Vodafone Quitting Japan 169
dimension6 writes "Reuters is reporting that Vodafone, the world's largest mobile phone operator, is quitting business in Japan. Vodafone has been having a difficult time since they entered the Japanese market, a result of many blunders such as introducing Nokia brick phones where flip-phones are the norm and being slow to adopt 3G technology widely used by its competitors. Vodafone claimed that being part of the most advanced mobile phone market helped boost their sales elsewhere, but few Japanese-market phones have made it to other countries. The Japanese Vodafone division is likely to be bought by Softbank, the largest ISP in Japan."
For those with Japanese language skill (Score:2, Informative)
See Slashdot Japan article [slashdot.jp]
Brick phones?? (Score:4, Informative)
I believe the term is "candybar" phones. Bricks are from the early 90's. Oh, and while I'm getting all technical on the names, the summary more than likely refers to "clamshell" phones, where the flip portion opens on the top like a clamshell. A "flip" phone is a phone where the mouthpiece flips down, like the oldschool motorola's from the mid 90's.
Re:Same goes for Sweden (Score:4, Informative)
I moved my mobile phone accounts from Vodafone over to Optus here an Australia because they kept stuffing me around through their resellers. One reseller which I had an account through was being closed down by Vodafone and it became impossible for me to change my account.
The cheapest account they were offering me was $15/month. Optus had accounts at $5/month. It was an easy decision.
They keep trying to offer these deals where you pay $30/month and get (supposedly) more than $100 in calls but this just gives the impression to me that they are only interested in having phone mad teenagers as customers.
Re:Brick phones?? (Score:3, Informative)
Understand the market... (Score:4, Informative)
I had a beautiful clamshell 3G set light as a feather with media player, camera and imode 3-4 years ago. Snapping a picture of myself eating udon and mailing it to friends and family back then got me alot of ooos and ahhs
Vodafone coming to market with the most ugly brick phones ever, the likes which we've never seen before in Japan, didn't help.
Then there was them spending time and money on the pre-paid market. Basically, there is no pre-paid market there and there's a reason for that, nobody wants one. They came in thinking small, gunning for the niche market.
Then there was the reputation of the network. Vodaphone bought out an old network, can't remember the name, but it was on the brink of going bust because the quality sucked major. People knew Vodaphone as the one that bought out the sucky network.
Re:Trend? (Score:3, Informative)
This is incorrect. Vodafone has both a 3G network in Japan (the same they have everywhere else) and several clam-shells on the market.
Phones do have very different demands on the Japanese market than Eu though. Software crashes is unacceptable to a large part of the market there. It's nowhere near as critical on other markets. OTOH that a phone is large like a small house is not a problem in Japan though. You reguralry see phones there that would be unsellable in the Eu market due to size.
I just hope that the 3G network they put up will remain. It would be a damn shame if 3G phones from Eu couldn't be used in Japan anymore.
quick history lesson... (Score:5, Informative)
Vodafone has been going steadily downhill since their foray in to the market here. Their entry point was by buying out J-Phone and rebranding it as Vodafone K.K.. J-Phone was originally a division of JR, the national rail company. An interesting side effect of their original ownership was that in the early days of cell-access their networks first expanded along the railway networks giving them quite effective penetration even though their coverage was in fact quite spotty. J-Phone never quite reached the market-size of DoCoMo (the cellular division of NTT - the national telco), but was effectively their main competition with a reputation for innovation, which had cornered the younger "cooler" demographic. They were one of the first here to provide Java enabled phones and as the original originators of the camera-phone they have made their mark worldwide. In fact one of the last phones they brought to market before the buyout was the first phone to crack the 1 megapixel mark.
No wonder Vodaphone wanted a piece.
Some vodaphone insiders here have speculated that the main reason for the company's gradual descent has been the resistance of "old-Japan" upper management to outside pressures, almost more on principle than on particular merit, although some of those outside ideas have seemed to lack local market knowledge, amongst other things. Vodafone stagnated at a crucial point unfortunately - they were technologically ahead of the pack - their stall allowed competitors to take up the slack and old behemoth Docomo to pull ahead as many customers returned to DoCoMo for the newest gimmicks while vodaphone coasted...
Its not hard to still spot J-phone branded phones around which speaks volumes about the strength of the original company in this "new and shiny" crazed market. I actually think this is a good thing - if Vodafone was only as commited as a three year ownership and doesn't have the kahoonas to turn things around, its only their loss. Hopefully this is the begining of a return to their former glory and I'll finally be able to rid myself of this stupid AU phone...
Like department stores (Score:3, Informative)
UTMS/W-CDMA 3G phone can roam with Docomo (Score:1, Informative)
Re:30% of yours? (Score:2, Informative)
http://www.asahi.com/english/Herald-asahi/TKY2006
Re:Anyone know what Vodafone's Japan market share (Score:2, Informative)
Oh, and that spotty reception of yours could be due to it being Vodaphone too - one of the major (perceived, perhaps real) weaknesses is supposed to be their scanty coverage compared to their competition.
This might be the end of cool phones... (Score:3, Informative)
Re:On the flip side (Score:3, Informative)
Let's put a few of these things to bed... (Score:4, Informative)
DoCoMo has a loyal and strong customer base. Despite being more expensive than the other two networks, it is popular amongst the middle-aged and business customers who rarely switch networks. Furthermore these customers are less likely to upgrade their handsets on a regular basis, bringing a long-term return on the heavily subsidised phone the customer bought way back when. DoCoMo don't need to work to hard to maintain their position.
KDDI (AU) on the other hand has gone from arguably being the third-best service offering to the biggest innovator in the space of just a few years. AU has introduced attractive service plans, and intelligently captured a large share of the student market by offering an across the board 50% discount to anyone in full time education. This has reaped dividends several years later as those students are now graduating and converting to full price customers. Additionally they have invested very heavily in their 3G network, with a significantly higher proportion of their customers transferring to 3G services than either of their competitors. My own AU phone is capable of data transfer of 2.4Mbps (faster than most peoples landline based broadband in a lot of countries!) The other two networks are way behind on this count. AU has also capitalized on the i-pod craze by making virtually all handsets mp3 capable and introducing their own mobile version of i-tunes, which has access to a lot of Japanese artists unavailable on other online stores. I'd take issue with the guy moaning about smartphones. The AU OS is perfectly functional and offers a catalogue of hundreds if not thousands of downloadable JAVA applications. My phone can also handle Word, Excel, Powerpoint and PDF files and has a full featured web browser. Perfectly smart enough for my needs, and no Windows in sight.
And what has Vodafone done in this time? Well to be honest, not very much. They were late to the table with their 3G offering, which works only in mainly urban reception areas. Most importantly, they haven't done anything to really differentiate themselves or their service which is where AU have really scored big points. I don't know the statistics, but I'd say that Vodafone have struggled, not so much because they have failed to win customers, but because both they and DoCoMo have lost market share to AU.
The one comment I'd seriously disagree with is the "brick phone" suggestion in the original story. This is just bullshit. Walk into any Vodafone store and you'll see upwards of 20 handsets, maybe 2 of which are brick phones, and the rest are clamshells. I hardly think this is the cause of their failure, especially when DoCoMo and AU both offer bricks of their own.
Re:Same goes for Sweden (Score:2, Informative)