Japan Carriers' Consumer Focus the Only Focus
I was sitting in the DoCoMo shop in Machida last week waiting to cancel my second PHS data card (which we rarely use since we got a home WLAN), when it suddenly occurred to me: there’s no enterprise wireless data market in Japan because the carriers — yes, the **carriers** — don’t want one. NTT DoCoMo announced that consolidated revenues from “packet communications services” (read: i-mode) reached 715,600 million yen, up **102 percent** from the year before. Clearly, revenues from wireless data are booming, and if the corporate market has not yet been tapped, just think of the riches that will flow to the likes of DoCoMo, J-Phone, and KDDI when it is.

There’s been endless yakking about cultural differences between Japanese and US keitai users. Which features appeal to which culture? Is wireless Internet important for Americans? Those Japanese will pay for data, won’t they? Yada yada yada… We’ve heard comments ad nauseam about the differences between Americans, Europeans, and Japanese when it comes to choosing cell phones. While we have long disbelieved the odious stereotypes — like “Japanese want to pay for Internet access” and “American thumbs are too big for those tiny i-mode keypads” — we have to admit, we weren’t sure what to believe ourselves. WWJ gets to the heart of the matter with a visit to Cellular Plaza Mims, a unique cell phone shop serving large numbers of true-blue Americans here in Japan.
This week, Wireless Watch Japan ( WWJ ) was invited by NTT DoCoMo to visit their Club D Showroom, located on the 29th floor of corporate HQ in Tokyo. We do the intro from the FOMA F1 — that’s the race car that can communicate at 384 Kbps on a test track using FOMA, we play with 504i Java and 251i i-shot handsets and tried videoconferencing with the new 3G PDA by Sharp. This programme is pure eye-candy, and is not-to-be missed for the serious 3G wireless aficionado. Boy-o-boy-o-boy… it doesn’t get much better than this folks! After buying a soda via c-mode, we ask, “Why does DoCoMo spend so big to promote its technology?”
There’s a tremendous amount of initial wireless LAN network activity going on in Japan right now, but it’s still too early to say how WLAN will affect 3G. One thing is certain however: licensed-spectrum carriers are looking closely at WLAN to determine whether the technology will disrupt their carefully knit 3G network, wireless Internet, and data revenue plans. We speak with an industry insider on a recent WLAN hotspot trial conducted by a major mobile telco. But large carriers and others thinking about launching hotspot networks shouldn’t worry about finding content. First, solve the billing, roaming, and security problems — then content providers will beat a path to your door… just as happened with, oh…, for example, i-mode.