1. Mobile internet usage in Japan is extremely widespread, with Japanese people using their phones for a variety of activities including payments, photography, shopping, reading books and magazines, accessing maps and social networks, searching, watching videos and TV, listening to music, and playing games. 2. Data revenues now account for over 40% of telecom operators' average revenue per user (ARPU) in Japan, reflecting Japanese people's heavy use of mobile internet, while the average wireless data ARPU is 2-3 times higher in Japan than other countries. 3. According to a government survey, while the number of people only using PCs to access the internet declined in 2007, the number of people using both P

1. Infinita.tv Episode 2
The Question, Part 2
How on Earth did the mobile
Internet in Japan get so huge?

2. Some of the things people do
with their phones in Japan

3. Payment
Camera
Shopping
Books
Coupon
Manga
Navi
SNS
Search
Games
VoD
Music
TV
Radio

4. If you really want to

5. you can even make a phone call.

6. Japan
World Champions by (almost) any measure
40%
Data
20%
Contribution
to ARPU
10%
$20
$5 $10
Ave. Wireless Data ARPU
Source: Chetan Sharma Consulting, 2008

7. Average Return per User (ARPU)
Data vs.Voice Revenues by Operator
Data ARPU in ¥
7,000 Voice ARPU in ¥
6,000
2,200 2,130
5,000 1,360 2,220
2,390
4,000
3,000
1,790
4,160 4,150
4,130
2,000 3,650
3,340
1,000 1,790
0 NTT FY2007
DoCoMo au KDDI Softbank NTT DoCoMo au KDDI Softbank
FY FY2007
FY 2007 FY 2008

8. Individual Internet Users by Device
in million
PC only
14.69 m
Source: Ministry of Public Management,Home Affairs,Posts and Telecommunications,
Telecommunications Usage Trend Survey 2007

9. Individual Internet Users by Device
in million
PC only
14.69 m
PC and Mobile
59.9 m
Source: Ministry of Public Management,Home Affairs,Posts and Telecommunications,
Telecommunications Usage Trend Survey 2007

10. Individual Internet Users by Device
in million
PC only
14.69 m
PC and Mobile
59.9 m
Mobile only
9.92 m
Source: Ministry of Public Management,Home Affairs,Posts and Telecommunications,
Telecommunications Usage Trend Survey 2007

11. Individual Internet Users by Device
2006 vs. 2007
-9.7%
Source: Ministry of Public Management,Home Affairs,Posts and Telecommunications,
Telecommunications Usage Trend Survey 2007

12. Individual Internet Users by Device
2006 vs. 2007
-9.7%
-1.7%
+44.2%
Source: Ministry of Public Management,Home Affairs,Posts and Telecommunications,
Telecommunications Usage Trend Survey 2007

13. Mobile vs. Home PC Internet Users
in million
Mobile
70
Home PC
57
62
50
48
43
49
39 47
42
31
35
36
20 29
16
18
0
1
2000 2001 2002 2003 2004 2005 2006 2007
Source: impress R&D, September 2007

14. Most Important Medium?
across age groups, in %
TV Newspaper Mobile PC
Magazine Book Radio Other
10-19 25 2 42 22 31 5
20-29 23 2 28 37 6 13
30-39 39 3 21 30 3 22
40-49 48 4 13 26 433
50-59 50 10 9 19 373
60+ 53 15 6 11 3 10 5
Source: NTT Advertising, 2007

15. Most Popular Activities in Free Time
by age group and gender, rank
M10-19 F10-19 M20-34 F20-34 M35-49 F35-48
Rank
1 TV TV TV TV TV TV
2 Mobile Web Mobile Web PC Mobile Web Newspaper Mobile Web
3 Games Music Mobile Web Magazine PC Web Magazines
4 Music Study DVD PC Web Drinking PC Web
5 Sports Friends Music DVD Magazines DVD
7 PC Web
9 PC Web
13 Mobile Web
Source: Dentsu, 2008

16. Time spent on Mobile Web per day
among 16-24 year-old mobile web users (in %)
All
“At least daily”: 90%
Female
40
“More than an hour daily”: 61% Male
33
30
24
22 21 22
20
20
17 16 16
16 15
14 13
12
10
9
435 333
0
>3 hrs 2-3 hrs 1-2 hrs 30 min -1 hr Daily, <30 min Less than daily I don’t
Source: Infinita, April 2008, N = 600