Impress Releases "2005 Mobile Phone White Paper"

2005 Growth in Mobile-Phone Flat-fee Packet Communications
Contracts Forecast at 307%
Rapid Increase to16.45 Million Subscribers in March 2006
- 94.2% of flat-fee packet communications subscribers utilize information services,
50.2 % use for shopping (*1) -

TOKYO, Japan -- Nov. 29, 2004 - Impress Corporation and Mobile Content Forum (Shibuya-ku, Tokyo, Chairman; Hitotora Higashikuni) announced the release of the "2005 Mobile Phone White Paper," which details current trends in mobile-phone usage in Japan.

With the spread of 3G phone services and flat-fee packet communications (hereinafter referred to as the "flat-fee system"), changes to IP infrastructure, and the implementation of number portability, the mobile-phone industry has entered a restructuring period led by information services (IP connection), and this chaotic situation is expected to continue. As the number of companies entering the industry increases, it becomes more difficult to implement controls on carriers and existing organizations. Under such circumstances, easy-to-read, extensive documentation is needed.

In compiling the "2005 Mobile Phone White Paper," the Mobile Content Forum and Impress surveyed 2,300 active users (*2) on the use of new technologies (FeliCa, TV phone, etc.) and services such as the Web, applications, and online shopping, to predict future changes in the use of mobile phones. The White Paper includes over 250 graphs analyzing the survey results on the basis of age, sex, and type of subscription (subscribers and non-subscribers to the flat-fee system). It also contains analyses by specialists on trends in the overall mobile-phone market, including trends among telecommunication carriers, the technologies required for the coming mass-communication era, the current conditions of the mobile-phone industry, and overseas trends.

Survey results from the "2005 Mobile Phone White Paper"

- In Mar. 2006, the ratio of 3G subscribers to mobile Internet users (subscribers to an IP connection service using a mobile phone) will be 51.4“, and the ratio of flat-fee-system subscribers will be 20.8“.

As of Sept. 2004, the number of 3G subscribers to an IP connection service using a mobile phone totals 22.6 million (*3), while the number of flat-fee-system subscribers totals 2.38 million (*3). This represents 31.3% and 3.3% of all subscribers to a mobile IP connection service using a mobile phone (72.32 million), respectively. It is predicted that, in March 2006, the number of subscribers to an IP connection service using a mobile phone will grow to 79.11 million, the ratio of 3G subscribers will be 51.4% (40.69 million), and the ratio of flat-fee-system subscribers will be 20.8% (16.45 million). Mobile Content Forum predicts that the transfer of subscriptions to 3G mobile and flat-fee systems will be accelerated. In addition, the number of flat-fee-system subscribers is predicted to increase by 307% in 2005 (Jan. through Dec.).

- 33.3“ of FeliCa mobile-phone subscribers actually use the function. 24.5% of TV-phone subscribers actually use the function.

The survey results on the latest mobile-phone functions show that although 83.4% of the respondents answered that they knew FeliCa mobile phones, in which a non-contact IC chip is installed, 33.3% of those who have a FeliCa-installed mobile phone have actually used the function. Among those with a TV telephone, only 1.7% of subscribers indicated that they have been using the function daily, while 39.1% indicated that they intend to use the function. 55.6% of teen male and 50.4% of teen female respondents indicated that they are highly interested in using this function.

- The actual usage ratio of the QR code is 56.4“.

The QR code (two-dimensional code), a new function of mobile phones with a camera, has actually been used by 56.4% of the owners of such phones. Of that 56.4%, 86.0% have used the function to obtain information from magazines. In addition, according to the survey, 31.3% answered that the function is very useful, and 58.0% answered that the function is reasonably useful. This indicates that approximately 90% of users feels that the function is useful.

- 94.2% of flat-fee-system subscribers use information services, while 50.2% use their mobile phone for shopping

32.4% of subscribers answered that they have used their mobile phone for shopping. Comparing subscribers to flat-fee systems with non-subscribers thereto, while 50.2% of flat-fee-system subscribers have used their mobile phone for shopping, that ratio is 28.3% for non-subscribers. The subscribers who have used their mobile phone for information services account for 82.0% of all subscribers, while the figure is 94.2% for flat-fee-system subscribers and 79.2% for non-subscribers. According to the survey, the reason most commonly given by the subscribers who have not used the information services was that they the packet communications charge is high. This indicates that although the flat-fee system has been introduced, the charges for communications continue to decrease the use of information services.

- 17.2“ of subscribers may change their contract after the number portability system is introduced.

The survey also asked about the number portability system. This system, which has been examined by the Ministry of Internal Affairs and Communications for introduction in 2006, allows subscribers to continue using the same telephone number after they change telecommunication carriers. 17.2% answered that they may change their carrier after the number portability system is introduced. 36.0% answered that they will not change, and 46.8% indicated that they have not decided. Depending on the decision of those who answered gundecided,h drastic changes may be seen in the market.

(*1) According to the White Paper survey on active users (conducted in Oct. 2004 by mobile phone)
(*2) Surveyed primarily by the mobile-phone survey panel of the survey company
(*3) According to the Telecommunications Carriers Association
(*4) Estimate of the Mobile Content Forum based on information compiled by related companies

Outline of the "2005 Mobile Phone White Paper"

Supervisor: Mobile Content Forum
Release date: December 8, 2004
Pages: 336 pages
Price: 7,140 yen (tax included)
Publisher: Impress Corporation

* Bundles a CD-ROM with 274 graphic images (GIF format) based on our independent survey data. The contained data can be re-used in a personal report, office document, or external presentation, provided that the source is cited.

* This book is published in Japanese only.