Released on = March 15, 2007, 9:21 am

Press Release Author = InfoCom GmbH

Industry = Telecommunications

Press Release Summary = Stuttgart, Germany - 16th Mar 2007 - Mobile services in
Japan recorded the most thriving growth, followed relatively closely by datacom and
CaTV.

Press Release Body = Stuttgart, Germany - 16th Mar 2007 - Mobile services in Japan
recorded the most thriving growth, followed relatively closely by datacom and CaTV
(Fig. 1). In particular, spending on datacom and CaTV had increased after year 2000.
Mobile growth was accounted for the decline of fixed telephony. The result of this
was that 47% ($40) of the spending per inhabitant was allocated on mobile services,
as compared to 28% ($24) allocation for fixed line telephony in 2005. Fixed
telephony has been declining particularly between 1995 and 2000. But the fact that
Japan as one of the leading nations with early patronage of mobile telephony, has
essentially been the reason for fixed telephony substitution.

In 2000, Japan's average spending per inhabitant for mobile services was indeed the
highest, with $35, and more than twice as high as in the US. Since then, the gap has
narrowed, but Japan has still by far the highest spending on mobile services at the
end of 2005, with $40 (in absolute terms and as a share of the total) of the
countries examined. This is also due to the fact that mobile data services
(Internet, TV, videos, games etc.) are much more popular there than in the US or
Western Europe. On the other hand, Japan's lowest spending during 2005 was on
Internet services amounting to only $3.

Average telecom spending per inhabitant in Japan is expected to grow at an average
rate of 2% in the years from 2006 to 2011, a slower rate compared to the years from
2000 to 2005. Popularity of mobile services among Japanese consumers fuelled the
growth in the market and this trend is expected to continue in the coming years.
But, it is the uptake of datacom and Internet services, that will further reduce the
share of traditional fixed line services in the total spending from 28% in 2005 to
22% by 2011. Fixed line is also the only sector that will decrease in absolute terms
(-12%) from an average monthly spending of $24 in 2005 to around $21 in 2011. For
the other sectors, mobile will increase by 18% (from $41 in 2005 to $48 in 2011);
datacom will increase by 42% (from $10 to $14) while Internet services will increase
by 49% (from $4.7 to $5.5).

This market outlook, among several others, comes from Teleseeq, InfoCom\'s market
intelli-gence solution. Teleseeq provides decision makers ICT global coverage,
consistent and up-dated market data and forecasts, detailed KPIs coverage, company
profiles, analytical re-ports, and the latest and most relevant developments on M&A
and telecom innovations.

Please visit http://www.infocom-de.com/pressarchives/press_160307.html to see the
graph.
Title: Total monthly telecom spending per inhabitant in Japan (dollars) - Breakdown
per sector

About InfoCom
InfoCom is a market research and consultancy company with almost 20 years experience
providing strategic analyses and planning assistance to stakeholders in the
telecommunications, IT and multimedia industries. InfoCom's independent and
fact-based analyses highlight trends and opportunities, supporting decision makers
to understand market dynamics in order to improve their competitive advantage.
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Web Site = http://www.infocom-de.com

Contact Details = Dimitra Gialama
Telephone: +49 711 870510-39
Fax: +49 711 870510-10
E-mail: gialama@infocom-de.com
Internet: http://www.infocom-de.com