Wednesday, April 08, 2009
iida - a new brand for KDDI's design series
KDDI created a new brand: "iida" for the long running best selling AU design series mobile phones. KDDI introduced some of the most recent iida design series models at the KDDI Designing Center. In addition to the earlier Yamaha musical instruments phones, KDDI introduced a spectacular phone created by Yayoi Kusama.
Fun is the green leaved charger....
Fun is the green leaved charger....
Labels: au, au design project, design series, iida, KDDI, mobile phone, yayoi kusama
Tuesday, December 23, 2008
ICT trends for Japan
One of the Embassies here in Tokyo asked me to write a report about ICT trends in Japan...
Mobile phone sector
Pushed by the Government the mobile operators changed the business model for mobile phone sales from a straight subsidy model to an installment payment system. As a consequence the mobile phone sales collapsed, creating huge difficulties for Japan's mobile phone makers, but greatly improving the financial results of mobile operators.
An interesting trend is the growth of the "smart-phone" market (Blackberry, HTC-Windows-Mobile phones, iPhone etc.) and mini-PCs, which can be acquired for YEN 1 with subsidy from eMobile.
In this context the Japanese telecom equipment makers association invited me to give a presentation, which was booked out 2-3 weeks ahead - about 100 Japanese telecom equipment maker managers attended! The General Affairs Vice-Minister / Secretary of State attended.... ( download my presentation here - in Japanese language: "Paradigm shift and opportunities for Japanese mobile phone makers" )
Nokia's termination in Japan
On November 27th, 2008, global press announcements announced that NOKIA will stop making mobile phones for Japan's mobile operators with immediate effect. DoCoMo and SoftBank had NOKIA phones in preparation and had already started marketing efforts - these were cancelled a few days after NOKIA's press announcement.
NOKIA had founded the Japan subsidiary on March 3rd, 1989, almost exactly 20 years ago, thus NOKIA has given up entering Japan's mobile phone market after 20 years of efforts. NOKIA will not totally shut down in Japan, NOKIA announced that R&D and procurement will continue, and VERTU announced to enter Japan's market with a mobile vertual network operator (MVNO) model renting network capacity from DoCoMo, and opening own shops.- However the opening of these direct VERTU stores keep being postponed.
NOKIA joins the row of European telecom companies which have given up operations in Japan: Vodafone, Cable & Wireless.
M&A
European company's acquisitions in Japan are currently almost non-existent, including the ICT sector. By far the largest acquisition in Japan by a company from the European/Mediterranian area was not by an EU company, but by the Israeli company Iscar which acquired the Japanese company Tungaloy for around US$ 1 Billion. However, this acquisition was driven by US capital. Read details in our blog here.
In the opposite direction there is a boom of Acquisitions by Japanese companies abroad. For example, TDK acquired the German company EPCOS, Fujitsu acquired the outstanding 1/2 of Fujitsu-Siemens, NTT-Data acquired 72.9% of Cirquent which was a 98% subsidiary of BMW before. SONY acquired the outstanding 1/2 of the SONY-Bertelsmann Music Group from Bertelsmann.
The current trend is definitely a strengthening of Japanese acquisitions in Europe.
The most important issue however are not the acquisition transactions themselves, but the crucial issue will be whether these acquisitions create or destroy value. In many cases the difficulties to overcome "cross-cultural" issues are enormous. Many huge wrecks line the road: Vodafone-Japan, Cable-Wireless-Japan, NOKIA in Japan, or DoCoMo's overseas acquisitions. There are also many success stories - the most impressive and famous one Nissan-Renault, however there are many more. An interesting case in progress is Nippon-Sheet-Glass (now NSG Group)'s acquisition of Pilkington Glass (read about a presentation by NSG's CEO here in our blog).
Mobile phone sector
Pushed by the Government the mobile operators changed the business model for mobile phone sales from a straight subsidy model to an installment payment system. As a consequence the mobile phone sales collapsed, creating huge difficulties for Japan's mobile phone makers, but greatly improving the financial results of mobile operators.
An interesting trend is the growth of the "smart-phone" market (Blackberry, HTC-Windows-Mobile phones, iPhone etc.) and mini-PCs, which can be acquired for YEN 1 with subsidy from eMobile.
In this context the Japanese telecom equipment makers association invited me to give a presentation, which was booked out 2-3 weeks ahead - about 100 Japanese telecom equipment maker managers attended! The General Affairs Vice-Minister / Secretary of State attended.... ( download my presentation here - in Japanese language: "Paradigm shift and opportunities for Japanese mobile phone makers" )
Nokia's termination in Japan
On November 27th, 2008, global press announcements announced that NOKIA will stop making mobile phones for Japan's mobile operators with immediate effect. DoCoMo and SoftBank had NOKIA phones in preparation and had already started marketing efforts - these were cancelled a few days after NOKIA's press announcement.
NOKIA had founded the Japan subsidiary on March 3rd, 1989, almost exactly 20 years ago, thus NOKIA has given up entering Japan's mobile phone market after 20 years of efforts. NOKIA will not totally shut down in Japan, NOKIA announced that R&D and procurement will continue, and VERTU announced to enter Japan's market with a mobile vertual network operator (MVNO) model renting network capacity from DoCoMo, and opening own shops.- However the opening of these direct VERTU stores keep being postponed.
NOKIA joins the row of European telecom companies which have given up operations in Japan: Vodafone, Cable & Wireless.
M&A
European company's acquisitions in Japan are currently almost non-existent, including the ICT sector. By far the largest acquisition in Japan by a company from the European/Mediterranian area was not by an EU company, but by the Israeli company Iscar which acquired the Japanese company Tungaloy for around US$ 1 Billion. However, this acquisition was driven by US capital. Read details in our blog here.
In the opposite direction there is a boom of Acquisitions by Japanese companies abroad. For example, TDK acquired the German company EPCOS, Fujitsu acquired the outstanding 1/2 of Fujitsu-Siemens, NTT-Data acquired 72.9% of Cirquent which was a 98% subsidiary of BMW before. SONY acquired the outstanding 1/2 of the SONY-Bertelsmann Music Group from Bertelsmann.
The current trend is definitely a strengthening of Japanese acquisitions in Europe.
The most important issue however are not the acquisition transactions themselves, but the crucial issue will be whether these acquisitions create or destroy value. In many cases the difficulties to overcome "cross-cultural" issues are enormous. Many huge wrecks line the road: Vodafone-Japan, Cable-Wireless-Japan, NOKIA in Japan, or DoCoMo's overseas acquisitions. There are also many success stories - the most impressive and famous one Nissan-Renault, however there are many more. An interesting case in progress is Nippon-Sheet-Glass (now NSG Group)'s acquisition of Pilkington Glass (read about a presentation by NSG's CEO here in our blog).
Labels: ict, Japan, mobile phone, nokia, smart phone, smartphone, trends
Wednesday, December 10, 2008
Japan's mobile phone disaster
Japan's mobile phone sector is admired the world over, and Japanese mobile phones are years ahead the rest of the world regarding functionality. However, Japan's mobile phone industry may be heading for a disaster, similar to the European 3G spectrum license fee disaster which almost bankrupted Europe's mobile phone operators - unless changes are made quickly. Statistics released today show that mobile phone deliveries in October dropped down to 1/4 of steady sales maintained over the last 8 years as the figure below shows.
What is the reason for the disastrous drop in mobile phone deliveries?
Until recently Japan's mobile phone operators subsidized mobile phone handsets. Consumers would typically pay YEN 10,000 (about US$ 100) for handsets with built-in digital TV, GPS, movie camera with auto-focus, electronic money and tickets, QR-code reader, and much more, which cost the operators up to YEN 100,000 (US$ 1000) per handset.
Encouraged by Japan's Government, mobile operators recently switched from the subsidy model to an installment plan, while discounting the monthly usage fees.
While previously consumers put YEN 10,000 (US$ 100) or in some cases YEN 1 (1 cent) on the counter to receive one of the world's most advanced handsets, since a few weeks ago consumers are faced with a 2 year installment purchase contract where they pay the full YEN 60,000 (US$ 600) or YEN 80,000 (US$ 800) for a handset in installments of around YEN 3000 (US$ 30) each month for two years. Not surprisingly handset sales dropped into the cellar as shown above (the figure above actually shows the deliveries from manufacturers to mobile operators, not the actual retail sales).
What are the likely consequences?
What is the reason for the disastrous drop in mobile phone deliveries?
Until recently Japan's mobile phone operators subsidized mobile phone handsets. Consumers would typically pay YEN 10,000 (about US$ 100) for handsets with built-in digital TV, GPS, movie camera with auto-focus, electronic money and tickets, QR-code reader, and much more, which cost the operators up to YEN 100,000 (US$ 1000) per handset.
Encouraged by Japan's Government, mobile operators recently switched from the subsidy model to an installment plan, while discounting the monthly usage fees.
While previously consumers put YEN 10,000 (US$ 100) or in some cases YEN 1 (1 cent) on the counter to receive one of the world's most advanced handsets, since a few weeks ago consumers are faced with a 2 year installment purchase contract where they pay the full YEN 60,000 (US$ 600) or YEN 80,000 (US$ 800) for a handset in installments of around YEN 3000 (US$ 30) each month for two years. Not surprisingly handset sales dropped into the cellar as shown above (the figure above actually shows the deliveries from manufacturers to mobile operators, not the actual retail sales).
What are the likely consequences?
- continuing consolidation of Japan's mobile phone handset makers
- surviving handset makers will push into international markets
- operators will push harder for cheaper handsets
- operators might return to a modified subsidy model
- NOKIA might get another chance in Japan
Labels: collapse, disaster, Japan, keitai, mobile phone, sales
Friday, October 03, 2008
Paradigm change of the global mobile phone business and opportunities for Japanese mobile phone makers
Presentation at the CEATEC Conference, talk NT-13, Meeting Room 302, International Conference Hall, Makuhari Messe, Friday October 3, 2008, 11:00-12:00.
The emergence of iPhone, Android, open-sourcing of Symbian, and the growth of mobile data services are changing the paradigm of the global mobile phone business opening new opportunities for Japanese mobile phone makers. Japan's mobile phone handset makers have missed most opportunities during the first wave of mobile phone opportunities. The developing paradigm change opens new opportunities for Japanese makers. The talk will explain the paradigm shifts and trends of the global mobile phone handset market, and resulting opportunities for Japanese mobile phone makers, and will indicate how these opportunities can actually be realized.
Download the presentation as a pdf-file here (in Japanese language)
The emergence of iPhone, Android, open-sourcing of Symbian, and the growth of mobile data services are changing the paradigm of the global mobile phone business opening new opportunities for Japanese mobile phone makers. Japan's mobile phone handset makers have missed most opportunities during the first wave of mobile phone opportunities. The developing paradigm change opens new opportunities for Japanese makers. The talk will explain the paradigm shifts and trends of the global mobile phone handset market, and resulting opportunities for Japanese mobile phone makers, and will indicate how these opportunities can actually be realized.
Download the presentation as a pdf-file here (in Japanese language)
Labels: android, Japan, maker, mobile phone, panasonic, sharp
Friday, August 22, 2008
Last 2G phone shipped 8 months ago in Japan
Second generation (2G) phones silently bowed out of Japan's market 8 months ago: the last 2G phones in Japan were shipped in December 2007. KDDI/AU switched off their 2G radio network in March this year, and both DoCoMo and SoftBank announced that they will switch off their slow and expensive 2G networks in the very near future (about 2009). Almost all other countries in the world either depend on legacy 2G networks only, or keep legacy 2G going while building out third generation in parallel. (Today's 3G HSDPA phones transmit data up to 250 times faster than 2G phones did on a good day).
The last 2nd generation (2G) phones shipped in Japan in December 2007. Almost all other countries keep legacy 2G networks running - Japan just switches them off. More in our JCOMM report.
The last 2nd generation (2G) phones shipped in Japan in December 2007. Almost all other countries keep legacy 2G networks running - Japan just switches them off. More in our JCOMM report.
Labels: 2g, 3g, docomo, hsdpa, hspda, Japan, KDDI, mobile phone, softbank
Tuesday, November 20, 2007
SoftBank and KDDI win market share
SoftBank from 4th to 1st position within less than 12 months... SoftBank's turn-round of x-Vodafone-Japan, went faster than many expected. Within less than 12 months SoftBank went from last place to first place in customer sign-ups, overtaking even KDDI's super-popular AU. Willcom recently suffers from SoftBank's revival, as well as from eMobile's flat rate data services.
Labels: docomo, Japan, KDDI, keitai, mobile phone, ntt, softbank, yahoo keitai
First half FY2008 results: SoftBank and KDDI profits increase, DoCoMo's trends is downward
In the last few days NTT, NTT-DoCoMo, KDDI and SoftBank announced their first half financial results. SoftBank and KDDI are the winners both for market share and for profits, while DoCoMo's results and market shares are sinking, and pulling the NTT-Group down at this time. Extrapolation indicates that DoCoMo's net profits may fall into the red about one year from now, drastic action is taken soon.
The thin lines show linear interpolations of quarterly net profit data. Our extrapolation seems to indicate that DoCoMo's net profit might fall into the red towards then end of calender year 2008 unless drastic action is taken. If current trends continue, SoftBank's net profits might exceed DoCoMo's mid-2008. We expect DoCoMo to take dramatic action before this happens.
The thin lines show linear interpolations of quarterly net profit data. Our extrapolation seems to indicate that DoCoMo's net profit might fall into the red towards then end of calender year 2008 unless drastic action is taken. If current trends continue, SoftBank's net profits might exceed DoCoMo's mid-2008. We expect DoCoMo to take dramatic action before this happens.
Labels: docomo, Japan, KDDI, mobile phone, ntt, number portability, softbank, yahoo keitai
Wednesday, June 06, 2007
SuiPo - linking posters to mobile phones and IC cards
JR-East introduced SuiPo (Suica Poster).
People who want to participate need to register and link their plastic SUICA card, or their mobile SUICA (wallet phone with installed SUICA application) with a registered mobile or PC email address.
Whenever a registered participants touches the SUICA reader/writer on the side of a poster, links to a campaign homepage, coupons, event announcements or other information is sent to the registered PC or mobile phone email address.
The SuiPo system puts interactivity into posters and allows the advertiser to build an opt-in data base of interested people and to interact with them.
More about SUICA: [Download our SUICA report]
People who want to participate need to register and link their plastic SUICA card, or their mobile SUICA (wallet phone with installed SUICA application) with a registered mobile or PC email address.
Whenever a registered participants touches the SUICA reader/writer on the side of a poster, links to a campaign homepage, coupons, event announcements or other information is sent to the registered PC or mobile phone email address.
The SuiPo system puts interactivity into posters and allows the advertiser to build an opt-in data base of interested people and to interact with them.
More about SUICA: [Download our SUICA report]
Labels: felica, mobile phone, mobile suica, rfid, suica, suipo
Friday, March 16, 2007
"Help - my mobile phone does not work!" - Why Japan's mobile phone sector is so different from Europe's
Presentation at the Lunch meeting of the Finnish Chamber of Commerce in Japan (FCCJ) on March 16, 2007 at the Westin Hotel, Tokyo.
Find the summary and photos of the meeting here
Download the presentation here
From the Announcement:
In his presentation, Dr. Fasol will explain the essentials of Japan's mobile phone market, why and how it is so different to Europe's. He will also talk about some of the reasons why it is so difficult for European companies to succeed and uncover opportunities and the keys to success for European companies in this important market.
Find the summary and photos of the meeting here
Download the presentation here
From the Announcement:
In his presentation, Dr. Fasol will explain the essentials of Japan's mobile phone market, why and how it is so different to Europe's. He will also talk about some of the reasons why it is so difficult for European companies to succeed and uncover opportunities and the keys to success for European companies in this important market.
Labels: docomo, handy, Japan, KDDI, keitai, mobile phone, nokia, softbank
Thursday, June 12, 2003
Japan's Mobile Communications Industry
Presentation at the German Embassy, Tokyo
(12 June 2003, 18:30, Residence of HE The Ambassador of Germany, Tokyo)
(12 June 2003, 18:30, Residence of HE The Ambassador of Germany, Tokyo)
Labels: business in japan, communications, industry, mobile phone
