Spring of next year.

    Dating Censorship

    KDDI's "au" service will begin blocking access to dating sites in an effort to stem underage subscribers using the sites. This has been in response to a growing problem of underage prostitution and related criminal cases relating to cell phone dating services. The new service plan will allow customers to choose between an unrestricted internet access or a filtered access to only 21 sites "au" can be liable for. J-Phone and NTT DoCoMo also said they are planning to introduce similar limitations to underage users.






    for March 4-19, 2003
     

    Spring Handsets / Japan's Latest Wireless Trends
     
     
    There was a volume of news last week, hence the bullet point format:

    a. There are now 6.09 million 3G users in Japan.

    b. A slew of handset announcements: Samsung will make phones for i-mode outside of Japan; NEC released its FOMA P210V 3G phone, the first NEC 3G phone allowing NTT DoCoMo users to email video clips and use memory cards; NEC will launch the n3li camera phone for European i-mode markets loaded with Japanese-style features but specifically designed for Europe; Sony Ericsson is launching the A13015 CDMA2000 1x phone on KDDI; Sony, Sharp and others formed the 3D Consortium to develop technology where 2D images stand out like holograms on phone screens.

    c. Japan Media Review has recently published a series of articles covering the social implications of Japan's wireless culture. Tim Clark's "Japan's Generation of Computer Refuseniks" suggests Japanese teens now see mobile phones as the access device of choice, showing signs of forgoing personal computer purchases for handset upgrades. Mizuko Ito's article "A New Set of Social Rules for a Newly Wireless Society" spells out the cultural impact of wireless on teenage social habits. Citing a November 2001 survey by the Mobile Communications Research Group, wireless email usage among college, high school and middle school girls is virtually 100%, while teens overall are sending double the volume of text messages than Japanese twentysomethings.

    d. NTT DoCoMo's Takeshi Natsuno was at Silicon Valley's "Game Developer's Conference Mobile" recently, where US gaming companies were reacting to the promise of wireless gaming on the new Sony Ericcson T606 and Nokia NGage devices. One takeaway was Natsuno's statement that i-mode has about 3.7 million paying subscribers for games in Japan, which is about 10% of its domestic subscriber base. This conference and Natsuno's comments were widely cited in US technology press, and are in stark contrast to a research report just released by Jupiterresearch titled "Wireless Paid Content: Prioritizing US Market Opportunities for Content Owners." It says, "European revenues for wireless content providers (including ringtones, logos, alerts and polling) represent a bigger opportunity for content and media companies than do online advertising or paid content. For the next 24 months, wireless content revenues in the US will amount to chump change - less than US$200 million in aggregate consumer spending across all categories." (24 months!) Whether you dispute these numbers or not it certainly highlights the gap between DoCoMo ability to accumulate millions of paying customers for i-mode and the realities US game developers face in deciding whether to roll the dice on the US market.

    e. With a little less fanfare than Intel's Wi-Fi chip announcement, Matsushita Electric has introduced a 5GHz WLAN IEEE802.11a and 802.11b chipset capable of transferring video images among home AV equipment.

    f. Mitsubishi Corp. is getting closer to launching its Monteran software technology, developd with a Deutsche Telecom subisidiary, that will allow a personal computer or mobile terminal to double as a WLAN base. The service may be available in Europe as early as this year. One terminal can communicate with another within a radius of 40 meters.

    g. Two Nikkei (NEAsia Online) articles pointed out two notable hardware trends in Japan. The first being NEC and Hitachi trying to commercialize fuel cells for mobile devices by 2004 and 2005. The second trend is in hard disk drive development-which has been increasingly miniaturized - being overtaken in functionality by more powerful Memory Sticks or SD cards around 2005. Both Sony and Matsushita will release 1GB version of their storage media this spring.

    h. Kato-Denki, a Japanese security equipment maker, developed an anti-theft system whereby a terminal installed in the car will use GPS and PHS to contact the owner's mobile if it senses any suspicious activity. If this product ever makes it to the States, Kato-Denki should get David Hasselhoff to do a "Knight Rider" commercial with this product! (for information on "Knight Rider, a 1980s TV shown in the US featuring a talking car, see http://www.knightrideronline.com)



    for February 24-March 3, 2003
     

    Japan's WLAN Handsets/ Latest on DoCoMo's PHS, Flash and 3G
     
     
    WLAN IN THE HAND
    Japan's quickly evolving WLAN market has witnessed rapid change in three core areas: the proliferation of hotspot areas (making urban coverage gradually more realistic as a data service); the dropping of WLAN subscription prices to under $18 a month, and most recently, the introduction of new devices using WLAN technology. On the wireline side, the number of Japan's broadband subscribers grew to 7.8 million by the end of 2002 (Ministry of Public Management, Home Affairs, Posts and Telecommunications) and up-and-coming providers such as Softbank have been using WLAN as a tool to sustain an aggressive pace of growth. Last month, they introduced the BB Phone Station, a new stationary phone manufactured by Sharp, that comes complete with a built-in ADSL modem and IEEE802.11b wireless LAN router and is targeted at Yahoo! BB subscribers, allowing them to create a wireless home network centered around this phone-base-station. The phone costs approximately US$380 (or 13$ monthly on a rental plan) and for an extra $100, Softbank is selling a second cordless extension phone that is capable of handling a separate second call if the user has two BB phone lines. This past year, Softbank has proven to be the innovator in the consumer broadband/WLAN space, and we expect them to advance further into a broader suite of wireless services via WLAN.

    Using WLAN for mobile phone communications is looking commercially possible in Japan, especially following Mitsubishi Electric Corp's release of the 'Mobile IP Talk' handset, which has a slot for a compact flash card where a PHS or WLAN card can be placed. Although not available until Summer 2003, Mitsubishi Electric is working on several improvements, but one important differentiator will be the phone’s new power management technology, which allow for 20 times more standby time than a conventional mobile handset.

    NTT DOCOMO PHS, FLASH, AND 3G
    On the PHS front, NTT DoCoMo plans to start a flat-rate PHS service similar to DDI Pocket's in April. DDI Pocket is a former KDDI company and is popular as a wireless data service among notebook and handheld device users. Although details are still being decided, the Nikon Keizai Shimbun reported the service will cost 4,880 yen ($40)/month as opposed to DDI Pocket's 4,930 yen monthly fee. DDI Pocket posted an operating profit of 9.1 billion yen this past half year, whereas DoCoMo's PHS division posted an operating loss of 15.6 billion yen during the same period.

    In terms of the continuing evolution of i-mode services, Macromedia and NTT DoCoMo have partnered to jointly provide Flash motion-image software for i-mode handsets. This is certainly exciting news for content developers and consumers, and the first 505i phones with Flash are scheduled to hit the market later this year.

    FOMA GOING MAINSTREAM?
    This week's summary comments are based on a Nikkei headline we posted on MMJ (hen FOMA Models Gain Mainstream StatusE that compares the new technical merits of FOMA phones to the current 2.5G i-mode handsets. The report concludes that FOMA problems will be resolved, and price, coverage and battery performance should be comparable to their i-mode counterparts by the end of next year. But the article's title hints at a broader question that goes beyond hardware/price issues: branding. Can NTT's efforts reach mainstream status in the market using the FOMA brand?

    The beginnings of this year NTT DoCoMo started subtly using the phrase 'New FOMA' its marketing Eputting less of an emphasis than originally seen in FOMA's original launch that began back in October 2001. FOMA subscribers are now at 150,000 (well below the revised goal of 320,000 by the end of March, itself adjusted downward from an initially targeted 1 million). NTT DoCoMo has essentially converted fewer than .5% of its entire subscriber base to 3G, leaving FOMA far from mainstream. For contrast, compare KDDI's conversion to its next-generation services of roughly 30% since December 2001.

    If FOMA handsets do in fact live up to expectations, a new branding and positioning strategy could be crucial to ensure that NTT DoCoMo can derive a return on its multi-billion dollar investment in their 3G. Over the past year, we have seen the FOMA brand associations move away from the futuristic coolness targeting consumers, based on a campaign around bi-cultural pop star Utada Hikaru. Yet if NTT DoCoMo chooses to make FOMA a brand focused on the corporate customer, FOMA may have trouble attaining the mainstream status of i-mode.



    for January 2-24, 2003
     

    FOMA 3G Handset / DoCoMo-AOL / Camera Phones Soar
     
     
    NTT DoCoMo announced the release of the NEC-produced N2051 3G handset, which offers 180 hours of battery time. Prior 3G models offered 50 hours of battery time. The bottom line is NTT DoCoMofs 3G handsets are getting better, cheaper and more functional which means NTT DoCoMo FOMA might grow.

    The N0251 also introduces the i-motion video capability to 3G subscribers, allowing users to email close to 15-seconds of video shot using the phonefs embedded camera.

    NTT DoCoMo has renewed efforts to solve its 3G handset problem, offering to shoulder half of the handset manufacturerfs estimated YEN 9 billion (USD 75 million) R&D costs. By sharing R&D costs, there is also speculation the effort will lead to cheaper 3G handsets and an opportunity for NTT DoCoMo to participate in handset technology patent ownership (valuable in the long-term). In the short-term, the company is looking to the N0251 to spark a new round of FOMA subscriptions in order to hit its 320,000 target by March 2003.

    Other news in Japan worth noting:

    NTT DoCoMo / AOL Deal: NTT DoCoMo announced it would develop America Online wireless internet services for Japan and abroad. AOL has a reduced presence in Japan compared to its US market position and faces a mature wireless internet market in Japan. Nonetheless, offering AOL Mail and Instant Messenger on i-mode makes plenty of sense and the timing is especially desirable in growing i-mode markets such as Europe.

    J-Phone Sha-mail Stats: As of Jan 14, 2003, J-Phone has now sold a total of 8 million Sha-mail camera-phone handsets, or 60% of J-Phones total subscriber base.

    i-shot Catching Up to Sha-mail: For the first time in 18 months, Japanfs handset market posted growth. The reason appears to be the popularity of NTT DoCoMofs camera-phone i-shot service which have sold 5 million handsets in the 7 months since launch. Thatfs less than 15 percent of NTT DoCoMofs i-mode population, which means the company has plenty of room to grow.

    KDDI Camera-phones: KDDIfs latest numbers show the company with 2.47 million camera-phone users, putting Japanfs total camera-phone market at 15 million, or 20 percent of Japanfs 73 million mobile users.

    Cool NTT DoCoMo R&D: NTT DoCoMo Inc is developing terminals for High Speed Downlink Packet Access (HSDPA), a W-CDMA technology to accelerate 3G downstream packet data transmissions. NTT DoCoMo is producing HSDPA-compatible prototypes in collaboration with at least two handset manufacturers with the hopes to launch trials sometime after autumn of 2003. From 2004 to 2005, HSDPA-capable mobile phones will be released to market. HSDPA can accelerate maximum downstream data transmission up to 14.4Mbps using a 5MHz frequency band. Last time we checked, 14.4Mbps on a mobile phone was really, really fast.



    for October 17-24, 2002
     

    J-Phone's 7 Million Camera-Phones / Sharp's Computer on Glass / Japan's Fun R&D Labs
     
     
    J-Phone continues to sell camera-phones, and lots of them. This week J-Phone announced it had sold 7 million "sha-mail" photo-capable handsets since June 2001 and in the process converted 54% of its subscriber base to the service. It's impressive to see an operator as large as J-Phone (11 million subscribers) in economic times like these (both for the wireless industry-at-large and Japan's struggling business climate) somehow manage to upgrade half of their customer base to a new technology in less than 18 months. Compare this to a study released this week by the Yankee Group showing that 82% of US wireless users do not want or use wireless services because they are too expensive or too complicated. We will let our readers draw their own conclusions on why this is, but MMJ believes that J-Phone did an exceptional job of not only making their system work, but also explaining usage, targeting advertising correctly and most of all making the product look irresistably fun. J-Phone was the first operator worldwide to commercialize the camera-phone, and is looking to carry on it's pioneering legacy with its "Movie Sha-Mail" movie-phone service. It has signed up 800,000 subscribers to "Movie Sha-Mail" since its March 2002 launch. Kudos.

    Sharp, Japan's largest maker of liquid crystal displays (LCDs) unveiled a screen with microprocessor circuitry built directly onto the glass, enabling it to function as a computer and possibly to carry mobile data. The company hopes to have products available by 2005 using the advanced circuitry, perhaps even a "display card" that could store data and be carried around for use with various gadgets from games machines to mobile phones to car navigation systems. "This could be something the size of a business card, perhaps with a wireless function and touch-screen input," said Mikio Katayama, head of Sharp's mobile display division. Shumpei Yamazaki, president of unlisted Semiconductor Energy Laboratory Ltd, Sharp's partner in the project, compared the challenge of putting processor circuitry on glass to "building a skyscraper on rubber." We at MMJ believe Sharp can pull it off, and are already planning to sell plots of rubber real estate to interested investors.

    These last few weeks Intel Corp. seems to have been pursuing a major initiative, as it has not let a day pass without praising wireless. For a company usually associated with PCs, this transition into wireless has led Intel (which already has a relationship with Cybird) to seek a development relationship with NTT DoCoMo. According to Tony Sica, Director of Marketing for Intel's Wireless Computing Group, Intel is "trying to understand their needs." Intel has been developing the Manitoba microchip, which allows both wireless processing and memory functions onto the same microchip, thereby cutting space and costs. The new chip should be on the market by 2004, and it sounds like Intel wouldn't mind NTT DoCoMo convincing some of its Japanese handset suppliers to become Intel customers (some of which are direct Intel competitors).


    for October 12-19, 2002
     

    KDD's New GPS Service / Belgium Launches I-mode / Wireless IM In Stadiums
     
     
    J-Phone continues to sell camera-phones, and lots of them. This week J-Phone announced it had sold 7 million "sha-mail" photo-capable handsets since June 2001 and in the process converted 54% of its subscriber base to the service. It's impressive to see an operator as large as J-Phone (11 million subscribers) in economic times like these (both for the wireless industry-at-large and Japan's struggling business climate) somehow manage to upgrade half of their customer base to a new technology in less than 18 months. Compare this to a study released this week by the Yankee Group showing that 82% of US wireless users do not want or use wireless services because they are too expensive or too complicated. We will let our readers draw their own conclusions on why this is, but MMJ believes that J-Phone did an exceptional job of not only making their system work, but also explaining usage, targeting advertising correctly and most of all making the product look irresistably fun. J-Phone was the first operator worldwide to commercialize the camera-phone, and is looking to carry on it's pioneering legacy with its "Movie Sha-Mail" movie-phone service. It has signed up 800,000 subscribers to "Movie Sha-Mail" since its March 2002 launch. Kudos.

    Sharp, Japan's largest maker of liquid crystal displays (LCDs) unveiled a screen with microprocessor circuitry built directly onto the glass, enabling it to function as a computer and possibly to carry mobile data. The company hopes to have products available by 2005 using the advanced circuitry, perhaps even a "display card" that could store data and be carried around for use with various gadgets from games machines to mobile phones to car navigation systems. "This could be something the size of a business card, perhaps with a wireless function and touch-screen input," said Mikio Katayama, head of Sharp's mobile display division. Shumpei Yamazaki, president of unlisted Semiconductor Energy Laboratory Ltd, Sharp's partner in the project, compared the challenge of putting processor circuitry on glass to "building a skyscraper on rubber." We at MMJ believe Sharp can pull it off, and are already planning to sell plots of rubber real estate to interested investors.

    These last few weeks Intel Corp. seems to have been pursuing a major initiative, as it has not let a day pass without praising wireless. For a company usually associated with PCs, this transition into wireless has led Intel (which already has a relationship with Cybird) to seek a development relationship with NTT DoCoMo. According to Tony Sica, Director of Marketing for Intel's Wireless Computing Group, Intel is "trying to understand their needs." Intel has been developing the Manitoba microchip, which allows both wireless processing and memory functions onto the same microchip, thereby cutting space and costs. The new chip should be on the market by 2004, and it sounds like Intel wouldn't mind NTT DoCoMo convincing some of its Japanese handset suppliers to become Intel customers (some of which are direct Intel competitors).


    for May 6-10, 2002
     

    KDDI Strikes Back / Wi-Fi Expands
     
     
    This week we saw the mobile subscriber fight heat up between Japan’s Big Three: KDDI, J-Phone and NTT DoCoMo. Aside from DoCoMo posting huge losses while retaining investor confidence, the big news is KDDI’s struggle out of the basement. Having been knocked out of the #2 position in terms of subscribers by J-Phone last month, it has regained its former spot and also surpassed DoCoMo in terms of 3G service subscribers (KDDI: 330,000 subscriptions; DoCoMo FOMA: 105,500).

    KDDI’s 3G success is due to good access, reliability and content: excellent coverage (nationwide) via the upgrade to 3G of its existing cdmaOne network, and lots of video download and GPS services that users understand. KDDI’s 3G offering is less ambitious (GPS capability and 64kbps and 144 kbps for motion media) than FOMA (384 kbps to 2mps), but is also more reliable in terms of coverage and handset or network glitches. Content providers too have been quicker to offer services via KDDI’s network because they have more confidence at this stage in KDDI’s reach. Content providers must justify their investments in advanced services too, and this has created the impression for users of more new services on KDDI’s network than FOMA. These factors, and the lower cost and availability of more 3G-compatible handsets for KDDI users has given the operator a big boost.

    In the future, some say KDDI might have the edge in the competition, since it has invested in CDMA technology which offers an easier upgradade path as compared to WCDMA based systems. To emphasize its commitment, KDDI has announced it will start operating a 2.4Mbps data service in April next year. The service’s commercial launch in the Tokyo area is scheduled for November 2003.

    The other big development this week is Softbank / Yahoo BB’s continued push into broadband and Wi-Fi services with standardized affordable monthly fees. This will only help increase Internet usage across all Internet sectors, since fee structures have traditionally been a barrier to growth Japan.




     
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