mobile felica - i-mode alliance strategy speech 2.pdf · 1. establishment of new credit card brand...

NTT DoCoMo

NTT DoCoMo ConfidentialCopyright ©2005 NTT DoCoMo, Inc. All rights reserved

Mobile FeliCa- i-mode Alliance Strategy -

Mobile Mobile FeliCaFeliCa-- ii--mode Alliance Strategymode Alliance Strategy --

Carl Atsushi HiranoCarl Atsushi HiranoExecutive Director Executive Director

Multimedia Services DepartmentMultimedia Services DepartmentNTT DoCoMo, Inc.NTT DoCoMo, Inc.

Sep, 2005

2Copyright@2005,　NTT DoCoMo,Inc. All Rights Reserved.

Contents

1. i-mode Evolution

2. i-mode Alliance

3. Mobile Wallet – i-mode FeliCa –

4. E-money Case Study

5. New Marketing Initiatives for the IT Era

6. Entry to Credit Business

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NTT DoCoMo


58.5%23.9%

17.5%

i-mode

EZweb

Vodafone live!

Facts about i-mode

Number of DoCoMo subscribers: Approx. 50Mil.Number of i-mode subscribers: Over 44Mil.

World’s largest ISP　　　population)

Handsets enabled fori-mode FeliCa

Approx. 5.2 millionunits

(As of end of Jul, 2005 a prompt report / 　　　　　Total of number of mova subscribers + cumulative number of FOMA handsets sold)

Market Share of i-mode as much as nearly 60%

Handsets enabled for Infrared

Communications

Handsets compatible with Barcode Reader

Approx. 33 millionunits

Approx. 23 millionunits


Mobile Phones Will Become A Lifestyle Infrastructure

Liberalization of handset sale

i-mode service launch

Emergence of the FeliCa service

Telecommunications Infrastructure

IT Infrastructure

LifestyleInfrastructure

Number of DoCoMo mobile phone subscribers

Number of i-mode subscribers

First Growth Stage -Explosion in the demand

for voice

Second Growth Stage – Introduction of

multimedia services Third Growth Stage

– Introduction of life tools

(Tens of thousands people)

25

Number of wireless IP service subscribers as of the end of May. 2005

(equivalent to one-third of Japan’s 　　　　　　

NTT DoCoMo


FeliCaHTML Mail, Videophones …

Flash, Ir, Barcode reader…

IｒMC, 3D Polygon…

ADPCM, MPEG , Camera phones …

JAVA, SSL, JPEG…

Color display units

GIF, MIDI ,C-HTML…

CorporateVenture Capital

5% of IPO companies are those related to Mobile Internet.

Ever-Smarter and Higher-Value Added Mobile Phones Usher in the Future

Vertical Evolution of i-mode– Perpetual Drive for More Advanced Technologies

26


Convenience stores

Vending machines

Karaoke

Rental shops

Car navigation systems

Credit Settlement

e-tickets

Games

AV devices

Cash cards

WIN‐WIN

Horizontal Evolution of i-mode– Persistent Challenge to New Frontiers

NTT DoCoMo


To make i-mode serve the User as “Controller in Every Scene of

Day-to-Day Life”

To create a Fresh Blend of “Virtual” with “Real”

i-mode Alliance – Objectives


Commuter passes and tickets

Credit cards

Tickets

Mileage cards

Employee IDs

(entering/exiting rooms/buildings)

e-money

(multi-purpose/independent)

Membership cards

(ID authentication)

Keys

(Apartment keys/Locker keys)

Coupons

Reservation vouchers

Our “Mobile Wallet” Service Begins-Everything you have in wallet into mobile phone-

27

NTT DoCoMo


Mobile Phone Model with i-mode FeliCa chip

i-modeFeliCa

LineupNEW：901iS Lineup Security

Increasingly beefed up Security!

◆Remote Lock◆IC Card Lock◆One touch Lock◆Timer Lock

All 901iS Series Models enabled for Remote Lock & IC Card Lock function

N901iS F901iS P901iS SH901iS D901iS

All 901iS models are Mobile Wallet!All 901iS models are Mobile Wallet!

P506iC SH506iC SO506iC F900iC SH901iC F901iC N901iC


Mobile Wallet Alliance

Public transport ticketEmployee ID and membership cardMembership card

and credit card

i-mode FeliCa Platform

FeliCa platform

ElectronicMoney/

Credit card

Various point services Ticket sales

Public transport tickets

Membership card, etc

Mobile Suica Mobile Suica

28

NTT DoCoMo


Integrating i-mode with FeliCa allows us to add services only available over i-mode to the benefits offered by FeliCa.

Simple one-pass action ①

Speedy data transmission and reception ②

High security ③

Benefits of FeliCa

Services using networks

・Addition of cash to users’ account balances ・Issuance of tickets to mobile handsets, etc.

¥10,000 added to

account balance

Possible to check the content of the contactless IC chip installed on your mobile phone

Viewer function

Remaining balance: ¥12,000

Purchase history 7/30　¥3.000 8/01　¥4.000

Information is shown on the display

Services unique to i-mode FeliCa 　

Benefits of i-mode FeliCa

Server

Internet

DoCoMo network


Network Network

○○Bank

Mobile account

Regular savings account

Cash can be added to IC cards via the network

I have to top up my account because it’s empty.

I have to top up my account because it’s empty.

Remaining balance is 300 yen. How much do you want to add?

○○yen

●Linkage of site and store services will lead to increased communication with customers, customization in accordance with individual needs and the capturing and keeping of customers

Example) Edy, Suica, etc.

Server

②　”Card” ＋ Network②　”Card” ＋ Network ③　Your mobile phone will become a “service tool”

③　Your mobile phone will become a “service tool”①　Your mobile phone will become a

“handy card”

①　Your mobile phone will become a “handy card”

・・Enhanced retention due to higher usageEnhanced retention due to higher usage・・Linkage of site services and store servicesLinkage of site services and store services

Travel

Users can enterand exit stations just by passing their mobile phone over the IC ticket gate

Check remaining account balance

Remaining balance is ○○yen

Railway card

Employee ID 総務部

Clocking in

09：15Employee number

0123456

Check content

Viewer function ○×concert 　　　　　ticket July 23, 17:00 start 　・・・・・・・・・・

*Currently, there is no card reader function

What Can Be Achieved by Integrating Contactless IC Cards with i-mode

Linkage with point services

・Points reward for visiting a store・Improved convenience

・Transmission of information within the site

・CRM e-mail distribution・Incentives to visit a store

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NTT DoCoMo


Implementation Benefits

Through i-mode + FeliCa, implement the smooth linkage of storefront and website!Via email delivery, CRM such as store visit encouragement and premium customer services can be supported!

• Can distribute information based on a buyer’s purchase history• Can deliver information and coupons limited to loyal customers via email

→ Encourages store visits and customer retention

“Use” the mobile when visiting a website; settle bills, collect points, download coupons!

• Electronic money settlement at i-mode sites is possible.• Linkage of point accumulation between the store and the site.

→ Improves convenience and customer retention

• Can reduce storefront operating costs.• Can reduce the cost of issuing new cards.• Users can shop with just their mobile phones. “Pass over” the mobile at the

storefront PC, and settle your bill, collect bonus points, and receive coupons.

●CRM using email and other means

●Linkage with i-mode sites

●Mobile takes care of everything including cash payments and point-card processing


How Customers like i-mode FeliCa

Source: Questionnaire conducted by NTT DoCoMo (August 2004: BefoSource: Questionnaire conducted by NTT DoCoMo (August 2004: Before use samples = 204, After use samples = 62)re use samples = 204, After use samples = 62)

Anxious about

Anxious about

securitysecurity

15151313

22

2525

1717

88 8844 33

1133

88

22

1919

3737

1515

5522 33

55

00

1010

2020

3030

4040

Anxious about

Anxious about

disappearance disappearance or theftor theft

Looks hard to Looks hard to operateoperate

Convenient

Convenient

Cutting

Cutting -- edge

edge and highand high -- tech

tech looklook

Smart and cool

Smart and cool

Looks like Looks like attracting attracting attentionattention

Looks Looks friendly and friendly and easy to useeasy to use

（％）（％）

Before useBefore use

After useAfter use

Negative ImagesNegative Images Positive ImagesPositive Images

No care about

No care about

forgetting to forgetting to carry m

y carry m

y pursepurse

Maybe I can

Maybe I can

save some

save some

time

time

Questionnaire to those customers who purchased i-mode FeliCaWhat image did you have before using it? How do you like it now after using it?(Please select only one out of the choices).

Many users dissipate concerns over possible disappearance and thMany users dissipate concerns over possible disappearance and theft eft by actually using it and in turn realize its convenience and smaby actually using it and in turn realize its convenience and smartness.rtness.

30

NTT DoCoMo


About Credit-card Business

1 Objectives1 Objectives(i)　Increase the number of the places where MobileWallet can be used(ii)　Acquire new source of revenue other than traffic

revenue For early realization and penetration of

the service, DoCoMo

acquire34% of Sumitomo

Mitsui Card’s common shares

2 2 DoCoMoDoCoMo’’ss Core CompetenceCore Competence(i) 49 million customers(ii) Handset is always carried with users(iii) Launch of Mobile Wallet service (Jul,2004)

3 What are we going to realize?3 What are we going to realize?(i) Create and boost new micropayment market(ii) Increase utilization of credit-card usage rate which is

lower in Japan compared with those in US and Europe

(iii)　Description of business　a） Establish the new brand of credit business

(Establish open platform)　b） Entry to credit business


Credit Payment Service of Mobile Wallet

　

Mobile-wallet payment service

Payment Terminal

・DoCoMo・Sumitomo Mitsui Card・Others

Card Business

mobile wallet

Linked/converged services and credit

Shopping, etc. in Japan/Abroad

Magnetic Stripe/Contact IC*

Credit card capability

Shopping, etc.

【FeliCa】

Member Retail Shops

Future

e-money

Transportation

・・

*Contact IC ＝EMV compliant (international IC standard used in financial sector)

Enhance combination with other payment services

Brand Business

FeliCa capability

Develop and install unified terminal

Existing credit cards (incl.

international brands)

Payment Methods Usage

1. Establishment of new credit card brandEstablish a new credit card service using “Mobile Wallet” phones equipped with contactless IC

chip (FeliCa) as a credit brand holder2. Issuance of a new credit card

Issue a new credit card which is characteristic of mobile phone operator to lead the market.=>Create the new credit payment market in micropayment which is almost dominated by cash payment.

For early realization and penetration of the service, DoCoMo acquire34% of Sumitomo Mitsui Card’s common shares

31

NTT DoCoMo


Developing Common Infrastructure for Suica e-Money and Osaifu-Keitai Credit Brand

　 A single reader/writer will be compatible with various settlement systems by developing reader/writer compatible with multiple services and creating and managing a common center that connects the reader/writer.

　 A single reader/writer will be compatible with various settlement systems by developing reader/writer compatible with multiple services and creating and managing a common center that connects the reader/writer.

Now

Nothing

Reader/Writer（Single）

Suica


New credit Card brand


Another FeliCaSettlement

Suica New credit Card brand


DoCoMo’sNew credit Card brand

Suicae-Money

Future

New credit Card brandSuica

Scope of joint venture

w/JR East

Common CenterCommon Center

Reader/Writer(Multiple)

Suica New credit Card brand

DoCoMo’sNew credit Card brand

Suicae-Money

Linkage with other services

(TBD)





i-mode FeliCa Strategies

・・BrandingBranding・Retention EffectsRetention Effects・・Churn from Other Operators & Churn from Other Operators & Service ProvidersService Providers・・Communications FeeCommunications Fee・・Value Enhancement enjoyed by Value Enhancement enjoyed by Invested CorporationsInvested Corporations・・New Business ModelsNew Business Models

32

NTT DoCoMo


Successful Services　⇒ Services with a FACE

・・FF　　–– Fun Fun

・・AA　　–– Anywhere, anytime Anywhere, anytime

・・CC　　–– Convenient, with user benefits Convenient, with user benefits

・・EE　　–– Easy for everybody Easy for everybody


Thank you for your kind attention

Carl Atsushi HIRANONTT DoCoMo, Inc.　

Executive Director,i-mode Alliances

Multimedia Services Department

e-mail：[email protected]

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mobile felica - i-mode alliance strategy speech 2.pdf · 1. establishment of new credit card brand...

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