Tag: KDDI

Japan mobile operators grow to US$ 25 billion in operating profits for FY2014 (ended March 31, 2015)

Annual revenues exceed US$ 170 billion in FY2014

Japan’s mobile telecommunications sector continues to grow

The global mobile internet and smartphone revolution started in Japan in 1999, and Japan’s mobile telecommunications market is the world’s most advanced and most vibrant. Much mobile innovation and inventions, such as camera phones, color screens for mobile phones, mobile apps (i-Appli in Japan), and mobile payments were invented and first to market in Japan.

Globally the first mobile internet started in Japan in February 1999 when NTT-Docomo brought i-Mode to market. NTT-Docomo did not succeed to develop global business based on i-Mode, however, SoftBank took the lead, and is now building a global business built on Japan’s telecommunications sector’s strengths.

To understand Japan’s telecommunications market read our report:

Japan telecommunications industry (66th edition) – Market analysis & tutorial

Japan mobile operators grow revenues to over US$ 170 billion in FY2014

While former monopoly operator NTT-Docomo’s business continues to shrink since its peak in 2002, KDDI is growing its predominantly domestic Japanese business slowly but steadily.

SoftBank on the other hand drives rapid growth with domestic Japanese acquisitions (Vodafone-Japan, Japan Telecom, eMobile and Willcom) and overseas acquisitions, which include US operator SPRINT, US mobile phone retailer BrightStar, Finnish game company SuperCell and many others – not to mention SoftBank’s investment in Alibaba.

Japan’s top three mobile operators combined revenues grow to over US$ 170 billion

Operating profits rise to approx. US$ 25 billion in FY2014

Operating profits and net profits are steadily increasing for Japan’s three mobile operators combined.

Former monopoly operator NTT-Docomo’s operating profits peaked in 2002, and have been steadily decreasing since this peak.

Both challengers KDDI and SoftBank on the other hand are growing operating profits steadily: KDDI mainly domestically in Japan, with relatively small global business, while SoftBank has dramatically increased business outside Japan with a series of acquisitions and investments, including US operator Sprint, US mobile phone distributor BrightStar and Finnish game developer SuperCell.

Operating income of Japan’s three mobile operators combined increases to approx. US$ 25 billion

To understand Japan’s telecommunications market read our report:

Japan telecommunications industry (66th edition) – Market analysis & tutorial

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July 6, 2015
SoftBank overtakes Docomo and KDDI in revenues and income and market cap

SoftBank overtakes Docomo and KDDI in all major KPIs

SoftBank presents annual results for the Financial Year which ended March 31, 2014 today, NTT-Docomo and KDDI presented their results a few days ago. Using projections published by SoftBank and using data found in the Japanese business press over the recent days, we have compared SoftBank, Docomo and KDDI financial results:

SoftBank overtook both Docomo and KDDI in all major KPIs: SoftBank’s annual revenues, operating profits and net after-tax profits are higher than NTT-Docomo’s and KDDIs.

To understand SoftBank, read our report about the Softbank Group, and read our report on Japan’s telecom sector.

The reason for SoftBank overtaking NTT-Docomo and KDDI are both excellent performance of SoftBank’s core businesses, mobile communications and media in Japan, and also a series of recent investments: SuperCell, GungHo, SPRINT, BrightStar, eMobile/eAccess, Willcom and more which all have been very successful investments sofa, not counting Alibaba, which of course is an amazing success story.

Going forward, of course the key questions now are the turn-round of SPRINT, and whether SoftBank can succeed with the much rumored acquisition of T-Mobile in the USA, and possibly also a major European acquisition.

We have today updated our Report on Japan’s telecommunications landscape, to include latest financial and subscriber data, and latest M&A activities: Japan’s telecommunications market is one of the world’s most active also regarding M&A and restructuring.

SoftBank overtakes Docomo and KDDI in Market cap (data for May 7, 2014):

SoftBank: ¥ 8908.9 billion (US$ 89 billion)
NTT-Docomo: ¥ 7049.5 billion (US$ 70 billion)
KDDI: ¥ 4925.2 billion (US$ 49 billion)

SoftBank overtakes Docomo and KDDI in annual revenues:

SoftBank overtakes Docomo and KDDI in annual revenues

SoftBank overtakes Docomo and KDDI in annual operating income:

SoftBank overtakes Docomo and KDDI in annual operating income

SoftBank overtakes Docomo and KDDI in annual net income:

SoftBank overtakes Docomo and KDDI in annual net income

Learn more about SoftBank, Masayoshi Son, and his 30/300 year vision for SoftBank

Report on “SoftBank today and 300 year vision” (approx 120 page, pdf file)

SoftBank today and 300 year vision (20th edition)

Japan’s telecommunications industry

(269 pages, pdf file)

Japan telecommunications industry (66th edition) – Market analysis & tutorial

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May 7, 2014
SoftBank market share in Japan – many articles get it wrong. What is SoftBank’s true market share in Japan?
by Gerhard Fasol

Many press articles get SoftBank market share in Japan wrong

With SoftBank‘s acquisition of US No. 3 mobile operators Sprint and the possibility that Softbank/Sprint will also acquire No. 4 T-Mobile-USA, SoftBank and Masayoshi Son are catching global headlines.

SoftBank market share in Japan: Many media articles report wrong data, because they forget to include group companies
These articles state SoftBank’s market share in Japan’s mobile market as 25% and say that KDDI Group has more subscribers than Softbank Group in Japan, but is this really true?

What is SoftBank‘s true market share in Japan’s mobile communications markets?

Detailed subscriber data and analysis of Japan’s telecom markets in our Report on Japan’s telecom sector.

SoftBank recently acquired eMobile/eAccess, and has been the court-appointed reconstruction partner of Willcom, after Willcom’s financial failure. Therefore eMobile/eAccess and Willcom are also part of the SoftBank group, and SoftBank plans to merge both. In addition, Wireless City Planning (WCP) are also part of the SoftBank group. You will find these transactions, the logic and reasoning behind them explained in great detail in our reports on SoftBank and on eAccess/eMobile.

List of mobile operators on Japan’s market today:

We have the following mobile operators currently in Japan – subscription market shares are shown in brackets (subscriber numbers for Docomo, KDDI and Softbank are as of February 28, 2014, while for other operators the latest officially reported numbers are used):
- NTT Docomo Group (40.8%)
- KDDI Group (28.9%)
  - AU
  - UQ Communications
  - fixed line and other businesses
- SoftBank Group (30.3%)
  - SoftBank
  - eMobile/eAccess (note: eMobile, eAccess and Willcom are now combined into Ymobile)
  - Willcom (now merged into Ymobile)
  - Wireless City Planning (WCP)
  - fixed line and other businesses
- several virtual mobile operators, e.g. Japan Communications Inc. who lease communications capacity e.g. from Docomo and retail this leased capacity to their own subscribers
The SoftBank group including eAccess/eMobile, Willcom and Wireless City Planning has actually more than 30% of Japan’s mobile subscriber market – not 25% as some articles write.

For detailed market data, statistics and analysis of Japan’s highly competitive mobile communications market, read our market report on Japan’s telecom markets, which includes analysis and data for Japan’s wireless, fixed, ADSL and FTTH markets, and detailed financial data, analysis, and comparison of the financial performance of NTT, NTT Docomo, SoftBank and KDDI.
We are also preparing reports on Japan’s cloud and data center markets –
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Subscriber market shares in Japan’s wireless communications markets for each of the competing groups: Docomo, KDDI and SoftBank.

Learn more about SoftBank, Masayoshi Son, and his 30/300 year vision for SoftBank

SoftBank today and 300 year vision (20th edition)

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March 13, 2014
Growth in Japan: the SoftBank group
SoftBank gaining market share in Japan

SoftBank market cap catching up with Docomo

Mobile subscription data released last week show, that the SoftBank group continues to gain market share while incumbent NTT-docomo continues to lose market share – an upward trend for SoftBank, and a downward trend for NTT-docomo essentially unbroken since SoftBank acquired Vodafone-Japan and succeeded with the turn-round.

SoftBank’s market cap has also steadily increased recently and is now close to NTT-docomo’s, exceeding it on some days:

operator || Market Cap (May 10, 2013)
- NTT-docomo || YEN 6945 billion (US$ 68 billion)
- SoftBank || YEN 6688 billion (US$ 66 billion)
- KDDI || YEN 4162 billion (US$ 41 billion)
SoftBank group exceeds 40 million mobile subscriptions

Bringing eMobile and PHS operator Willcom under its group umbrella, and by creating the new operator Wireless City Planning (WCP), Softbank group subscription numbers now exceed 40 million, and have overtaken KDDI

PHS operator Willcom joins the SoftBank group

PHS operator Willcom registered for bankruptcy administration essentially because of the high investments in upgrading the legacy PHS network infrastructure, and is currently in corporate reconstruction with SoftBank as the reconstruction sponsor.

Wireless City Planning (WCP) is a wireless operator owned partially by Advantage Partners and SoftBank and other investors, and representing the next generation network Willcom hoped – but could not afford – to develop.

While negotiating the SPRINT acquisition, SoftBank tricks out KDDI to take control of eMobile

While Masayoshi Son was secretly negotiating his offer for SPRINT, he discovered that KDDI was in negotiations to acquire new entrant eMobile. While continuing the SPRINT negotiations, he was a faster decision maker than KDDI, and could win the eMobile acquisition right under the eyes of KDDI.

Since a few weeks ago, iPhones on SoftBank‘s network automatically log into both SoftBank’s and eMobile‘s LTE radio networks, greatly enhancing data transmission rates and coverage.

More in our report on Japan’s telecommunications sector

Softbank and Renewable Energy

Softbank recently also entered the renewable energy business. Read more about Softbank’s renewable energy business in our Renewable energy report (our work on Japan’s energy sector is referenced in IEEE-Spectrum here).

Learn more about SoftBank, Masayoshi Son, and his 30/300 year vision for SoftBank

Report on “SoftBank today and 300 year vision” (approx 120 page, pdf file)

SoftBank today and 300 year vision (20th edition)

Copyright 2013 Eurotechnology Japan KK All Rights Reserved
May 13, 2013
Japan telecom sector financial results and the Softbank-Sprint take-over battle

SoftBank seeks to win, where Docomo failed – taking Japan’s telecoms know-how global

Japan telecom sector financial results: very very healthy

With SoftBank and DISH battling for US mobile operator SPRINT, the eyes are on Japan’s very healthy mobile phone sector, which a few days ago announced financial results for FY 2012. Japan’s mobile operators combined achieve about US$ 120 billion in revenues and income margins are among the highest globally.

The size, success and extremely advanced state of Japan’s mobile phone sector, SoftBank’s excellence, and Masayoshi Son’s midas touch give SoftBank the strength to go for an acquisition of SPRINT – and to aim for the large scale globalization which DoCoMo tried, but could not achieve about 10 years ago.

Japan’s mobile operator revenues are about US$ 120 billion and growing

Japan’s mobile operators DoCoMo, KDDI and SoftBank are growing steadily

Japan’s mobile phone operators are protected by government licenses, but within this scope, there is passionate competition and there are many M&A actions. With high investments in infrastructure, Japan’s mobile phone sector is among the most advanced in the world. Japan initiated the global mobile internet revolution.

Combined, Japan’s mobile operators achieve about US$ 120 billion in sales annually

Combined, Japan’s mobile operators achieve about US$ 120 billion in sales annually, and the size of Japan’s mobile industry has been growing steadily ever since mobile phones started in Japan.

The Figure above clearly shows the growth of SoftBank from a small venture to one of the world’s largest telecom operators, and the acquisition and turn-round of Vodafone-Japan.

SoftBank aims for US$ 10 billion operating income/year

SoftBank is on track to achieve the target of YEN 1 Trillion operating income/year by FY 2016

FY2012 financial results announced a few days ago show that SoftBank has overtaken KDDI in terms of operating profits, is on track to overtake DoCoMo and to achieve its target of YEN 1 Trillion (US$ 10 Billion) in operating profits by 2016 – this while investing heavily in infrastructure in Japan, and paying down debt remaining from the acquisition of Vodafone-Japan.

Operator Operating income/year
China Mobile US$ 24.4 Billion
Vodafone US$ 17.4 Billion
Verizon US$ 13.2 Billion
SoftBank US$ 7.5 Billion, 2016-target: US$ 10 billion

More in our report on Japan’s telecom sector

SoftBank today and 300 year vision report:

SoftBank today and 300 year vision (20th edition)

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May 7, 2013
Potential Flu Pandemic Positive for Telcos
- Potential Flu Pandemic Positive for Telcos (Airtime: Tuesday, April 28, 2009)
  
  Read more about Japan’s telecom sector: http://www.eurotechnology.com/store/jcomm/
  Read more about DoCoMo: http://www.eurotechnology.com/store/imode/
  Read more about KDDI: http://www.eurotechnology.com/store/kddi/
  Read more about Softbank: http://www.eurotechnology.com/store/softbank/
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April 28, 2009
iida – a new brand for KDDI’s design series by Yayoi Kusama

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….

KDDI iida charger

KDDI iida design series – by Yayoi Kusama

KDDI iida design series – by Yayoi Kusama

KDDI iida design series – by Yayoi Kusama

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April 8, 2009
Wild differences in operating margins for mobile, TV media groups and electricals

We analyze the effect of the crisis on operating margins in three different sectors in Japan:

(1) electronics,
(2) mobile communications
(3) TV media groups.

In sector (1), Nintendo‘s margins are above 30% and increasing despite the crisis, while traditional electronics companies’ margins are evaporating.

(2) for mobile operators DoCoMo, KDDI and SoftBank margins are 10%-20% and increasing despite the crisis! Could mobile phone usage be crisis resistant?

(3) TV media groups had healthy margins in the 10%-20% range back around 2001- however these margins have been slowly melting away, and TV group margins are heading to cross the zero line into the red zone by 2010-2011. Watch out for a TV media crisis. Read more below.

Consumer electronics sector operating margins:

Nintendo bucks the trend: while Japan’s electronics firms’ margins are dropping into the red, and have never been much higher than 5% during the last 10 years, Nintendo‘s operating margins are above 30% and rising despite the crisis.

Margins of top Japan’s electronics multinationals and Nintendo

(Find full data, fully labeled graphics and analysis in our report on Japan’s electrical companies)

Mobile phone sector margins are 10% – 20% and rising despite the crisis.

Mobile phones seem to be resistant to the current crisis. DoCoMo‘s, KDDI‘s and Softbank‘s margins are healthy and improving despite the crisis.

Operating margins of Japan’s top 3 mobile operators

(Find full data, fully labeled graphics and analysis in our JCOMM Report)

Margins of TV media groups have been melting away since their peak in 2001.

Back in 2001 Japan’s TV media groups used to enjoy healthy margins of up to 20%. Over the last 8 years these healthy margins have molten away, and Japan’s large TV media groups are likely to all simultaneously go into the red from 2010 onwards, unless dramatic action is taken. Media groups will need to grow profitable new business, e.g. mobile-TV, and other cross-media growth areas.

Could it be that recent anti-takeover measures have made the large TV media groups complacent?

Operating margins of Japan’s TV media groups

(Find full data, fully labeled graphics and analysis in our J-MEDIA Report)

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February 9, 2009
+ 49% y-o-y net profit increase for KDDI

Japan’s telecom operators are a very bright spots in a dismal economic crisis. I think that’s not a coincidence.

Why? The deeper purpose of Japan’s location based services, QR-codes, mobile music, e-moji, wallet phones and keitai credit etc. has always been to make mobile phones inseparable from people’s daily lives, so that people would use their mobile phones a lot, even if there is an economic crisis. This strategy seems to work.

Japan’s second largest operator KDDI was the first to announce financial results this round:
– quarterly net income increased +49% year-on-year, and
– operating income increased +18.5% compared to same quarter last financial year.

KDDI is particularly interesting because KDDI is a model for the 3G roll-out by China Telecom in China, which was awarded a license to build a 3G network using the same CDMA2000 technology as KDDI.

KDDI was initially far more successful than both DoCoMo and Vodafone (now Softbank) to roll out 3G in Japan – as documented in detail in our 3G report. Analyzing carefully what KDDI did right, and the difficulties DoCoMo and Vodafone encountered, as well as proper exploitation in differences between technologies will be a must.

KDDI introduced many advanced services such as GPS (global positioning and related location base services LBS), full song mobile music, etc several years earlier than DoCoMo and Vodafone -> Softbank, helping the image of the brand and raising revenues (ARPU). This advance allowed KDDI to overcome the handicap of lower market share compared to DoCoMo. Read more below, and in our reports.

KDDI’s 3rd quarter net profits rose by 49% yoy.

Comparing 3rd quarter FY2009 (Oct. – Dec. 2008) with 3rd quarter FY2008 (Oct. – Dec. 2007) operating income increased +18.5% and net income increased +49%. These are spectacular results considering the terrible economic crisis going on now.

Notice also KDDI‘s very aggressive income growth targets forward to year FY2011 (shown for operating income, thin orange line).

Steadily increasing net annual incomes on the order of US$ 2 billion/year is not bad in times such we have now. Find a detailed analysis in our KDDI report.

Quarterly operating income of KDDI

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January 29, 2009
Tech Sector Outlook (CNBC TV interview)

More in our J-ELECTRIC report: http://www.eurotechnology.com/store/j_electric/

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October 22, 2008
Last 2G phone shipped 8 months ago in Japan, 2G networks are switched off

KDDI/AU switched off 2G radio network in March 2008, Docomo and SoftBank to switch off 2G networks in 2009

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 2008, 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).

2G vs 3G phones in Japan

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.

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August 22, 2008
Japan’s Mobile Space Not Saturated

More in our J-COMM report: http://www.eurotechnology.com/store/jcomm/

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April 9, 2008
Mobile Industry Resilient to the downturn (CNBC TV interview)

More in our report on Japan’s telecom and mobile sector

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January 25, 2008
Market caps of companies in mobile: global vs local

Google, Apple, Nokia, HTC, Vodafone and are winning the driver’s seat of the global internet revolution. DoCoMo, KDDI and SoftBank essentially stay inside Japan for now – limiting their growth prospects and leaving global opportunities to others.

Market caps of Japan’s telecom operators compared to global telecom and internet companies

GOOGLE with Android and APPLE with iPhone are reaching for the driver’s seat of the global mobile data revolution. Global companies including GOOGLE, Vodafone, Apple and NOKIA grow to US$ 100s Billion valuations, while local companies NTT, DoCoMo, KDDI and SoftBank remain essentially limited to Japan’s market for now. Smartphone maker HTC increases impact – including in Japan.

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November 20, 2007
SoftBank and KDDI win market share, Docomo loses

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.

Find latest market share data in our report on Japan’s telecom industry.

Month-to-month net subscription growth/decline for Japan’s mobile phone operators during the period when mobile number portability (MNP) was introduced

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November 20, 2007
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.

Net after-tax income of Japan’s top three mobile operators NTT-docomo, KDDI and SoftBank. Currently docomo’s net profits follows a downward trend, and risks to drop into the red, unless docomo takes drastic measures.

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.

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November 20, 2007
KDDI Set To Post Record H1 Profit (CNBC TV interview)

Need to know more about KDDI? Read our Report on KDDI

Net after-tax income of Japan’s top three mobile operators NTT-docomo, KDDI and SoftBank. Currently docomo’s net profits follows a downward trend, and risks to drop into the red, unless docomo takes drastic measures.

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October 29, 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.

Summary of the event and photographs here:

https://web.archive.org/web/20160815232148/http://www.fcc.or.jp/lunch160307.html

The presentation is not available any longer on the FCCJ website however you can download our report about Japan’s telecom sector. An abbreviated version is shown below via SlideShare. If you need the full FCCJ presentation PowerPoints e.g. for prior art or other business, please contact us.

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.

Gerhard Fasol “Help – my mobile phone does not work!” – Why Japan’s mobile phone sector is so different from Europe’s, at the Finnish Chamber of Commerce in Japan

Gerhard Fasol “Help – my mobile phone does not work!” – Why Japan’s mobile phone sector is so different from Europe’s, at the Finnish Chamber of Commerce in Japan

Gerhard Fasol “Help – my mobile phone does not work!” – Why Japan’s mobile phone sector is so different from Europe’s, at the Finnish Chamber of Commerce in Japan

More in our report about Japan’s telecom sector.

Copyright 2007-2013 Eurotechnology Japan KK All Rights Reserved·

March 16, 2007
Mobile subscriptions grow by 5 million in Japan during 2006

Japan’s mobile subscriber numbers grew by about 5 million in 2006. Because of the much higher ARPU, Japan’s mobile market again grew by a couple of Finlands during 2006. A growing number of people have more than one mobile phone, to take advantage of the best rates, eg for mail, voice and data. We expect growth to continue. Our analysis below shows that KDDI’s and AU’s gains are a lot larger than a superficial view of the statistics reveals – see our Figure below. Find a detailed review in the latest edition of our JCOMM-Report.

During 2006 Japan’s mobile subscription base grew by about 5 million – KDDI gained about 4.2 million new subscriptions and is the clear winner, despite shutting down its TuKa 2G service during this period

KDDI‘s subscriber gains during 2006 are much bigger than a superficial analysis reveals (see figure above):

KDDI’s AU mobile service gained about 4.2 million new subscribers during 2006 – more than twice as many than DoCoMo’s cellular service, which gained about 1.8 million new subscriptions.

Currently, KDDI is shutting down it’s TuKa 2G service, and DoCoMo is shutting down it’s PHS service. Both services together lost more than 2 million subscribers during 2006 – this is a much larger movement than due to number portability introduced on Oct 24, 2006.

KDDI offers both number portability and mobile email portability, and reports surprise that many former low-end TuKa users moved to top-end high-speed WIN (2.4 Mbps) data services.

For KDDI, enticing TuKa subscribers to move to high-end/high-speed AU services was an excellent preparation for number portability, and helped KDDI win in the first stage.

Copyright (c) 2013 Eurotechnology Japan KK All Rights Reserved

January 28, 2007
Mobile Number Portability (MNP) in Japan

Mobile number portability created winners and losers in only two months – the main business challenge for Japanese operators is to avoid a price war.

KDDI is the clear winner in the first round, DoCoMo suffers a setback, and SoftBank (which acquired Vodafone-Japan) did better than expected.

Today we released the 23rd edition of our JCOMM-Report – about 250 pages of overview and analysis of Japan’s telecom sector.

KDDI gains 524,000 subscribers in Oct & Nov 2006. DoCoMo for the first time ever since it was founded experienced a net loss of subscriptions.

Net gain/loss of Japan’s mobile operators at introduction of mobile number portability (MNP)

KDDI gains 600,000 new EZweb subscribers, Japanese operators earn much from mobile internet – subscription data show even better results for KDDI‘s EZweb.

gain/loss of subscriptions by Japanese mobile internet services during introduction of mobile number portability (MNP)

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January 5, 2007
NEW YEAR on i-Mode and EZ-web
Both docomo’s i-Mode and KDDI’s EZweb top menu pages display Season Greetings and reflect Japan’s seasonal mood: autumn sports days in schools, skiing in winter, Halloween and New Year.

Here are this year’s New Year greetings for the Year of the boar on i-mode and EZweb which were displayed from January 1, 2007 for a few days during Japan’s New Year vacation:

New Year 2007 on docomo’s i-Mode and KDDI’s EZweb mobile internet home pages

More about Japan’s mobile internet:
Copyright (c) 2013 Eurotechnology Japan KK All Rights Reserved
January 1, 2007
"au design project 2006": TRILOGY
KDDI is unique among mobile operators in creating value from design for phones with the “au design project”. Creating value for which consumers are willing to pay premium prices is a key to success in the rapidly growing global US$ 150 Billion mobile phone business.

au design project 2006:

The KDDI Designing Center showed the exhibition “TRILOGY”, displaying some results of the “au design project 2006”. The three concept phones are (from left to right):
- “kaos” by Naoki Sakai
- “cypres” by Nao Tamura
- “vols” by Ross McBride
KDDI / au design project 2006

KDDI / au design project “kaos”

KDDI / au design project “cypress”

KDDI / au design project “vols”

Copyright (c) 2013 Eurotechnology Japan KK All Rights Reserved
November 16, 2006
"au design project": INFOBAR-2 by Fukawasa Naoto

KDDI is unique among mobile operators in creating value from design for phones with the “au design project”. Read more about KDDI in our KDDI report.

Creating value for which consumers are willing to pay premium prices is a key to success in the rapidly growing global US$ 150 Billion mobile phone business.

INFOBAR was a big success for KDDI. Industrial designer Fukawasa Naoto recently created INFOBAR-2, and introduced it at a show at the KDDI Designing Center in Tokyo:

“au design project”: INFOBAR-2 by Fukawasa Naoto

“au design project”: INFOBAR-2 by Fukawasa Naoto

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November 16, 2006
Finland-Japan Ubiquitous Society Conference

October 27, 2006 the Finland-Japan Ubiquitous Society Conference was held in Tokyo.

Tero Ojanpera, Exec VP and CTO of NOKIA, gave an overview of NOKIA’s vision of communications, other speakers and panelists included Juho Lipsanen, Finland CEO of TeliaSonera, KDDI Chairman Murakami.

The day before I briefed and had a long discussion with the top management team of TeliaSonera-Finland.

Nokia CTO Tero Ojanpera talking at the Finland Japan Ubiquitous Society Conference

Panel discussion with TeliaSonera CEO Juho Lipsanen and KDDI-Chairman Murakami.

Nokia CTO Tero Ojanpera talking at the Finland Japan Ubiquitous Society Conference

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October 27, 2006
Briefing TeliaSonera top management

The day before the Finland-Japan Ubiquitous Society Conference in Tokyo, I briefed the top-management (CEO, CTO and other top managers) of TeliaSonera, on October 26, 2006.

The next day, October 27, 2006, the Finland-Japan Ubiquitous Society Conference was held. Tero Ojanpera, Exec VP and CTO of NOKIA, gave an overview of NOKIA’s vision of communications, other speakers and panelists included Juho Lipsanen, Finland CEO of TeliaSonera, KDDI Chairman Murakami.

Nokia CTO Tero Ojanpera talking at the Finland Japan Ubiquitous Society Conference

Panel discussion with TeliaSonera CEO Juho Lipsanen and KDDI-Chairman Murakami.

Nokia CTO Tero Ojanpera talking at the Finland Japan Ubiquitous Society Conference

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October 26, 2006
KDDI’s "Customer Satisfaction" campaign

Contrary to SoftBank‘s “Zero YEN” campaign, which plays with the fire of a price war, KDDI centered AU’s number portability campaign on “customer satisfaction” emphasizing services. The “customer satisfaction campaign” uses a symbolic customer as the campaign theme:

KDDI Customer Satisfaction campaign

More in our Report on KDDI

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October 24, 2006
Yahoo!-keitai replaces Vodafone-Live!

SoftBank replaced Vodafone-Live! by Yahoo!-Keitai. SoftBank phones have a “Y!”-button which links to Yahoo!-keitai. Yahoo-Keitai! offers a list of official sites, new services (e.g. a new communicator service), and also access to free mobile internet sites through the YAHOO directory, as well as access to YAHOO services, such as YAHOO-auctions.

SoftBank replaces Vodafone-Life by Yahoo!-keitai as part of the acquisition of Vodafone-Japan

YAHOO!-keitai is a fresh start to revive the mobile internet service, previously known as Vodafone-Live!, and which had been losing market share to competitors i-Mode and EZweb for about 4 years. Previous to the Vodafone-Live! period, Jsky had been successful in gaining market share both from i-Mode and EZweb.

Market share in Japan’s mobile internet market: Vodafone-Life was continuously losing market share before it was acquired by SoftBank, while KDDI’s EZweb was winning market share over several years

Understand Softbank: our report: “SoftBank today and 300 year vision”

pdf file, approx 120 pages, 47 figures 18 photos, 7 tables

SoftBank today and 300 year vision (20th edition)

Copyright 2013 Eurotechnology Japan KK All Rights Reserved

October 9, 2006
Why Japan is several years ahead of Europe in telecoms and broadband?
Briefing at the European Union Embassy following Vodafone’s failure in Japan

and what Europe can do to catch up?

by Gerhard Fasol

Today (March 23, 2006) I was invited to brief the Technology Attaches of the Embassies of the 25 European Union countries here in Tokyo about the topic “Why Japan is several years ahead of Europe in telecoms and broadband?”, about Japan’s telecommunications sector (both fixed net and wireless) in a one hour presentation + discussion, following Vodafone’s failure in Japan, and sale of Vodafone-Japan to SoftBank.

I had offered several alternative topics and the conference of EU Technology Attaches selected the most provocative title I had offered:

Why Japan is several years ahead of Europe in telecommunications and what Europe can do to catch up

Vodafone KK’s Chairman and former NTT-DoCoMo Vice-President Tsuda, who had worked 34 years at NTT and DoCoMo (and who resigned from his Vodafone-Japan CEO position a few weeks after being head-hunted), said in a recent interview with Bloomberg that “Japan is way ahead in 3G”. – therefore, although this title is clearly provocative, it’s clearly worthwhile examining this question. With the sale of Vodafone KK to SoftBank last week, the timing of this briefing was particularly interesting. My presentation discussed the following questions:
- Is Japan ahead of Europe in Telecommunications?
- Why?
- What is the impact?
- Is this important?
- What Europe can do to catch up
Japan telecommunications industry report

Japan telecommunications industry (66th edition) – Market analysis & tutorial

Copyright (c) 1997-2013 Eurotechnology Japan KK All Rights Reserved
March 25, 2006
Why are keitai so hot in Japan?

Innovations in Japan’s mobile phone sector

Why is Japan’s telecommunications sector leading?

Seminar announcement

The European Institute of Japanese Studies (EIJS Academy in Tokyo) of the Stockholm School of Economics will hold a seminar in Tokyo-Marunochi on Thursday, February 16, 2006:

Topic: “Why are Mobile Phones (Keitai) so hot in Japan? – and How European companies in all sectors can profit from Keitai”

Speaker: Gerhard Fasol

Gerhard Fasol “Why are keitai so hot in Japan?” Embassy of Sweden

Agenda:

Japan created the most passionate and most advanced mobile communications (keitai) market in the world. Recently, almost all innovations in mobile communications have been developed or brought to market first in Japan. Fasol’s talk will explain why this is, and how European companies in all fields, from retail to publishing can profit by building keitais into their business models.

Date: Thursday, February 16, 2006
Time:

6.15 – 7.00 p.m. Drink and Snack (served before the lecture)

7.00 – 9.00 p.m. Lecture and Discussion

Place:
Marubiru Conference Square, Room 2 (Tel: 03-3217-7111)
8th floor of Marubiru, 2-4-1 Marunouchi, Chiyoda-ku, Tokyo
One-minute walk from JR Tokyo Station, Marunouchi South Exit

Fee: JPY2,000 per person, payable at the door
Free for students, please bring your student ID
Free for those who are from sponsoring companies

Advance registration required: Please sign up (via email) or fax to (FAX 03-3212-1530) for the attention of Ms. Futagawa (EIJS Tokyo Office.)

Japan telecommunications industry report

Japan telecommunications industry (66th edition) – Market analysis & tutorial

Copyright 2013 Eurotechnology Japan KK All Rights Reserved

February 12, 2006
Music phone for KDDI LISMO! mobile music service including 4 GigaByte Hard Disk launched

Music player phone for KDDI LISMO mobile music service

LISMO! competing with iPod and iTunes

(Tokyo, Feb. 6, 2006 by Eurotechnology Japan KK) In the last few days KDDI/AU‘s “MUSIC-HDD” phone (W41T by Toshiba) went on sale nationwide in Japan. The W41T includes a 4 Gigabyte 0.85 inch (22.6mm) diameter Hard Disk Drive (HDD), and can store roughly 2000 full songs. This storage is the same as for a top range iPod-nano (however the storage in an iPod-nano is flash memory, not HDD). With the “MUSIC-HDD” phone and other “music player” phones, KDDI/AU launched the “LISMO!” service, an integrated online-store & mobile & PC music offering, which competes in the same arena as iPod/iTunes.

4 GigaByte Hard Disk music phone for KDDI AU LISMO! mobile music service

For more about mobile music in Japan click here.

Copyright (c) 2013 Eurotechnology Japan KK All Rights Reserved

February 6, 2006