Interesting People mailing list archives
IP: World's Fastest Growing Mobile Communications Market
From: Dave Farber <farber () central cis upenn edu>
Date: Tue, 30 Jul 1996 07:29:03 -0400
======================================================================== ASIAN TECHNOLOGY INFORMATION PROGRAM (ATIP) REPORT: ATIP96.070 : World's Fastest Growing Mobile Communications Market To: Distribution From: D.K.Kahaner, [kahaner () atip or jp] This is file name "atip96.070" Date: 30 Jul 1996 ATIP96.070 : World's Fastest Growing Mobile Communications Market - Japan ABSTRACT: Japan's Mobile Communication Market is the fastest growing mobile communication market in the world. After achieving more than 100% growth in 1994, the number of subscribers increased by 181% in fiscal year 1995 which far exceeded the second fastest growing market Norway (56%) and the US (40%). If present trends continue (all major countries will most likely see a drop in the rate of increase in the future), the penetration rate for mobile communication in Japan will exceed the rate in the US by the end of 1996 and it will become the highest penetration rate in the world by the end of 1997. The factors behind Japan's phenomenal growth are discussed in this report, as well as future drivers for growth. =====================START OF REPORT ATIP96.070=========================== Copyright (c) 1996 by the Asian Technology Information Program (ATIP) This material may not be published, modified or otherwise redistributed in whole or part, in any form, without prior approval by ATIP, which reserves all rights. World's Fastest Growing Mobile Communications Market - Japan (ATIP/JAPAN) CONTENTS 1. ABSTRACT 2. EXECUTIVE SUMMARY 3. INTRODUCTION 4. WHY THE DRAMATIC INCREASE IN MOBILE COMMUNICATION SUBSCRIBERS? 4.1 Liberalization of handset market in April, 1994 4.2 Increased Competition from New Cellular Service Providers 4.3 Introduction of the Personal HandyPhone System (PHS) in July, 1995 4.4 Growth in the Number of PHS and Cellular Subscribers Table 1. Penetration Rates for Selected Countries Table 2. Cumulative Number of Subscribers for Cellular and PHS Table 3. Cellular & PHS Subscribers: Overall Penetration Rates 5. LEADING SUPPLIERS OF MOBILE COMMUNICATION SERVICES 5.1 Cellular Services Table 4. Market Shares for Cellular Service 5.2 PHS Services Table 5. Market Shares for PHS Service 6. FUTURE GROWTH DRIVERS IN JAPAN'S MOBILE COMMUNICATION MARKET 6.1 PHS-Based Private Branch Exchanges and PHS Home Antennas 6.2 PHS-to Pager Services 6.3 PHS-to Cellular Services 6.4 Combined PHS/Cellular Handsets and New Handset Functions Figure 1. Configuration of NTT's Wristwatch PHS 7. CONTACT --------------------------------------------------------------------------- 2. EXECUTIVE SUMMARY Japan's mobile communication market is the fastest growing mobile communication market in the world. After achieving more than 100% growth in 1994, the number of subscribers increased by 181% in fiscal year 1995. This far exceeds the growth rates for the other leading users of mobile communication. Japan's rate of growth (181%) in fiscal year 1995 was more than three times the growth rate of the second fastest growing market Norway (56%) and more than four times the growth rate of the US. A major factor in the recent rapid growth in mobile users was the liberalization of the handset market in April, 1994, and the introduction of the Personal HandyPhone System (PHS) in July, 1995 which inadvertently also increased the number of subscribers to the regular cellular service. If present trends continue the penetration rate for mobile communication in Japan will exceed the rate in the US by the end of 1996 and it will become the highest penetration rate in the world by the end of 1997. In reality, the growth rates in all of the countries who are major users of mobile communication services will most likely begin to drop (Japan) or continue to drop (other major users of mobile communication) in the near future. However, we believe that Japan's growth rate in the near future will drop less than the other countries due to a greater need for mobile communication, a more equal distribution of income, and a greater supply of inexpensive mobile communication services in Japan than in other countries. There are a large number of people including students and workers who spend a significant fraction of their days and evenings in a variety of places, and who require mobile communication. The more equal distribution of income means that a larger percentage of people can potentially afford mobile communication. The recently introduced (July, 1995) PHS is very inexpensive (cheaper than US cellular) compared to the average salary in Japan, the PHS service providers are introducing new innovative services, and these low prices and innovations are causing cellular prices to drop and new cellular services to appear. In addition to three examples of new services presented in previous ATIP reports (PHS-based PBX, PHS home antennas, and data communication), other new services and products are also beginning to appear. These include PHS-to pager services, PHS-to cellular services, combined PHS and pager handsets, combined PHS and cellular handsets, and the future merging of PHS, cellular, pager, laptop and personal digital assistant terminals/handsets. Details are given in subsequent sections.
Current thread:
- IP: World's Fastest Growing Mobile Communications Market Dave Farber (Jul 30)