Adrian Van Meerbeeck

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Adrian Van Meerbeeck

  1. 1. The Japanese Mobile Internet Market Opportunities for international mobile content players Colombia 3.0 – Oct. 26, 2012 Adrian Van Meerbeeck VP, Strategy and Research, NTT DOCOMO USA
  2. 2. The Japanese Mobile Market 2
  3. 3. Overview of the Japanese Mobile Market: The Size Revenues 2011 ($ billions) 188 139 USA (big 4) Japan Revenues 2011 ($ billions) 70.2 63.2 53.0 33.7 20.6 Verizon W. AT&T W. Sprint/Nextel T-Mobile DOCOMO •  The Japanese Mobile market is one of the most important in the world. •  The Japanese are outspending the Americans by almost 80% (per capita).Source: Public sources from each company 3
  4. 4. Overview of the Japanese Mobile Market: Subscribers Number of Subscriptions (fiscal year) 70.00 60.00 50.00 40.00 30.00 20.00 10.00 - 2008 2009 2010 2011 DOCOMO 54.60 56.08 58.01 60.13 au 30.84 31.87 33.00 35.11 SoftBank Mobile 20.63 21.88 25.41 28.95 Market Share of Subscriptions (2011) DOCOMO, 47% •  The main carriers in Japan are DOCOMO, au (KDDI) and Softbank Mobile. •  DOCOMO has by far the largest share of subscribers.Source: Public sources from each company 4
  5. 5. Overview of the Japanese Mobile Market: Revenues Revenues (Yen billions) 5000.0 4000.0 3000.0 2000.0 1000.0 0.0 2010 2011 DOCOMO 4224.3 4240.0 au 2590.7 2727.0 SoftBank Mobile 1944.5 2144.8 Market Share: Revenue 2011 DOCOMO 47%Source: Public sources from each company 5
  6. 6. Overview of the Japanese Mobile Market: ARPU Aggregate ARPU (Yen) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - 2008 2009 2010 2011 DOCOMO 5,710 5,350 5,070 4,870 au 5,800 5,410 4,940 4,510 SoftBank Mobile 4,070 4,070 4,210 4,150 •  Aggregate ARPU in Japan remains one of the highest in the world. •  In 2011 the average ARPU in Japan was close to 60 USD.Source: Public sources from each company 6
  7. 7. Overview of the Japanese Mobile Market: ARPU (data) Packet ARPU (Yen) 3,000 2,500 2,000 1,500 1,000 500 - 2008 2009 2010 2011 DOCOMO 2,380 2,450 2,540 2,670 au 2,210 2,280 2,320 2,490 SoftBank Mobile 1,740 2,020 2,310 2,510 Data ARPU has continued to grow steadily – now represents over half of the aggregate ARPU.Source: Public sources from each company 7
  8. 8. Handset Sales in Japan Handset Sales (million units) 48.1 39.36 40.87 37.37 22.09 20.13 19.06 18.04 2008 2009 2010 2011 Total Sales (DOCOMO+au+SoftBank) DOCOMO •  The Japanese handset market had reached a mature phase several years ago but the introduction of smartphones in the last couple of years seems to be injecting some new vitality. •  2011 saw a 20% increase in overall sales.Source: Public sources from each company 8
  9. 9. Japan: Smartphone Shipments Japan  Smartphone  Shipments   (million  units)   24.2   16.7   8.5   7.3   4.9   3.2   1.7   2.3   0.3   0.4   0.4   0.2   FY  2009   FY  2010   FY  2011   Android   iPhone   Other   Total   Sales of smartphones have grown ten-fold, from 2.3 million in 2009 to over 24 million in 2011.Source: MM Research Institute Ltd Note: Japanese fiscal year is Apr 1 to Mar 31 9
  10. 10. Android vs. iPhone in Japan Share of Shipments by OS Android market share jumped from around 11% of the Japanese smartphone market in FY 2009 to over 69% in FY 2011.Source: MM Research Institute Ltd 10
  11. 11. Android vs. iPhone in Japan Top Smartphone Platforms: Share (%) of Smartphone Subscribers 61.00% 61.40% 33.00% 34.20% 5.70% 3.90% 0.30% 0.50% Android Apple Microsoft Other 3 Month Avg. Ending Nov. 2011 3 Month Avg. Ending Feb. 2012 Android is the dominant OS in Japan with over 60% of market share.Source: comScore MobiLens 11
  12. 12. Japan: Data Contribution to Total Revenues% of data service to total ARPU: 52.8% * ARPU: Average Revenue Per Unit per month/subscriber (FY2011/1Q) 50% USA (Verizon Wireless) Japan 37.1% 40% (FY2010/3Q) Korea (KT) 32.5% 30% (FY2010/3Q) Europe (Vodafone) 30.0% (Launched Oct. 2001) (FY2010/3Q) 20%10% (Launched Feb 1999) 0% 1999 2001 2003 2005 2007 2009 2011 (fiscal year) Japan leads the world in terms of data contribution to total revenues due to early introduction of i-mode and other advanced services. 12
  13. 13. Japan: Highest 3G adoption in the world 3G adoption in Japan/North America/Western Europe and Southeast Asia (2003-2013) Forecast 120% 日本 Japan 100% アメリカ・カナダ USA/Canada 80% West Europe 西ヨーロッパ 60% % of 3G Subs to Total User Base 40% Southeast Asia 東南アジア 20% 0% 2005 2006 2007 2008 2009 2010 2012 2013 2003 2004 2011 * Southeast Asia: Malaysia, Thailand, Vietnam and the Philippines Japan leads the world in the adoption of third-generation (3G) servicesSource: Wireless Intelligence 13
  14. 14. Global Mobile Media: Revenues Global 2012 Mobile Media Revenues ($ millions) 7,311 Advertiser Spend Consumer Spend 82,805 2,898 327 26,121 16,026 726 2,837 Data plans / web Applications & Music Video browsing Games Year-on-year Mobile Media Market Growth: 2011-2012 128.9% Global Major Western Europe US 107.4% 85.4% 17.0%20.3%22.1% 13.4%14.1%15.5% Total Market Consumer Spend Advertising Revenue Global consumers are spending $ 26 billions in apps.Source: Strategy Analytics Global Media Forecast 2012 14
  15. 15. Japan’s Mobile Business Market Mobile Media Market: US vs. Japan ($ billions) 6.7 6.2 US Consumer Spending in Apps Japan Consumer Spending in (2012) Mobile Content (2009) Japanese Mobile Business Market (Yen billions) Mobile Content Market Mobile Commerce Market 969.10 868.90 732.90 564.10 407.40 259.30 483.50 552.50 366.60 427.20 260.30 315.00 2004 2005 2006 2007 2008 2009 •  The Japanese Mobile Content is one of the largest in the world. •  It was worth $6.2 billion in 2009 – even before the introduction of smartphones.Source: Ministry of Internal Affairs and Communication (Japan) & Strategy Analytics 15
  16. 16. Revenues: Increased Interest on Japan by Developers. While the majority of apps are still made (and sold) in USA, Japan (¥) has already caught up with the Eurozone market (three times as large as Japan in subscriber base).Source: AppBrain 16
  17. 17. NTT DOCOMO Inc. 17
  18. 18. NTT DOCOMO: Handset Sales DOCOMO  Total  Handset  Sales   (million  units)   22.09   20.13   19.06   18.04   2008   2009   2010   2011   •  In the last years the number of handsets sales at DOCOMO has fluctuated between 18-22 million units - roughly half of the entire Japan sales. •  In 2011 there was a significant increase in sales helped by the introduction of smartphones.Source: NTT DOCOMO 18
  19. 19. NTT DOCOMO: Smartphones Smartphones, Smartphones, Smartphones, 40%, 55%, 13%, 2010, 2011, 2012,(forecast), (2.52,million,Smartphones), ,(8.82,million,Smartphones), ,(13,million,Smartphones), DOCOMO Smartphone Sales (million units) 1.28 7.50 7.54 5.50 2.52 2010 2011 2012 (planned) FOMA smartphones Xi smartphones •  Steady growth of smartphone sales since the introduction in 2010. •  In 2012, 55% of the entire handsets sold to DOCOMO customers will be smartphones and almost 60% will be Xi (LTE) devices.Source: NTT DOCOMO 19
  20. 20. DOCOMO Smartphones/Tablets Lineup・ Released a total of 17 models of smartphones/tablets, overwhelming the offerings of the competitors ・ 11 models are Xi LTE-enabled, and many are equipped with popular features, such as waterproof casing, Osaifu-Keitai e-wallet, one-seg TV, infrared data exchange and other features docomo 2012 Summer smartphones docomo tablet Rak Raku Phone ELUGA Live™ series Raku Raku REGZA P-08D smartphone F-12D GALAXY S III AQUOS PHONE ARROWS X ZETA PHONE SC-06D F-10D SH-09D T-02D Optimus Vu AQUOS PHONE XPERIA GX L-06D ELUGA power sv SO-04D (L-06D JOJO) P-07D SH-10D Released Jun. 28 Jun. 29 Jul. 20 Jul. 26 AQUOS PHONE st ANTEPRIMA Optimus it ELUGA V MEDIAS X SH-07D F-09D L-05D P-06D N-07D Xperia SX ARROWS Me SO-05D F-11D docomo tablet Released Jun. 7 Jun. 27 Jun. 30 Jul. 12 Jul. 13 20
  21. 21. DOCOMO: Xi Area Expansion Plans ・ Xi subscriptions grew steadily to 3.32 million as of Jun. 30, 2012 ・ Making steady progress in coverage expansion, aiming to complete installation of cumulative 21,000 Xi base stations by Mar. 31, 2013 Xi subscriptions Over Xi Coverage expansion plan (Million subs) 10.00 million 10.00 1000 2010 2011 2012 2013 2014 Mar. 31, 2013: Mar. 31, 2015: Dec. Jun. 30, 2012: Approx. Approx. Approx. 9,800 BTSs 21,000 BTSs
 50,000 BTSs
 8.000 80 Population coverage: Approx. 70% Approx. 98% 12月 Approx. 32% Launched Xi LTE service 6.000 60 All municipalities 4.000 40 3.32 Local cities 2.22  Major 2.000 20 1.14 cities 0.12 0.39 Prefectural capital-size cities 0 1Q 2Q 3Q 4Q 1Q 4Q MAX 75Mbps 112.5MBps throughput FY2011 FY2012 21
  22. 22. DOCOMO: Evolution of Smartphone Services •  The dmenu portal site provides a wide range of apps and other content from diverse providers, as well as enriched versions of DOCOMO’s popular i-mode™ content, optimized for easy-to-use smartphone interfaces. •  The dmarket content store offers a wealth of other content, including movies, music, e-books and Android™ applications •  DOCOMO’s smartphones also have access to a variety of other DOCOMO services, such as i- concier™ for push-based concierge-like personal assistance, ‘NOTTV’ a multimedia broadcasting station for smartphones and many more.Source: NTT DOCOMO 22
  23. 23. DOCOMO: Enrichment of ‘dmarket’. •  VIDEO store and ANIME stores recording favorable increase in subscriptions and transaction volume •  Plan to introduce multi-device support from August 2012 Growth of dmarket transactions dmarket (Billions of yen) 50 5.0 Unlimited access to over 5,000 video titles for a flat monthly rate of 525 VIDEO Store No. of subs topped 2.0 million on July 21, 2012 4.0 40 Distributes approx. 43,000 popular titles from various publishers BOOK Store 3.0 30 Acquired approx. 50,000 subs after “Music Store Selection” launch in July 2012 Offering unlimited access to selected 50 programs from MUSIC Store approx. 1 million songs for 315/month. 2.0 20 Introduces selected applications that are fun and convenient from Google Play Apps & Review 1.0 10 Acquired approx. 40,000 subs after service launch in July 2012. Unlimited access to approx. 500 titles, 8,000 episodes of ANIME content for 420/month 0 ANIME Store 3Q 4Q 1Q FY2011 FY2012 New stores to be added in the future Gaming ・・・ Shopping 23
  24. 24. Cloud-based Services: ‘Shabette Concier’. ・ Received 3.00 million downloads and approx. 130 million accesses in about 5 months after service launch.* Improved convenience with the addition of knowledge Q&A function in June 2012 ・ Aim to apply voice agent function to e-commerce services of “dmarket” in the future * As of July 25, 2012 Voice command Voice Intention Handset operation/ recognition analysis content display engine engine Network cloud Area guide Recipe info Map by voice command Content displayed voice command Phone Scheduler Mail Train transfer Weather News Operated by Alarm Camera Timer Tweets Photo content Video content Music content Apps Gaming content Memo Music player Book/comic Knowledge New Q&A 24
  25. 25. Cloud-based Services: ‘Mail Honyaku Concier’. •  Launched “Mail Hon’yaku Concier” text translation service in June 2012 •  Received 100,000 downloads and approx. 1.50 million accesses in approx. 2 months after launch* *As of July 23, 2012 Mail Hon’yaku Concier Create message in Japanese Confirm message in native language Japanese English Korean Chinese SNS Mail 誕生日おめでとう Machine translation function 생일 축하합니다 생일 축하합니다 誕生日おめでと う Network cloud ございます 25
  26. 26. Cloud-based Services: ‘Translator Phone’. ・ Trial service of “Translator Phone” supporting translation between Japanese and 10 foreign languages in progress since June, aiming for full-commercial introduction in autumn 2012 ・ Recorded 220,000 accesses in approx. 2 months after launch* * As of July 23, 2012 Translator Phone Network Cloud Translation I am MAKI’s mother. マキの母親です。 Thank you for taking 娘がお世話に care of my daughter. なっています。 Mother Host family (Japanese) and Maki Japanese Translator Phone Foreign function language 【Supported languages】 Nov. 2011: English, Korean, Chinese Jun. 2012: French, German, Italian, Spanish, Portuguese, Thai, Indonesian 26
  27. 27. Cloud-based Services: ‘Photo Collection’. ・ “Photo Collection” service planned for launch in August 2012 ・ Photographs taken by mobile devices are automatically sorted and stored in docomo cloud using a wide variety of high-accuracy image recognition features ・ Can also be linked with external services such as Evernote, Eye-Fi, HighCam Photo Collection Free of charge (Up to 5GB) Automatic upload and synchronization across multiple devices Automatic grouping using face recognition feature Photos of external services can also be viewed 27
  28. 28. Cloud-based Services: Multi-device Support. ・ Plan to start supporting cloud-based multi-device access to address book/email in this winter ・ Offers users with greater convenience and peace of mind through constant storage of latest data on the cloud ・ Aim for further service expansion through provision of supplementary services utilizing profile data of address book Multi-device access (address book) Utilize for services/ business sp-mode mail Smartphone Photo sharing service Tablet Multi-device access ( sp-mode mail) Smartphone Tablet 28
  29. 29. Smartphone Related Activities at DOCOMO USA Developer Support Page Smartphone Developer Support page. Purpose: Create a one-stop information window in English for international developers who are interested in the Japanese market. Information included: •  Information about the Smartphone activities in Japan: •  Penetration of Android at DOCOMO and in Japan •  Android handsets introduced at DOCOMO •  Information about DOCOMO’s Smartphone related services http://www.docomo-usa.com/en/developer/index.php 29

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