Crazy for Keitai: Mobile ubiquity in Japan

Lara Srivastava, Strategy and Policy Unit (ITU)

Lecture delivered at Michigan State University(East Lansing, Michigan)

24 March 2006

Note: The views expressed in this presentation are those of the author and do not necessarily reflectthe opinions of the ITU or its membership. Lara Srivastava can be contacted at [email protected]

Crazy for Keitai : Mobile ubiquity in

Japan

International Telecommunication Union

2

Background


3

Why Japan? • Tech-savvy population

– Popularity of consumer electronics on the whole, and particularly the mobile phone

• Mobile phones as ubiquitous & indispensable fashion statements

• One of the first countries to launch IMT-2000/3G

• Nation with cheapest broadband access in the world (Source: ITU)

• Government implementing a number of strategy initiatives geared specifically towards the further development of a “ubiquitous network society”


4

3G or IMT-2000 “Keitai”Japan's 3G/IMT-2000 subscribers by technology (millions)

1.152.65

4.676.81

8.410

11.8 12.314.7 15.9 16.8

1.993.18

4.78

6.75

8.87

0.03 0.09 0.120.14

0.15

0.360.53

1.09

Dec-01

Mar-02

Jun-02

Sep-02

Dec-02

Mar-03

Jun-03

Sep-03

Dec-03

Mar-04

Jun-04

Sep-04

Dec-04

W-CDMA

CDMA 2000 1x

7.174.82

2.791.27

8.9311.09

13.7915.48

19.48

22.65

25.67

Source: MIC


5

M o b ile s u b s cr ib e r s , to p 10, 2004, m illio n s

44.647.3

61.162.865.671.374.4

91.5181.1

334.8

Franc eIndia

United KingdomItaly

Braz ilGermany

Rus s ia

JapanUnited States

China

Japan as a leader in mobility

Source: ITUMIC

87 .0%33.0%

30.9%25.3%

24.4%22.4%21.7%

20.2%19.3%

17.9%14.8%

13.8%13.2%

12.5%12.1%12.0%11.7%11.1%9.3%8.9%8.7%8.5%8.3%1.2%1.1%

89.5%Japan

K orea (R e p .)

A rg entina

C hina

S ingapo re

T aiwan

Italy

C anada

A us tria

Ne the rland s

F inland

A us tralia

G e rm any

S witze rland

F rance

Unite d S tate s

Ne w Z ealand

F rance

P o rtug al

United K ing dom

Unite d S tate s

Hong K ong

G erm any

S pain

B e lg ium

D enm ark

Mobile Internet Subscribers as % of Mobile SubscribersSource: MIC, 3G Mobile


6

3G – WCDMA subscribers


7

The “Keitai” Context• Success of mobile Internet• Operator-led mobile sector• Revenue-sharing for content• Early introduction of IMT-2000/3G

services, including e.g. video services• Recent introduction of flat-rate 3G

billing• Ubiquitous network society

– Active governmental programmes and policy


8

Mobile as Internet access method Mobile Internet Usage in Japan (2001-2003)

20.6%35.1%

47.1%16.9%

22.3%

22.0%33.5%

21.7%14.8%

2001 2002 2003

Unable to access the Internet viamobile phoneInternet can be accessed via mobilephone, but don't use itCan and do access Internet via mobilephone


9

Mobile internet is everywhere


10

Patterns of use


11

Mobile: not only for ‘on the move’

Location when making mobile calls (2002)

11.7%

23.8%

30.4%

33.7%

38.3%

46.2%

In transit(train, bus)

In transit (ina car)

Station orbus stop

Publicplace (e.g.

shop)

Workplaceor school

At home

Location when using mobile browser (2002)

9.4%12.7%

21.1%23.9%

31.7%

63.2%

In transit (ina car)

Publicplace (e.g.

shop)

Station orbus stop

Workplaceor school

In transit(train, bus)

At home


12

Content accessed throughnear–ubiquitous mobiles vs. PCs

Types of Content Accessed from Cell Phones(2003)

43.4%

21.9%

20.2%

13.9%

7.3%

3.8%

2.4%

0.4%

4.3%

84.0%Ring tones

Wallpapers

Music

Video games

News/weather

Visuals

Paid email newsletters

Software

Online Books

Other

Types of Internet Content Accessed from PCs(2003)

28.0%

21.3%

19.7%

12.4%

10.0%

7.0%

6.7%

5.3%

4.3%

4.0%

Softw are

Music

Visuals

Video Games

New s/Forecasts

Screensavers

Ring tones

Paid email new sletters

Online Books

OtherSource: MIC

Mobile Content (2003)

PC Content (2003)


13

The role of age and genderInternet Access Method (PC or Mobile Phone)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%te

ens

twnt

ies

thirt

ies

fort

ies

fiftie

s

sixt

ies

teen

s

twen

ties

thirt

ies

fort

ies

fiftie

s

sixt

ies

Male Female

Mobile phone only

Both PC and Mobile Phone

PC only

Source: NRI


14

New devices for anytime anywhere access


15

New applications and services• IMT-2000 or 3G• Audio and video• LBS (ima-doko)• Mobile gaming• Multimedia home• In-vehicular

applications• Vending/ticketing • Digital Wallets

Top reasons for using the Mobile Internet inJapan (2003)

74.3%

50.1%

32.9%

26.4%

16.1%

10.9%

10.0%

E-mail

Music

Wallpapers etc..

New s/Weather

Info search

Quiz, questionnair

digital video Source: MIC


16

Keitai Device Evolution

DoCoMo SO504iCWith Felica card for payment/transport

TU-KA TS41First “sonic speaker” handset with

bone conduction technology

Vodafone V601NWith built-in TV tuner

DoCoMo SH2101VPDA-style terminal with

detachable pen-sized handset


17

Enter: mobile digital wallets• Since March 2005, service by NTT DoCoMo,

integrating using contactless smart chip, FeliCa (widely used for public transport)

• Services include:– Cash withdrawal at ATMs– Shopping at kiosks, vending machines– Tickets for transport (air, rail…)– Ticketing for concerts, cinemas and theatres – Member’s card of sports clubs and shops – Key/ID to unlock automatic doors

of home and companies– online shopping


18

But ubiquity also means access for all segments of the population

• Great demand for simple mobile handset for those not wishing/needing to use Internet or cameras

• TU-KA, KDDI’s 2G arm, released this simple handset (Tu-Ka S) in Nov 2004.

• Tu-Ka S has no LCD display or users manual, and has been a smash hit for users over 60!


19

New network developments


20

So what’s next in Japan• Japan is aiming for a “ubiquitous network

society”, that is to say a society in which there is “anytime, anywhere” access, for “anyone and anything”

• Since 2003, MIC has been working closely with industry and academia to stimulate the development of ubiquitous networks

• The current focus is on three technologies:• 1. Microchip network technology• 2. Ubiquitous network identification and agent

technology • 3. Ubiquitous network control and management

technology


21

… in more detail:• Microchip network technology:

– Network technology enabling cooperation and control of large volume of microchips, in an environment where all devices are attached to the network

• Ubiquitous network identification & agent technology– Identification and agent technology that, with the use of

a contactless card, makes it possible to identify the individual instantly. That individual should then be able to use any terminal, anywhere. This terminal is to have the same configuration as the individual’s own terminal

• Ubiquitous network control & management technology– Technology to manage and control the network, allowing

the user to connect to the network anywhere, at anytime and providing the optimal communication service environment, based on the user’s particular situation at a given time


22

Microchip network technologyMicrochip network technology

Securities, stamps and vouchers

Brand goods

Books Documents

Parcels

Control connectivity of 10 billion chips

Chips attached to various objectsClothes

Microchips Welfare, elderly, care

Through high-functionality microchips, a variety objects can be freely connected to the network.

Through simply holding a no-touch card, any terminal can be instantly configured as your own. Wherever you are and whenever you like, you can enjoy

the same communication services and diversity of content as in the office.

office

Able to get the same information

as in the office wherever you are

Variety of large-

scale information

Variety of large-volume

information

Ubiquitous network to which it is possible to unconsciously

connect anywhere, anytime and with anything. It is essential to develop complex

management technology.

Ubiquitous network authentication and agent technology

Ubiquitous network authentication and agent technology

Ubiquitous network control and management technology

Ubiquitous network control and management technology

Regardless of the terminal type, anything and anywhere can be configured as your own terminal.

Identification

Server

Identification information

Confirmed identity! Send configuration information

Please configure

Ubiquitous Network

To own settings

e-money

IC card

Source: MIC

The three-part approach


23

The path to ubiquitous networksThe increase in the scale of

network connections over time

ITU-T NGN Forum s6_01, Murakami, July 2003

ｕ－Ｊａｐａｎｕ－Ｊａｐａｎ

From E-Japan to U-Japan

utilityevolution

Ubiquitous network

Solution-

oriented

Computer-ization

Narrowband Broadband

e-commerce, e-

government

7 leading areas

Usageｅ－Ｊａｐａｎｅ－ＪａｐａｎⅡⅡ

ｅ－Ｊａｐａｎｅ－Ｊａｐａｎ

Infrastructure

Infrastructure

Usage

Solution-oriented

The challenge of

controversial iss

ues

Ubiquitous network

Source: MIC (Japan)


25

Highlights: Chips and Codes

• The DoCoMo 2D Code– With this, mobile can read data from a

simple code– Eventually hyperlinks will be included– A first step to the T-Engine Forum’s

“Ubiquitous Communicator”?

• RFID – In Roppongi Hills trial – read or shop?– Sushi à la RFID– RFID tracking and transport– Mobile digital wallets


26

Japan’s Concept of the Ubiquitous Network Society

Ubiquitous Network Society

User-oriented

Unique

UbiquitousEveryone and EverythingConnected to Networks

Universal

4U ＝ For You


27

4U: Consumer protection

and etiquette


28

User concerns relating to ubiquitous communications…

User concerns relating to their use of ubiquitous network services (2003)

62.7%

59.7%

58.2%

49.2%

37.8%

37.5%

35.7%

34.7%

24.7%

7.7%

2.3%

1.2%

Fraud and unscrupulous methods of business

Leaks and improper use of personal information in the possessionof businesses

Improper access to and use of personal information

Increasing complexity of services and devices

Infection by computer viruses etc…

Possibility of being monitored by 3rd parties including family

Excessive reliance on ICT devices

Decline in thinking abilities and reading/writing skills

Weakening of personal relationships

None in particular

Other

No reponseSource: MIC


29

… addressed by Japan’s Charter for “Ubiquitous Network Society”

　Latent potential of ICT and its role in future society　Ubiquitous network society — definitions, objectives and significance 　Balance between free and diverse information distribution, and safe and secure information distribution　Positioning of the Charter

Preamble

　Information access & dissemination rights

　Information diversity

　Promotion of information technology in business and society

　Information literacy

Free and diverse information distribution

　Privacy

　Information security

　Intellectual property rights

　Information ethics

Safe and secure information distribution

Balance

Support

Ubiquitous Network Society Charter (Draft)

Construction of new social infrastructure

Establish a charter summarizing the basic principles and shared understandings for the ubiquitous network society

　Balance between the real society and the cyber society 　Systems for local and international coordination and cooperation

　Latent potential of ICT and its role in future society　Ubiquitous network society — definitions, objectives and significance 　Balance between free and diverse information distribution, and safe and secure information distribution　Positioning of the Charter

Preamble

　Information access & dissemination rights

　Information diversity

　Promotion of information technology in business and society

　Information literacy

Free and diverse information distribution

　Privacy

　Information security

　Intellectual property rights

　Information ethics

Safe and secure information distribution

Balance

Support

Ubiquitous Network Society Charter (Draft)

Construction of new social infrastructure

Establish a charter summarizing the basic principles and shared understandings for the ubiquitous network society

　Balance between the real society and the cyber society 　Systems for local and international coordination and cooperation


30

Protecting Data and Consumers

• Camera phones and privacy– Sounds

• Enhanced personal IDfunctions– Accessories

• Data protection and privacy– MPHPT study groups– National legislation– Guidelines DoCoMo F505i

With fingerprint sensor


31

Privacy: the case of spam in Japan

2001 spam “to mobiles” increased dramatically→ Self-regulation by mobile operators

Administrative guidance by government to implement new measures

2002 Two Laws were enacted→ Legislation of Anti-spam Law & Amendment of Commercial

Transactions Act(For PC spam as well as Mobile spam)

2003 Spread of Domain-Designation Service (to Block PC spam)

spam sent “from mobiles” increased→ Self-regulation by mobile operators

(・・・and then it decreased)


32

Spam: Mobiles vs PCsDevice

Type of spam

10%Sent “to mobiles”

90%Sent Sent ““to PCsto PCs””

Others(※)

10%Advertisements of matchmaking (dating) sites

90%

Sent “from PCs”50%(※)

Sent “from mobiles”50%

※ porno, drugs, software, etc.

※ Due to disguised sender's name, the real rate is suspected to be higher.

Source: Survey by Japan Computer Communications Association, 2003 fiscal year


33

Japan’s Law on Regulation of Transmission of Specified E-Mail

Obligations of labeling for senders of specified electronic mail① Identification as Specified electronic mail（Label ”未承諾広告※”）② Sender’s Name/address ③ Sender’s E-mail Address ④ Opt-out E-mail Address

Obligations of labeling for senders of specified electronic mail① Identification as Specified electronic mail（Label ”未承諾広告※”）② Sender’s Name/address ③ Sender’s E-mail Address ④ Opt-out E-mail Address

・ Administrative Orders by Minister to uphold the law・ Fines up to 500,000 yen ($5,000) assessed on failure to observe Administrative Orders

・ Administrative Orders by Minister to uphold the law・ Fines up to 500,000 yen ($5,000) assessed on failure to observe Administrative Orders

L a b e l i n g

Transmission of specified electronic mail to a person who has indicated he/she does not want to receive such mail is prohibited.

Transmission of specified electronic mail to a person who has indicated he/she does not want to receive such mail is prohibited.

O p t - o u t

P e n a l t y

・ Prohibition of mail transmission utilizing any program that generates random fictitious e-mail addresses・ Telecommunications carriers are authorized not to provide volume e-mail transmission services if the e-mails include random fictitious addresses.

・ Prohibition of mail transmission utilizing any program that generates random fictitious e-mail addresses・ Telecommunications carriers are authorized not to provide volume e-mail transmission services if the e-mails include random fictitious addresses.

O t h e r s


34

RFID Privacy Protection Guideline (June 2004)

Business operators and government agencies provide information and explanation to consumers to gain fair understanding.

10. Provide information and explanation to consumers

Establishment of information manager is necessary for proper information management.9. Establish information manager

In case of recording personal information into RFID tag, keep the information (1) accurate with no obsoleteness, (2) revise the information with request from the consumer, and (3) prevent falsification of information.

8. Secure the information accuracy

Try to notify the person the objective of information usage when a consumer’s personal information is recorded into RFID tag. When it is used for other than primary objectives, try to gain agreement of the consumer.

7. Restriction of information collection and use

Privacy protection law will be enforced in case that it is easy to put the information in RFID tag into database and specify particular individuals,

6. Use of information data base

Explain the society’s benefit and harm caused by consumers refusal to provide information

5. Information provision as society’s benefit

Notify that consumers are able to choose their personal information not to be read (entirely or partially).

4. Consumer’s choice

Notify consumers of RFID tag’s existence with the commercial items (place, recorded information)

3. Existence and Appearance

Rules that business operators should observe when a RFID tag remains on the purchased items

2. RangeRFID tag’s smooth acceptance in society, respect consumer’s right1. Objective

Business operators and government agencies provide information and explanation to consumers to gain fair understanding.

10. Provide information and explanation to consumers

Establishment of information manager is necessary for proper information management.9. Establish information manager

In case of recording personal information into RFID tag, keep the information (1) accurate with no obsoleteness, (2) revise the information with request from the consumer, and (3) prevent falsification of information.

8. Secure the information accuracy

Try to notify the person the objective of information usage when a consumer’s personal information is recorded into RFID tag. When it is used for other than primary objectives, try to gain agreement of the consumer.

7. Restriction of information collection and use

Privacy protection law will be enforced in case that it is easy to put the information in RFID tag into database and specify particular individuals,

6. Use of information data base

Explain the society’s benefit and harm caused by consumers refusal to provide information

5. Information provision as society’s benefit

Notify that consumers are able to choose their personal information not to be read (entirely or partially).

4. Consumer’s choice

Notify consumers of RFID tag’s existence with the commercial items (place, recorded information)

3. Existence and Appearance

Rules that business operators should observe when a RFID tag remains on the purchased items

2. RangeRFID tag’s smooth acceptance in society, respect consumer’s right1. Objective


35

Mobile “etiquette” in Japan

• A time and a place?• Industry self-regulation

– Restaurants– JR Railway– Shinkansen

• Individuals– Awareness– Etiquette


36

Discussion


37

Discussion Points

• How does the Japanese experience with mobile phones differ from your (your country’s) experience?

• What do you see as the main factors of Japan’s success?

• What can other countries learn from this experience? Are the same success factors applicable in other countries?