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2006: Japan's Year of the FeliCa eWallet Phone

2006: Japan's Year of the FeliCa eWallet PhoneAccording to the ancient Chinese calendar, 2006 is The Year of the Dog. More importantly, it’s shaping up to be The Year of the eWallet. Launched last summer, DoCoMo’s FeliCa-based wallet phones are a growing success and competitors Vodafone and KDDI have scrambled to launch their own FeliCa-equipped models.

A recent survey points to wide consumer satisfaction and even the BBC have started reporting on Osaifu Keitai (wallet phones). The BBC’s ‘Click Online’ producer caught up with me last month in Tokyo; they were in town to cover CEATEC, but also wanted the tech and business-model details on DoCoMo’s ‘i-mode FeliCa‘ mobile service, as well as how people are using them. The result was a pretty good TV programme (if I may say so myself), which you can watch on the Click Online site(WWJ subscribers log in for full story).

'Conbini' Stores Cash in on Bills to Pay

Convenience stores are ringing up a mountain of profit on something they don’t even have to keep in stock: bill paying. In fact, so many people now use convenience stores to pay utility bills and some taxes that the volume handled approaches that of Japan’s megabanks. Though the commission on each transaction is small — about the same 50- to 60-yen profit as on an onigiri rice ball — they add up. For example, Lawson Inc. recorded 6.77 bn yen in commissions for fiscal 2004.

DoCoMo, Rakuten to Form Strategic Alliance in Internet Auction Services

DoCoMo and Rakuten to Form Strategic Alliance in Internet Auction ServicesJapan’s top mobile carrier DoCoMo and leading online mall operator Rakuten have forged a capital alliance to expand mobile auction services. Rakuten will spin off its peer-2-peer (P2P) auction network, Rakuten Flea Market, into a separate entity, Rakuten Auction, Inc from Dec. 1st. DoCoMo will then invest 4.2 billion yen ($37 million) starting Dec. 16 for a 40 percent share of the new firm. The deal does not include Rakuten’s profitable B2C (Business-2-Consumer) Super Auction site, which offers new goods from its huge listing of online mall operators. Rakuten currently has around 17.3 million users; DoCoMo 45 million subscribers.

Anxious to break the news to the media, the planned tie-up was announced at a hastily called press conference in Tokyo’s Okura Hotel with virtually no details on how the two firms plan on tweaking the service to attract DoCoMo users or differentiate it from KDDI’s EZ Web auAuction or even Rakuten’s current somewhat limited mobile auction portal. DoCoMo President Masao Nakamura and Rakuten President Hiroshi Mikitani were ill prepared to answer questions from the media pressing for more details.

KDDI's EZ Channel at CEATEC

KDDI's EZ Channel at CEATECCEATEC, otherwise known as ‘Disneyland for mobi-keeners,’ is possibly planet Earth’s most intense concentration of mobile goodies. KDDI’s “EZ Channel” system, launched together with flat-rate data billing and the high-speed 1X EV-DO “WIN” 3G network in late 2003, is one of the few content services optimised for the network’s 2.4-Mbps nominal speed. WWJ went to CEATEC to grab the details on EZ Channel, which includes a unique overnight download feature that makes use of the quietest time of the day to deliver up to 3 megabytes of video programming to subscribers’ handsets while the network snoozes.

The EZ Channel service allows subscribers to select 3 programs from a menu of 53 channels (by end-October 2005), including news, weather, sports and entertainment favorites such as “Chaku Uta Ranking” (Label Mobile), “Sponge Bob Mobile” (Viacom) and Disney Mobile Wave. A single channel typically runs up to 1MB, and is refreshed 1-3 times per week (some, like weather, are new daily).

Vodafone Flips for Felica in 3G Fall/Winter Lineup

Vodafone Flips for Felica in 3G Fall/Winter Lineup

Vodafone follows DoCoMo and KDDI into the brave new revenue world of Osaifu Keitai [wallet phone] introducing its first Felica-equipped handset at a press conference for the Japanese carrier’s Fall/Winter 3G lineup [.PDF]. Four handsets: the 702NK II from Nokia, 703SHf and 604SH both from Sharp plus the 703N by NEC are scheduled for release in October and November. The company is counting on this lineup’s smooth design esthetics, sophisticated hardware and contents to re-ignite consumer interest in the Vodafone brand.

At just 47mm wide the 703SHf is Vodafone’s slimmest 3G handset yet. Besides Felica it has a 1.3 megapixel camera, 2-inch ASV LCD screen and the music player supports AAC and SD-Audio MP3 music files. But who cares. It’s really all about the chip. The Felica IC chip system developed by Sony allows users to swipe Felica-equipped mobile handsets over designated readers and pay for everything from a bottle of ice tea to an airline ticket. DoCoMo started loading it onto their 3G phones in July 2004 and has sold around 5 million Felica-equipped phones so far. The other carriers have seen little choice but to follow. These Sony IC chips have become ubiquitous not by Felica but through the Suica JR train commuter cards which can also be used at shops inside designated train stations and at platform kiosks. Thanks to DoCoMo, Suica is going mobile next year and there are plans to incorporate private train lines and subways into the Suica system as well. KDDI began selling their first Felica handset, the W32S from Sony Ericcson, this month.

Tokyo Game Show 2005

Tokyo Game Show 2005

Packed with international game and console makers out to show the press and public just what they can do, the Tokyo Game Show opened yesterday for a three-day run at Chiba’s Makuhari Messe Convention Center. Eager to showcase their mobile gaming platforms, DoCoMo set up a giant booth splashed in black paint over yellow for a "street style" look. Multiple mobile play stations circling the entire area had event goers lined up ten deep to try out mobile games like Monster Hunter, Sonic, Gundam, and many more. Everyone who plays a game receives different free collectible badges that fit into a DoCoMo badge folder — also free — guaranteeing big crowds here. Last year DoCoMo enjoyed great success with a similar system that handed out collectible cards for each game.

Many handsets come with games already pre-loaded. The new DoCoMo N901iS, for example, has Dragonquest II (from Enix) pre-installed and ready to play. One of the most popular games was a mobile version of Sega’s Sonic the Hedgehog in playable demo form. Sonic will come bundled with one FOMA 901i-series phone starting this winter. An engaging game even on mobile, the movements and execution on the FOMA were reminiscent of the old Sega Genesis edition of Sonic. Capcom’s Monster Hunter, another popular game, will be exclusively on DoCoMo phones for a short time this winter but will soon migrate to other carriers’ game platforms according to a DoCoMo spokesman.