Suica
Suica

Suica

Japan Rail Launches Mobile Wallet Phone Service

Japan Rail Launches Mobile Wallet Phone Service by Mobikyo KKOn a sunny Saturday morning here in Tokyo, Japan Rail launched their long-awaited Mobile Suica service, which will allow customers to use their FeliCa-enabled Osaifu ketai (wallet phone) to get into the station simply by swiping their handset past the turnstile reader. The service will be available at almost 900 stations located in the Tokyo, Sendai, Niigata, and Kansai regions. On roll-out day the system supports 12 handset models from DoCoMo and KDDI; none of the three available Vodafone units will be supported at launch. Interesting to note that DoCoMo’s latest F702iD, just announced last week, will be accepted as well. Until now, it has in fact not been possible to use your phone as a train ticket in Japan. Despite all the live demonstrations, trade-show hype and media speculation around FeliCa, the FeliCa-based Suica cards used by JR and the FeliCa-based handsets sold by DoCoMo, KDDI and Vodafone have been incompatible. As the well-established ‘Suica’ card is also accepted at many shops (including Bic Camera, a major electronics chain) in and around JR stations, this move will undoubtedly push up the volume of mobile payments made in 2006. It should come as no surprise that NTT DoCoMo announced on 26 January that sales of their FeliCa handsets passed the 10 million mark, a notable increased from the stated [.pdf] circulation of 7.7 million units in November 2005.

DoCoMo Announces 702i-series 3G Handsets

DoCoMo Announces 702i-series 3G HandsetsNTT DoCoMo held a press conference in downtown Tokyo this afternoon to announce the spring roll-out of five new handsets in the 702i-series for FOMA 3G phones (Sharp, NEC, Fujitsu, Mitsubishi and Panasonic). The series includes three ‘designer’ models — a first for DoCoMo. The carrier invited three prominent designers to work on the SH702iD, the N702iD and the F702iD. If the solid success with designer models enjoyed by competitors KDDI and Vodafone is any hint, DoCoMo should do modestly well with this new low-budget series.

Big D appears unconcerned over the potential conflict in the series’ naming. The three designer 702s are dubbed “iD” — possibly for “i-mode designer” or “independent designer.” However, the Fujitsu model is also FeliCa- and mobile Suica-compatible, and all FeliCa models to date have been dubbed “iC” (indicating ‘IC chip’). Should the Fujitsu therefore be the F702iCD? The giant carrier also seems keen on promoting its new iD credit-card (website) having created this cool ‘Vitruvian Man’ logo that we’ve noticed splashed all over Tokyo the last few weeks. That new m-commerce application is included on the Fujitsu 702iD model (but not the SH702iD or the N702iD) and we expect there could well be some confusion in the marketplace between these unrelated iD brands.

This is the first 70x-series to offer automatic Security Scan, which uses automatic downloads in the background to update phones with the latest security software from DoCoMo. The five models will be exhibited at Aoyama Spiral from January 17 to 22. More details on today’s press conference after the jump

Wireless Watch Japan – Top Stories for 2005

Wireless Watch Japan - Top Stories for 2005We published 596 articles on Wireless Watch Japan in 2005 and thought you might enjoy looking back at the most popular Japan mobile industry highlights from the year. The links below, three from each month, represent the two top stories (by volume of visitor requests) and a third which we consider a significant development in that 30-day period.

It’s been a year of explosive year in the mobile world and 2006 is set to be even much more interesting with faster mobile networks, more powerful handsets and compelling contents settling into the mainstream. Here in Japan, we are expecting a dramatic increase in m-commerce adoption, driven in part by Mobile Suica’s launch, set for later in January and the start of ‘One-Seg’ digital TV broadcasting starting — on all three carriers — on 1 April (no joke). We also see a potential increase in churn as a result of the (belated) introduction of number portability and with three new carriers entering the market, even DoCoMo is concerned.

One of the more obvious action areas in 2006 will be the increase of M&A activity at all levels; in particular, look for consolidation in the Japanese handset market. Meanwhile, lets boldly predict that we’ll have at least a few 3.5G (HSDPA) phones on the streets of Tokyo by this time next year. Interesting times ahead, indeed. Get all the skinny after the jump!

Major Mobile Commerce Trials Announced

Major Mobile Commerce Trials AnnouncedA group of major m-commerce companies announced a large-scale U.S. trial last week to include contactless payment, mobile content and premium arena services at Philips Arena in Atlanta, Georgia. The companies claim the trial will be the first large-scale test of next-generation mobile-phone applications in North America. The grouping includes Chase, Cingular Wireless, Nokia, Philips, Visa USA and others. The contactless payment functionality will be based on Near Field Communication (NFC) technology first developed by Sony and Philips. Other NFC trials are underway in Germany and France.

Wireless Watchers will know that the Sony/Philips NFC technology is also powering the super-successful “FeliCa”-branded mobile contactless payment services in Japan and has been adopted by NTT DoCoMo, KDDI and Vodafone as the de facto market standard for m-commerce, e-wallets, transportation and other peer-to-peer data transfer services. Sony first deployed NFC on the Octopus card in Hong Kong in 1997 and rolled their mobile handset trial ran in Japan in December 2003 — see WWJ video here. Today, over 7 million FeliCa-enabled phones have already been sold by DoCoMo alone.

One might think the two-year jump on deployment and commercial experience, not to mention brand equity, in Japan would motivate Sony to transplant an obvious success story from Tokyo to markets elsewhere. Instead, it looks like the wheel is being reinvented all over again.

DoCoMo Credit-Card Site Soft Launch

DoCoMo credit cardOn 8 November, DoCoMo said they would start offering a new FeliCa-compatible credit card, called the ‘iD card‘ (that’s ‘i’ and in ‘i-mode’ and — we guess — ‘D’ as in ‘dominant market position’), on 1 December. The iD card will allow i-moders to make credit card payments with a FeliCa eWallet phone; Big D said the payment procedure will be “as simple as waving the phone in front of dedicated reader/writers at stores.” Now, it looks like their Flash-heavy, groovy, dedicated iD-card website is now open, trolling for prospective customers.

When you’re the dominant wireless carrier in the market, and you’ve invested billions in building a 3G network, but hoped-for packet revenues collapse when your No. 1 competitor beats you up with flat-rate pricing, launching your own credit-card brand is a sensible option. Welcome to the ultra-high-tech, but old-fashioned-business-model, future..

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).