It's also important to remember who owns what in Japan. The government still
has a majority stock ownership of NTT. NTT still has majority stock
ownership of DoCoMo.
So if NTT keeps connection costs to the net high, thereby causing people to
move to a more controlled network -i-mode, by which structured payment
systems can be implemented. Revenues are then henerated from the connection
fee (300 yen/month) and keitai fee (3500yen), usage fees from i-mode and
normal calls (????yen), and from content providers giving DoCoMo 10% of
revenues (????yen).
Now lets follow the money back up, and see which company may be favored by
Japanese governmental policies.....
David M.
>
>
>From: "Renfield Kuroda" <Renfield.Kuroda@msdw.com>
> > But what nobody seems to understand is the that the success of I-Mode
> > has NOTHING to do with technical standards; it's the business model that
> > was successful, and it's the business model that DoCoMo will export out
> > of Japan and it's the business model that is killing the current WAP
> > business model.
> > I-Mode business model on WAP or 2-way pagers or cHTML...it doesn't
> > matter how the bits flow, people want a pricing structure, contents, and
> > a settlement system.
>
>I think its clear that the success of iMode has nothing to do with
>technical
>standards. That's not too hard to see, and exactly what the article was
>saying: "...Who says the best man wins? Remember VHS vs Betamax...".
>
>The business models of Docomo, DDI, and J-phone are not so different "now"
>- in
>the sence they all offer a pricing structure, contents, and a settlement
>system - but as Punnamas highlighted, Docomo was ahead of the pack in
>implementing everything from the get-go. WAP in Japan, following iMode
>business
>model, never had the upper hand to begin with. Taking 11 months to reach 1
>million subscribers, but then only another 2 months to reach 2 million (as
>packet technologies were introduced and content increased), I wouldn't say
>the
>WAP business model is being killed by the iMode business model
>domestically,
>though DDI is definitely trying to fill in the holes. As the business
>models of
>DDI, and J-Ph. reach similar maturities to Docomo's, I think technology and
>pricing will up the competition, assuming all others being equal. (as an
>aside,
>I'm curious how the market domestic market will be divided in 6mths/1yr;
>Docomo
>is targeting 12M users by ...Dec.(?), DDI 5M by next March; J-phone ??,
>though
>with access to Docomo content, better color, and lower pricing... could
>interesting).
>
>Internationally, I think the excitement is regarding the revenue potential
>of a
>successful micro-payments model which iMode demonstrates so well.
>Considering
>Japan's incredibly high affection for keitais and relatively low acceptance
>of
>PC's, among other social trends, Japan presented a prime birth market.
>Whether
>the success of such a business model will realized to the same degree/speed
>abroad...
>
>Sean
>--
>Nnet Co. Ltd.
>www.nnet.ad.jp
>
>
>
>
>
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Received on Wed Jun 21 07:10:54 2000