KDDI have released their financial results for the third quarter (3Q) of the current fiscal year ending March 2006. The company’s operating revenues from the mobile business came in at 2,486 bn yen, up sharply from the year earlier figure of 2,324 bn yen. Nonetheless, consolidated earnings for KDDI overall (mobile, fixed-line and other business) before interest, taxes and deductions were down year-on-year at 649 bn yen from 664 bn yen.
The mobile wallet foreshadows a possible total change in consumer payment behavior. With various payment modes utilizing technologies such as infrared, SMS, interactive voice response, mobile scan and contact-less chips, the mobile phone is being transformed into a replacement for petty cash, debit and credit cards, with payments charged either through the mobile phone bill or even directly to the bank account. IDC expects the market to begin to take root, beyond the leading adopters of Korea and Japan, at least in the micro-payment segment.
Mark Newman, from Informa, has an interesting take on Vodafone’s opportunity in Japan; Vodafone president Bill Morrow has already said the company is talking to as many as 30 potential MVNOs. Japanese and international entertainment companies, local retailers and established MVNOs, such as Virgin Mobile, are likely to be among the 30 names, but eMobile and BB Mobile would be much bigger customers. Judging from the impact of MVNOs in Europe, Vodafone’s strategy is likely to have profound implications for all Japanese operators.
Online market researcher Info Plant has released the results of a survey on cell-phone functions and services. The company conducted a survey of 7,905 NTT DoCoMo i-mode users nationwide, 12-23 December 2005. When asked which functions and services they usually use that are available on their handsets, 85.4 percent of respondents answered “alarm,” followed by 83.3 percent for “camera (for still images)” and 81.6 percent for “ring tone.” When asked which functions and services they wish to have, the top favorite was “TV,” followed by “GPS navigation” and “pass/ticket for train and bus;” “key,” “ID card,” and “anti-crime buzzer,” were among the top 10 answers.
Digital deflation, the market aberration that sees prices fall as fast as products improve, is hitting no industry harder than cell-phone hardware. Handset makers are restructuring, but the problems may be bigger than any single company can handle. In a recent interview, NEC President Akinobu Kanasugi said the company aims to decide by June on a drastic restructuring measure, such as operational alliance and integration with a rival. “If we fail to recover profitability (this year), we will be punished by the stock market,” he said.
Naked News, which features anchors and reporters who disrobe during newscasts, launched its risque take on current affairs in Japan Tuesday. Beneath a banner proclaiming Naked News as “The program with nothing to hide,” Sunrise Corp. CEO Takuya Uchikawa described the service as “a unique concept for the Japanese market.” Sunrise, which specialises in sales of goods and services via the Internet, and Naked News owner eGalaxy Multimedia have set a target of 10,000 mobile subscribers in the first year.
