This paper seeks to explore the reasons behind KDDI's success and the key factors affecting 3G mobile diffusion. Of special importance are factors such as the technology adoption by users, different corporate and technology strategies of the operators especially regarding backward compatibility and standards. Data has been obtained by conducting a survey of mobile phone users and a set of interviews with key people connected to the mobile sector in Japan. 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.