WW-60

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J@pan Inc Magazine Presents:
W I R E L E S S W A T C H
Commentary on the Business of Wireless in Japan
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Issue No. 60
Tuesday, June 11, 2002
Tokyo

INDEX

+++ Viewpoint: Japan's Mobile Market Evolves into BREW, Taiwan and ERP Access

+++ Noteworthy News
--> Citrix Teams with DDI Pocket to Introduce MetaFrame for Mobile
Products
--> KDDI to Start BREW Downloading Service in FY2002
--> DoCoMo to Launch Taiwan I-Mode on June 20
--> Rakuten Eyes Full Shopping via Mobiles

+++ Events (Advertisements)
Carriers World Japan 2002
Tokyo, Japan, 10-11 July

+++ Sign of the Times
JAWOC Admits Helplessness over Ticket Debacle

+++ Subscriber Statistics, Corrections, Credits, Administrivia

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+++ Viewpoint: Japan's Mobile Market Evolves into BREW, Taiwan and ERP Access

If Japan's wireless market isn't the fastest-evolving anywhere, then
we'll eat our *kasa*.

This week, Citrix Systems Japan and DDI Pocket -- owner of the
surprisingly successful Air H" flat-rate PHS data card service --
said it would partner to offer Citrix's MetaFrame bundled with DDI
Pocket mobile data access (see news item below). In case "Citrix"
means about as much to you as "tsukemono" (pickles), note that
MetaFrame is one of the leading software packages for providing
access to ERP and intranet applications from any computer and turns
the computer into a thin client terminal while all the processing is
done by the network.

The result? This is one of the first corporate applications for
mobile data access Japan has seen so far and could be the precursor
of a larger move away from the consumer-centric focus that has
animated the wireless Internet here to date.

Next, KDDI finally confirmed that it would launch BREW by March
2003, which should make Japan even more interesting as the largest
mobile market anywhere in which both BREW and Java are fully
deployed. KDDI has been dogged by difficulties defining a billing
plan and a BREW application certification scheme, but it appears that
these will soon be resolved. Will we see Java and BREW competing
head-to-head on the same handsets, with subscribers opting to choose
one or the other based on speed, functionality and cost? Stay tuned.

Finally, Big D, never one to let the PR folks rest, said this week
that i-mode would launch in Taiwan on KG Telecom by June 20. Do those
guys ever take a break? If this goes through, it'll be the first
deployment of i-mode into an Asian market where, arguably, the
culture, demographics and subscriber habits are much closer to those
in Japan than, say, in Holland or Germany. This will be an excellent
test case to see how applicable the i-mode model is to markets that
are outside Japan but that are not as cynical about the wireless
Internet as some in Europe.

----

And speaking of change, we're going to take a two-week break to get
ready for the launch of a new Web site devoted to all things wireless
in Japan. From July 1, J@pan Inc readers will still receive their
weekly dose of wireless news via email and at
http://www.japaninc.com, but for those who just have to have more,
we'll be offering it in an email magazine called Wireless Watch
Japan and a Web site full of the latest wireless news at
http://www.wirelesswatchjapan.com.

Wireless Watch Japan will include the video newsmagazine and even
more of the in-depth reporting and analysis for which we're noted.
Hard-core wireless fanatics (and you know who you are) will
want to access the site to get additional content.

Wireless Watch Japan will be the only independent
English-language media focusing exclusively on the business of
wireless in Japan, and we intend to continue delivering a unique
blend of facts, statistics, specifications, business reporting,
behind-the-scenes insight and thoughtful analysis piping hot right to
your inbox. If you're in the mobile biz anywhere on the planet, it's
a must read.

"We Rip the Faceplate Off Japan's Cellular Industry"

--Daniel Scuka
daniel@japaninc.com

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=====================================================================

+++ Noteworthy News
(Long URLs may break across two lines so copy to your browser.)

--> Citrix Teams with DDI Pocket to Introduce MetaFrame for Mobile Products
http://www.nikkeibp.asiabiztech.com/wcs/leaf?CID=onair/asabt/news/189580
Source: Nikkei AsiaBizTech, June 7

EXTRACT: Citrix Systems Japan and DDI Pocket decided to team up to
sell combined products of MetaFrame and Air H", products of the
respective companies. The two companies said they will promote
notebook PCs with an Air H" communications card inserted and
MetaFrame-enabled personal digital assistants (PDAs) as part of their
wireless, server-based computing strategy. MetaFrame is a software
package to realize a thin client environment in which applications
are run on a server and only information on the screen is transmitted
to clients.

COMMENTARY: Could be the start of a beautiful thing, we think.
Especially if the service is bundled with flat-rate pricing and a
strong sales initiative into the corporate channel. Ideal partners
would be any software vendor presently selling its package into a
Citrix-based network and it will be helped by the growing popularity
of PHS data cards amongst individual users; in other words, the user
base is already largely self-trained.

--> KDDI to Start BREW Downloading Service in FY2002
http://www.nikkeibp.asiabiztech.com/wcs/leaf?CID=onair/asabt/event/189297
Source: Nikkei AsiaBizTech, June 6

EXTRACT: KDDI said it plans to start a service for downloading BREW
contents by the end of fiscal 2002 (March 2003). The plan was
revealed at the BREW Developers Conference in San Diego by Yasuhiko
Ito, executive managing officer and operating officer of the solution
business sector at KDDI. Ito said the company is working out the
details of integrating the systems for a bill-through service for the
regular charge and the BREW application charge and trying to find a
way to verify the BREW applications by other developers.

COMMENTARY: Until now, KDDI has had only a single BREW-capable
handset, the C3003P from Matsushita, released in March. Toshiba and
several other makers are now expected to develop BREW models. We
wonder if KDDI's entry into the BREW community (joining, most
significantly, Korea) will boost any possible plan for full-scale
wireless Internet roaming? If a KDDI subscriber will be able to make
voice calls and download and run BREW apps when in say, Korea, why
can't she access EZweb as well?

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=====================================================================

--> DoCoMo to Launch Taiwan I-Mode on June 20
http://www.reuters.co.uk/news_article.jhtml;jsessionid=
2G4H1XKESIH4UCRBAEZSFEYKEEATIIWD?type=technologynews&StoryID=1055905
Source: Reuters, June 6

EXTRACT: NTT DoCoMo said on Thursday it will launch its
Internet-enabled i-mode service in Taiwan through its unlisted equity
partner KG Telecom from June 20. KG Telecom, Taiwan's fourth-largest
carrier in terms of revenue and 21 percent held by the Japanese
mobile giant, will deliver the Chinese-language i-mode service over
KG's GPRS (general packet radio services) network, DoCoMo said.

COMMENTARY: This will be the first baby i-mode in Asia outside Japan,
the first baby i-mode using double-byte encoding (making it a smooth
transition for content developed for Japan?) and the first baby
i-mode with a connection to the massive Chinese market. The handset
will be supplied by NEC and the service will offer some 80 sites from
70 content providers for about 500 yen per month.

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--> Rakuten Eyes Full Shopping via Mobiles
http://www.japantimes.co.jp/cgi-bin/getarticle.pl5?nn20020609a5.htm
Source: Japan Times, June 9

EXTRACT: Rakuten, operator of Japan's largest Internet shopping site,
Rakuten Ichiba, plans to make its full online shopping service
available on mobile phones by the end of the year, company officials
said Saturday. Currently, Rakuten has contracts with about 480 online
shops to offer a total of about 20,000 items on mobile phones, but
when the new system is launched, mobile phone users will be able to
choose from about 1 million items offered by around 5,500 shops if
the full online shopping service is made available.

COMMENTARY: Rakuten started its mobile access channel in September
2000; some 70 to 80 percent of customers report that they use their
cellphones to make make purchases (and not their PCs). Last month,
trading volume via keitai was 10 times greater than the year previous
(2001 volume: 52.2 billion yen). Rakuten has recently had some
problems attracting and keeping PC Web merchants and this expanded
mobile effort is probably not unconnected to the recognition that
merchants recognize the value of selling to mobiles.

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=====================================================================

=====================================================================
+++ Events (Advertisements)

Carriers World Japan 2002
Tokyo, Japan
10-11 July 2002

With telecom deregulation throwing its doors open to international
players, Japan is experiencing tremendous interest from global
carriers trying to get a foothold in this once monopolized telecom
market. Recognizing the revenue and competitive potential of the
Japan market, CARRIERS WORLD JAPAN 2002 returns, for the third time,
as the only event that addresses the state and dynamics of the
carrier marketplace in Japan.

The event will present road maps to help you navigate your way
confidently against the competitive market challenges of the future.

For more information, visit us at:
http://www.carriersworld.com/carriersworldJapan2002/
=====================================================================

+++ Sign of the Times

JAWOC Admits Helplessness over Ticket Debacle
http://mdn.mainichi.co.jp/news/20020609p2a00m0dm021000c.html

JAWOC, Japan's organizing committee for the World Cup,
has admitted it is unable to come up with measures to
prevent phones being jammed when people ring up to buy
match tickets, the Mainichi has learned.

JAWOC will accept calls from 2pm daily from Sunday
to Thursday to buy tickets for games the following day,
but expects demand to be so high that phone lines will
be jammed and nobody will be able to get through.

NTT DoCoMo, one of Japan's largest mobile phone companies,
says users should expect jams from Sunday onward.

If you do get through to an operator, you'll receive a reservation
number with which you can pick up your tickets at Ticket Pia or
Family Mart nationwide, or at Seven-Eleven stores in Tokyo.

Hey! Forget the telephone -- that is so, like, 1980s. Log on to the
http://www.fifatickets.com site instead! Forget it: The Mainichi also
reported that many people are having trouble accessing the site due
to heavy traffic as well.

=====================================================================
+++ Subscriber Statistics, Corrections, Credits, Administrivia

WIRELESS WATCH EMAIL NEWSLETTER SUBSCRIBERS
2,379 as of June 9, 2002
(Note: Number adjusted downward from last week to eliminate addresses
in the mail list that are no longer valid.)

30-day new subscribers from May 4: 174

WIRELESS WATCH VIDEO
Feb 1-28, 2002: 3,796 streams (908 mins/day); 3.2 views/visitor
Mar 1-30, 2002: 4,621 streams (1,557 mins/day); 1.75 views/visitor
Apr 1-30, 2002: 4,750 streams (1,393 mins/day); 1.54 views/visitor
May 1-31, 2002: 3,769 streams (1,130 mins/day); 1.20 views/visitor

30-day totals from May 1:
/wireless/index.asp 3,201 (visitors)
Avg. length per visit: 11.0 mins

STAFF
Wireless Watch newsletter and Wireless Watch Video Newsletter
researched and hosted by: Daniel Scuka (daniel@japaninc.com)

Edited by: J@pan Inc editors (editors@japaninc.com)

Wireless Watch Video Newsletter produced and edited by:
Lawrence Cosh-Ishii (video@japaninc.com) in cooperation
with http://www.video-link.com

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Text copyright (c) 2002 Japan Inc Communications KK. All Rights Reserved
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