“ opportunity for u.s. firms ” in the growth of wireless network businesses in asia koji osawa,...
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![Page 1: “ Opportunity for U.S. Firms ” in the growth of wireless network businesses in Asia Koji Osawa, Ph. D. Managing Principal and Co-Founder Global Catalyst](https://reader035.vdocuments.us/reader035/viewer/2022062409/56649ea85503460f94bab657/html5/thumbnails/1.jpg)
“ Opportunity for U.S. Firms ”in the growth of wireless network businesses in Asia
Koji Osawa, Ph. D.Managing Principal and Co-Founder
Global Catalyst Partners
Dec. 8th 2005
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• VC for Early Stage Start-up Companies in IT sector
(Component, Software, System/Sub-System)
• $300M under management
• Management Team– Kamran Elahian (Chairman & Co-Founder)
(Co-Founder of Ciruss Logic, NeoMagic, Centillium)
– Koji Osawa (Managing Principal & Co-Founder)
(Mitsubishi Corp.)
– Vijay Parikh (Managing Principal)
(VP & GM, CISCO Systems)
– Art Schneiderman ( Principal & Co-Founder)
(Partner, Wilson Sonsini Goodrich & Rosati)
• Global Operation– US, Japan, Beijing, Singapore, Israel
Global Catalyst Partners
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Wireless Businesses in Asia
• Asia is the largest region for BWA deployment.
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BWA Subscribers (Asia vs. NA)
634 862 1,147 1,496 1,9762,044
5,215
8,188
10,874
14,023
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2004 2005 2006 2007 2008
North AmericanAsia-Pacific
Th
ou
sa
nd
s o
f S
ub
scri
be
rs
Market Assessment for Aisa-Pacific・ India and China present the largest global opportunity for growth
・ Developed regions such as Korea and Japan are interested in
prospects for mobile WiMAX
Source:
YANKEE GROUP
“Positioning WiMAX for
Success in the Global
Broadband Market” 2004
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Wireless Businesses in Asia
• Asia is the largest region for BWA deployment.
• Each Asian country have unique characteristics.
– Japan / Korea : • High ratio of Mobile Internet
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Ratio of mobile phone Internet subscribers to mobile phone subscribers
3.8
5.3
12.6
12.8
13.2
20
21.4
21.7
22.1
28.2
33.5
89
94.1
0 20 40 60 80 100
Denmark
China
Spain
UK
France
Australia
Hong Kong
Holland
Finland
Austria
USA
ROK
J apan
[%]
Source: White Paper 2005 (Ministry of Internal Affairs and Communication of Japan (MIC) )
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Wireless Businesses in Asia
• Asia is the largest region for BWA deployment.
• Each Asian countries have unique characteristics.
– Japan / Korea : • High ratio of Mobile Internet • Very active to adapt new technologies and services
(ex.) 3G, EV-DO, HSDPA, WiMax, Camera Phone, Contactless IC Card, RF ID, GPS, Ringtone, Terrestrial Digital Broadcasting, …….
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Mobile phone subscribers in Japan
Transition in the number of mobile phone subscribers in Japan
Transition in the number of 3G mobile phone subscribers in Japan
Source: White Paper 2005 (MIC of Japan)
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Features of Mobile Phones
8.6
19.8
21.7
21.9
21.9
22.1
22.7
31.7
35.8
46.9
72.7
0 20 40 60 80 100
International roaming
2D bar code reader
FM radio
Non-contact IC card
Infrared transmission
TV telephone
GPS
Applications
Music player
Camera(movie)
Camera(picture)
Survey on the Most Useful Features of Mobile Phones in Japan
[%]
Source: White Paper 2005 (MIC of Japan)
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745.5793.3 820.2 844.0 867.0
899.4
301.5373.6
450.3530.7
604.5
691.3
0
100
200
300
400
500
600
700
800
900
1000
2005 2006 2007 2008 2009 2010
Total handsets Cameraphones
Sales (m) Cameraphone Sales Forecasts
Camera Phone (WW)
Source: Informa Telecoms & Media ‘Future Mobile Handsets strategic report 2005’
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Terrestrial digital broadcasting in Japan
Shipment of terrestrial digital broadcasting receivers
Source: White Paper 2005 (MIC of Japan)
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Contactless IC Cards “FeliCa (Sony) ”
FeliCa card is the world's first contactless smart card certified by ISO / IEC 15408 EAL4, which is the most reliable criteria to measure the security level of a system.
Source: www.sony.net /products/felica/
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eMoney Services in Japan
Service Provider Trade name Concept Image
Commuter
Tickets
JR East SuicaSuper Urban Intelligent Card
“Touch-and-Go” and Seamlessly Pass through the Ticket Gate
・ Over 14million users
Prepaid
e-money
bitWallet(NTT DoCoMo,
Sony, ANA,
Toyota etc.)
Edy “3 in 1 Card”
One card usable in prepaid (with Edy), debit and credit card
・ 14 million users
Internet
Credit
Sony Finance Int’l
eLIO eLIO authenticates yourself and shop safe on the web
・ 36 associates
(card companies)
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Shipments of FeliCa chips reached 100 million units as of October, 2005
Shipments of FeliCa chips 100 million ・ Contactless IC card 90 million ・ Mobile FeliCa 10 million
Singapore
JapanHongKong
China
Thailand
India
Mobile
Source: www.sony.net
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Wireless Businesses in Asia
• Asia is the largest region for BWA deployment.
• Each Asian countries have unique characteristics.
– Japan / Korea : • High ratio of Mobile Internet • Very active to adapt new technologies and services
(ex.) 3G, EV-DO, HSDPA, WiMax, Camera Phone, Contactless IC Card, RF ID, GPS, Ringtone, Terrestrial Digital Broadcasting, …….
• Major system, device & service companies
(Samsung, LG, NEC, Panasonic, Sony, Hitachi, Fujitsu,….)
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Wireless Businesses in Asia
– China : • World leader in mobile subscribers and large opportunity to grow
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China World Leader in….
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Wireless Businesses in Asia
– China : • World leader in mobile subscribers and large opportunity to grow • MVAS sales for 2005 is $1B+ and growing
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China’s MVAS Markets
Source : Morgan Stanley Research
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Wireless Businesses in Asia
– China : • World leader in mobile subscribers and large opportunity to grow • MVAS sales for 2005 is $1B+ and growing• Crucial mass-market manufactures (Huawei, ZTE, …)
– India : • Large opportunity to grow• 60M mobile users today and 120M lines expansion by 2007• Active to deploy BWA (BSNL, Reliance, Tata,....)
– Taiwan : • Center of handset manufacturing
(BenQ, Compal, ASUS, Foxconn, Quanta, CMCS, Arima, HTC, Inventech, …..)
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Opportunities for U.S. Firms
– Asia :• Growing Market • Active to adapt New Technologies & Services• Major System & Device Companies
– Opportunities :• Infrastructure (System, SW, Services, ….. )
– India, China, BWA, RF ID, Contactless IC Card, M-Commerce, ….
• Enabling Technologies (Components, SW, System, …. )– Lower Cost, More Features, Lower Power, New Revenue Generatio
n, ….
• Services & Content– Local oriented, but Business Model, Brand, ….
• Investment, M&A– Opportunities for PEs (VCs, Buyout,..) & Corporations
• Exit Strategy– Acquisitions by Asian Firms
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Thank You.
Koji Osawa, Ph. D.Managing Principal and Co-Founder
Global Catalyst Partners
Dec. 8th 2005