(keitai-l) Re: Docomo unlimited data settings (was SIM cardsin Japan 2008)

Hi Curt,

Thanks for your comments on the QR code direct mode vs. the indirect code
resolution approaches that are being explored and trialed by Operators
outside Japan. Your points are well taken. Certainly the success of QR in
Japan is a great case study that folks outside Japan would like to emulate.
However, operators question the business model and are looking for that
direct ROI to code scanning services. 

Are you seeing any companies in Japan that have been successful in building
business that are directly associated with QR or other code scanning
services and technologies? Is it alternatively that QR is a core technology
that is underlying lots of services but it is open, ubiquitous and somewhat
taken for granted?

Thanks,

Jim Levinger


-----Original Message-----
From: keitai-l-bounce@appelsiini.net [mailto:keitai-l-bounce@appelsiini.net]
On Behalf Of Curt Sampson
Sent: Tuesday, February 12, 2008 12:38 AM
To: keitai-l@appelsiini.net
Subject: (keitai-l) Re: Docomo unlimited data settings (was SIM cardsin
Japan 2008)

On 2008-02-11 22:21 -0500 (Mon), Jim Levinger wrote:

> I have a question regarding data plan structure. How common are unlimited
> data plans for Mobile phones?

Very common, at least for browsing and mail using the handset itself (as
opposed to transferring packets for an attached PC).

> I was discussing an issue with a friend today and he made the point
> that Japanese Operators like QR Codes because for each code scanned
> operators make money.

Actually, the operators make money for resulting web or mail traffic, if
any; the are entirely unaware of the scanning of the code itself, which
is done entirely local to the phone. Not all scans will result in data
traffic, either; someone might be scanning a VCARD code to enter in to
her address book, for example.

> However, in the US with unlimited data plans, operators are much more
> interested in finding ways of driving code scanning traffic through
> resolution servers so they can find a way to charge advertisers for
> each scan. Advertising revenue can be an addition to the data revenue.
>
> What do you think of this point?

I'm sure that they are, and I'm sure that advertisers hate that. I
believe that one of the reasons for the success of QR-code in Japan is
that anybody can make one and use it on their business cards, flyers,
catalogues, advertisements, or what-have-you, at very little cost.

Increase the costs, and now the producers of the codes need to justify
that cost, leading to fewer codes produced, leading to less pressure on
phone manufacturers to spend the (not insignificant amount of) money
to make their phones scan them, leading to reduced demand by consumers
(since there are few codes to scan) and eventually they whole idea gets
flushed down the toilet, most likely.

When considering the costs to the producers, don't forget that a major
one is the uncertainty about whether the code will still be usable in a
month or a year. If the owner of the resolution server for some reason
is not serving one's code (either temporarially or permanently), you're
now annoying customers. Many businesses don't like to rely on external
providers of customer-facing things for this reason.

U.S. and European carriers have been guilty of ignoring network effects
for years, and they're paying for it now with much lower data ARPUs than
the Japanese carriers. Having a hefty slice of the pie doesn't feed you
well if the pie is only a bite or two in size.

cjs
-- 
Curt Sampson       <cjs@starling-software.com>        +81 90 7737 2974   
Mobile sites and software consulting: http://www.starling-software.com

This mail was sent to address jlevinger@nextcodecorp.com
Need archives? How to unsubscribe? http://www.appelsiini.net/keitai-l/