News
Issue #2002 - 46 (December 2002)
(Updated Dec. 10, 2002)

INFRASTRUCTURE, PRODUCTS & SERVICES

Japanese Market Update 

Source -- Scott Murff -- This week J-Phone's offices were raided by the Fair Trade Commission (FTC) on allegations of price fixing on handsets. The FTC is investigating the possibility that J-Phone forced retailers to stick to designated retail prices in an effort to prevent handset prices from tumbling amid heated competition. On a positive note, J-Phone accumulated its one millionth movie-phone user on November 19th, making J-Phone the leader in movie-phone mobile services. 

KDDI Corp. and Okinawa Cellular Telephone Co. entered a partnership with with Label Mobile Inc., to offer a music download service for their 'au' internet-enabled mobile phones. The downloaded music - whose data is used as music CDs - can be downloaded from a specific web site accessed via an EZweb mobile phone and set as a ringing tone or alarm sound on the handset. The service that allows mobile phone users to download and set the music CD source itself as their ringing tone is the first in the world. The latest hit songs are available in a duration of about 15-30 seconds. 

In a telling statement this week, KDDI informed investors that users of its mobile photo e-mailing service spend about one-third more per month than its other cellphone subscribers, giving a strong lift to revenues. "Presuming a typical subscriber has an average revenue per user of YEN 7,500 (USD 62.30) per month, (photo-mail users) end up about YEN 2,000 to YEN 3,000 above that," said Toshio Okihashi, senior executive manager of KDDI's 'au' mobile service. KDDI also said that the first month of photo service usage is heavy, but slows in the second month after the subscriber's first phone bill arrives. By the third month, usage tends to stabilise. This is positive news for mobile services looking to launch photo services in Europe and the United States. 

DoCoMo reduces investment in KPN
DoCoMo is set to reduce its stake in Dutch carrier KPN Mobile below three percent by opting out of a recapitalization. The company has turned down a request from KPN for $2.4 billion in new capital. The move would cut DoCoMo's 15 percent stake in the Dutch carrier to around 2 to 3 percent and mark a further retreat from the carrier's widely criticized global investment strategy. KPN said it already expected DoCoMo’s decision and has made plans for recapitalization without DoCoMo's participation. Analysts are happy that DoCoMo is reducing its foreign investments.

For more information: http://www.wirelesswatchjapan.com/index.htm

MobileInfo Comments and Advisory: Manipulation of competition in the handset market is a bad practice that needs to be controlled. If the market is the best place to level the playing field, let it play its course.

Note: This news release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of Securities Exchange act of 1934 in USA. Similar provisions exist in other countries. There is no assurance that the stipulated plans of vendors will be implemented. MobileInfo does not warrant the authenticity of the information. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.