Last week, sr. contributing editor Michael Thuresson sent in a user-level review of his new Sanyo handset that he uses on the Sprint network. As you scroll through a list of tones, you cannot sample them before you buy them. Hard for people new to this idea to get interested if they can’t do that!
In Japan, phones and PDAs are viewed within the industry as separate vertical markets. DoCoMo and other carriers – who control the development and sale of cellular devices – have not seen fit to create a hybrid phone/PDA. Is it fear of loss of control over the subscriber billing relationship? Fear of allowing foreign makers – like Nokia – into the market? Is it the lack of Japanese third-party developers who have worked with overseas platforms (like Symbian)? Today’s program looks at a company helping to stir up a market that needs some stirring.
Britain’s first next-generation mobile phone network, 3, launches next month. So it seems like a good time to look at the lessons from the Japanese market, where 3G has been available for 18 months, and ask when we’ll really be enjoying the benefits of 3G in the UK.
Berman warns, however, that with a typical handset cost of 37,000 yen in the latest quarter, “it will require about 23 months to cover [the] cost for upgrade customers.” He goes on to state that this creates a difficult situation for KDDI, wherein there’s lots of room for concern for the cost of the 2G-to-3G upgrade cycle. Remember, too, that KDDI has committed to launching a 1X EV-DO upgrade in late 2003. Will it have to commit to another two-year cycle to convert subscribers to the new system? If so, the expense half of their balance sheet may get a little out of control no matter how strong the revenue side remains.
MTI Ltd. unveiled on Jan. 31 the “TUNA M+,” a Binary Runtime Environment for Wireless (BREW) application program for wireless operation of a Windows PC by an “au” mobile phone available from KDDI Corp. Users pay a monthly charge of 315 yen.
KDDI Corp. reported group net profit of 30.87 billion yen for the fiscal third quarter, while boosting its full-year-earnings forecast by five billion yen, citing healthy consumer demand for its flagship “au” mobile-phone service, lower marketing costs, and restructuring. For the quarter ended Dec. 31, KDDI posted sales of 695.08 billion yen and operating profit of 56.80 billion yen.
