3G flatten Japanese data market revenue growth

October 23, 2005

Strategy Analytics, the global research and consulting company, released "Japan Cellular Data Forecast Model (2005 - 2010)," from the Strategy Analytics Wireless Internet Applications Service. This report breaks out user numbers, price and frequency-of-use metrics for over 40 discrete application categories. Strategy Analytics estimates that Japanese end-user spend on mobile data products will grow from almost $17 billion this year to almost $28 billion in 2010.

Director Philip Taylor notes, "The Japanese download market continues to exhibit strong growth with real tones and full music track downloading remaining the star performers. However, the growing availability of flash based content and services, such as NTT DoCoMo's recently launched iChannel, as well as the launch of digital terrestrial TV broadcast to mobiles from next year, promises to further expand consumer participation."

Overall, Strategy Analytics expects that sales of premium mobile content will double over the next 5 years.

David Kerr, Vice President of the Strategy Analytics Global Wireless Practice, adds "Japanese carriers position themselves as value added ISPs to an extent not found elsewhere in the world and have been able to drive enormous revenues through connectivity and transport fees."

Kerr further states, however, "Price competition for 3G transport will begin to flatten revenue growth from data towards the end of our forecast period. Carrier strategies are now heavily geared towards new value added opportunities, such as mobile advertising and payment."