3G Mobile Diffusion in Japan～Technology Strategies of KDDI and NTT DoCoMo and Technology Adoption by Users

Abstract

In this paper, the diffusion of 3G mobile is analyzed, focusing on the technology strategies of NTT DoCoMo and KDDI and the technology adoption by users. KDDI, a latecomer with a smaller customer base, has been much more successful in attracting customers to its 3G services than DoCoMo, a first mover and a market giant. This paper seeks to explore the reasons behind KDDFs success and the key factors affecting 3G mobile diffusion. Of special importance are factors such as the different corporate and technology strategies of the operators, especially regarding backward compatibility and standards and the technology adoption by users. Data has been obtained by conducting a set of interviews with key people connected to the mobile sector in Japan and a survey of mobile phone users. Subscriber and company statistics, brochures have also been analyzed. We conclude that success in gaining 3G customers depends, to some extent, on technology strategies related to backward compatibility, choices of standards and timing of standards changes.