1. I am not speaking as a representative of Nokia (anyway I am the venture
fund NOT Nokia) but as individual participating in this list.
2. In this case, we were speaking about the sustainability and
extensibility of the model.
The sustainability of the Japanese model has been called into doubt by the
withering on the vine of many in the carrier's food chain, this is all the
way from the terminal manufacturers (despite the fact that NEC and
Matsushita are selling so many terminals they are still on very very tough
times) to their suppliers (despite the fact companies like Access have 80%
share of their particular space you do not see huge ramp in revenues) to the
content providers (it is no coincidence that many of the famous aggregators
are morphing their business models to become 'platform providers'). These
are not Nokia observations, but the observations of the JAPANESE companies
that participated in this committees work.
Regarding extensability, this often depends on the ability to create
communities of interest. These communities form when your model harmonizes
with other players' interests. Using your market position in your own
market may allow you to do this quite quickly by just making entry into your
controlled market to potential partners, especially if you are a monopoly or
their is an oligopoly. However, in markets where you do not have a
controlling position, or even presence, cooptation is very important.
Proprietary technologies are not good at coopting... They usually represent
a threat to incumbents.
So, I would agree with your comments that the proprietary model works very
well for Japanese carriers, and maybe even for the Japanese end user.
However, it may not be so good for the Japanese mobile technologies
ecosystem, or the economy as a whole.
-----Original Message-----
From: ext David Davies [mailto:david@intadev.com]
Sent: Tuesday, September 18, 2001 7:36 PM
To: keitai-l@appelsiini.net
Subject: (keitai-l) Proprietary = BAD
On Tuesday, 18 September 2001 6:18 PM drew.freyman@nokia.com wrote:
>> The Ministry of General
>> Affairs put out a report on 6.26 on the significant business issues
>> confronting us on our way to 3G. Most of the discussion focused on
>> 2G problems--closed model and proprietary specifications leading to
>> limited business opportunities for non-carrier participants.
Well Nokia would certainly hope so I guess ;-)
Proprietary = BAD / Inferior = Doomed
Many people appear to take the relationship to be self-evident.
I have seen this and many other arguments that the closed model /
proprietary specification is somehow inherently a disadvantage, and it
only worked here in Japan due to some unique correlation between the
length of girls skirts and the momentary alignment of mercury and
alpha-major during the summer cuttlefish spawning.
The old rhetoric - It's just a Japan thing and it cant happen elsewhere.
[ excessive quoting removed ]
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Received on Tue Sep 18 14:18:15 2001