A report from Analysys claims that 3G penetration in Japan and South Korea has hit 40%, and the carriers in those countries generate a significant portion of their revenue from data (other than messaging). “The report shows how this data revenue is achieved with rich portfolios of services, including mobile Internet access, entertainment, ringtones and music, games, mobile TV and video, community portals and mobile transactions…While Japan and South Korea have had some successes with non-voice services, the Analysys report warns against blindly following their lead. “In the race to offer new services and capabilities, operators in Japan and South Korea have sometimes failed to anticipate the full commercial implications of their actions,” says Alastair Brydon. “Innovation has not always translated into strong revenue growth.” Despite rapid migration from 2.5G to 3G, Japanese operators have struggled to grow overall ARPU. For example, NTT DoCoMo suffered a 15% decline in overall ARPU between 2003 and 2005.”
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