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NEWSLETTER- the JAPANALYZER
     
     
What's New  July 2002

Market Snapshot - Japan
Spam in Japan: Scourge of the mobile phone

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 a major problem facing Japanese mobile phone operators: Spam. According to the Japanese Telecommunications Association, there are currently 55 million Internet-enabled mobile phones in Japan. Direct marketers have sought to capitalize on this massive market by using computer generated e-mail lists to send marketing messages to unsuspecting mobile e-mail users. These “spammers”, have been able to exploit the default e-mail settings of mobile phones, which are often simply “phonenumber@carriername.ne.jp” - pretty easy for a computer to guess. To make matters worse, the spammers are now joined by telemarketers, which have devised clever ways to take advantage of the Japanese obsession with mobile phones.

So just how bad is it?

Very bad. According NTT Docomo’s own estimates, 98% of all e-mail messages that go through Docomo’s servers are Spam. Furthermore, 85% of all e-mail messages are actually sent to non-existent e-mail addresses (13% make it through to an actual user). This places an enormous burden on the Docomo network because each non-existent addressed e-mail results in 4 tasks for the server: 3 tries to send the e-mail after it must send a rejection notice to the sender. Docomo has tried a number of initiatives to stop Spam including legal action against spammers, enhanced filtering at the server, and allowing users to limit domain names from which they receive e-mail. However, the tide of Spam has showed no signs of slowing. An independent test conducted by Net Village and iStreet using an I-mode phone with default settings showed spam e-mail messages per month to be just over 2500 as late as February of this year.

Spam spreads to Telemarketing

While some mobile users have been able to avoid Spam by changing their e-mail addresses to something other than the default setting, almost all users have become victim to a new form of abuse called “one giri”, literally “call once hang up.” By using sophisticated software to call all possible mobile phone numbers, direct marketers have been calling users and hanging up after only one ring in order to leave the company’s phone number in the caller-id memory of a user’s phone. This scheme plays upon users’ willingness to call back even unknown phone numbers. Users calling back are greeted by the marketer’s automated message. Like spam, “one-giri” is free for the marketer but in this case, the user pays the airtime charge.

Other carriers

Docomo is not the only carrier being affected by Spam but they are by and large the most open about the problem (they are the market leader). However, close rival J-phone, has one added advantage to preventing Spam: it has separate domain names for each region of service- for example: jp-t.ne.jp for Tokyo, jp-k.ne.jp for Kansai. I-mode on the other hand, is docomo.ne.jp only.

A Solution

Kanabo Consulting has spoken with several users over the past few months who appear to be unaffected by the Spam problem- most are I-mode users. These users have one important characteristic in common: they changed their userid (all operators allow for this) from the default setting to something unique with at least 8 characters. Combinations of numbers and letters appear to work the best. First and last name usage is the least effective. The key theme: the computer used by spammers can guess phone numbers and common names but they won’t bother getting creative.

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This Month's Bridge Builder
Featuring the real voice of IT across the Pacific

July, 2002 

Working with Japan in Civil and Civic service
Dr. Marjory Searing Senior Vice President, Civic Service, Inc.

When thinking about the nature of doing business between Japan and the US, it’s easy for executives on both sides to forget to look at the “big picture”. Yet an even greater issue arises when these executives wish to seek advice on how to navigate the murky waters of the Pacific, particularly the political side of the relationship. “Bridge builders” with experience in government are a rare and valuable source of consul. Kanabo Consulting recently had a chance to meet up with such an individual: Dr. Marjory Searing. Dr. Searing is a former Assistant Secretary and Director General of the U.S. and Foreign Commercial Service, who for several years during the Clinton Administration was a lead negotiator in the talks that led to key construction, medical, and automotive agreements. Among her recent accolades is her selection by the Organization of Women in International Trade as “OWIT Woman of the Year- 2000”. This month Kanabo Consulting interviews Dr. Searing regarding her thoughts on the nature of Japan/US business relations.

Q. Dr. Searing, please tell us about your background and experiences before Civic.

A. I joined Civic Service as Senior Vice President in February of last year. Before joining CSI, I was at U.S. Departments of Commerce and the Treasury. While at the Commerce Department, I was appointed by President Clinton and confirmed by the Senate as Assistant Secretary and Director General of the U.S. Commercial Service, an organization of 1700 employees in a network of offices located throughout the U.S. and in key business centers around the world. Our mission at the Commercial Service was to promote exports, support U.S. international commercial interests in the U.S. and abroad, and assist the U.S. business community in identifying new markets, expanding sales and market share around the globe. I also served as Deputy Assistant Secretary for Asia and the Pacific, and as Deputy Assistant Secretary for Japan. In these positions I served as the Department’s principal policy advisor on trade issues with countries in that region. I was also the lead negotiator with Japan on several sectoral issues, including construction, automotive products, pharmaceuticals and medical equipment, and developed policy recommendations and analyzed economic and political trends in China, Japan, and other countries in Asia. During my early career in the Federal Government, I held various positions in the international sphere including the Director of Treasury’s Office of East-West Economic Policy, and the Director of the Office of Multilateral Affairs, where I was responsible for managing Commerce’s participation in the Uruguay Round of GATT negotiations that led to the creation of the World Trade Organization.

Q. You’ve had a diverse and exciting career in both the public and private sector. In Japan, it is common for officials of government to move between the public and private sector. Based on your experience would you say this common in the US as well? How would you compare working in the private vs. public sector?

A. As you know I was a career civil servant and, like many government employees in Japan, stayed with the Federal government until I retired last year. Many colleagues from my generation followed a similar career path with many joining the private sector upon retirement from government.

More recently a growing number of career civil servants tend to stay in the Federal government for shorter time periods, perhaps starting their careers there and then moving to the private sector after gaining valuable experience. I think that reflects a fundamental change in the overall job market in the US where frequent job changes have become quite common. It also is a result of the considerable salary gap between public and private sector opportunities. Political civil servants of course only stay at most for the duration of the term of office of the President who appointed them.

Working in a small consulting firm has both major differences and some important similarities to my experience in government. A major advantage is the smallness. The difficult and frustrating challenge one faced in moving ideas forward in a large bureaucracy, and the enormous stress that came with overseeing an organization of 2000 employees and a budget of almost $200,000,000, or with being responsible for negotiating a successful agreement with a foreign government are gone. At the same time, I continue to work with companies as I did at the Department of Commerce and still have the sense that my contribution makes a difference for them. On the other hand, I had a wonderful experience throughout my time in government having had, I believe, some of the best jobs working with some of the most highly qualified and motivated people one might find in or out of government. And the fulfillment associated with working for the economic well being of the United States is really priceless. I will always feel that my career was an honor and a privilege.

Q. Please tell us about your current role at Civic Service and your involvement with Japan?

A. As the Senior Vice President I am responsible for the day-to-day operation of the Washington office and I provide oversight and guidance to the more junior staff members. But the lion’s share of my time is spent with our clients who include some of the largest companies in the world, both Japanese and American, in the areas of telecommunications, pharmaceuticals, financial services, and healthcare. We are primarily an international government relations and management consulting firm, providing advice, information, and access to important decision makers both in Washington and in Japan.

Q. I’m sure many of our readers are curious to know what it is like to work on both sides of the Japan/US economic relationship. How would your characterize the issues and challenges related to working with the Japanese from the two perspectives you’ve had?

A. My responsibility in government was to manage several difficult trade issues that existed at the time in the US-Japan bilateral relationship. My biggest challenge was to find ways to obtain agreement from my Japanese colleagues to take steps or make changes that would be helpful to our American companies. Achieving success required many things:

- Finding solutions that were in the interest of both of our countries;

- Building trust in the relationships with my Japanese counterparts;

- Understanding the constraints and factors in Japan driving their positions;

- Understanding also what would satisfy the US private sector constituency; and

- Remembering that the result had to be a victory for both sides.

Much of what I learned in that experience and the relationships I developed help me in the work I do today assisting and advising our clients on how to resolve the problems they face in Japan or the US. But the dynamic of the US-Japan commercial relationship is now quite different and in many ways more mature than it was in the early to mid 90’s when so much of the conflict was in the front pages of the press. Companies on both sides are less interested in interactions between the two governments and more interested in advice on the regulatory environment they face and how it might change, on finding beneficial strategic partners, and in understanding and interacting with the public sector in ways that relate to improving their bottom line.

Q. This newsletter has readers both in the US and Japan trying to do business across the Pacific. If you could give one piece of advice to managers on both sides, on how to manage their global business, what would you recommend?

A. Take the time and make the investment necessary to know and understand the market in which you are operating. This includes not only market research for product lines but also a broader understanding of the regulatory and business and, especially for highly regulated industries, the political environment. Thank you Dr. Searing for your time and thoughts. Dr. Searing can be reached by e-mail: Marjory_Searing@csidc.com .


Previous Interviews

Upcoming Events,

E-Learning World 2002
July 24-26, Tokyo Big Sight (Tokyo International Exhibition Center)
 Trade show and conference dedicated to e-Learning content, platforms, operation and evaluation, learning management, system integrators, network security, broad-band streaming, live-systems (TV conference, virtual classroom), performance support (knowledge management), and on-line schools.

Auto-ID Expo
September 11-13, Tokyo Big Sight (Tokyo International Exhibition Center)
An exhibition and conference dedicated to automatic identification technologies, organized by Japan’s Automatic Identification Manufacturers Association

International New Technology Fair
September 25-27, Tokyo Big Sight (Tokyo International Exhibition Center)
An exhibition of new patents and technology under research and development, sponsored by the Nikkan Kogyo News.

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