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“I-mode” in Japan: How to Explain its Development

“I-mode” in Japan: How to Explain its Development. Arnd Weber , Bernd Wingert ITAS, Karlsruhe Research Centre (Germany) Subsidised by:. Objectives. To understand i-mode success To understand cultural factors To learn lessons. Advancedness of Japan. 68 million mobile Internet users

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“I-mode” in Japan: How to Explain its Development

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  1. “I-mode” in Japan:How to Explain its Development Arnd Weber, Bernd Wingert ITAS, Karlsruhe Research Centre (Germany) Subsidised by:

  2. Objectives • To understand i-mode success • To understand cultural factors • To learn lessons

  3. Advancedness of Japan • 68 million mobile Internet users • World record ARPU 60 € (~10% 200 €)

  4. Success Factors of i-mode • Openness to Internet • Low fees for customers • High share for content providers • Operator control of value chain

  5. Open Questions 1. Why is competition so fierce? 2. Why did DoCoMo put marketing decisions first? 3. Why did DoCoMo design i-mode to be open to Internet? 4. Why do operators control value chain?

  6. Findings 1. Why fierce competition? • Competition in radio infrastructure • Unfair behaviour of Docomo (PDC), therefore KDDI chose cdmaOne • Fight against big DoCoMo • Abolishment of long-run contracts through DDI

  7. Findings 2. Why marketing first? • Need to be successful (Matsunaga) • „For getting more than 10 million subscribers“ (Matsunaga) 3. Why openness of i-mode? • „Variety of information is essential“ (Hashimoto) Interviews April 2004 – interim results

  8. Findings 4. Why control of value chain? • „You guys avoided competition“ (Natsuno) PHS, PDC, cdma2000, W-CDMA, TD-SCDMA... • „Mentality“, 安心感 (Kanda, Tsuchiyama)

  9. Lessons for Europe • Europe took lessons: i-mode in Europe, Vodafone live, t-zones • But: User interfaces not always easy, little interest in openness • More lessons needed? • Matter of mentality, innovation culture? • More competition needed?

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