DOCOMO President and CEO Ryuji Yamada takes part in a forum at ITU TELECOM WORLD 2009, Geneva
The forums at ITU TELECOM WORLD 2009 included seminars on various topics. On October 7 (Wed), DOCOMO President and CEO Ryuji Yamada gave a talk on "Globalization and Localization" in the telecom industry, attended by participants from around the world, including carriers, vendors, and government representatives.
Forum name: Globalization and Localization
Schedule: October 7 (Wed) 9:00-10:40 (local time)
Photos of seminar
Main content
—Main comments at start of the CEO roundtable—
Introduction
Good morning. Today I'd like to talk about globalization and localization, the theme of this roundtable, from the viewpoint of a Japanese mobile operator.
Mobile evolution
Mobile phones have benefitted greatly from globalization. Year after year, costs have decreased while performance has increased, resulting in rapid subscription growth. Subscriptions now total over 4 billion worldwide. Over the last decade, mobile broadband has also evolved tremendously. At DOCOMO, i-mode service was started in 1999. It was a rapid success, making mobile Internet access widespread. Already, over 40% of DOCOMO's income is from data communications -- in the global context, this is quite a high percentage.
The challenge for new growth
Japan's mobile market has now shifted from the growth phase to the mature phase. As such, major growth on a quantitative, mobile phone unit basis can no longer be expected. Nevertheless, I firmly believe mobile phones will grow further in qualitative terms. This is because mobile phones have these three promising characteristics:
1) People have them nearby at all times.
2) Their individual owners can be identified.
3) Their physical position can be determined.
DOCOMO is finding ways to utilize these three characteristics to make mobile phones evolve further.
For example, as an experiment in making mobile phones more personalized, we have started "i-concier", a service that is customized to the individual user by providing them with relevant information in a timely manner. This service has become very popular, gaining two million subscribers in just over nine months.
DOCOMO is also working to expand the enjoyment of mobile content. In collaboration with entertainment companies, DOCOMO has produced short dramas suitable for the small screens of mobile phones. These shows are provided on a pay-per-view basis. This popular service has gained over 700,000 subscribers in its first five months.
Meanwhile, to support the delivery of such elaborate content, we must construct efficient broadband networks. Over 90% of DOCOMO subscribers use 3G mobile phones but we plan to introduce LTE next December to further advance our network.
Introduction of open OS handsets
Another recent trend is openness. For handsets running on open OS, including smartphones, it is important to provide the proper environment for open applications. DOCOMO also intends to create a marketplace during this fiscal year. Customers will be able to use services that suit their own needs, so this can be considered a form of localization.
Operator perspective on globalization and localization
In closing, I would like to summarize today's theme of globalization and localization. Infrastructure technologies at the very bottom layer are rapidly decreasing in cost as they increase in performance, as globalization progresses steadily. As the mobile world moves from 2G to 3G and then to LTE, nation-specific protocols will be integrated into international ones, and economics of scale will take effect.
In the upper layer, on the other hand, globalization is not likely to be as smooth as in the lower layer since it is affected by differences in culture, preferences and circumstances in each country and region. As a mobile operator, we are able to grasp customer needs and trends in both the upper and lower layers. For this reason, I believe mobile operators are expected play the role of "glocalization", which is to adapt global services and applications to local demand.
Main points in the Q&A session
Q.
We have a lot of upper-layer services in developed countries, whereas only basic services are provided in emerging markets. How will you bridge this gap?
A.
Infrastructure is becoming more efficient thanks to globalization because economics of scale are taking effect. Upper-layer technologies are also advancing, but the important question is: what sort of services should we provide from now on? To answer this, the most important thing is whether we can incorporate customer demands properly and provide them in relevant services. This will depend on each country's circumstances, culture, and preferences.
Q.
Are there any services provided in developed countries, such as Japan, exported to other countries?
A.
One example is the mobile manga distribution service, which we are now providing in France. In addition, in India, our partner company Tata Teleservices offers an automatic news feed called "i-channel" as a value-added service, and distribution of local cricket news turned out to be popular there. What's important is that we can't just take Japanese services abroad as they are; we first need to localize them.
Q.
(In response to the question of whether mobile phone users will pay to see video on mobile phones that have such a small screen) What do you think about listening to customer feedback and providing services in line with market needs?
A.
The important question is 'how can we produce content that meets customers' needs?' It's necessary to listen to customer feedback through customer satisfaction activities, and provide local services built on global technologies. DOCOMO already provides BeeTV, which is designed for mobile screens, for 300 yen per month, and this has been well-received by customers.
Q.
Tell us about your CSR initiatives.
A.
CSR initiatives are important, and environmental protection goes hand in hand with ICT evolution. However, while ICT evolution can help with environmental protection, it also has the negative aspect of power consumption. Therefore, at DOCOMO, the basis of CSR is the introduction of energy-efficient technology.
Q.
Tell us about your views on the telecom industry ten years from now.
A.
It is often said that the Japanese market has matured but I believe that even ten years from now, it can grow much further in terms of quality. There will be conversions occurring in many different areas. Once again I'd like to bring up today's theme because globalization and localization - or glocalization - will be happening at the same time.
Forum name: Globalization and Localization
Schedule: October 7 (Wed) 9:00-10:40 (local time)
Photos of seminar
Main content
—Main comments at start of the CEO roundtable—
Introduction
Good morning. Today I'd like to talk about globalization and localization, the theme of this roundtable, from the viewpoint of a Japanese mobile operator.
Mobile evolution
Mobile phones have benefitted greatly from globalization. Year after year, costs have decreased while performance has increased, resulting in rapid subscription growth. Subscriptions now total over 4 billion worldwide. Over the last decade, mobile broadband has also evolved tremendously. At DOCOMO, i-mode service was started in 1999. It was a rapid success, making mobile Internet access widespread. Already, over 40% of DOCOMO's income is from data communications -- in the global context, this is quite a high percentage.
The challenge for new growth
Japan's mobile market has now shifted from the growth phase to the mature phase. As such, major growth on a quantitative, mobile phone unit basis can no longer be expected. Nevertheless, I firmly believe mobile phones will grow further in qualitative terms. This is because mobile phones have these three promising characteristics:
1) People have them nearby at all times.
2) Their individual owners can be identified.
3) Their physical position can be determined.
DOCOMO is finding ways to utilize these three characteristics to make mobile phones evolve further.
For example, as an experiment in making mobile phones more personalized, we have started "i-concier", a service that is customized to the individual user by providing them with relevant information in a timely manner. This service has become very popular, gaining two million subscribers in just over nine months.
DOCOMO is also working to expand the enjoyment of mobile content. In collaboration with entertainment companies, DOCOMO has produced short dramas suitable for the small screens of mobile phones. These shows are provided on a pay-per-view basis. This popular service has gained over 700,000 subscribers in its first five months.
Meanwhile, to support the delivery of such elaborate content, we must construct efficient broadband networks. Over 90% of DOCOMO subscribers use 3G mobile phones but we plan to introduce LTE next December to further advance our network.
Introduction of open OS handsets
Another recent trend is openness. For handsets running on open OS, including smartphones, it is important to provide the proper environment for open applications. DOCOMO also intends to create a marketplace during this fiscal year. Customers will be able to use services that suit their own needs, so this can be considered a form of localization.
Operator perspective on globalization and localization
In closing, I would like to summarize today's theme of globalization and localization. Infrastructure technologies at the very bottom layer are rapidly decreasing in cost as they increase in performance, as globalization progresses steadily. As the mobile world moves from 2G to 3G and then to LTE, nation-specific protocols will be integrated into international ones, and economics of scale will take effect.
In the upper layer, on the other hand, globalization is not likely to be as smooth as in the lower layer since it is affected by differences in culture, preferences and circumstances in each country and region. As a mobile operator, we are able to grasp customer needs and trends in both the upper and lower layers. For this reason, I believe mobile operators are expected play the role of "glocalization", which is to adapt global services and applications to local demand.
Main points in the Q&A session
Q.
We have a lot of upper-layer services in developed countries, whereas only basic services are provided in emerging markets. How will you bridge this gap?
A.
Infrastructure is becoming more efficient thanks to globalization because economics of scale are taking effect. Upper-layer technologies are also advancing, but the important question is: what sort of services should we provide from now on? To answer this, the most important thing is whether we can incorporate customer demands properly and provide them in relevant services. This will depend on each country's circumstances, culture, and preferences.
Q.
Are there any services provided in developed countries, such as Japan, exported to other countries?
A.
One example is the mobile manga distribution service, which we are now providing in France. In addition, in India, our partner company Tata Teleservices offers an automatic news feed called "i-channel" as a value-added service, and distribution of local cricket news turned out to be popular there. What's important is that we can't just take Japanese services abroad as they are; we first need to localize them.
Q.
(In response to the question of whether mobile phone users will pay to see video on mobile phones that have such a small screen) What do you think about listening to customer feedback and providing services in line with market needs?
A.
The important question is 'how can we produce content that meets customers' needs?' It's necessary to listen to customer feedback through customer satisfaction activities, and provide local services built on global technologies. DOCOMO already provides BeeTV, which is designed for mobile screens, for 300 yen per month, and this has been well-received by customers.
Q.
Tell us about your CSR initiatives.
A.
CSR initiatives are important, and environmental protection goes hand in hand with ICT evolution. However, while ICT evolution can help with environmental protection, it also has the negative aspect of power consumption. Therefore, at DOCOMO, the basis of CSR is the introduction of energy-efficient technology.
Q.
Tell us about your views on the telecom industry ten years from now.
A.
It is often said that the Japanese market has matured but I believe that even ten years from now, it can grow much further in terms of quality. There will be conversions occurring in many different areas. Once again I'd like to bring up today's theme because globalization and localization - or glocalization - will be happening at the same time.
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