Internet use via mobile phone in Japan

Abstract

Approximately 40% of the population enjoy access to the Internet via mobile phones in Japan, where user needs have driven developments of the mobile Internet such as “i-mode”. After reviewing mobile Internet services in Japan, this article examines key social and cultural factors of mobile Internet use based on nationally representative surveys focusing on differences between PC and mobile Internet. The results demonstrate that mobile Internet is a more time-enhancing activity while PC Internet is a more time-displacing activity. Additionally, this article discusses unique Japanese cultural factors affecting communication patterns characterized by the high disclosure of subjective self and low disclosure of objective self, which may explain the unique usage patterns of the mobile Internet in Japan.

Introduction

Japan enjoys the highest diffusion rate of mobile Internet¹ in the world (Fig. 1).² The number of Internet-enabled mobile phones is over 54 million, which is 77% of the total mobile phones as of June 2002 (Telecommunications Carrier Association, 2002). Major Japanese carriers, NTT DoCoMo, KDDI, and J-Phone, provide a variety of advanced mobile Internet services including global positioning system (GPS), Java applications, picture and video mail, as well as standard email and web browsing services.

Currently, three major operators provide mobile Internet services in Japan. They are i-mode, Sky-web, and Ez-web.³ These mobile Internet systems allow for a short message service (non-Internet mail), email (Internet mail), web browsing, and additional advanced services such as picture mail.

“i-mode”, the web access protocol on NTT DoCoMo's terminals, is the most successful mobile Internet access model in the worldwide telecom market. This service, launched in Japan in February 1999, has attracted more than 33 million users three years after the launch. i-mode users number total 600,000 abroad, 500,000 in Europe and 100,000 in Taiwan. In 2001, NTT DoCoMo started “i-appli”, which is a Java-based service through which subscribers can download and run small Java-applets on their i-mode cellular handsets. In 2001, NTT DoCoMo started 3G mobile phone service, which accesses the Internet at up to 384 kbps using packet transmission that allows for i-mode service. The other major telecommunication operators in Japan, KDDI and J-Phone, also provide mobile Internet services.

Table 1 compares the three major Japanese mobile phone Internet systems. Japanese operators are relying increasingly on growing ARPU in data services to offset the sharp drop-off in voice ARPU resulting from intense competition and market maturity. “Sky-web” launched a web-browsing service via mobile phone in 1998, a year earlier than i-mode and one year after the launch of a short message service. In 2000, J-Phone featured Sha-mail (picture mail), a service which allowed users to take still photos using a small digital camera built into their mobile phone and send them to other users’ mobile phones via email. In April 2003, the number of subscribers to NTT DoCoMo's picture mail service topped 10 million. Picture mail is especially popular among young people. As of May 2003, over 20 million picture mail handsets are in use in Japan.

Following the success of i-mode and other mobile Internet services, major Japanese mobile phone carriers started 3G (third generation) mobile phone services. However, so far, the 3G services have not been successful except for CDMA 2000 1× by KDDI. NTT DoCoMo aimed to have 1.46 million Freedom of Mobile Multimedia Access (FOMA) subscriptions at the end of fiscal year 2002, but it has floundered because FOMA presently supports communications in a limited service area. In contrast, KDDI obtained over 8 million subscribers to its 3G phone service (CDMA 2000 1×) as of May 2003.

While FOMA requires new equipment, CDMA 2000 1× only requires the enhancement of existing equipment such as base stations. The biggest appeal of CDMA 2000 1× is that its service can be easily expanded to regions where mobile phone services are already offered. KDDI users can switch to 3G service by adding 300 yen ($2.5) to their current monthly bill.

However, the success of KDDI should not be exaggerated. The increase in the number of 3G-enabled phones by KDDI resulted from compatibility with the existing service, not from the more advanced functionality of the communication service. In fact, the survey data shows that only 0.4% of the population enjoy the 3G high-speed Internet services, although over 8 million people have 3G-enabled handsets (Table 2).

One of the technological reasons for the extraordinary success of i-mode is that NTT DoCoMo adopted Compact HTML (C-HTML) as the language for i-mode websites, instead of the more standard Wireless Application Protocol (WAP). C-HTML is a compatible subset of HTML for terminals. NTT DoCoMo's i-mode enables content providers to more easily enter the market than WAP, because it is easier to create i-mode websites in C-HTML than in WAP. According to NTT DoCoMo's report, more than 50,000 websites are available with i-mode terminals. Because of the extraordinary popularity of i-mode in Japan, other operators, J-Phone and KDDI, have also adopted a protocol which enables the viewing of i-mode websites.

i-mode has a billing system through which content providers are able to focus on creating quality content to attract more consumers. There are three kinds of charges for i-mode services: the monthly subscription fee, the packet transmission fee, and the i-mode information fee. The monthly subscription fee is 300 yen. The packet transmission charges are calculated according to the volume of data transmitted, not the transmission time. The cost is based on the total number of data packets sent and received, irrespective of the connection time. Each data packet (128 bytes) costs 0.3 yen (0.025 cents). i-mode information charges are flat-rate monthly charges varying from site to site, mainly ranging from 100 to 300 yen per month. The i-mode information charges are billed by the operator on behalf of the information service providers.