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Mobile Marketing: Corp. Plans Don't Make Sense

Mobile Marketing: Corp. Plans Don't Make SenseLast month, researchers at the International University of Japan released a report detailing surprising conclusions about consumer behavior and usage of mobile networks. “Business mouths are watering at the opportunity for location-based marketing,” says professor Philip Sidel of the International University of Japan. But it ain’t necessarily so, and Sidel states: “We believe that previous authors have adopted a much too simple framework for ‘contextual marketing’.” His exhaustive research offers surprising results to those who would sell via cell

WLAN: NTT VP Doesn't Expect 'Large Revenue'

WLAN: NTT VP Doesn't Expect 'Large Revenue'NTT Communications doesn’t expect to generate large revenue from WLAN itself, says senior executive vice president Shuji Tomita. Instead, the company will bundle hotspot access via high-speed WLAN base stations with landline connectivity and value-added services including roaming, security, and IPv6. The company’s software will also offer secure communications into the Internet itself and into corporate intranets using IP-based VPN (virtual private network) technologies via a security server that is co-located with the corporate client’s network. They’re also busy boosting their 250-base-station network to 1,000. Phew!

Differentiating Crummy Handsets from Great Networks

KDDI’s 3G network is a success (3,293,300 subscribers as of Oct. 31) because the network is great, there is nationwide coverage (due to backwards compatibility), and the handsets are **really** terrific – not because W-CDMA is bad. I thoroughly enjoyed reading “Asia’s 3G edge in mobile-phone market” on the Straits Times’ site yesterday; it may be this week’s news of most lasting significance. The authors state this regions’ advanced handsets – with color displays, data capabilities, and long battery life – give Asian makers like Sharp, NEC, Panasonic, and Samsung a clear technological advantage over rivals in Europe and the US.

DoCoMo, J-Phone, KDDI: Keitai Catalogs Tell All

I picked up the November cell phone catalogs from several carriers the other day, including DoCoMo (for 3G FOMA), KDDI, and Tu-ka, as well as the J-Sky service catalog from J-Phone. You really needn’t look much further than these monthly catalogs if you want a concise, full-color, and neatly packaged window into the marketing plans and keitai sales hopes of the major Japanese carriers. Depending on which handset you have, you can now access data networks at 9.6, 28.8, 64, or 384 Kbps – and many devices can access two networks. Note that 64 Kbps data is available via FOMA (the 3G network) and via PHS (not formally called “2G” but certainly not 3G). Finally, there’s the Mzone WLAN service that operates at hotspots inside the Yamanote line and at a few other locations.

Love, War, Wireless Internet, and Nokia VP on Mobile Software

DoCoMo’s recent troubles highlight a fundamental aspect of Japan’s wireless Internet revolution that I haven’t seen discussed much – namely, the sheer improbability of it all. In 1999 and 2000, during the ascendancy of i-mode, headlines and media quotes from interested parties were quick to praise the insight and innovation of those involved in i-mode’s creation, including the famous Enoki-Matsunaga-Natsuno troika as well as sundry network engineers, Internet-savvy marketers, and handset designers both inside DoCoMo and out.

CEATEC: Cell Phones Like No Others on Earth

CEATEC: Cell Phones Like No Others on EarthOne of the best aspects of working at WWJ in Japan – the country most responsible for creating the post-war consumer electronics revolution – has to be covering the trade shows. October’s CEATEC is one of Asia’s coolest (and largest) electronics showcase events, and Japan’s cell-phone makers rolled out their very best gear. We speak with Sharp about camera keitai (What’s the cost to add a camera-thingy to a phone?), Hitachi about cell phones morphing into computers (cellys now have 133-MHz CPUs – same as PCs used to), and take a look at J-Phone’s first 3G handset from Sanyo. One of our best programs to date!

Tectonic Change in Japan's Mobile Handset Market

The past few days have seen Japan’s big electronic makers releasing their quarterly and semiannual results, and the news from Sony, NEC, Fujitsu, and others has been mostly bad where cell phones are concerned. There have also been a lot of media reports on Japan’s ailing phone tanmatsu (terminal) market, and it appears that majors changes are underway. First, the media reports. On October 10 JEITA announced that domestic shipments of cellular phones fell 18.3 percent in August 2002 from a year earlier to 3.26 million units. The drop resumed a 13-month-long decline that was only broken (briefly) in July 2002 due to sales of camera-equipped models. Moreover, shipments of PHS handsets fell by 64 percent to 73,000 units (extending their losing streak to 18months!).

CTIA Notes and NEC 3G Recalls

WWJ contributor Michael Thuresson was in Las Vegas, Nevada, last week and managed to pull himself away from the one-armed bandits long enough to drop in on the CTIA “Wireless IT and Internet 2002” fall show. His report below was culled from a late-night, bleary-eyed email dispatch (italicized annotations partly contributed by me). Who says war correspondents in Kandahar have more fun than tech stringers in Vegas? 😉

Fall Roundup of Hot Topics: Packet Fees, WLAN, and 3G Roaming

A couple of interesting events took place in Tokyo last Friday. The American Chamber of Commerce hosted their Fourth Annual E-Business Summit, while Credit Suisse First Boston’s lead telecoms analyst Mark Berman conducted a 3G/Wireless Internet Conference. Some interesting points came out of both. Afterwards, Kobe University’s Jeff Funk commented that the predicted fall in 3G packet prices is “interesting,” while Matsumoto’s additional arguments — that the US is a car society and thus Japan’s experience isn’t relevant — was not valid since “SMS is doing well in Europe and DoCoMo claim that i-mode revenues per person are independent of the region in Japan.”

Deconstructing 3G Culture

NTT DoCoMo took it square on the chin this week, announcing it would book extraordinary losses of 573 billion yen against its investments in three major foreign partners, KPN, AT&T Wireless, and Hutchison 3G. The company cited the slowdown in the global telecommunications market, and it would be natural to suspect the Sanno Park Tower strategists are back in their corner, applying ice and stitching wounds. Industry watchers, meanwhile, are having a field day. hOWEVER, this week’s write-down represents mere pachinko pocket change for DoCoMo, and, as potentially one of Japan’s (and by extension, the world’s) most profitable companies, the carrier is well on its way to creating something that the Europeans are still trying to sort out: a functioning W-CDMA network.