January 2002 |
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Market
Snapshot - Japan
Wireless Internet Service
Each month the Japanalyzer takes you
inside one of Japan’s IT industries- showing you who’s who and where
the market is heading. This month we focus on Mobile Internet
Service- a worldwide subject of discussion given the rollout of 3G
(wireless broadband). NTT Docomo’s recent launch of next generation
3G services, called FOMA, has received criticism from many circles
for not living up to speed and application availability promises.
Meanwhile, competitors have turned existing 2.5G services into
worthy adversaries.
By the numbers:

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Current # of Mobile
Phones (11/30): 66,390,200 |
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Current # of
Subscribers to the Mobile Internet (11/30): 47,177,700 |
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Growth Rate: approx
2% from previous month |
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Market Predictions:
By 2005, mCommerce
will reach a value of $1.7 billion. By 2006, there will be 94
million mobile phones shipped |
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Current Use of
Mobile Phones: 2% for Businesses, 98% for Consumer |
Key
Players:
NTT
Docomo

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Location: Tokyo,
Japan |
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Website:
http://www.nttdocomo.co.jp/english/index.shtml |
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Revenue: 4.7 billion
Yen
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President: Keiji
Tachikawa |
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Market Share:
62% as of 11/30 |
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Comment: As Japan’s national
teleco provider and founder of the original mobile internet
service I-mode, NTT has the dominant position in the market.
DoCoMo is currently offering its 3G (FOMA) service in Tokyo with
plans for metropolitan city coverage by the end of 2002. FOMA
currently has 15,000 subscribers and the company estimates it
will have 150,000 by March 2002. It’s confidence comes from an
aggressive marketing campaign however battery life and coverage
problems still persist. |
J-Phone

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Location: Tokyo,
Japan |
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Website:http://www.j-phone.com/h-e/index.html |
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Revenue: N/A |
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President: Daryl
E. Green |
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Market Share:
approx. 20% as of 11/30 |
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Comment: Japan Telecom’s,
J-phone is a fierce competitor fully capable of leveraging it’s
Vodafone parent relationship on the global scene. J-Phone's 3G
launch remains June ’02 but they are currently running a trial
network. By delaying the launch, J-Phone will be able to
integrate the latest changes in W-CDMA (3G) specifications.
J-Sky is the name of their Internet Service which employs the
same technology as that of Docomo (PDC or Portable Digital
Cellular). |
KDDI

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Location: Tokyo,
Japan |
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Website:
http://www.kddi.com/english/index.html |
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Revenue: 2.3
Billion Yen |
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CEO: Tadashi
Onodera |
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Market Share:
18% as of 11/30 |
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Comment: KDDI
is known for being the only CDMA operator in Japan. It’s
Internet service is known as Ez-Web and recently it introduced
two interesting new data services: GPS Keitai and Movie Keitai.
Its GPS service allows customers to view detailed maps of city
streets while its movie services allow customers to download
various video clips ranging in length of 15 seconds to 1 minute. |
Trends:
 
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All major operators
in Japan have 3G service as a major component of their strategy
and are firmly committed to the rollout. |
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New data services
will drive usage and this should lead to an increase in
replacement handset sales because these new services require new
terminals. |
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The Japanese
wireless market is currently and should continue to be dominated
by local equipment vendors. |
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Consumers will
continue to be the main target of wireless Internet services
although 3G will increasingly be targeted at corporations as a
means of access to corporate networks. |
Helpful Links:
@pan Inc feature on non-Docomo players:
"The
Other i-modes "
http://www.japaninc.com/article.php?articleID=84&page=1
Mobile Media
Japan
Consulting and
research firm that features a great portal to information on Japan’s
wireless industry
http://www.mobilemediajapan.com/
The Japan Telecommunications Carriers Association
Great statistics and
monthly updates on the state of the market
http://www.tca.or.jp/index-e.html
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This
Month's Bridge Builder
Featuring
the real voice of IT across the Pacific
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January, 2002
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So
what’s it all About in Japan?
Mr.
Masanori “Max” Ninomiya
Senior Vice President & CAO,
Recruit About.com Japan
People who’ve been surfing the Internet for
a long time remember a great little portal site called The
Mining Company. The site was great because unlike other search
engines and directories, which are mainly user and computer
populated, the Mining Company provided a guide to the Internet
written by real people with real expertise on popular topics.
The Mining Company employed a network of freelancers called
“guides” who brought the best of the Internet together to
create mini-portals administered by these guides. Three years
ago the Mining Company changed its name to About.com and today
is the seventh largest web property in the US, according to
Media Metrix. This month’s interview is with Max Ninomiya, a
founding member of About.com’s Japan joint venture with
Recruit, Recruit About.com Japan.
Q. Max, tell us about
yourself and your career with Recruit and About in Japan?
A. I graduated in 1989
from Tokyo University’s Law program and immediately joined
Recruit, which as you know is Japan’s largest publisher. My
first job was in their Real Estate Management division, a
wholly owned subsidiary focused on building development and
management. I provided consultation for Recruit and property
owners on investment, financing, development and feasibility
of real estate projects. 7 years later I was selected by
Recruit to participate in their paid overseas education
program. The program was designed to award good performers
with English-speaking ability with the only condition being
that recipients return to the company for three years
post-education. I decided to get an MBA and chose UCLA over
schools like Wharton because of the UCLA’s IT and
entrepreneurial focus. After graduating UCLA in 1998, I
returned to Recruit’s Legal Department, where I negotiated
many Internet-related deals, contracts and alliances, both
domestic and international. One year later, I was assigned to
Recruit’s Next Generation Business Development Group, where I
met Ebata-san, now the President and CEO of Recruit About.com
Japan.
Q. So you met Mr. Ebata
at the beginning of it all. How did the company form and how
were you involved?
A. Ebata-san, my senior
at Recruit by 2 years, was already a part of the Next
Generation Business Development Group when I joined and first
heard about the idea of a Recruit/About.com strategic alliance
from him. He had thought that About.com would fit
strategically with Recruit’s portal ISIZE (www.isize.com).
ISIZE’s predecessor started out in March 1995 as an online
version of Recruit publications. It was purely informational
while today’s ISIZE is a network of truly profit-oriented
e-business centers featuring not just Recruit content but
information from non-Recruit publications. He had envisioned
that About.com’s guide model would also work in Japan and
serve as a loyal customer gateway to drive traffic to ISIZE’s
profitable businesses, and I also shared his vision. In
October 1999, Ebata-san invited me to visit About.com’s NY
headquarter on the first day we met, as I’d experienced
several international transactions including establishment of
Autobytel Japan, and five days later Ebata-san and I were in
NY for our first meeting with About.com. Over our several
business trips and innumerable teleconferences we explained to
them our strategic intent and synergies. We shared our
business plan and mutual goals, and negotiated terms and
conditions of agreements, until a deal was done in June 2000.
The new company, Recruit About.com Japan, was eventually
funded 49.5% by Recruit, and 47.5% by About.com.
Q. I see you are now
SVP and CAO of Recruit About.com in Japan. Tell me about your current
role and challenges.
A. In no particular
order my responsibilities include Strategic planning, Investor
Relations, Moderation of Board and Shareholder Meetings, Legal
Negotiations and Compliance, HR Management, and General
Administration. Since we’ve grown from just 0 to 50 employees
in just one and a half years, the change of pace here is quite
rapid. One thing I’ve discovered is how difficult it is to
effectively and efficiently manage this organization of 50 and
the talents and needs of each unique individual. Often the
organization’s strategic focus and the people’s needs vary
over time according to changing internal and external
situations, so this requires some timely adjustments. I also
find it challenging but exciting to move forward and ahead
with uncertainties.
Q. Finally, How do you
like working now for a foreign-capital firm in Japan?
A. It’s nothing special
to me as my MBA experience at UCLA means that I am used to
working with Americans. I enjoy working with people from
diverse cultures. Unlike other typical foreign parents in
other Japanese joint ventures, About.com doesn’t try to
control but rather tries to understand and respect the local
operation so it is actually much easier for us to do business
with them on a mutual trust and respect basis than I thought.
They are very cooperative in passing on to us their success
and failure experiences. In fact I haven’t had to travel to NY
much now because most of our communication with About.com is
done on conference calls and e-mail. I enjoy everything I do
to make this friendly international joint venture successful.
Thank you Max. Mr. Ninomiya can be reached via e-mail at
maxnino@recruit.about.co.jp his company’s website is
http://allabout.co.jp/
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,

Fiber Optics Expo
January 16-18, Tokyo Big
Sight (Tokyo International Exhibition Center)
Second annual event focusing on optical
communication devices & equipment. 633 companies exhibited last year and
attendance was almost 50,000.
IC
Packaging Technology Expo
January 16-18, 2002 at Tokyo
Big Sight (Tokyo International Exhibition Center), Tokyo
A variety of equipment, components and materials
for IC packaging technology. There are also four other technology related
events/exhibition will be held at the same place, such as Internepcon
Japan, Electrotest Japan, Electronics Components Expo, Printed Wiring
Boards Expo, and Fiber Optics Expo. The scale of this year's exhibition
is about three times bigger than the one last year.
Japan Storage Vision 2002
January
23, 2002 at the Tokyo Conference Center
IDC Japan's seminar on the future of Network
Storage and the Japanese market.
Electronic
Design and Solution Fair 2002
January 24-25, 2002 at
Pacifico Yokohama
This event sponsored in part by the Japan
Electronics and Information Technology Association(JEITA), introduces the
latest updates on IC design andsolutions. The event features a keynote
speech from the President of eAccess on the Broadband revolution.
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