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News Releases
2007
KDDI Announces Results of Survey on Pay Multi-channels Broadasting Market for Mobile Phones

KDDI Corporation
MediaFLO Japan Planning Inc.

2007/02/15

To explore the possibility of providing services using MediaFLO™ technology in Japan, KDDI together with QUALCOMM Japan set up the MediaFLO Japan Planning Inc. in December 2005, and have been testing the possibility of providing various services using the same technology.

MediaFLO™ is technology for multi-media broadcasting distribution services for the mobile phones developed by QUALCOMM in America. It makes effective use of frequency and enables clip casting with memory management. It will be available in the market in the first quarter of 2007 in America.

As part of an on-going process to evaluate the marketability and business feasibility of MediaFLO™ Sevices, a customer survey was conducted on the demand for pay multi-channel broadcasting for mobile phones, the key findings of which follow.

1. Intention to Use
In the internet survey, 41% of customers replied that they intend to use the services.
83% of respondents in the Central Location Test (CLT, survey conducted on customers who have tried the services at exhibitions) replied that they would try the services. This is much higher than the 52% received for the same segment in the internet survey, which is an indirect service explanation. This shows that when more users understand the services, the higher their intention to use it will become.

2. Service Needs
About 40% responded that they will use it when traveling to work or to school, making this the top reason for using the service.
News, movies, dramas and animations were the most sought-after genres.
The four features of MediaFLO, high-quality video streams, audio streams, clipcast media with memory management, and IP data-casting, were all found to be in demand.
92% of customers who have tried the services were impressed with the quality and smoothness of the clips, while 87% were impressed with the ability to search for programs with the electronic program schedule service.
In terms of the channel line-up, 23% responded that they would like to have less than 20 channels while 45% responded that they would like to have more than 30 channels.

3. Potential Market Size
The potential market for pay multi-channel broadcasting using the mobile phones is expected to hit 4.5 billion yen (40 million users) five years after the start of the service. Including the first and second wave of implementation, the economic effect is expected to climb up to 19 billion yen (maximum market size excluding competitive services).

Estimations based on user's demands for service provided at around 900 yen (for a 10-channel package).

MediaFLO Japan Planning believes that the results of the survey show that customers are ready for unique and appealing broadcasting services provided by the mobile phones and is working towards the introduction of the service to Japan in the near future.

I. Survey Methods

Survey Company: Accenture
Survey Method: Central Location Test (CLT) and Internet Surveys. Respective number of effective responses: 227 and 3000.

For the CLT, sampling was conducted on segments of the services which are believed to be in demand. For the Internet survey, sampling was conducted based on the demographic ratio for the population of Japan.

II. Overview of MediaFLO Japan Planning Company

MediaFLO Japan Planning was set up on 27 Dec 2005 with the objective of exploring the possibilities of providing services using MediaFLO technology in Japan (Capital 450 million yen).

The major activities of the company are:
(1)  Acquisition of Frequency
Involvement in Radio Use Committee [1], Ministry of Internal Affairs and Communications

[1]  VHF/UHF Radio Use Working Group, Telecommunications Council, Information and Communications Technology Sub-Committee, Radio Use Committee

Implementation of market surveys, and study of business models, etc.

(2)  Technology studies
Empirical data analyses on mutual interferences with the frequency environment in Japan

As to the exact types of services and the period of implementation of these services, the decision will be made pending the policies implemented by the Radio Use Committee.

III. Related Information

QUALCOMM Press Release (Japanese)
http://japan.QUALCOMM.com/press/releases/press_list_2007.html

FLO Forum
http://www.floforum.org/
KDDI contributes to the meetings on the standardization and implementation of MediaFLO technology, and developing the mobile multi-channel broadcasting services.

MediaFLO™ is a trademark of QUALCOMM Incorporated. All other names are the trademarks of their respective companies.


News Releases > 2007
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