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Viewpoint: What Leads Mobile in Japan?

Holographic projection demo at DoCoMo R&D Labs, November 2006 ©MobikyoThe genesis of today’s Viewpoint was back in March, when we spotted this op-ed referring to Japan mobile that had stated: “What’s different about the Japanese mobile market is that innovation is moving toward business models and marketing tactics instead of technical features and functions.” That op-ed piece in turn cited a new research report on eMarketer, “Japan: Marketing to a Mobile Society,” which insisted: “What stands out in the current Japanese experience is the fact that the center of gravity for getting through to Japanese mobile users has shifted in favor of business models and marketing tactics as opposed to new technical features and mobile phone functions.”

We took exception to both these as serious mis-analyses of the cornerstone role that technological innovation and network infrastructure competition have played – and continue to play – in powering Japan’s mobile success story. After contact with the eMarketer editors, we agreed to write separate opinion pieces, which we would both republish side-by-side in our newsletters, as an excellent way to hash out the topic and let you – our collective readers – decide.

Sadly, the marketing guys at eMarketer quashed the idea, as the subject and the detailed discussion would be “too technical a topic for our [eMarketer’s] newsletter.” But we know that WWJ readers are more than smart enough to figure out for themselves what’s really driving the mobile Internet in Japan! So we wished the eMarketer editors best of luck in the future, again gave thanks that WWJ doesn’t have any meddling marketing guys, and herewith present to you our Viewpoint.
(Subscribers login to access the full article by WWJ editor Daniel Scuka)

Image: Holographic projection demo at NTT DoCoMo R&D Labs, November 2006 ©Mobikyo

LiMo Foundation Gaining Membership

The LiMo Foundation issued a statement [.PDF] to announce it has experienced a surge in membership as some of world’s most well-known mobile industry players have joined the Foundation during the past six months. Aplix, Celunite, LG Electronics, McAfee and Wind River have joined as Core members and will participate on the foundation board. Additionally, ARM, Broadcom, Ericsson, Innopath, KTF, MontaVista Software and NXP B.V. have joined as Associate members.

SoftBank Charts Fiscal 2007 Plan

SoftBank Corp.’s President Masayoshi Son announced the companies vision going forward during the 27th regular meeting of shareholders held at Tokyo International Forum last week. Topics included an increased focus on contents, as previously signalled by the introduction of Yahoo! Streaming in May, and continued price war on voice services by adding a new total flat-rate calling package between family members to their already popular White Plan. According to their FYE 2006 results SoftBank added 10,000 new 3G base stations over the last fiscal year and plans to achieve a total 46,000 locations – almost on par with DoCoMo – installed by 1H FY2007.

SoftBank Mobile Rockin in May

When the TCA subscriber numbers came out on Thursday the champange corks were popping in Shiodome. For the first time ever the number 3 operator (J-Phone, then Vodafone and now SoftBank) gained the most net customers (162,400) on the month beating KDDI’s 138,500 and nearly double DoCoMo’s 82,700. While their Yahoo! portal also added more clients than EZweb and i-mode the company also managed to boost their 3G accounts up by nearly 500,000 month-on-month to total 8.6 million or 50% of their total subscriber base.

SoftBank Announces FYE 2006 Results

Softbank Corp. announced their FYE 2006 results yesterday indicating that the parent companies fourth-quarter operating profit more than doubled YoY after buying Vodafone mobile-phone unit last spring. The entire presentation video is available in English Here. The 1.66 trillion yen acquisition made Softbank the second-fastest growing company in sales terms on the Nikkei 225 Stock Average for the fiscal first half ended Sept. 30. Operating profit rose to 73.8 billion yen ($615 million) in the three months ended March 31 from 34.4 billion yen in Q4 2005, while sales more than doubled to 721.9 billion yen from 298.4 billion yen, according to Bloomberg.

DoCoMo 2.0 — Message Lost in Translation?

DoCoMo 2.0 -- Message Lost in Translation? by Mobikyo KKOn Monday 23 April NTT DoCoMo unveiled their latest 3G handsets, the 904i-series, at a press conference held here in downtown Tokyo.

WWJ pointed to this webcast of their presentation, which clearly stated from the very beginning the new “DoCoMo 2.0” campaign theme.

We shouldn’t really be surprised that the main message, from Japan’s dominant mobile operator, contained in the announcement somehow managed to get 2.0 attention from the mainstream media. With few exceptions, the entire tech web focused on the motion-sensor for gaming application. Few if any noted how ironic it was that while the company insisted it was going to “focus on offering unique applications and services that will be difficult for the competition to duplicate” they were in fact introducing a functionality which was originally made available in Japan [video here] by Vodafone and Sharp over two years ago.

Perhaps the gritty details — such as the fact that all five new models will (of course) ship pre-installed with the Osaifu-Keitai FeliCa mobile wallet together with related security services — are less appealing to the overseas media than Nokia’s recent announcement that they, too, have the mobile wallet urge?

To be sure, there were a few interesting new offerings in Natsuno-san’s presentation, such as the 2-in-1 dual-identity option and flat-rate access to Napster’s full music library service. However, one of the main observations we take away from this news is that the rest of the world still tends to focus only on the most quirky headlines (wait until the MSM find out about this one). WWJ subscribers login for our thoughts on this latest development.