©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com1
Gerhard Fasol PhD
fasol@eurotechnology.com
Eurotechnology Japan K. K.
www.eurotechnology.com
(This is a strongly abbreviated outline version of the presentation)
Finnish Chamber of Commerce in Japan
March 16, 2007
“Help - my mobile phones does not
work!”
Why Japan’s mobile phone sector is so
different to Europe’s

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com2
Agenda
!Handset market shares
!When European’s and Japanese talk about
“Broad Band” they don’t mean the same
thing
!Japan’s mobile phone market
"No GSM - but a lot more
!What can we learn from the Vodafone-Japan
tragedy

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com3
Japan’s mobile phone market:
20% - 25% of the world market
an Open market -
and one of the most competitive
!NOKIA’s market share in Japan:
"About 0.3% (Eurotechnology’s estimation)
!NOKIA’s market share outside Japan:
"About 35%

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com4
! NOKIA’s start in Japan: 1989
"(Gerhard Fasol’s start in Japan’s telecom sector: 1984
- can we help?)

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com5
! Fixed and wireless internet bandwith is the live-blood of our
information society
! Both fixed and wireless internet connectivity is in general much higher
bandwidth and much cheaper in Japan than in Europe
! In recent years most innovation is invented or first to market in
Japan, and comes to Europe 2-5 years later
! Sources:
"Eurotechnology Japan KK benchmarked in detail Japan’s vs.
Europe’s telecom sector in a contract for the Commission of the
European Union
"See also Gerhard Fasol’s briefing for the 25 EU science and
technology attaches in April 2006 - download pdf-file of the
presentation here: http://store.eSellerate.net/eurot/euattaches
Japan is 2-3 years ahead of EU

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com6
When Europeans and Japanese talk about
“Broad Band” they don’t mean the same thing…
! Source: http://www.eurotechnology.com/jcomm/
! And http://store.eSellerate.net/eurot/euattaches/

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com7
Japan’s internet is MUCH cheaper than in Europe

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com8
In recent years most innovations in the mobile phone
sector are invented or first to market in Japan -
come to Europe about 3++ years later

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com9
“SMS have soared in UK to a
Staggering 93.5 Million SMS/Day”
! The Mobile Data Association (MDA) announced in a press release on November 25th, 2005 under
the headline "Text messaging soars during October" that SMS sent in the UK during October
2005 "have soared ... to a staggering ... 93.5 million SMS/day".
! Mobile email in Japan is more “staggering” than SMS in Europe
! Source: http://www.eurotechnology.com/jcomm/
! And http://store.eSellerate.net/eurot/euattaches/

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com10
E-Japan (Prime Minister’s office)
! Transform Japan into the most advanced IT nation by 2005
! Make Japan into a global IT leader
! eJapan
! uJapan
! For details on the e-Japan and u-Japan policy see: "Japan's
mobile phone industry and u-Japan" (Talk at the EU-Japan
Center for Industrial Cooperation, Tokyo, Oct 12, 2006),
download pdf-file here:
http://store.eSellerate.net/eurot/eu12oct2006

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com11
Japan’s telecom landscape
! Open
! New entrants
"SoftBank: http://www.eurotechnology.com/store/softbank/
"eAccess/eMobile:
http://www.eurotechnology.com/store/emobile/
! Consolidation, spin-outs, restructuring
! Open competition
! For a detailed overview of Japan’s telecom landscape with
graphics and quantitative market information see:
"http://www.eurotechnology.com/store/jcomm/

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com12
! 1Gigabps FTTH for YEN 3000/month true-flat (EURO 20-30/month)
! No GSM, but:
" PHS, PDC, wCDMA, UMTS, HSPDA, CDMA-1X, CDMA2000-1X
" CDMA2000-1X-EVDO : 6-times faster than UMTS in Europe
" More than 50% 3G
! Consolidation vs new entrants:
" SoftBank emerged as one of the world’s largest universal telco
#See: http://www.eurotechnology.com/store/softbank/
" eAccess/eMobile
#See: http://www.eurotechnology.com/store/emobile/
" SPECTRUM LICENCE FEES = ZERO
! Successful Willcom turn-round
! The world’s most successful 3G operator: KDDI
" CDMA2000-1X-EVDO : 6-times faster than UMTS in Europe
" See: http://www.eurotechnology.com/store/kddi/
! For a detailed overview of Japan’s telecom landscape with graphics and quantitative
market information see:
" http://www.eurotechnology.com/store/jcomm/
Key trends and characteristics

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com13
No GSM - but a lot more…
! See our reports:
"http://www.eurotechnology.com/store/jcomm/
"http://www.eurotechnology.com/store/softbank/
"http://www.eurotechnology.com/store/kddi/
"http://www.eurotechnology.com/store/imode/
"http://www.eurotechnology.com/store/mobilepayment/
"http://www.eurotechnology.com/store/emobile/
"http://www.eurotechnology.com/store/walletphone/

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com14
No saturation in view:
Japan’s mobile phone industry is
Growing by several Finlands / year
! For quantiative data see:
"http://www.eurotechnology.com/store/jcomm/

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com15
! Established operators: about US$ 20 billion/year
! PLUS: about US$ 6 billion by new entrants
! See: http://www.eurotechnology.com/store/jcomm/
Operators invest US$ 20++ Billion/year

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com16
mCommerce is Reality
! http://www.eurotechnology.com/store/mobilepayment/

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com17
! More on mobile payments and mobile credit:
http://www.eurotechnology.com/store/mobilepayment/
! More on wallet phones:
http://www.eurotechnology.com/store/walletphone/
! More about SUICA and PASMO - electronics/ mobile ticketing and
cash: http://www.eurotechnology.com/store/suica/
Private sector competes freely
to create electronic money

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JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com18
What can we learn from the
Vodafone Tragedy?
Do YOU know why Vodafone failed
in Japan?
Do you want to know?

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com19
Vodafone in Japan
what can we learn?
! A…(see talk)
! A…(see talk)
! A… (see talk)
! market research ???
! investments ???
! handsets
! Human resource issues
! “Corporate cookie-cutter”
! …(for more info please come to my talk or contact us, or
see our Softbank report:
http://www.eurotechnology.com/store/softbank )

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com20
Why did Vodafone Sell?

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com21
Who wants
Cheese phones?

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JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com22

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com23
Summary

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com24
Summary
! Japan’s handset market is about 25% of the world market
! Japan’s market is open
! Japan’s handsets and mobile phone networks are about 2-4 years
ahead of Europe
! Most innovation is first to market in Japan
! To win in Japan as a foreign company
"you have to do what it takes…
"arrogance does not help
"global cookie cutter methods don’t work
"“global methods” don’t help to understand the market

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com25
More information:
!Blogs:
"http://fasol.com/blog/
"http://eurotechnology.com/blog/
!Reports:
"http://www.eurotechnology.com/store/

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com26
Eurotechnology Japan KK
!Why reinvent the wheel in Japan?
!We build on 22 years of experience with
Japan’s telecom sector
!We build the Japan business for European
high-tech companies
!We help European companies acquire
companies and factories in Japan
!We advise corporations and Governments on
strategy
!We work for major investment banks

©2006 Eurotechnology Japan KK www.eurotechnology.com
JCOMM - Japan’s Telecom Markets March 21, 2006Finnish Chamber of Commerce FCCJ March 16, 2007
©2007 Eurotechnology Japan KK www.eurotechnology.com27
Contact
! Eurotechnology Japan KK
! Shinagawa Intercity Tower A 28F
! 2-15-1 Konan, Minato-ku
! Tokyo 108-6028, Japan
! Tel +81-3-6717-4160
! FAX +81-3-6717-4141 and +81-3-5477-7044
! http://www.eurotechnology.com/
! CEO: Gerhard Fasol PHD
! Fasol@eurotechnology.com
! Mobile: +81-90-8594-6291