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KDDI's Competitive Edge in Japan

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?” KDDI au's Competitive Edge in Japan by Mobikyo KK

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.

NTT Planning WiMax Tests

NTT, Japan’s largest telecommunications group, plans to test WiMax technology as early as next month. Group companies will work together on trials of WiMax technology, said Masao Nakamura, president and CEO of NTT DoCoMo. Nakamura, who shared only a few details of the planned tests, confirmed that NTT DoCoMo would be one of the participants. Previously, NTT DoCoMo said it intended to push the 3G technology WCDMA to faster speeds. The “Super 3G” service will offer data transmission rates as high as 100Mbit/s and could be available in metropolitan areas as soon as 2008.

DoCoMo's Prototype HSDPA Handsets

NTT DoCoMo just announced three prototype high-speed downlink packet access (HSDPA) handsets developed with Fujitsu, Motorola (Wow!) and NEC. HSDPA, a high-speed packet transmission technology standardized by the Third Generation Partnership Project, offers a theoretical maximum downlink speed of about 14 Mbps. The handsets will be demonstrated at DoCoMo’s booth at the 3GSM World Congress 2006 in Barcelona, Spain from February 13 to 16.

DoCoMo aims to start HSDPA services sometime between July and September 2006 (as per our recent bold prediction for 2006 — Eds).

DoCoMo Results 3Q2005

DoCoMo have just posted their financial results for the quarter ending 31 December 2005. Operating revenues came in at 3,582.2 bn yen, down 1.7% year-on-year — not bad considering the downward trending ARPU. Operating income was 693.5 bn yen, down 7.7% and income before taxes was 811.2 bn yen, down 32.1%. The lower profits indicate that costs to operate and expand the 3G service continue to remain high. But there are few companies — much less 3G carriers — faced with the ‘problem’ of calculating taxes on 8 billion bucks of profit.

Japan Cell-phone-accessible ATMs Coming

Cell-phone ATMsWWJ’s Lawrence Cosh-Ishii, our director of digital media and resident video and mobile guru, was in Tokyo this afternoon wrapping up a long day and heading for a few frosty Kirin lagers when he spotted this headline at a news kiosk. Normally, when we latch onto breaking Japan mobile news, we go into hypernewsroom mode, working the phones, Googling the keywords and pinging folks in the know to get as full and in-depth a report as we can — and get the gen onto the site pronto for our loyal WWJ community.

Today, in view of the fact that Tokyo’s Friday Happy Hour is already in progress, we decided to employ a little mobile Internet magic ourselves and get the info to you as directly as we can: Lars grabbed a snap with his trusty Sharp 3G camera keitai and fired it into the WWJ newsroom for more-or-less instant posting.

Oh yes: the news. Looks like Japanese mobilers will be able to access Mitsui Sumitomo ATMs using their phone starting this fall. Looks like the transaction will occur via the FeliCa IC chip. You’ll probably just have to set the phone on a little alcove in the machine and press some keys. More details when we get them. Have a great weekend and happy ‘Beer O’Clock’ wherever you are!

Israeli i-mode in Trouble?

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.)