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MSM Will Enable the Next Wave of Innovation in Japan and Worldwide

By Kazuhiro Abe
President
Red Bend Software Japan

Mobile phones in the Japanese market possess some of the most advanced features and capabilities of any in the world. Japan is known for its innovation, such as handset-based Internet services with "i-mode" and updating software over the air using FOTA. Examining the market in Japan is like seeing the future of the global mobile industry.

That’s why we think our recent announcement with NTT DOCOMO is significant. DOCOMO has signed a multi-year agreement to license Red Bend’s full portfolio of mobile software management (MSM) solutions, including our software products for updating firmware over-the-air (FOTA), managing software components over-the-air (SCOTA) and our Open Mobile Alliance (OMA) device management (DM) client. Red Bend’s MSM solutions will enable DOCOMO’s customers to subscribe to new data services and download the latest applications regardless of the phone’s pre-existing capabilities. The result is that more revenue can be generated per subscriber throughout the phone’s lifetime.

Changes in the Japan mobile market are prompting DOCOMO and other industry players to create strategies that generate new revenue streams.

Until recently, Japan operators subsidized handsets for mobile consumers, many of which who would replace their phones as often as twice a year, just to have the newest model. However, last summer, as part of a consumer protection initiative, regulators prohibited mobile operators from continuing this practice, as it was viewed as disproportionately favoring certain consumers.

As a result of this move and combined with the faltering global economy, handset sales in Japan were down nearly 30% in 2008 and replacement cycles have lengthened from 2.5 years on average in 2007 to 3 plus years in 2008. The longer replacement cycles have brought about other important changes in the Japanese mobile market. Operators and device manufacturers, once churning out as many as 100 new models a year, are now focusing on new services to generate revenue rather than simply launching new phones.

These services include mobile banking and smart card capabilities, social services such as train and traffic reports, and concierge services like a virtual mobile personal trainer to track exercise and calorie intake. These kinds of value-added services hold the key for Japanese mobile operators to maintain steady growth and customer loyalty.

Red Bend’s MSM solutions are a key enabler for realizing these strategies. As services drive the mobile user experience and future revenues, the need for the most advanced and efficient software management technology has become increasingly critical for both operators and OEMs. Software is responsible for the core functions of the phone like browsing and messaging, and for the key enablers that power mobile services like navigation and music. MSM enables operators and OEMs to manage software both discretely and dynamically over the air, throughout the phone’s lifetime, in order to keep up with consumer demand for new Internet services and the latest applications.

As value-added services and software customization drive the next phase of Japan’s mobile industry, Red Bend will continue to be a key player in enabling its customers to bring new innovations to mobile consumers.

posted by Red Bend @ Wednesday, August 19, 2009 - 4:31 PM

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