Application of Mobile Communication Service to Enterprise Market - Now and Future -

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1 B-Mobile(1) Application of Mobile Communication Service to Enterprise Market - Now and Future - Yutaka Yasuda, Dr.,Eng. Vice President and General Manager of Core Technology Sector KDDI Corporation 1

2 (M users) Computer Software Association of Japan Macro Trend of Mobile Market Evolution in Japan 10.20M 20.87M 31.52M 41.53M New Markets (Enterprise, Cars etc.) 51.14M 75.65M Broadcasting 69.12M Module / Multimedia Motion Picture Data Still Picture Data Text Data 60.94M 96.72M 98.55M 91.79M 86.99M 81.52M Browser Phone (1999 Feb. -) Camera Phone (2000 Nov. - ) GPS Navigation Service (2001 Dec. - ) CHAKU-UTA Service (2002 Dec. - ) (2003 Nov. -) Packet Data Flat-Rate Service (2004 Jul. -) Digital Money Felica Service (2004 Nov. -) Full Music Download Service (2006 Jan. -) Mobile Suica (2006 Apr. -) Digital TV One-Seg. Service (2006 Dec. -) Digital Radio Service as of Jul Consumers (FY) 2

3 Forecast of Enterprise Mobile Market in Japan The enterprise mobile market has been growing gradually. The number of enterprise mobile phones will be more than 10 million at the end of FY2009. [Million units] The Number of Enterprise Mobile Phones in Japan PHS Mobile Phone Source: KDDI Research Institute The Enterprise Mobile Solution Market grew 1.5 times* in one year *Based on our shipments 3

4 Essential Factors of KDDI s au Mobile Service Terminal installation Security Broadcasting Capacity Camera Design Sound Hit Content & Applications IP Video Phone Terrestrial digital broadcasting Full-Music D/L GPS Navigation Reasonable Price Plan Unlimited Rollover Flat Rate plan (Data) Personal Discount Family Discount Infrastructure In 1Q, marketed 8 models, incl. 7 WIN summer models cdmaone 64kbps/14.4K *Speed: Down/Up CDMA2000 1x 153kbps/ 1xEV-DO Rev.0 1xEV-DO Rev.A 64(153)kbps 2.4Mbps/154kbps 3.1Mbps/1.8Mbps Launched in Dec Evolution BCMCS Sep

5 Keywords in Enterprise Market Secure Secure & Safety, Safety, Management, Limitation Business Convenient Pack User Limitation Intra-Office Phone Phone Solution Location Information Management Sales Support Employee Management Mobile MobilePhone Phonefor forbusiness Voice Fixed Amount Service For Business Data Fixed Amount Service (CDMA 1X WIN) Fixed FixedAmount 5

6 Example of KDDI s Mobile Solutions (1) Business Convenient Pack Remote Delete Emergency Message Security Supervisor Business Message Board 6

7 Example of KDDI s Mobile Solutions (2) Intra-office Mobile Solution Telecom Services Solution Services In-house Mobile Network KDDI s Mobile Network In-house Wi-Fi Network KDDI s Mobile Network Voice Fixed Amount Service For Business Fixed-Amount within the Group Instant Message for Business 7

8 MMD/NGN Use Case 1 Voice Communications Combination of user profile and positioning information realizes advanced services Always update employees status, analyzing their positioning information Mobile Access Location Manager WiFi Access SIP Server MMD Si IP Integrated network Fixed Subscriber s Si line Access If an authorized people calls him, the call reaches independent of his status. while visiting customers In a meeting company officials While going out If a unauthorized people calls him, the call is rejected, just showing his status staff workers XXX : Meeting 8

9 MMD/NGN Use Case 2 Data Communications Personal identification by a cell phone realizes a ubiquitous environment in data communications Authentication server : Manages all the access from the network. Secure access to corporate data and files via a leased line. MMD Enterprise Intranet IP Integrated network Personal identification by a cell phone Mobile Access WiFi Access Personal identification by a cell phone Si Fixed Subscriber s line Access Si Personal identification by a cell phone While visiting customers While going out In the office at home 9

10 Expectation to The Innovation of The Device Technology Wireless LAN, Bluetooth, RFID, IrDA, WiMAX, Next Gen. CDMA High Quality Display High Quality Camera Next Gen. Battery Bio Sensor High Tech Device Wireless Technology Media Technology Digital TV Digital Radio Media FLO Application Voice Recognition Real-time Application Customized Function General-purpose application External I/F Serial 18 cores, USB, Micro SD : 10

Net Additions 1.1. <65.8%> <24.7%> <88.4%> <26.1%> Net Adds share. Net Adds. Share of : Net Adds Total subs 80% 60% 40% 20%

Net Additions 1.1. <65.8%> <24.7%> <88.4%> <26.1%> Net Adds share. Net Adds. Share of : Net Adds Total subs 80% 60% 40% 20% 1.1. Net Additions Market share 80% 000subs 800 60% 600 40% 20% Net Adds Net Adds share 400 200 0% 3/'05 6/'05 9/'05 12/'05 3/'06 6/'06 9/'06 0 Share of : Net Adds Total subs Full-year/FY2006.3