NTT DoCoMo has issued a press release stating that users of their 3G FOMA service surpassed the 2G Mova subscriber base as of 18 June. In fact, big D pulled into the lead for most 3G users per carrier in January and the over-all percentage of 3G mobile contracts in Japan became the majority in February.
As mobile music settles into a steady mainstream growth cycle, with now-well-established hardware and content offerings, many industry watchers are looking towards the Next Big Thing. We think they need look no further than portable gaming, which is set to take mobile by storm. All the ingredients for mobile gaming success are in place: key platforms, faster 3G networks, affordable and flat-rate data, and a keen, heavy using youth demographic that continues to display a never-ending quest for hardware upgrades. Take a look around the streets of Tokyo, and the conclusion is unmissable: gaming for mobile devices is set for impressive growth in the next few years.
To date, the limiting factor has been the actual devices, as it was at one stage with music. The Nintendo DS and Sony PSP, much like Apple’s iPod, have proven to be early major hits as stand-alone units, having sufficient onboard CPU and memory capabilities to run some intensive games. In view of the success of porting the well-known ‘Walkman‘ onto mobile phones, can it be that long before we see the PSP label on a prototype cell phone from Sony Ericsson?
The photo tells it all. Taken recently by WWJ digital media director Lawrence Cosh-Ishii in suburban Tokyo, it shows a group of mid-teen boys waiting for a train at Shimo-Kitazawa station; all are playing with a PSP, blissfully ignorant of the huge poster for KDDI/au’s new music campaign. Note also that the recent BREW 2006 Conference issued a release with the news that Qualcomm and Microsoft will port MS ‘Live Anywhere’ for X-Box 360 gaming onto BREW-enabled mobile handsets. If you don’t think these tech giants have got it right, just watch what the kids are doing!
Watching the business of wireless in Japan just keeps getting better!
Last week brought a slew of new announcements, including news of the JPY11 bn SoftBank/Vodafone joint venture, confirmation that the company formerly known as Vodafone KK will henceforth be known as ‘SoftBank Mobile’ and details on the long-awaited MNP (mobile number portability) implementation. Subscribers can access WWJ’s insight on the first two in today’s Viewpoint (here), but read on below for our take on MNP — possibly the biggest revolution in Japan mobile since i-mode itself.
First, a little history.
Until now, the Big Three cellular carriers (DoCoMo, KDDI/au and Vodafone), as well as the smaller PHS carriers (Willcom, Astel, etc.), have run their networks as independent — and highly competitive — fiefdoms. There has been nothing like number portability or, for that matter, portability of any other service/feature. If you switched carriers, you lost your number…
Japan’s Internal Affairs and Communications Ministry is considering a plan to allow mobile telephone subscribers to choose lower communications charges in return for paying more for handsets, ministry officials said Friday. At present, mobile phone carriers such as NTT DoCoMo Inc. sell handsets at steep discounts and cover the costs by adding charges to monthly communications rates, creating an unfair cost disadvantage for subscribers who use the same handsets for a long time. The study group is expected to work out a report on the pricing options in July.
Vodafone K.K. has announced that on 22 April 2006 it will commence sales of the Vodafone 804N, a new 3G handset by NEC, in the Kanto-Koshin region. The 804N model [ .jpg image ] will be rolled out in other regions when preparations are in place. The handset touts approximately 450MB of handset memory capable of saving approximately 100 songs. Also available starting this weekend, the V604T [ .jpg image ], manufactured by Toshiba, is a new PDC (2G) handset that features a terrestrial analogue TV tuner and a separate, dedicated FM radio tuner.
In just four years, Europe will bring about a sea change in the world of car and man navigation, which has long depended on a single service source, the American global positioning system. As the continent prepares for the full operational launch of Galileo, its own version of GPS, the European Union and industry are watching with keen interest to see how Japan, a heavy GPS user, eventually positions itself. “Japan would be a very good test market for Galileo because there are many people using mobile phones and people who like gadgets,” Paul Flament, administrator of the Galileo Program at the European Commission Directorate-General for Energy and Transport, said.
This week marked a major milestone for WWJ! In one form or another, I’ve been writing this email newsletter for five years — and what a five year term it’s been!
I spent a couple hours last night looking over past WWJ newsletters, and was struck by how much Japan’s mobile scene has changed. In 2001, when I started writing a weekly mobile-focused newsletter for J@pan Inc, i-mode had just celebrated its second birthday, KDDI had yet to roll out CDMA 1X services and the No. 3 competitor in the market was known as “J-Phone.”
Today, DoCoMo is far in the lead with their 3G FOMA service and music and TV are the new hot trends; i-mode itself has become almost dasai (uncool). KDDI have created one of the mightiest and most unified mobile platforms on Earth, with GPS-based blogging, shopping and PC Internet integration drawing huge usage. The company formerly known as J-Phone is about to become the company formerly known as Vodafone as Masayoshi Son attacks 3G mobile with the same successful discount focus with which he attacked NTT and home broadband.
Bonus ‘those were the days’ tidbits via the WWJ Newsletter after the jump!
Over the past 12 to 18 months the mobile division of KDDI, known here as ‘au,’ has been leading the way in Japan’s cellular marketplace. During a recent interview at the 3G World Forum, one European visitor asked the seemingly obvious question, “What is the main reason for their success?” 
The reasonable answer is that it’s actually a combination of several factors, but one thing stands out. Compared to the NTT DoCoMo and Vodafone business models, au has a very tight focus on the domestic market. Their attention to detail in customer service and product offerings is not challenged by how the product mix and content offerings might fit into the company’s global strategy — and it shows. This has allowed au to take the lead in areas like GPS, flat-rate data and faster networks, all provided to the consumer on affordable price plans. The carrier now offers a full suite of popular and useful services ranging from Navitime, EZ auctions, EZ book, EZ channel, EZ games, and EZ FM to (recently introduced) mobile IM (‘Hello Messenger’), mobile blogging (‘DuoBlog’) and Lismo.
Looking again at au’s recent blitz of cutting-edge models at Designing Studio last week, just in time for Japan’s peak spring sales season, we were truly impressed; it will be a tough choice for shoppers. The phones and services strongly illustrate one of the most fundamental and important learnings about Japan’s mobile success that we’ve been trumpeting for years.
Launching the i-mode platform last September was supposed to be Israeli wireless operator Cellcom’s most important innovation in years, and one of its most significant ever. It was designed to distinguish Cellcom from the other wireless operators and substantially boost the company’s content revenue. Timing is everything in life, and that’s true for i-mode, too. Its fate was sealed the moment that Cellcom’s new owners replaced the company’s management. The new team, headed by CEO Amos Shapira, doesn’t believe that i-mode should be Cellcom’s main content platform. (We’ll take this article with a pinch of wasabi for now — Eds.)
Onyx Software Corporation, a worldwide leader in customer management solutions for the enterprise, today announced Onyx Employee Portal Wireless (OEP Wireless) for Japan. Part of an integrated suite of mobile enterprise CRM solutions, OEP Wireless for Japan is immediately available for Foma 3G and mova 2G Series iMode devices. Onyx’s introduction of OEP Wireless for Japan offers 45 million iMode users access to Onyx’s versatile CRM platform for delivering enhanced customer service and satisfaction. OEP Wireless for Japan increases business productivity by keeping mobile professionals connected and informed, while delivering advanced capabilities for quickly and easily managing customer and partner account, sales, service and support activities.
