Contents

1. Mobile Internet in Japan(i-mode, Ezweb, J-sky)2003.3K.TomisawaProfessor Faculty of Management Dohto University

2. Contents • Using mobile internet has become a daily scene in Japan • Mobile internet has two characters: interactive media & mass media • Will the vertical-integrated business model developed by mobile communication carriers be open?

3. Using mobile internet is a daily scene in Japan • Mobile Internet has promoted the Internet use in Japan. • Internet users: 69million(2002.12) • Percentage of users population : 54.4% • PC users:57million • Cellular phone users:27million • Mobile internet users:60million

4. Internet Users 2002 （ For reference） (Source) MPHPT

5. Internet Users (Japan) percentage of users (Source) MPHPT

6. The number of internet users of each device PC User 57 million（82.4 ％） PC only 39 million Total 2002.12: 69 million 【16 million 】 【1.3 million】 【0.8 million 】 Cellular phone, PHS, PDA only 11 million Game machine, ＴＶ only 1.4milliom 【0.2 million 】 Game machine,TV User 3.6 million（5.2 ％） Mobile internet users 2002.12 60million Cellular phone, PHS, PDA User 28 million（40.2 ％） (Source) MPHPT

7. 80000 2003.1(000) Cellular phone users：73,900 Mobile internet users：60,235(81.5%) 70000 60000 50000 (000) 40000 30000 20000 Cellular phone Mobile internet 10000 0 1997.3 1988.3 1989.3 1990.3 1991.3 1992.3 1993.3 1994.3 1995.3 1996.3 1998.3 1999.3 2000.3 2001.3 2002.3 2003.1 Cellular Phone & Mobile Internet Users (Japan) (Source) TCA

8. Mobile Internet Users / Cellular Phone Users (2001.12) (Source) Baskerville Telecom Group

9. We use a cellular phone in order to phone, too. a phone placed over an ear →a phone placed in front of a face.

10. Factors of i-mode success • Careful in selecting contents(Official contents) → NTT Docomo collects the charge of official contents together with its telephone charges. →NTT Docomo manages the portal site where official contents are linked. • “What can be done.” is the only PR. • Difficult things, such as an "Internet connectivity", are not said. • Packet switching service≒always connected • New functional devices at a low price

11. Cellular Phone Users (Company Share) (2003.1) Mobile Internet Users (Service Share)

12. The highly functional devices have been introduced into the market timed with the progress of user's literacy. • User’s literacy has progressed • E-mail → picture-mail → movie-mail • Web（weather news, transfer information, etc.) • Download（game, ringtone melody, picture,etc.) • Coupon, prize • Web(shopping, auction, reservation, banking）→payment, certification • Web（link the DB of the company） • Multicolor, polyphonic ringtone, java, GPS, camera, infrared rays • Speed up

13. Media-mix Shopping, reservation Download Web (gather information) Mail Progress of user's literacy Expansion of business use multicolorJavaGPScamerainfrared ray highly functional devices, easy to use

14. Camera-equipped cellular phone has become popular 16000 14000 8million 12000 59.9% 10000 (000) 8000 Vodafone total 6000 4000 Camera-equipped 2000 0 03 05 07 09 11 03 05 07 09 11 2001.01 2002.01 2003.01.14

15. Diversification of Mobile Business • Pay contents (ringtone melody, picture, game,etc.) • Mobile commerce • Completed type • Store-guided type • Mobile advertisement（banner, mail, coupon) • Solution business（support companies’ usage of mobile internet） • A new strategy of content providers • System integrators prepare menus including mobile internet

16. Mobile advertisements, mobile commerce, mobile contents, mobile solutions Mobile use business Mobile business Airline industry, financial industry, transportation industry, retail industry, public field, etc. Telecommunication carriers, machine makers, software providers Mobile infra business

17. Interactive mass-media • Media features • Mass-media:60million users • Portable: carry-on for 24 hours • Personal: connected with a specific person • Interactive • Real time:always connected, immediate reaction • Unfitted for hierarchical information retrieval • Difficult to input a long URL

18. Interactive Phone Mobile internet Personal media Mass media Letter TV One way

19. Time zone in which a cellular phone or PHS is within a meter away weekdays weekends/holidays morning midnight (Source)Video Research

20. Access index hour Access index =No. of access in the time period/ No. of average access per hour Daily access situation of the used car site

21. Mobile internet PC internet can use immediately ○ setup is troublesome × Initial setting always at hand ○ at office or home × Portable immediately ○ take time × Starting easy ○ difficult × Operating poor × rich ○ Screen difficult × easy ○ Input hard to be seen ○ easy to be seen × Privacy phone function ○ no phone function × Phone Comparison with the mobile internet and PC internet

22. Progress of Media-mix • 「mass-media」＋「mobile internet」 • 「Informs widely」＋「interactive」 • Mobile commerce（linkage with magazines） • ちびギャザ(mail order) • Mobile campaign（linkage with packages） • ネットでファイヤー(canned coffee) • Mobile cashing（linkage with TVCM） • アコム(loan)

23. Mass media Action diffusion Mobile internet convert select The lens effect :Mobile internet selects useful information for individual among miscellaneous information and converts to action.

24. Applying mobile characteristics in the business field • Approach to the consumer market • Sales channel, sales promotion, product planning • Computerization of those who work under the mobile environment • Sales person, driver, etc.（to raise operating efficiency ratio ） • Gather information about distant places and things

25. Distinctness of the cellular-phone industry of Japan • The vertical-integrated business model developed by mobile communication carriers • MPHPT carved every layer of the model • Opening of a portal site to non-official content providers • Opening of network to ISP • Improvement of MVNO environments • The portability of the telephone number is a left-behind subject.

26. Contents & Application layer The portal site was opened. Carriers collect the charge of non-official contents. Platform Layer (charges, certifies, manages the portal site, etc.) The network was opened to ISP. Network Layer (telecommunication service operator) The environment for MVNO was improved. Device layer Portability of a telephone number is unsolved. MPHPT Makes the rule of each interface = makes a module of each composition element Business process The vertical-integrated business model developed by mobile communication carriers

27. car IBM360 Lego PC integral modular Classification of product architecture Cooperation beyond the company close open Degree of interdependence of a part design （Source）T.Fujimoto, A.Takeishi, Y.Aoshima “Business Architecture” 2001 Yuhikaku, etc.

28. Will business use be expanded? • obstacles • security • prejudice • the vertical integration model • factors of promotion • development of solution business • MVNO, SI • development of 3G

29. Mobile Phone Users (System Share) 2003.1

30. 2G & 3G (000)