The Japanese market has given the world a glimpse of what the
Wireless Internet might look like, and it is a prime force in the
direction and momentum of the Wireless Internet market. NTT
DoCoMo is Japan’s leading mobile phone operator and largest
ISP and the world’s leader in Wireless Internet access. Since
starting its data service (called i-Mode) in February 1999, NTT
DoCoMo has seen its subscriber base grow to top 26 million as
of August 2001; it averages 40,000 to 50,000 new subscribers
per day. This spectacular growth is driving NTT to implement
3G technologies that will provide for greater capacity and allow
creation of new applications. Only about 15 percent of Japanese
consumers and business people access the Internet via PCs.
Thus to many of NTT’s i-Mode customers, the i-Mode is synonymous
with the Internet. According to NTT DoCoMo, the “i”
stands for interactive, Internet, and independence.
In Japan, businesses from airlines to television stations to
banks all provide their services via i-Mode. DoCoMo earns a 9
percent fee from content providers that charge for their information.
DoCoMo has four revenue models: monthly subscription
fees, per-packet data transmission fees, commissions on billing,
and revenues for traditional voice services. In 2000, DoCoMo
reported that 70 percent of i-Mode traffic came from users in
their teens to early twenties, with about 60 percent of i-Mode
traffic going to official sites that specialize in entertainment.
According to NTT DoCoMo, the average total bill for i-Mode
data transmission is about $13.00 (U.S.) per month. Equally
impressive, the average i-Mode user generates an additional 36
percent increase in revenue over voice-only subscribers. Much of
this increase can be attributed to direct access, use of data packets,
and increasingly higher voice minutes of use.
The increase in voice usage is interesting in that we believe
it represents a hidden upside to most United States business
models. Even more impressive is i-Mode’s transmission speed
of only 9.6 Kbps. Even at this “slow speed,” some of the best
selling applications are (surprisingly) cartoon-character screen
savers that download each day for $1. The i-Mode service has
been so successful that at times DoCoMo has curtailed its
advertising in efforts to slow down subscriber growth while
improving network capacity. When DoCoMo launched i-Mode,
it had 67 Web site providers: By the end of the first year, there
were 721 information providers responsible for 1,280 sites on
DoCoMo’s main i-Mode menu, and third party developers had
created another 31,085 i-Mode sites. Additionally, it was
announced in February 2001 that that Google had developed a
new technology that gives i-Mode users in both English and
Japanese access to the more than 1.3 billion Web pages Google
has indexed to date. Google’s technology converts a request for
a standard HTML Web page to be viewable on an i-Mode
handheld device. i-Mode’s success is enhanced by the huge
number of content sites available to the subscriber.
To better understand the reason for i-Mode’s popularity, and
the rapid and overwhelming adoption of the Wireless Internet
by the Japanese people, we must look at Japan itself. In Japan,
space is at a premium—homes and offices are small and there
is very little extra room to accommodate PCs, monitors, and
printers. Furthermore, Japanese society is traditionally an early
adopter of technology in general and it is a commuter culture.
Today, only about 15 percent of Japanese consumers and
business people reach the Internet using PCs. The remaining
85 percent are willing to accept the limitations of smaller display
screens and keyboards on wireless handheld devices.
Furthermore, the price of PC Internet access via landline phone
is higher in Japan when compared to the United States or
Western Europe. The average costs are $20 per month plus $2
per hour of use. The installation price of a home phone line is
approximately $700, as compared to a cellular connection for
$28; and i-Mode users pay only for the number of packets used.
Because the Japanese are traditionally early adopters of new
technologies, they have been very quick to adopt new i-Mode
products and services. For example, Japanese consumers have
purchased dog collars that transmit their animal’s location to
their wireless device, PC, or fax machine. Entertainment-related
sites where you can download images, ringing tones, play
interactive games, read your horoscope, find dating services,
weather, and news are most popular. Because the majority of
Japanese students and employees commute (usually by train or
bus) an average of 30 to 40 minutes per day each way, they have
ample opportunity for mobile communications and entertainment.
Pocket-size devices are really well-suited to these commuter
environments where, more often than not, there is no
room to even open a newspaper. Even a small notebook computer
is too big to carry on a bus or train, whereas the i-Mode
device is the perfect size to be held in one hand. Table 3-7
shows the popularity of i-Mode content by category. Figure 3-10
shows preferred mode of access to the Internet in Japan.
Because of the unique characteristics of Japanese society, it
remains to be seen how quickly other societies and cultures
embrace the Wireless Internet experience. Acceptance will
depend on packaging and pricing, and quality and quantity of
compelling content and services. However, as the Japanese
experience clearly demonstrates, acceptance of the Wireless
Internet is high when things are done right. 126
IT Certification CCIE,CCNP,CCIP,CCNA,CCSP,Cisco Network Optimization and Security Tips
FINLAND: THE LAND OF THE MIDNIGHT SUN, REINDEER, AND MOBILE PHONES
In Finland, the number of the households having a conventional
telephone has decreased during the past ten years from
94 percent to 78 percent. Simultaneously the amount of
households having a mobile phone has shown a very rapid
growth from less than 5 percent to 73 percent. By 1998, more
Finnish households had a mobile phone than a conventional
telephone. Approximately 88 percent of households in Finland
have at least one mobile phone, and more than 20 percent of
these households have more than one mobile phone, which is
up from 65 percent in 1999. More than 20 percent of households
in Finland have only a mobile phone (one or more), and
that number may grow in a few years. (Source: Statistics
Finland; www.cellular.co.za/news.)
Finns in particular have a strong affinity to their Nokia
mobile phones. In 2000, over 1.4 million new phones were
purchased (in a country with just over 5 million people). These
phones are used to send messages, especially by teens. In
2000, over 1 billion SMS messages were sent. Furthermore,
wireless phones are also being used in a variety of mobile transactions.
For example, to purchase beverages from GSMenabled
vending machines, the user dials the number indicated
on the machine, which results in the release of the soft drink
from the machine. The cost of the beverage appears on a
monthly bill, together with the charge for the phone call.
telephone has decreased during the past ten years from
94 percent to 78 percent. Simultaneously the amount of
households having a mobile phone has shown a very rapid
growth from less than 5 percent to 73 percent. By 1998, more
Finnish households had a mobile phone than a conventional
telephone. Approximately 88 percent of households in Finland
have at least one mobile phone, and more than 20 percent of
these households have more than one mobile phone, which is
up from 65 percent in 1999. More than 20 percent of households
in Finland have only a mobile phone (one or more), and
that number may grow in a few years. (Source: Statistics
Finland; www.cellular.co.za/news.)
Finns in particular have a strong affinity to their Nokia
mobile phones. In 2000, over 1.4 million new phones were
purchased (in a country with just over 5 million people). These
phones are used to send messages, especially by teens. In
2000, over 1 billion SMS messages were sent. Furthermore,
wireless phones are also being used in a variety of mobile transactions.
For example, to purchase beverages from GSMenabled
vending machines, the user dials the number indicated
on the machine, which results in the release of the soft drink
from the machine. The cost of the beverage appears on a
monthly bill, together with the charge for the phone call.
EUROPEAN EXPERIENCE
Most countries in Europe, specifically the Scandinavian countries
and Finland, are focused on communications and mobility.
Wireless telephony has been part of European life for most
of the past two decades. In these countries, more than 60 percent
of the populations use mobile phones. In many cases the
use of mobile phones is so popular that it has dramatic impact
on the growth of conventional landline phones. Consequently,
mobile phones are replacing conventional phones in certain
households and lifestyles. As such, it is predicted that by
2004, one third of all Europeans—over 200 million people—
will regularly use Internet services on their mobile phones,
according to research company Forrester. As this Internet
fever takes hold in Europe, more Europeans are racing to
route e-commerce through mobile phones. It’s estimated that
within the next two years more Europeans will be surfing
through a Web phone than a PC. The Wireless Internet is
poised to become the most important channel for online banking
and financial services in Europe.
Across Europe, new wireless data services and applications
are being launched. As operators make the transition from circuit-
switched to higher speed data services, they and the market
will provide applications that make use of the resources
available to further drive usage of the network. They will also
have to make a move away from time-based billing and examine
the alternative revenue streams that are available to applications
providers. In Western Europe, 45 out of 57 mobile
network operators in 18 countries, representing approximately
90 percent of all the mobile phone users in Europe, have
already created online portals.
and Finland, are focused on communications and mobility.
Wireless telephony has been part of European life for most
of the past two decades. In these countries, more than 60 percent
of the populations use mobile phones. In many cases the
use of mobile phones is so popular that it has dramatic impact
on the growth of conventional landline phones. Consequently,
mobile phones are replacing conventional phones in certain
households and lifestyles. As such, it is predicted that by
2004, one third of all Europeans—over 200 million people—
will regularly use Internet services on their mobile phones,
according to research company Forrester. As this Internet
fever takes hold in Europe, more Europeans are racing to
route e-commerce through mobile phones. It’s estimated that
within the next two years more Europeans will be surfing
through a Web phone than a PC. The Wireless Internet is
poised to become the most important channel for online banking
and financial services in Europe.
Across Europe, new wireless data services and applications
are being launched. As operators make the transition from circuit-
switched to higher speed data services, they and the market
will provide applications that make use of the resources
available to further drive usage of the network. They will also
have to make a move away from time-based billing and examine
the alternative revenue streams that are available to applications
providers. In Western Europe, 45 out of 57 mobile
network operators in 18 countries, representing approximately
90 percent of all the mobile phone users in Europe, have
already created online portals.
MARKET CASE STUDIES EUROPEAN AND JAPANESE ENVY
Why does it seem that most of the rest of the world has a better
communications system? We often hear that Europe and
Japan are ahead in terms of wireless technology; surprised
Americans have a hard time understanding why they don’t have
the latest in devices and systems. Although there are many factors
that have contributed to the apparent head start of Europe
and Japan, one of the most important is geographic size and
population density. In short, they simply have less space to
cover and often more people in that smaller space.
Cellular gets its name from the system of cell use and
reuse that essentially divides up the area to be covered into
cells. Each cell can only handle a certain amount of traffic
before it, too, needs to be divided into smaller cells to increase
capacity. The first analog cellular systems employed frequencies
that covered a relatively large area while handling a modest
amount of traffic. As the popularity of cell phones
increased, more and more analog cell sites were needed.
Digital 2G systems were designed to handle this increasing
traffic by utilizing more efficient digital systems that required
less power and could fit more calls into the same amount of
bandwidth. These digital 2G systems were not only more
expensive that 1G analog systems but required more cell sites.
This greatly increased the total build-out costs of service
provider network infrastructure.
Because many European countries could fit into the United
States several times over, and Japan could fit into Europe several
times over, European and Japanese operators could roll out
a 2G network with more complete coverage for less money
than could an American operator. We see this same effect in
the coming 3G systems—is anyone really surprised that Japan
will have it first?
Americans shouldn’t feel too badly: the United States is
the home of the PC-based Internet, whereas Europe and
Japan want bandwidth for the mobile phones. By mid-2001
over 65 percent of European Union citizens had a mobile
phone, more than twice the percentage who had home
Internet access. In some countries, Finland and Sweden for
example, mobile penetration levels have reached 70 percent,
and there are some predictions that some countries may reach
100 percent penetration (one for every man, woman, child,
and dog—yes, even pets can wear communication collars that
track their location. Imagine being able to call your pet via the
built-in attached speaker). Mobile communications is a global
$200 billion industry with a growth rate of 12.5 percent a
year. European wireless operators spent an astronomical $130
billion in 2000 on licenses (a staggering amount to spend on
“air”) to offer 3G services, and will have to spend as much to
build out their networks. As global culture continues to merge,
disparities will eventually equalize as each nation learns from
other’s advances.
communications system? We often hear that Europe and
Japan are ahead in terms of wireless technology; surprised
Americans have a hard time understanding why they don’t have
the latest in devices and systems. Although there are many factors
that have contributed to the apparent head start of Europe
and Japan, one of the most important is geographic size and
population density. In short, they simply have less space to
cover and often more people in that smaller space.
Cellular gets its name from the system of cell use and
reuse that essentially divides up the area to be covered into
cells. Each cell can only handle a certain amount of traffic
before it, too, needs to be divided into smaller cells to increase
capacity. The first analog cellular systems employed frequencies
that covered a relatively large area while handling a modest
amount of traffic. As the popularity of cell phones
increased, more and more analog cell sites were needed.
Digital 2G systems were designed to handle this increasing
traffic by utilizing more efficient digital systems that required
less power and could fit more calls into the same amount of
bandwidth. These digital 2G systems were not only more
expensive that 1G analog systems but required more cell sites.
This greatly increased the total build-out costs of service
provider network infrastructure.
Because many European countries could fit into the United
States several times over, and Japan could fit into Europe several
times over, European and Japanese operators could roll out
a 2G network with more complete coverage for less money
than could an American operator. We see this same effect in
the coming 3G systems—is anyone really surprised that Japan
will have it first?
Americans shouldn’t feel too badly: the United States is
the home of the PC-based Internet, whereas Europe and
Japan want bandwidth for the mobile phones. By mid-2001
over 65 percent of European Union citizens had a mobile
phone, more than twice the percentage who had home
Internet access. In some countries, Finland and Sweden for
example, mobile penetration levels have reached 70 percent,
and there are some predictions that some countries may reach
100 percent penetration (one for every man, woman, child,
and dog—yes, even pets can wear communication collars that
track their location. Imagine being able to call your pet via the
built-in attached speaker). Mobile communications is a global
$200 billion industry with a growth rate of 12.5 percent a
year. European wireless operators spent an astronomical $130
billion in 2000 on licenses (a staggering amount to spend on
“air”) to offer 3G services, and will have to spend as much to
build out their networks. As global culture continues to merge,
disparities will eventually equalize as each nation learns from
other’s advances.
VOICE INTERACTION: LINKING THE WEB BY VOICE
Voice portal services began in 1999 with a handful of vendors,
including General Magic and Wildfire, forging the way. Since
then, several dozen vendors have appeared. Most of these services
were initially offered free of charge. Wireless devices are
increasingly using speech technology as an alternative user
interface to access applications.
Excite, Yahoo!, Tellme, and many other Web sites allow people
to communicate using both voice and text. Users can check
email; receive voice messages; and access news, weather, stock
quotes, and sports results from their phones. Additionally,
many handheld devices are incorporating voice interaction
technologies to aid in navigation and operation of the device.
Voice is the simplest human-to-machine interface, and as such
can become a standard way to navigate and enter data on wireless
devices, whereas a visual display will probably remain the
preferred way to receive and view it. Acceptance of speech as a
user interface will vary by region because of cultural and social
factors. (The safety issue of operating a handheld device while
driving a vehicle should cast a favorable light on use of speech
recognition technologies.) Personalization will be key for customer
adoption of voice processing technology. Just as users
personalize their information on the Web, customizing their
voice portal will reduce lengthy set-up menu processes and permit
users to quickly move to the desired content. Better delivery
and performance and more dynamic content will contribute
to greater acceptance. According to Giga, voice recognition
services will grow at 70 percent annually, and revenue from
voice portal applications will grow to $45 billion by 2005.
including General Magic and Wildfire, forging the way. Since
then, several dozen vendors have appeared. Most of these services
were initially offered free of charge. Wireless devices are
increasingly using speech technology as an alternative user
interface to access applications.
Excite, Yahoo!, Tellme, and many other Web sites allow people
to communicate using both voice and text. Users can check
email; receive voice messages; and access news, weather, stock
quotes, and sports results from their phones. Additionally,
many handheld devices are incorporating voice interaction
technologies to aid in navigation and operation of the device.
Voice is the simplest human-to-machine interface, and as such
can become a standard way to navigate and enter data on wireless
devices, whereas a visual display will probably remain the
preferred way to receive and view it. Acceptance of speech as a
user interface will vary by region because of cultural and social
factors. (The safety issue of operating a handheld device while
driving a vehicle should cast a favorable light on use of speech
recognition technologies.) Personalization will be key for customer
adoption of voice processing technology. Just as users
personalize their information on the Web, customizing their
voice portal will reduce lengthy set-up menu processes and permit
users to quickly move to the desired content. Better delivery
and performance and more dynamic content will contribute
to greater acceptance. According to Giga, voice recognition
services will grow at 70 percent annually, and revenue from
voice portal applications will grow to $45 billion by 2005.
Subscribe to:
Posts (Atom)