Will DoCoMo offer LG Prada instead of Apple iPhone?

Wall Street Journal reported that DoCoMo would bring LG Prada to Japan on May 23. The news raises a question of a fate of iPhone on DoCoMo’s network. It’s no secret that Prada is a direct competitor with the iPhone. Why would DoCoMo bring Prada if it was going to introduce iPhone? In a simple logic, you don’t want to cannibalize your iPhone sales by bringing a competing product. AT&T serves as a good example here. I have two theories to explain this move by DoCoMo. First of all, the negotiations between Apple and DoCoMo didn’t bring a fruit and DoCoMo decided to launch a competing product ahead of the iPhone’s launch on a rival’s network – Softbank’s, to be precise. Second, DoCoMo decided it takes too long for Apple to come up with 3G iPhone for Japanese market. There is still a possibility that iPhone will be shipped by DoCoMo as the Prada’s move can be seen by someone as pressure on Apple to become more flexible in its terms. We’ll see very soon.

Related iPhone articles:

• Apple’s iPhone to hit Japan market in 2008?
• iPhone balancing act: DoCoMo or SoftBank?
• Japanese users think iPhone is fat

Source: WSJ

DoCoMo to support LiMo, Android, Symbian, etc.

In a search of next growth engine, NTT DoCoMo is experimenting with various mobile operating systems for its handsets. It was just a couple of weeks ago when they announced plans to launch Android-based phones by 2010. Now they are announcing that their Linux MOAP platform will be re-tuned to LiMo specs as an operator pack for FOMA 3G handsets. According to DoCoMo, “the pack will contain a suite of Linux operating system-based software applications that implement i-mode™, i-appli™ and other unique DoCoMo services.” There was also a mentioning of developing a similar pack for Symbian MOAP platform. Besides that, DoCoMo also sells Windows Mobile smartphones, RIM’s Blackberry messaging machines and there are rumors it might offer Apple’s iPhone. What a soup of OSs? Isn’t it too much to handle even for DoCoMo?

Source: NTT DoCoMo

NTT DoCoMo is in a rebranding exercise

Having witnessed its market share dropping below 50% for the first time in a decade, NTT DoCoMo is introducing a new brand logo in an attempt to galvanize its ailing business. According to DoCoMo, the new logo means “energy and dynamism”. The change will require to do a makeover of 1,800 shops and, as Financial Times put it, “a small forest of stationery”. This is not the first attempt for DoCoMo to change its image – last summer it started a marketing campaign under the “DoCoMo 2.0” brand. However, changing the brand is far from being enough to reverse the market dynamics into your favor and hopefully DoCoMo realizes this.

Related articles on DoCoMo’s strategy:

• i-mode loses its appeal?
  

Sharp handsets do magic and spur mobile web usage in Japan

CNet Japan reported Be Trend’s research results about the mobile internet usage in Japan in January 2007. First, they show the breakdown of mobile internet access shares by carrier. The trend here reflects the recent turn around at Softbank, with carrier’s share surpassing 9% in January and gradually heading to a 10% milestone. Nevertheless, NTT DoCoMo still holds the lion’s share of mobile phone users accessing mobile web.

What is more interesting is that Be Trend was able to track down the mobile web access statistics to a single handset model, publishing top five models for each carrier. First come DoCoMo handsets with the top five ranking being occupied with spring and summer models of 2007. However, the latest models of 905i series also start penetrate the ranks, with Be Trend reporting that the P905i has made the Top 10 list with a 2.7% share.

Sharp entered KDDI au’s Top 5 list the W52SH model for the first time. Considering Sharp’s leading positions with other carriers, this success with KDDI au tells that Sharp has found a winning formula to manufacture both the CDMA and WCDMA handsets with appealing design and user friendly interface.

Softbank’s Top 5 list of devices used to access mobile web is dominated by Sharp model – only Toshiba handset prevents Sharp from taking all five positions.

Source: CNet Japan (Japanese)

DoCoMo-Google partnership: i-mode on Google steroids

In January, Google Japan and NTT DoCoMo announced their intention to work together to bring Google search, AdWords advertising platform and other Google apps to DoCoMo’s i-mode phone users. While Google already has relationships with KDDI au, the deal with DoCoMo goes beyond a simplistic inclusion of Google search box on the top page of i-mode portal. DoCoMo is about to stop playing a gatekeeper role as its users will search and browse beyond the operator’s own portal. So what are the changes that Google brings to DoCoMo i-mode?

Search results are fetched from three sources
Google search engine indexes three web domains for results: 1) i-mode sites approved by DoCoMo; 2) non-official i-mode sites; and 3) generic Internet websites. Before, users couldn’t perform searches that included non-official and Internet websites from i-mode portal.

Search results are grouped by three types
The way search results are displayed on i-mode portal is also will be changed to reflect the addition of non-official i-mode sites and Internet websites. Based on the source, Google and DoCoMo will group the search results accordingly.

Google keyword-based ads are integrated into search results
A big win for Google is the decision to integrate its AdWords advertising platform into i-mode portal. Now, keyword-relevant text ads marked with a [PR] sign will be placed in up to three locations across the page with search results with a total number of ads not exceeding four. No word about the revenue-sharing model between Google and DoCoMo though.

Display ads to compliment text ads
While details are not clear, there are some reports that Google AdWords platform will also be used to serve display ads such as banners across a bunch of DoCoMo’s services including i-mode portal, Message F (free), G-guide and others. DoCoMo’s D2Communications ad agency will work with Google on implementation of this new mobile marketing structure.

More Google apps to be preinstalled on DoCoMo handsets
Two companies agreed to preinstall a set of Google apps on DoCoMo handsets in near future. The first app to be preinstalled is Google Maps. The Fujitsu F905i and NEC N905i handset already spot Google Maps. All future handset models will be equipped with Google Maps, according to DoCoMo. Having started with the integration of Google Maps, the companies also plan to make Gmail, Picasa, YouTube and Google Calendar optimized for i-mode usage. The idea is to enable all kinds of mashups between these apps and search results like having a link from search results page to Google Maps for example.

Google to become a default page for DoCoMo Full Browser
It was decided that DoCoMo’s all future handsets with a full browser installed will have Google’s top page as a start page by default.

DoCoMo’s Android plans
It seems that DoCoMo wanted to ensure both the i-mode services and Android working seamlessly on its handsets when it joined Google’s led OHA initiative. We can expect i-mode handsets optimized for Google services rather than a complete shift to one platform – Android. Thus, DoCoMo’s handsets based on Symbian MOAP and Linux MOAP platforms will be optimized for Android experience, while some new Linux-based Android handsets will be optimized for i-mode service.

Related articles on Google's mobile strategy in Japan:

• Mobile Google localization primer: emoji and mobile Gmail
• Google Japan intros new single portal for domestic mobile operators
• Google befriends with KDDI, plans global expansion from within Japan?

Signs of LTE becoming a 4G technology of choice emerge in Japan

It is no wonder that WCDMA carriers like NTT DoCoMo and Softbank in Japan might pick LTE (Long Term Evolution) cellular technology for the upgrade of their current 3G networks. After all, LTE is considered to be a more optimal path for them than alternative 4G technologies, such as WiMAX. As a matter of fact, DoCoMo is already moving into that direction as it just announced the selection of Ericsson for its LTE base station development project. The two companies have a long history. Since 1992, Ericsson has delivered PDC base stations to NTT DoCoMo and, more recently, W-CDMA base stations for the operator's FOMA network. However, there are signs that even carriers from opposite to UMTS camp – CDMA, are hesitant about upgrading from their CDMA EV-DO networks to the Qualcomm’s proposed UMB (Ultra Mobile Broadband). CDMA carriers worldwide, Verizon Wireless, Vivo, KFT and SKT in Korea, made a pledge for the WCDMA upgrade path. What’s more interesting is that Japan’s CDMA carrier KDDI also seems to be evaluating its options about 4G. upgrade. According to Jean-Pierre Bienamé, chairman of the UMTS Forum, he senses a change of direction in the KDDI boardroom. “They have frozen development on EV-DO Rev A and are now assessing Rev B and Rev C alongside all the other options, including WiMAX and LTE. The decision criteria will be on cost reduction per bit and it is here where LTE has an advantage,” he said in an interview to Telecommunications Magazine.

Push-type Gmail comes to DoCoMo’s i-mode handsets

J-Com together with NTT DoCoMo launched a new service that allows DoCoMo’s i-mode users to receive push emails from their Gmail accounts. Every time a new email arrives to Gmail server, J-Com’s service pushes it to recipient’s mobile phone Blackberry-style with a notification sound. Besides viewing the emails, mobile user can actually write responses as well. J-Com also will leave a copy of received and sent email on Gmail server ensuring a synchronized experience between PC and mobile phone. A similar push email service from J-Com is also available for users who have Mac email accounts. While the J-Com’s service is very useful, their billing model seems to be draconian for users. Based on an agreement between J-Com and DoCoMo, the mobile operator will collect a yearly fee of JPY4,800 ($45) and will bill for the incurred data traffic as you go, meaning users can’t apply their flat data plans to enjoy the service.

Source: J-Com press release (Japanese)

Nokia in Japan: Keep a low profile for now?

Keitai Watch did a good coverage of Nokia’s event in Japan dedicated to the upcoming launch of FOMA NM705i handset model by NTT DoCoMo. The event also included a press conference with Nokia Japan CEO Tyler McGee. First, let’s start with the phone and then a couple of thoughts about Mr. McGee’s answers to the press.

FOMA NM705i – let others tailor their handsets for Japanese market?
The NM705i is a typical mass-market Nokia candy bar and that is what makes it interesting in terms of how Nokia intends to position it in the market dominated by smartphones featuring built-in TV tuners and credit cards. According to Nokia, the key concepts they are promoting are style and design, which turn the handset into an accessory by complementing person’s looks and feelings. They believe that young women in their 20-30s will find the NM705i appealing. Nokia mentions a sophisticated European design, global GSM/3G roaming, compact size, original interface of home screen, and pre-installed Japanese-English dictionary as other points that should differentiate this device in Japan. At the same time the model misses (intentionally, I assume) some Japan-market only features such as a one-seg TV tuner, contactless payments chipset, full music download service, GPS, DoCoMo’s i-channel and others.

Nokia's press conference
Video conferencing is one high-end feature that can be found on the NM705i and this is very illustrative of Nokia’s strategy. I’ll explain why later. According to Keitai Watch, Nokia CEO was also asked a question about one-seg and mobile wallet, the features missing from Nokia’s Japan bound phones. In Nokia’s opinion these features are getting popular but their take up is not big enough for Nokia to add them to Nokia’s products, but Nokia doesn’t rule out the possibility of using them in future as value-added features. I assume this means that Nokia doesn’t want to waste its resources to tailor its handsets to Japanese market’s specific needs. First of all, Japanese market is not significant for Nokia in terms of its yearly handset sales volume. Second, Nokia’s huge competitive advantage is economies of scale through the unification of feature sets for each handset product segment. None of other global markets require one-seg tuners or contactless chipsets at this time except Japan. Nokia is not going to change its production lines to manufacture one-seg phones for Japan only. However, once a particular feature like video conferencing gets a widespread uptake, Nokia will use its economies of scale to incorporate this feature into its phones and ship them globally. As the contactless payments-based mobile wallet feature gets its portion of attention worldwide, Japanese users can hope to purchase Nokia’s own mobile wallet phones.

In conclusion, there are still some opportunities for Nokia to expand its market share in Japan without adding technological advancements to its phones. The Japan market is going through some changes such as reducing its dependency on carriers’ handset subsidies and warming up to the idea of sales of unlock phones. These changes should play out nice for Nokia as its economies of handset production will allow introducing a variety of mobile phones at lower prices. However, before that happens I expect Nokia to continue keeping a comparatively small presence in the Japanese market.

Source: Keitai Watch

Nokia NM705i Specs
Model:	NM7059
Carrier:	NTT DoCoMo
Maker:	Nokia
Price:	N/A
Form factor:	Candy bar
Color variations:	Orange, Black, White
Weight:	89g
Dimensions:	105 X 46 X 15mm
Main display:	QVGA, 2" (320X240) TFT
Talk time:	144min (3G), 186min (GSM)
Standby time:	216 hours (3G/GSM)
Platform / OS:	N/A
Memory:	47MB
Memory card slot:	MicroSD card up to 4GB
GPS / Location:	No
Bluetooth:	Yes (ver. 2.0)
Infrared:	No
USB:	Yes (mini USB)
Wi-Fi:	No
Main camera:	2.0MP
Video calling:	Yes
One-seg TV:	No
Music player:	Yes (MP3, M4A, eAAC+, WMA)
Browser:	Not a full browser
FM radio:	Yes
Mobile Wallet:	No
QR-code:	No
Biometrics:	No

DoCoMo's HSPDA nationwide coverage reaches 96%

DoCoMo sees a direct correlation between network speed and increasing data ARPU. That’s why it aggressively rolling out HSDPA-compatible devices and blanketing the every corner of Japan with HSDPA coverage. At a press conference in January, the operator’s president Mr. Nakamura claimed the 96% of Japan territory to be in a service area of DoCoMo’s HSDPA network. DoCoMo plans to improve the coverage a notch up to 97% by March this year. A combination of flat data plan, mobile content services and high network speed start bearing fruit as the overall data ARPU has reached JPY2,200 (around $20), a healthy increase by 9.5% from last year. For comparison, the data ARPU of users on a flat data plan with HSDPA phones alone was impressive JPY3,950 ($36). Now, you can imagine why it’s important to have all three elements (network, handsets and content) in place for data revenues finally making a home run.

iPhone balancing act: DoCoMo or SoftBank?

Apple is reported to conduct talks with Japan's two UMTS carriers on a subject of who will launch iPhone in Japan. KDDI au the second biggest carrier is missing from the talks due to its CDMA network standard, which is not supported by iPhone. Japan is poised to become a first country to enjoy 3G version of iPhone. However, it is not clear who will get the "right of first night" with iPhone. DoCoMo variant is more attractive for Apple as the carrier controls more than 50% of market in Japan. However, DoCoMo is notoriously known for its tight control of the handset ecosystem in Japan and is not willing to cede it to anybody else. Maybe, that is the reason why Apple is bringing SoftBank to the negotiation table - to make DoCoMo play by Apple's rules over the fear that the iPhone deal may be snatched by SoftBank. It looks like Apple needs to stand firm with its conditions of revenue sharing with operators. If it shows weakness now, operators in other countries will demand the same deal. The possible solution is a compromise between Apple and DoCoMo - Apple still get the revenue-sharing but with a smaller margin than it got in the US or Europe (and other operators won't necessarily know about the terms of the deal). Below are some headlines from today's news sources discussing the matter:

• Apple Mulls Options for iPhone Japan
• Apple plays DoCoMo against Softbank over iPhone
• Apple in Talks with DoCoMo in Japan
• Apple Meets With DoCoMo, Softbank On Launching iPhone in Japan

Sharp SH905i first to feature Dolby Mobile

Sharp came up with an amazing piece of technology when they recently announced the SH905i handset for NTT DoCoMo. According to Sharp, it is the first handset in the world to use Dolby Mobile technology to enhance the sound of music and live TV played on the SH905i. The list of wow things they put into this phone doesn’t end with Dolby Mobile. Other advancements worth mentioning include 3-inch Wide VGA AQUOS display that uses Sharp’s proprietary developed vertical alignment technology called Mobile Advanced Super View enabling wide viewing angles, TOUCH CRUISER pad, which is an interface similar to the touch pads on notebook PCs, Manga Book Reader, IrSimple & IrSS standards for easy wireless transfer of pictures to compatible printers, and HSDPA for high-speed data transfers of up to 3.6Mbps.

Phone Specs
Model:	SH905i
Carrier:	NTT DoCoMo
Maker:	Sharp
Price:	N/A
Form factor:	Clam/swivel
Color variations:	Black, White, Pink, Blue
Weight:	125 g
Dimensions:	112 X 48 X 16.9mm
Main display:	3 inch (480X854) Full Wide VGA (16,777,215 colors)
Talk time:	200 min
Standby time:	max 540 hours
Platform / OS:	Symbian
Memory:	memory
Memory card slot:	microSD/HC
GPS / Location:	Yes
Bluetooth:	No
Infrared:	Yes
USB:	N/A
Wi-Fi:	No
Camera:	3.2MP
Video calling:	Yes
One-seg TV:	Yes
Music player:	Yes (AAC/WMA/SD Audio)
Browser:	Full browser
FM radio:	No
Mobile Wallet:	Yes (DCMX)
QR-code:	Yes
Biometrics:	Yes (Writing recognition)

Source: Sharp press release

Related articles on Sharp's mobile phones:

• Sharp handsets do magic and spur mobile web usage in Japan
• Softbank Spring Collection: Sharp Internet Machine 922SH
• Sharp is still undisputed handset leader in Japan: 1Q07 data

NTT DoCoMo’s top ten selling phone models

GfK, a market research company, published ranks of top selling mobile phones with each operator in Japan during the last week of November. This post will cover NTT DoCoMo. As DoCoMo starts rolling 905 series phones, devices from the 904 series line-up occupied the top positions due to discounts and general popularity of one-seg phones. Fujitsu’s one-seg F904i model ranked first for the second week in a row followed with another one-seg model the 704i by Sharp (see table below for the rest).

NTT DoCoMo Top Ten
1 (1)	Fujitsu F904i
2 (3)	Sharp SH704i
3 (4)	Panasonic P904i
4 (2)	Sharp SH904i
5 (5)	Fujitsu Raku-Raku4 F883iES
6 (6)	Fujitsu Raku-Raku3 F882iES
7 (9)	NEC N704iμ
8 (8)	NEC N904i
9 (10)	Mitsubishi D904i
10 (7)	Sharp SH903iTV

Source: GfK via ITMedia

Google Japan intros new single portal for domestic mobile operators

Now mobile phone users of NTT DoCoMo’s iMode, KDDI au’s EZ Web, and Softbank’s Yahoo! Keitai data services have one uniform URL they should use to get to Google Mobile - google.jp. Google Japan redesigned the mobile search method by getting rid of radio buttons with Web, Mobile and Images search options, leaving it to just a simple universal search. Google also report they optimized the local search and display of maps on mobile handsets. While this announcement is a step ahead for Google Mobile in Japan, it looks like the Japan’s team has a lot of localization work to do when comparing the array of mobile services available in the U.S. with those few offered in Japan (see image above).

Source: Google Japan Blog

Celebrity hairstyle: use your mobile to see if it fits you

Japanese mobile phone users got a fun application I would also like to have on my cell phone. The application, dubbed as Hair Chen, allows you to select trendy hairstyles from a sample database and apply them to your own picture to see how you’d look with that new hairdo. You’ll find a lot of Japanese celebrities in that database as usually they are the trendsetter for hairstyles. For starters, the sample database will contain around 80 virtual wigs to try on, but eventually it will grow with the time.

The Hair Chen application is not offered as a standalone, but rather serves as a bait to lure users to the same-named portal that aggregates nationwide data about hair salons and related information. The portal relies on a subscription-based model to make a profit, charging JPY315 (USD2.67) a month. While KDD au users had this application at their disposal from 2003 DoCoMo users got access to it only recently. The application developer Rstream partnered with hair salon operator Taya to feed the portal with the relevant data.

Source: Source: Rstream (Japanese)

Mobile social network myMTV selects Japan for debut

Viacom decided to test mobile social networking waters in Japan with a bang - claiming to be the "first in the world to offer simultaneous video and page-browsing on mobile." I'm not sure how it works in reality but can suggest it splits the screen in two parts.

Among other perks users will be allowed to use artwork by Japanese designers to decorate their personal pages and provided with access to the feature programming from "MTV's library, such as Pimp My Ride, and Japanese productions such as Usavich."

"The service is ad-supported and free to consumers, and is available on all three of Japan's mobile operators, NTT DoCoMo, KDDI and Softbank Mobile," according to C21Media.

Image recognition search engine fetches music results onto mobile screens

There is a one more way for Japanese mobile phone users to search for and buy ringtones and music. Bandai Networks just launched a new mobile phone service called “Search by Camera! ER Search” that allows cameraphone users to take a photo of a CD cover or poster and search for the information about that artist or band, using image recognition technology provided by US-based Evolution Robotics.

Evolution Robotics ViPR technology detects and recognizes visual patterns by applying specially developed algorithms to look-up an extensive database of candidate objects residing on a remote server. The object ID is then used to select the associated content to be sent back to the user’s cellular phone. Users can then click the link in the returned content to easily access a mobile site containing detailed product information or, if mobile commerce is available, purchase products directly from their phone without having to type in a product code.

Having partnered with music label company Label Mobile, Bandai Networks digitized more than 150 thousand of label’s CD covers, which cover the large part of the domestic market. The service is oriented at DoCoMo cameraphone users and available at no charge to them. To start using the service users need to download a Java application – iappli – that is compatible with DoCoMo’s handsets only at this moment.

Source: Bandai Networks

Google befriends with KDDI, plans global expansion from within Japan?

First Google powered KDDI au’s mobile search platform in July 2006, fetching mobile screen-optimized search results from KDDI’s own EZWeb service and conventional Internet. Now, it will offer the rebranded version of Gmail under the "au one mail" name. So, instead of @gmail.com the email address will look like @auone.jp. KDDI au users will get the service for free and be able to access it from both PCs and cell phones around from late September. Like Gmail, the service features familiar simple user interface and the mail box size is set to be 2GB.

Both KDDI au and Google are to benefit from this co-branding partnership as the former shows its users a new and friendlier Web 2.0 face and the latter penetrating into the walled gardens of mobile world and gaining mobile expertise. KDDI au’s strategy is in a striking contrast with DoCoMo’s protective build-it-yourself approach.

Mobile lessons learned by Google in Japan can help the company better compete on global arena. This was partially confirmed by Google’s Strategic partner development manager in Japan John Lagerling who said at Wireless Japan 2007 conference that Google wanted to develop mobile services in Japan and introduce them globally. With his previous business development experience at DoCoMo, working on i-mode international expansion strategy and mobile wallet projects, he seems to be determined to make it happen for Google. According to John Lagerling, Google’s global mobile strategy is built around three blocks: 1) Personalized search; 2) Cell phone-optimized mobile services; and 3) Partnerships with various industry players. Of course, each country’s specifics are taken into account when developing mobile strategy for one particular market.

John also provided interesting statistics about Internet usage in Japan, saying that among 85 million users, 16 million access Internet only from PCs and 19 million (1/4 of all Internet users) do it only from mobile phones, while 50 million don’t mind surfing the net from both PCs and cell phones.

Sources: Yahoo News and IT Media

i-mode loses its appeal?

DoCoMo's i-mode global coverage map is shrinking with more overseas carriers killing the service. Just recently Australia’s Telstra and the U.K. operator O2 said they would drop the offering. Russia’s vast territory surely makes i-mode global coverage map look great. In reality, only 7.2 million consumers use i-mode outside of Japan. While DoCoMo’s i-mode stronghold in Japan – more than 47 million i-mode subscribers on its own network – still gives the carrier leverage, it seems that i-mode business model is becoming irrelevant and outdated in the times of Web 2.0 trends expanding into the mobile world. With users becoming internet-savvy and mobile phones being shipped with full web browsers, DoCoMo’s i-mode collection of portals will lose their appeal to users. DoCoMo is sure feels the pressure and plans counter measures like DoCoMo 2.0 marketing campaign, an attempt to blend in with Web 2.0 crowd. Like an elephant in a china store? Well, it seems that they are catching up, not leading this time.

Fujitsu F704i is not afraid to plunge into water

Fujitsu's water-resistant F704i phone is scheduled to hit DoCoMo shops' shelves on July 20. This is a slight modification of the F703i model released in Spring. The main change is the inclusion of a global WCDMA/GSM support to bring piece of mind to Japanese users when they accidently drop their handsets into water abroad.

Phone Specs
Model:	F704i
Carrier:	NTT DoCoMo
Maker:	Fujitsu
Bands:	FOMA/WCDMA/GSM
Form factor:	clamshell
Color variations:	Magenta, White, Golden, Black
Weight:	109g
Dimensions:	100 x 48 x 17.9mm
Main display:	2.2inch, 262K color TFT LCD 240x320
Standby:	420 hours
Talk time:	145min
Platform / OS:	Symbian
Memory:	21.5MB (for music)
Memory card:	microSD
GPS / Location:	No
Bluetooth:	No
Infrared:	Yes
USB:	Yes
Wi-Fi:	No
Camera:	1.3MP (main)/ 1.1MP (sub)
Video calling:	Yes
TV tuner:	No
Music player:	Napster (WMA/AAC)
Browser:	Full Web
Water resistance:	IPX5/IPX7
Mobile Wallet:	Toruka, DCMX, FeliCa
Barcode reader:	JAN/QR/NW7/CODE39
Pust2Talk:	No

Japanese users think iPhone is fat

When asked what additional features they would like to see in iPhone if it was offered in Japan, majority of Japanese users (44.6%) pointed out to the lack of built-in TV tuner, according to online survey results published by research company iShare (1,341 respondents). The wish list for iPhone continues with the upgrade to 3G speeds (37.1%) followed with the inclusion of GPS (36.2%). Surprisingly, a lot of respondents (34.6%) think iPhone is not slim enough, while a rightful number of them want higher resolution camera (33.1%) and removable memory (33.1%).

DoCoMo is perceived as the least likeable carrier to offer iPhone in Japan (17.1%) among the three national cell phone operators, while SoftBank’s chances are the highest (53%) followed with KDDI au (19.6%).

Source: iShare (Japanese)

DoCoMo in talks with Apple to bring iPhone to Japan

When asked about iPhone at NTT DoCoMo’s shareholder meeting held on June 19, the company’s management confirmed that DoCoMo was interested in bringing iPhone to Japan and intended to have discussions with Steve Jobs about this possibility. However, DoCoMo is likely to face a competition from Softbank, third largest operator in Japan, who is rumored for a long time to carry iPhone on its network in Japan. Both operators run 3G networks based on WCDMA standard, meaning that the current 2G version of iPhone is not compatible with Japanese networks. It seems that it will take another year to have iPhone optimized for Japan’s market. The willingness with what Japanese operators are ready to embrace iPhone contradicts with their traditional approach to handset vendors when the game is played by operators’ rules. For the first time in Japan, operators may agree to bend these rules and accept Apple’s conditions such as to sell unsubsidized handset and pay a portion of service revenue to handset vendor. Judging by the size of market shares, the chances of DoCoMo to snatch iPhone are more promising than Softbank’s.

Source: ITmedia

Softbank last to hit 50% milestone with 3G subs in Japan

Having added 560,100 subscribers to its 3G service in April, Softbank finally passed a 50% 3G penetration milestone for its subscriber base. The leader in conversion cell phone users from 2G to 3G camps remains KDDI au, which has managed to get 97.9% of its total subscriber base to be equipped with 3G phones. DoCoMo so far persuaded only 69.1% of its customers to switch to 3G.

Japan’s mobile phone market: 2006 results

Japan finished 2006 with a 71.8% wireless penetration rate, which translates to 91.8 million people. Obviously, with the increase of the penetration rate, the net additions are slowing down with each year – 5.5m in 2005 versus 4.8m in 2006.

In 2006, the wireless market in Japan was dominated by DoCoMo with 51.1m users, trailed by KDDI with 25.4m of combined au and Tu-ka user bases, leaving Vodafone KK (now Softbank Mobile) on the third place with 15.2m customers.
The area, in which KDDI outperformed DoCoMo is ARPU, reaching JPY7,040 compared with DoCoMo’s JPY6,910. Vodafone traditionally finished in third place with JPY5,890.
Handset shipments have actually increased in 2006 hitting 48.7 million units compared with 44.8 million in the previous year, but less than 51 million handsets shipped in 2004.