Japan Enters its Next Stage in Mobile and Wireless Evolution

March 2008 -- Japan is about to enter its next stage in mobile and wireless evolution. Having been the first to launch 3G services nationally, Japan will within the next few years provide NGN services and upgrade to Super 3G and LTE. Anticipating these shifts, overseas companies are increasing their activity in Japan to take advantage of opportunities arising out of these changes.

Shift to NGN
Over the last few years, Japan's telecommunications equipment manufacturers have been developing equipment to support the rollout of Next Generation Network (NGN) services beginning this year. In February, Nippon Telegraph and Telephone Corporation (NTT), Japan's largest telecommunications company announced plans to introduce NGN services in a handful of field trial areas at the end of March and then in several other cities by the end of this year. NTT then plans to expand NGN services to its larger service areas by the end of March 2011.

NGN technology changes the platform by which telecommunication operates by shifting services from the current switch-based telephone network to packet-based networks similar to the protocol now used for the Internet. With NGN, telecommunication companies will be able to provide services for landlines, mobile phones, and PCs all over a single network.

Done with 2G, on to Super 3G and LTE
This shift compliments Japan's ever improving standards in cellular technology. While most phones in the U.S. still operate on 2G networks, the number of 2G phones shipped to stores in Japan this past January was zero. Nearly 80% of Japan's cell phone subscribers use 3G services, and more than 60 percent of phones delivered in January were equipped for digital television broadcasts.

As Japan completes its shift to 3G, the country's largest mobile operator, NTT DoCoMo, is preparing to roll out Super 3G services, which enable data transmissions close to 4G capabilities on the existing 3G networks. Not to be left behind, NEC has formed a joint venture with Alcatel-Lucent to develop 4G capabilities, also known at Long Term Evolution (LTE), and plans to commercialize next year.

Opportunities for overseas companies
Advancement to NGN and LTE are prompting activity from overseas companies who can provide applications, services and software that help consumers take more advantage of the technology.

San Francisco-based Catalyst Mobile, a provider of next generation mobile music and entertainment services, announced in October that it secured $10M in funding to expand operations into Japan and China. The additional funding will enable Catalyst Mobile to continue deploying technology and services with NTT DoCoMo and KDDI.

Ninja Mobile, a developer and publisher of mobile applications based out of Los Angeles, CA, announced the opening of its Japan office last November. Some of Ninja Mobile's offerings include content distribution framework and payment system, and complete design and development of custom software applications to maintenance of existing applications.

Last January, NTT DoCoMo and Google announced a partnership to make Google the default search application on DoCoMo phones. This deal combined with the launch of Google Mobile services withs KDDI in July 2006 joins Google with 80% of Japan's mobile market.

In February, Swedish firm Scalado, a provider of mobile imaging software, announced a partnership with Japanese firm Macnica to increase market share in Japan. Macnica has already assisted Scalado in a business agreement with SonyEricsson.

Also in February, CDC Games Expands, a partnership of game developers in Korea, China, Japan and the U.S., announced an increased of investment in Japanese 3G content provider BBMF, counting on online games to be delivered increasingly in broadband wireless and increasing access to Japan, one of the world's largest markets for online games.

Changes as significant as the ones Japan's mobile and wireless industries are currently undergoing are sure to shuffle the scene and produce opportunities for new entrants to the market.

For more highlights from Japan's mobile industry, including in-depth features, translated press releases and monthly mobile statistics, subscribe to Going Mobile Japan.

More ICT Industry Information