Matsushita Electric Industrial Co. revealed that it plans to supply mobile phones to wireless operator KDDI Corp., adding a second customer for its handset business in Japan. The maker of Panasonic products currently supplies cellphones in Japan to NTT DoCoMo Inc., the country’s top mobile operator, but does not do business with second-ranked KDDI and third-largest Vodafone K.K., a unit of Softbank Corp.
The recent article via the Yomiuri about DoCoMo’s roadmap for adding GSM functionality to their handset fleet is spreading across the web like wildfire. The point missed would be that ‘the news’ was actually announced back in February! “NTT DoCoMo, Inc., Renesas Technology Corp., Fujitsu Limited, Mitsubishi Electric Corporation and Sharp Corporation today announced that they will jointly develop a comprehensive mobile phone platform combining a single-chip LSI for dual mode handsets supporting HSDPA /W-CDMA and GSM/GPRS/EDGE, and core software such as operating systems.”
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…
The historic SoftBank / Vodafone press conference, held 18 May at Tokyo’s swanky Conrad Hilton, generated a flood of information and even more questions. Not much seems certain after Softbank’s Masayoshi Son and Vodafone’s Arun Sarin dropped the announcement of a never-before-tried plan for UK carrier Vodafone PLC to cooperate with Japanese Internet services company Softbank in a 50-50 joint venture aimed at developing mobile phones, services and content (mostly for Japan). On one level, the move is a straightforward play to enable Vodafone to keep at least some connection to Japan’s cutting-edge market and extract expertise, content, devices and business models (everything the old Vodafone KK was supposed to do). But looking deeper, the devil is readily apparent in the details: Who pays for what? To whom does value flow? Will VF be willing to implement strategy and devices from Japan via Son that they weren’t via their own wholly owned subsidiary? And what’s in it for Softbank — What could they possibly need from The Rest of the World?
As the humidity settles in for another long, torrid Tokyo summer, a ‘wait-and-see’ response is the most generous recommendation WWJ can make; however we can point to one bright spot: the new flagship handset, the 905SH. Available on 27 May, the phone is probably the best piece of mobile gear available on the Tokyo street this season. But will it be enough to stem the inevitable tide of subscribers from the company formerly known as Vodafone to Softbank competitors? Probably not. (Subscribers log in for more commentary on the rebranding, the new VF-Softbank joint venture and other Japan mobile highlights.)
A blast of press releases from all three mobile operators in Japan came though just now stating: “NTT DoCoMo, Inc. and its eight regional subsidiaries, KDDI Corporation, Okinawa Cellular Telephone Company, and Vodafone K.K. today announced the basic procedures for customers to switch mobile phone operators under the Mobile Number Portability (MNP) system, which is scheduled for implementation by November 1, 2006.” (WWJ subscribers log in for details.)
NTT DoCoMo aims to expand in finance and other industries to offset slowing growth in mobile phone services. “If DoCoMo is a mobile phone company in five years, our growth will be limited,” said Takeshi Natsuno, DoCoMo’s vice president of multimedia services, said in an interview. “My expectation is to make DoCoMo a more diversified company.” Natsuno, who oversaw the debut of i-mode in 1999, last month introduced the DCMX credit card service that lets customers use handsets to pay for goods and services such as groceries and taxis. The company expects the service to generate as much as 100 billion yen ($912 million) in annual sales in three years.
