In Japan, Cell Phones Surpass PCs as Commerce Platform, Says Report

    PORTLAND, Ore., Feb. 1 /PRNewswire/ -- In Japan, the cellular telephone
has already surpassed the personal computer as a viable platform for digital
content sales to consumers, according to a new research report from TKAI, Inc.
(http://www.tkai.com).
    Digital content providers have won hundreds of thousands of paying
subscribers, and are successfully collecting fees under a secure, robust, and
cost-effective micropayment system that may well serve as a model for
e-commerce throughout the rest of Asia, the report concludes.
    "Toy maker Bandai, for example, has won more than 600,000 subscribers to
its cellular-based content services, and is taking in revenues well in excess
of U.S. $300,000 each month. The combination of a satisfying online
experience, especially for novice users, and a powerful cooperative settlement
scheme has created an online content sales model of unparalleled success
worldwide," according to TKAI's Kevin Schaer, lead writer for the new report.
    But caution is necessary when extrapolating trends in Japan to other
markets, says Schaer. The extraordinary proliferation of Internet-enabled
cellular telephones owes much to factors peculiar to Japan, including
1) NTT DoCoMo's dominant, "market maker" position, 2) consumer commuting
patterns, 3) the high cost of social interaction in Japan, and 4) cultural and
logistical factors that make Japanese consumers especially receptive to a
handset-based online experience.
    Details of the report are available at http://www.tkai.com. A leading
professional services firm specializing in Japan-specific e-business work,
TKAI's clients have included Amazon.com, British Telecom, Intel,
Jupiter Telecommunications, Nokia, and Nynex.