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Japanese Will Pay for Wireless LAN
16th September 2002

According to a study of over 10,000 people owning portable notebook computer and personal digital assistants (PDAs), Japanese consumers are becoming aware of wireless LAN services but are looking for cost-effective ways to access them. The survey found 63% of all respondents familiar with the term "Wireless LAN," with 60% willing to pay for a high-speed wireless LAN package if priced below 2,000 yen per month (Approx. US$16). Even greater awareness and interest was found among business users, 96% of whom were familiar with WLAN.

The WLAN market survey is part of a new study titled "The Japan Wireless LAN White Paper 2002 - 2003," produced by Tokyo-based research firm Mobile Media Japan. The study is based on an examination of over 40 wireless LAN projects and services underway across Japan. The consumer survey was conducted in collaboration with Japanese marketing firm Kikakuya, Inc.

WLAN Comes to World's Most Advanced Wireless Services Market

Wireless LAN products and services are a rapidly developing area in Japan, which has the world's most advanced wireless data market. Since 1999, over 50 million Japanese consumers have signed up for mobile Internet services and are now spending an estimated 300 billion yen (US$2.4 billion) annually on wireless data. The demand for higher-speed wireless access has also so far attracted 1.3 million customers to third-generation (3G) services since they were launched in late 2002 by KDDI and NTT DoCoMo. With 5 million more users now signed up for broadband Internet, service providers are poised to launch a new channel of wireless access via WLAN.

The market received an additional push earlier this year when the Japanese government announced a "Ubiquitous Network Forum" and proposed industry initiatives it hopes will develop new high-speed wireless infrastructure and generate 80 trillion yen (US$640 billion) in new markets by 2010.

Wide Cast of WLAN Players and Services

Since the spring, Japanese operators and manufacturers have begun rolling out new wireless access services and products for public spaces, hotels and retail facilities, and the home. The majority of services operate on the 2.4 GHz (IIE802.11b) and require users to have a compatible data card for their lap top or PDA to get access. Major players include members of the NTT Group, KDDI, Japan Telecom, Softbank, Yahoo! BB, and Yozan. Wireless access to homes in the 5 GHz band (IIIE 802.11a) is also being tested by SpeedNet, a member of the Tokyo Electric Power group.

The menu of new services range from free and open "hot spot" access points in public areas to fee-based security protected wireless networks for business users. Softbank and Yahoo! BB have begun offering wireless LANs at McDonald's and Mister Donut's outlets for free, while Mobile Internet Services provides secure access to its wireless network in Tokyo for 2000 yen ($US16) per month.

As Service Providers Test Business Models, "Hot Spot" Services to Feel Heat

Although industry experts agree that high-speed ubiquitous wireless access is coming to Japan, companies are now experimenting with a wide variety of different business models to learn which will prove successful. NTT Communications, which recently launched its "Hot Spot" service, is charging individual consumers between 1,600 and 2,000 yen per month for access at speeds of up to 11mps. Meanwhile, NTT East has unveiled a business-to-business proposition which charges corporate customers for high speed lines and installation of wireless access points to offer their end users.

According to the Mobile Media Japan report, consumer-based commercial hot spot services in particular will face serious challenges. "These companies now have to win an uphill campaign to identify their customers and overcome user concerns about coverage, cost, and possibly security. Few if any hot-spot only services will survive the coming shakeout," says MMJ analyst Scott Murff. "There is clear demand, and users are telling us they are ready for WLAN, but that they are not yet seeing the kinds of services they want."

The survey uncovered stronger interest among business users than general consumers to seek out a hot spot, with 65% of business users stated they would be more likely to visit a coffee shop offering wireless LAN as opposed to 45% of overall respondents.

Mobile Media Japan says the Japanese market is nurturing a number of business cases that validate commercial applications of wireless LAN. In particular, the report identifies promising products that target non-competing segments and also compliment current wireless offerings in Japan. These include WLAN services offered via existing ISPs, fixed-cost wireless IP phone, WLAN security, and home-networking capability.
About the Survey and Report

The Japan Wireless LAN User Survey was conducted in July, 2002. Data was collected via the Internet from over 19,000 individual respondents. More information is available in the Mobile Media Japan "The Japan Wireless LAN White Paper 2002 - 2003." This study covers the most promising and creative new wireless LAN services in Japan, and examines the companies and customer attitudes shaping Japan's wireless LAN sector.

The Japan Wireless LAN White Paper 2002- 2003" is based on an examination of over 40 wireless LAN projects and services underway across Japan. The report also features a special consumer survey conducted in collaboration with Japanese marketing firm Kikakuya, Inc.

The 70-page report profiles major players, their business models, and answers the following questions:

Which deployments of Wireless LAN are most likely to make money?
Where will Wireless LAN best fit into Japan's many wireless service offerings?
How do Japanese consumers view the current WLAN services being offered?
What is the market size of Wireless LAN in Japan?
The report offers a comprehensive overview of Japan's Wireless LAN market as well analysis of emerging uses for Wireless LAN technologies. The report draws Mobile Media Japan's expertise on the Japan wireless market and is an excellent tool for understanding where Wireless LAN is heading both in Japan and abroad.

A trend towards the usage of WLAN for fixed-priced telephone calls;
The use of smart cards for WLAN authentication;
The importance of peer-to-peer techniques in wireless LAN solutions;
The role of wireless LAN in changing the home; and
Efforts to make wireless LAN work with 3G networks to provide ubiquitous broadband coverage to business customers.

Report Summary

Number of pages: 70
Number of Tables and Inserts: 15
Date Published: September 2002
Price: US $1,500


REPORT: TABLE OF CONTENTS
1. Report Focus
2. WLAN in Japan
a. The Japan Wireless Market
b. The Potential of WLAN in Japan
c. Estimated Market Size
d. A Look at WLAN Technologies
e. The Japan WLAN Market
i. Major Service Providers
ii. Pricing
iii. Speed
iv. Areas of Innovation
v. Business Models
vi. Problem Areas
3. Conclusions
a. Challenges to WLAN
b. Reasons to like WLAN

INDEX: PROFILES OF SELECTED WLAN PROJECTS IN JAPAN
A. Major WLAN Players
a. Profiles: Operator Services
b. Profiles: Broadband Providers
c. Profiles: WLAN Service Firms
d. Profiles: Infrastructure Providers
B. Hardware Devices and Software Applications of WLAN
a. PDAs, Notebooks and Desktop Computers
b. WLAN Cards in Japan
c. Other Consumer Devices using WLAN
d. Software Applications
C. WLAN in the Home
D. WLAN in the Enterprise Environment
E. Retail and Content Deployment Case Studies
a. Retail
b. Hotels and Airports
F. Research Institutions and Government Projects
G. APPENDIX: Mobile Media Japan / Kikakuya, Inc. Wireless LAN Survey
H. APPENDIX: Selected Company Contact Information

Price and Ordering

The price is US $1,500 and can be ordered via Reports@3G.co.uk

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