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KDDI's Success Story
From our: Japan Business Reports Feature
This report is available from: Eurotechnology Japan
 
KDDI is a Japanese telecommunications company established in 1953 under the name Kokusai Denshin Denwa Co., Ltd (KDD at the time). In the year 2000 KDD Corporation, DDI CORPORATION and IDO CORPORATION merged to form the KDDI corporate brand. In 2002 3G (3rd Generation) services began and in 2003 there were 8 million 3G mobile phone service subscribers. KDDI is truly a success story worth studying by any telecommunications company.

Below is information about a full report on KDDI's success story available for purchase from Eurotechnology Japan. On their website you will find more information including sample pages, current pricing and the date it was last updated.

About This Report From Eurotechnology Japan:

KDDI emerged as one of the world's most advanced comprehensive telecommunications operator through a series of acquisitions and mergers and a very shrewd strategy to compete successfully with the incumbent NTT. Today KDDI is Japan's second largest fixed line and second largest mobile telecom operator, and is global leader in many areas of technology and services.

KDDI has converted almost all subscribers to 3G services, and started to offer 3.5G services (with 2.4 Mbps data download speed: almost 10 times faster than competitors DoCoMo and Vodafone). Based on leading edge technology, KDDI pioneered a variety of wireless services and business models in Japan: mobile music, location based services, and more. Being the first to introduce flat rate data plans, KDDI forced the competitors to change their business model strategies. KDDI continues to set the agenda in Japan's hypercompetitive mobile markets.

In the fixed line sector, KDDI is one of the first telecom operators globally to convert completely to IP based operation over a national optical fiber infrastructure. KDDI offers "triple play" (phone, broad band internet and TV) over FTTH, and IP phone over leased copper lines to attack incumbent NTT's core business models and core income streams.

This report provides competitive advantage to telecom operators, equipment providers, regulators and governments world-wide seeking to learn from Japan's telecommunication markets. The report will also be very useful to foreign companies seeking to start or to increase sales in Japan's telecom markets.

Table of Contents:

  • KDDI's profile
    • KDDI's main businesses: core businesses, affiliates
    • KDDI's sales in different sectors (graphics showing sales percentages for different business sectors: mobile, fixed line etc, data for 2004)
    • KDDI's history (graphics showing major mergers and acquisitions history since foundation of KDD in 1953)
    • History of KDDI's services
       
  • KDDI's financials
    • KDDI's annual revenue, all KDDI compared to AU (data for 2000-2005, projection to 2006)
    • KDDI's annual net income, all KDDI compared to AU (data for 2000-2005, projection to 2006)
    • KDDI's capital expenditure, investments shown for major segments of business (data for 2004-2005, projection to 2006)
       
  • KDDI's strategies as NTT's challenger
    • KDDI's fixed net strategies
    • Triple play on FTTH
    • KDDI's mobile strategies
       
  • KDDI's position in Japan's markets
    • KDDI's market position
    • Japan's telecommunication landscape (graphics showing all major players, and recent mergers and acquisitions, date: 12 March 2005)
    • KDDI on position No. 2 (graphics showing sales of major players for FY 003-2004)
    • Key trends in Japan's telecom industry
       
  • Fixed line markets
    • Summary
    • Fixed line telephony markets (graphics showing all major players, date: March 2004)
       
  • Basic phone voice services
    • Market shares of local and medium distance carrier preference for Sept 2004
    • Effects of competition of price reduction/increases for major service segments
    • Unbundling of fixed line services
    • KDDI's IP telephone services
    • Competition for basic voice telephone services
       
  • Broad band (Triple play)
    • Development of Japan's broad band markets: history, today, trends
    • ADSL subscriptions in Japan (data for Sept 2004)
    • Broad band internet ISP subscriptions in Japan (data for March 2004)
    • KDDI's web portal ranking (access data for top 15 web portals, April 2004)
       
  • KDDI's Broad band business and strategy
    • KDDI's Broad band services
    • Triple play on FTTH
       
  • KDDI's Wireless businesses: AU and TuKa
    • AU
    • KDDI's market position in Japan's wireless markets
    • KDDI's mobile services
    • KDDI's firsts, innovations and strategy
    • KDDI's and AU's spectrum allocations
       
  • AU's market position
    • AU focus on 3G, summary
    • 3G market statistics (data of 3G subscriptions in Japan for 2001-2005
    • Today's competitors in Japan's 3G markets
    • Japan's mobile phone companies
    • 3G and 2G cell phone subscriptions (all systems except PHS for 2002-2005)
    • KDDI in the mobile phone market (subscriber numbers for 1998-2005 including history of mergers)
    • Subscriber growth/loss during 2004 for DoCoMo, KDDI/AU, KDDI/Tu-Ka and Vodafone (total, 3G, and mobile internet)
    • Market shares for DoCoMo, KDDI/AU, KDDI/Tu-Ka and Vodafone (1998-2004)
    • KDDI's turn-round in the KDDI vs Vodafone/J-Phone battle (market share data for 1998-2005)
    • monthly net subscriber gain/loss for DoCoMo, KDDI/au, J-Phone/Vodafone and Tu-Ka (gain/loss data for 1998-2004)
    • monthly net subscriber gain/loss for DoCoMo, KDDI/au, J-Phone/Vodafone and Tu-Ka and Willcom (gain/loss data for 2002-2005)
    • 3G and 3.5G in Japan
    • 3G Introduction (data for 2001-2004 + projection to 2007)
    • 3G Introduction (data for 2001-2004 + projection to 2006)
    • 3G conversion (conversion rate data for 2001-2005) 3G market share data (market share data for 2002-2005) Month-to-month growth/loss for KDDI/au, DoCoMo and Vodafone 3G subscribers (monthly gain/loss of 3G subscribers for 2002-2005) Month-to-month growth/loss for KDDI/au, DoCoMo and Vodafone 3G subscribers (monthly gain/loss of 3G subscribers for 2003-2005)
       
  • AU setting the agenda for new business models
    • Business models vs competing on price
    • Charges, ARPU and business models for 3G
    • Voice calls KDDI/au vs DoCoMo and Vodafone (table compares voice call pricing for 2G and 3G)
    • Data pricing
    • Data charges for 3G: metered vs flat rates
    • Data charges for 3G and 2G
    • Data charges for 3G at high volumes
    • Data charges for 3G at high volumes and compared with PHS
       
  • Expected impact of flat rate data charges
    • Details of flat rate data charges on 3G
    • Details and impact of flat rate data charges on 3G
       
  • AU's winning strategy cocktail
    • AU's winning strategies
    • Strategic tool
       
  • The AU design project
    • Significance
    • Summary of the AU design project (data for 2001-2003)
    • KDDI designing studio in Harajuku
    • Infobar
    • GPS integration
    • talby
    • Penck
       
  • The KDDI designing studio
    • Overview and images
    • "KDDI designing studio" vs "Vodafone flagship store in Shibuya"
    • "KDDI designing studio": outline
    • "KDDI designing studio": Infobar, talby and Penck
    • images and impressions
    • PENCK display
    • GPS based emergency service display
    • AICHI exhibition terminal display
       
  • AU competitive mobile phone design
    • AU competitive mobile phone design for specific segments
    • Accessories
    • "Style up" panels
    • "Sweets"
       
  • Mobile phone sales in Japan
    • Overview
    • A typical suburban KDDI/AU store
    • Music to sell phones
    • Carriers competing face-to-face in the stores
    • AU and Vodafone competing side-by-side
       
  • AU Mobile Services and M-Commerce
    • Overview
    • AU's strategic differentiation
    • AU top menu: Chaku Uta Full, EZChannel, EZMovie, EZnaviwalk, EZweb
       
  • Chaku uta full
    • Top menu
    • Chaku uta full as a new business model, download statistics for 2003-2005
    • Chaku uta full, menu structure and selections
    • J-Pop menu
    • Top 3 sites
    • Sample songs
       
  • EZchannel as a specific 3G services and a means of competitive differentiation
    • Top menu
    • What is EZchannel?
    • EZchannel program guide menu
    • Sample list of subscribed EZchannels
    • Examples of several EZchannel issues
       
  • EZmovie
    • Top menu
       
  • EZnaviwalk
    • Top menu
    • GPS and EZnaviwalk
    • Description and functionality with sample screen images
    • EZnaviwalk user interface and functions: train travel, car travel, walking, and other functions
    • Test report on location determination accuracy (only simple test)
       
  • EZweb: mobile internet
    • Overview
    • EZweb: from reaction to i-Mode towards strategic differentiation
    • EZweb: strategic differentiation
    • Month-to-Month subscriber adds/losses (data - subscriber adds/losses for EZweb, i-Mode and Vodafone Live for 2002-2005)
    • Market shares (Market shares EZweb, i-Mode and Vodafone Live for 2000-2004)
    • Subscriber numbers (Subscriber numbers EZweb, i-Mode and Vodafone Live for 1999-2004)
    • Month-to-Month subscriber adds/losses (data - subscriber adds/losses for EZweb, i-Mode and J-sky/Vodafone Live for 2000-2005)
       
  • EZweb: The official menu
    • Overview
    • EZweb: screen view of the official menu with explanations
    • EZweb: English menu (Global Site), with analysis and discussion
       
  • Mobile music as a competitive advantage for KDDI/AU
    • Overview
    • AU records and EZ music store
    • KDDI/AU has consistently used music as a competitive advantage
    • Mobile music in Japan - introduction
    • KDDI/AU chaku uta and chaku uta full downloads vs Apple i-Tunes (data for 2003-2005)
    • Music to sell phones
    • Characteristics and trends
    • Mobile music compared to total music market (data for 1994-2004)
    • Mobile music market size in Japan (data for 1994-2004 with extrapolation to 2006/2007)
       
  • Selling full songs by mobile phone: KDDI/AU Chaku Uta Full
    • Overview
    • Menu structure, segmentation, analysis and discussion
    • Top ranking sites
       
  • EZ.FM and the "On Air Check Appli"
    • Overview
    • Menu site structure, segmentation, analysis and discussion
    • "On Air Check Appli" screen images and functionality
       
  • "EZ Book Land"
    • Overview
    • Menu site structure, segmentation, analysis and discussion
       
  • eBooks for mobile phones
    • Menu site structure, segmentation, analysis and discussion
    • Site listings for eBooks
    • Sample eBook online store
    • Read an eBook, demonstration with screen images and sample pages
       
  • "EZ Game Street"
    • Menu site structure
       
  • EZweb strategy
    • KDDI's m-Commerce initiatives
    • EZweb shopping and auctions section
    • AU m-Commerce portal portfolio
    • AU shopping and auction menu
    • "AU de Okai-mono" AU m-shopping mall
    • AU shopping
    • AU auctions via mobile phone
    • AU records and EZ music store
    • AU style
       
  • GPS application
    • Location based emergency services by AU
       
  • Tu-Ka: new focus
    • Tu-Ka overview and market position
    • Tu-Ka - 50-S: no-frills phone for the senior market
    • Tu-Ka competes on price
    • Typical Tu-Ka shop
       
  • Prepaid mobile phones
    • Prepaid mobile phones in Japan
    • Prepaid mobile phones in Japan (data for Sept 2004)
    • Prepaid mobile phones in Japan: DoCoMo, AU, Vodafone and Tu-Ka (graphics for Sept 2004)
    • Prepaid mobile phone ratios as a ratio of all mobile phones: DoCoMo, AU, Vodafone and Tu-Ka vs: Europe, Japan and Italy (graphics for Sept 2004)

Full report available from Eurotechnology Japan
 

 
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