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Japan: The Future of Mobile Markets

Japan: The Future of Mobile Markets by Mobikyo KKAccording 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.

GPS Mandate Set to Take Effect

A recent article via the Yomiuri Shimbun re-states that services offering the GPS location of callers will be required on all new 3G cell phones in Japan starting April 1st in an effort to aid emergency callers. With the increased use of mobile phones has come an increased number of emergency calls placed on them. Among the 9.39 million emergency calls police received in 2005, 59 percent were made from cell phones. However, callers were often unable to explain their exact location when calling from mobile phones.

Sharp Holds Top Handset Market Share

According to a report issued Feb. 28 by IDC Japan, Sharp continued to lead sales in the Japanese handset market, for the third consectutive quarter, with 21.2% share during Q4 2006. The investigation also noted that domestic shipments increased 11.2% year-on-year with 12.9 million handsets sold during the period. Panasonic claimed 11% with NEC, SonyEricsson and Toshiba all coming in close behind at 9 – 10% of sales volume each.

Yozan Joins WiMAX Spectrum Owners Alliance

YOZAN has become the latest WiMAX operator to join the WiMAX Spectrum Owners Alliance (WiSOA), and company chairman Sunao Takatori has been elected to serve as a WiSOA board member. YOZAN is the first to adopt and provide WiMAX services in Japan and is focused on providing services throughout areas of Tokyo, prior to expanding services to Osaka, Nagoya, and Kyoto. The company operates over 4.9GHz, which is a semi-licensed, registered spectrum in Japan.

Raku-Raku Basic Handset Announced

DoCoMo has announced the newest model in their so-called ‘easy phone’ series, the Raku-Raku Basic, targeted at seniors who require user-friendly handsets equipped with special functions. Specific features include “Slow Voice”, which improves comprehensibility through embedded software that slows the other person’s voice speed, and “Clear Voice” noise-detection, which automatically adjusts voice and ringtone volume according to surrounding noise level. Enhanced “Read Aloud” audibly announces the name of the caller or e-mail sender and provides audio readouts of i-mode pages, while “Simple Mail Generation” offers preset messages for quick replies to e-mails.