US wireless companies knocking on Japan's door

What caught my eye this morning is an unusually high number of announcements about the US companies trying to enter Japan's mobile market. Is it just a coincidence or some seasonal peak of activity? Anyway, read them below as follows:

Start-Up Amp'd Mobile to Sell Entertainment Content in Japan
MVNO Amp'd Mobile said it has inked a deal with KDDI Corp. to sell U.S. film clips, music videos and other entertainment content in Japan. The pact reflects an effort by Amp'd to expand into markets where a greater percentage of mobile phone users subscribe to and use data services. Source: Wall Street Journal

NTT DoCoMo, Intel help companies customize phones
NTT DoCoMo said it has teamed with Intel to develop terminal specifications that provide an open domain for companies looking to customize handsets with special operating systems or applications. Source: Unstrung

Sierra Wireless Formally Enters Japanese Market
Sierra Wireless is making an official play for a piece of the 3G wireless market in Japan, thanks to a newly signed deal with Tomen Electronics Corporation. The deal makes Tomen the primary distributor of Sierra Wireless' 3G products in the country. Source: Wireless Week

ABI Research: Japanese and South Korean Mobile Handsets Leading the World in Mobile TV, Digital Imaging, and Display Innovation

According to a new study by ABI Research, Japan and South Korea remain the major sources of innovation in mobile handset development and design. The research company says that camera- and mobile TV-enabled phones are expected to drive new growth momentum over the next few years in both countries' handset markets.

In 2006, approximately 75% of all handsets in Japan and 52% in South Korea include cameras. "Two megapixel camera phones with autofocus and zoom functions have started to outpace 1.3 megapixel models in Japan and South Korea," says company's senior analyst Andy Bae. "Two and three megapixel phones will be mainstream by 2008. Five (and greater) megapixel models will dominate after 2010."

"Japan and South Korea have launched HSDPA and CDMA 1xEV-DO Rev. A services this year," Bae says. "This technologically advanced environment has spurred mobile vendors to develop premium and high-end handsets to support video call and music track download services."In Japan, the most popular new services are "Chaku Uta" music downloads to mobile handsets. HSPDA services, with their broadband data rates, provide customers with very satisfactory music download experiences. Accordingly, Japanese vendors have continuously expanded music phones lines with Bluetooth headphones, shuttle controls keys, and key pads.

Common to both countries is the popularity of mobile TV-enabled handsets. In South Korea, vendors are focusing on development and marketing of T-DMB versus S-DMB phones, due to T-DMB's brighter future prospects.

Displays are evolving as well. Japanese and South Korean manufacturers will incorporate cutting-edge display innovations such as 16:9 ratios, 2.5-inch AM OLED displays using system-on-panel, and LTPS TFT, the efficiency of which can decrease the number of circuits and components, and therefore, power consumption.

While ABI's study backs the fundamental idea behind this blog, I just couldn't resist ranting a little bit about some statements regarding mobile services in Japan. I don't know much about South Korea, but as for Japan, the adoption level of mobile TV is still far from being called a success. On another point, 'Chaku Uta' can hardly be called a new service. Even the 'Chaku Uta Full' service, which enables OTA full-song downloads, was introduced last year. Video calling didn't take up in Japan due to network limitations and high costs of service and it's too early to say if HSDPA or rev. A deployments will change users' behavior. Japan is surprisingly lags behind other countries, including USA, in using Bluetooth for hands-free calling or music listening. The problem with the handset innovation is that users tend to use only two or three handset core features while the rest of the pack is caught in limbo. However, it doesn't apply to physical design innovation such as display resolution, which is always welcomed by users.

Source: ABI Research press release

Analysis of price war declaration by Softbank

Just hours before the introduction of the number portability in Japan, Softbank declared a price-cutting that can potentially trigger a price competition in the mobile phone market. Financial Times did some analysis of this move by Softbank and outlined the following reasons why this strategy might not work in Softbank’s case:

• Softbank has the least resources to sustain in a declared price-war if other operators participate in it
• When Softbank entered the mobile market by buying Vodafone this year, Vodafone was already the cheapest carrier in the market. However, it did not help Vodafone to gain a lot of customers.
• While Softbank introduced 13 new phone models in 53 different colors in order to resolve the problem of poor handset portfolio that Vodafone notoriously had before, another infamous problem may require more time to resolve. And that problem is the network coverage, which is much worse than its rivals.

To summarize – the price-cutting is not the only weapon in the mobile price war and Softbank should have prepared better for it.

Japanese kids and cellphones: wireless penetration numbers

Quite obviously the demand for cellphone accelerates with the age confirms the recent survey by Survey Research Center in Japan. While the elementary school first graders' population is scarcely penetrated with wireless service, almost all of the high school graduates (95.3%) own the cellphone. Moreover, 100% of college students are wirelessly connected.

Source: http://www.clue.ne.jp/index.html

Mitsubishi D903iTV handset: Insert a 100-yen coin and enjoy your TV

What you see on the picture above is not a design flow of the Mitsubishi D903iTV - one of three one-seg mobile TV (ISDB-T) phone models recently announced by NTT DoCoMo. The Mitsubishi designers made a slot on the back of the D903iTV on purpose - a 100-yen coin fits that slot perfectly to serve as a stand for the phone when it is placed in landscape mode on a flat surface for TV viewing. Apparently this solution should work well while you are outdoor, but when back home, users have an option to use charger as a more reliable stand.

Toyota Lexus phone rumored, TiMO already sells

There are some rumors that Toyota and KDDI engineers are back to labs to come up with Toyota handset under the Lexus brand. While KDDI couldn't confirm the rumor, Toyota and KDDI are already selling another joint product - TiMO cellphone just started selling in a specialized chain PiPit. Based on Toshiba's W44T Bluetooth-enabled model TiMO carries Toyota's logo and offers one year of free service with Japan's road emergency network HELPNET Keitai tailored for mobile phones. Among other perks are one year of free game and ringtone downloads from a specialized portal and one-button customized access to Toyota's mobile portal GAZOO. Besides, TiMO owners with a Toyota car can customize the handset for the "hands-free" access to Toyota's navigation system via Bluetooth. As an option, users can also buy a car charger that serves as a dash-board cellphone holder at the same time.

eMobile bets on mobile broadband services: roadmap revealed

Along with the new brand logo, eMobile also revealed its service and product roadmap:

March 2007:

• Commercial rollout of data-only HSDPA services in the 1.7GHz band covering three metropolitan areas: Tokyo, Nagoya and Osaka.
• Next rollout phase will include Sapporo, Sendai, Hiroshima, Fukuoka and other big cities.
• Devices: HSDPA data cards.
• Downlink: up to 3.6Mbps.
• Target: businesses and consumers
• Strategy is to lure customers by cost-competitive and easy-to-understand rate plans.

March 2008:

• Rollout of voice services in Kanto, Chubu, Kinki, Fukuoka areas, Niigata prefecture, in Sapporo and its surroundings, and in Sendai, Hiroshima cities.
• Due to lack of own base stations, eMobile will get into roaming agreement with NTT DoCoMo to cover the rest of the country for voice service.
• Active build up of its own network with the 250bn yen (around $2bn) investments.
• Devices: from voice-centric clamshells to smartphones and data-oriented communicators, including those with QWERTY keyboard.

2009:

• Plans to offer HSDPA embedded modules for integration into consumer electronic devices.

March 2010:

• Anticipate 3 million subscribers.
• Start convergent voice and data services - seamless communications.

November 2010:

• Shift from DoCoMo's to own network.

2012:

• Goal is to reach 5 million subscribers.
• Upgrade to Super 3G (30~100Mbps).

Best selling phone in Tokyo area: Fujitsu F882iES

K-tai Watch routinely published a table of best-selling NTT DoCoMo's phones in Tokyo metropolitan area for the 10/5~10/11 time period. The king of the hill was the golden color FOMA Raku-Raku 3 phone also known as Fujitsu F882iES offered by NTT DoCoMo. What is interesting is that Raku-Raku series models target at older users by simplifying handset features and keeping "bells and whistles" away. For example, Raku-Raku phones spot bigger keys with easy-to-see numbers, the on-screen font size is also made larger, while menu is simplified for easy navigation. The F882iES also comes in pink and black, but the golden is this time favorite. During the last update it was third in the ranks and now it is on the top. I'll see how long it will hold to this sweet position. The F882iES was followed by two color variations of the same model by Panasonic: the P902i in silver and black. The fifth place was also occupied by the P902i - this time in white color variation. The white N701i by NEC was placed fourth.

Source: ITC Network via K-tai Watch

eMobile presents new corporate logo

Another Japanese wireless contender - eMobile, intorduced its brand logo which will be used in marketing campaigns and placed on mobile terminals when the company starts operations in March 2007. Here is how eMobile explains the shape and color of its new brand logo:

The new brand logo adopts "red" as EMOBILE's corporate color, expressing "infinite possibility of the mobile market", "strong will of EMOBILE's challenge" and "EMOBILE's passion and energy".

The logo also adopts a design which both letters can be viewed as either E or M from different viewpoints. This design expresses EMOBILE's strong will to break through the traditional view and challenge with new perspectives.

Sharp, yet gentle and round design expresses our focus on innovation and continuous stimulation to people's sensitivity, however at the same time, expresses our commitment on users comfort.

As you remember Emobile is a daughter company of eAccess, an ADSL broadband provider who received a license to rollout mobile services.

Source: eMobile

Miniaturization by Murata: the world's smallest one-seg module

Murata recently announced the SUMUDDJ-LS101, a terrestrial digital TV receiver for mobile phones. What is so special about it? Apparently, Murata managed to cut the size of the tuner by half compared to the previous iterations. The SUMUDDJ-LS101 ISDB-T one-seg module is now proudly measured only at 8.7mm X 9.6mm X 1.5mm. The miniaturization of the tuner should save the valuable space on handset - good news for Japanese mobile phone makers who usually struggle to find free space for more and more features without increasing the size of the device. Thanks to the improvements in design, Murata was also able to ensure the high-quality reception along all the TV channels. The company doesn't exclude the scenario in which the module can be used as a removable SD card-type tuner. Murata's initial output capacity is projected at 500,000 modules per month.

Source: Murata

One in four Japan wireless subscribers uses GPS

One in four Japan wireless subscribers is already using GPS feature, according to NeproJapan's survey results. Moreover, 70% of respondents are positive about the idea of having GPS feature integrated into their handsets as it provides convenience. They mainly want it to get directions and view maps.

The survey was conducted in September 7-8 targeting at mobile web users (n=3,608) of three top carriers - DoCoMo, au, and Softbank. The gender breakdown: males (42%), females (58%). The age breakdown: less than 19 (2%); 20-29 (35%); 30-39 (44%); 40+ (19%).

Source: NeproJapan

Japan wireless subscribers: September 2006 data

TCA's mobile phone market data for September revealed that Japan's wireless user base has increased by 315,000 users since August, totaling in 93,812,400 wireless subscribers. On the wireless carrier front there were winners and losers, with KDDI au getting 312,500 subscribers while KDDI's another brand - 2G carrier TU-KA - lost 151,700. But TU-KA can be hardly called a loser as KDDI's goal is to transform TU-KA's 2G user base to au's 3G services. Meanwhile DoCoMo managed to sign up 126,300 new users and Softbank continued Vodafone's tradition of adding the fewest of customers among three carriers (I exlude TU-KA from this competition) - it recorded only 23,400 net additions in September.

Source: TCA

What do Japanese buy using their cellphones?

In the last week of august 2006, Rakuten Research in collaboration with Mitsubishi Research Institute conducted a web-based survey of 2,400 Japanese mobile phone users in order to get a sense of mobile content and service usage trends in Japan. The respondent's pool consisted of evenly divided age groups from 15 to 69 year olds with male and female accounting for 50% share each. Out of total respondents 2,107 or 87.8% were customers of four top carriers - NTT DoCoMo, au, Softbank and TU-KA. Below are some survey results specifically covering the mobile commerce/shopping trends of Japanese cellphone users.


The average amount of money spent by survey respondents shopping from their mobile handsets was 14,676 yen or around $123 with males spending on average 19,594 yen and women only 10,197 yen.



Books and magazines (28.4%) were the favorites among the items bought during one month by survey respondents, followed with CD/DVD (17.5%) and sweets and candies (17.5%).

Source: Rakuten Research