Japan: The Future of Mobile Markets

According to an article on eMarketer, “What stands out in the Japanese mobile market is the fact that innovation is shifting toward business models and marketing tactics as opposed to technical features and functions … the explosion of non-official mobile content Web sites is causing the sun to set on the i-mode business model of a dominant mobile carrier selling incremental content and services to its user base,” says John du Pre Gauntt, eMarketer senior analyst.

There are several ‘gee-whiz’ statements in this summary, starting with “Marketers are looking to the Japanese mobile market as a model of the converged media future,” which are clearly designed to help sell their research report. However, we really must challenge outright some of the assurances offered. For example, the eMarketer quote above which states that “Innovation is shifting toward business models and marketing tactics as opposed to technical features and functions” is off-base on both counts.

The continued innovations from DoCoMo and the other carriers in network speed, handset design and content & service offerings speak volumes about the Japanese mobile market and the continued utterly fundamental role of the carrier in driving innovation. Granted, the increase in non-official content sites was obvious and predictable, given how easy the continuing carrier-led innovations make getting onto the mobile web for both providers and surfers. And the carriers have known this from Day 1 of i-mode.