Web 2.0 Asia

Here in Japan, NTT Docomo, the undisputed market leader in wireless services, is belatedly joining the "2.0" frenzy. Under the tagline "Docomo 2.0" (which to me sounds so last year), the advertisement says "Can we now start attacking back?"

So Docomo is basically trying to say "Hey Docomo users, calm down - it's not like we didn't know we were losing market share almost to the point of an embarrassment, but it's no big deal, coz we're coming right back." But, will Docomo get its "mojo" back? In April, out of the 480K new mobile service subscribers, Docomo had only 65K (13.7%). If these trends continue, Docomo might soon see a sub-50% market share.


For Docomo, the obvious pain in the neck is the fast-rising Softbank Mobile, which had long been regarded as the distant 3rd player (from its Vodafone KK years) but is now looking more like a real contender with its superb bang-for-the-buck packages. Many are surprised by how quickly Softbank Mobile has risen, but if you take a look at the programs offered by the Japanese carriers, you'd be surprised that so many people have NOT yet moved to Softbank Mobile. If you become a new SB Mobile subscriber, you can get a nice voice+data plan and a decent free handset at under $20 per month (based on a 2 year contract). That's of course in addition to the unlimited free calls with other SB Mobile users. That's ridiculously cheap, don't you think? Can you get this value in China?

Throwing huge amount of marketing money to acquire customers and then making up the investment from the ARPU has been the winning formula for Mr Masayoshi Sohn, the chairman of Softbank Group. It worked for Yahoo! BB - people still remember the days when Yahoo! BB sales agents handed out modems on the street as part of the promotion. I mean, you can easily spot folks handing out small promo items like tissues or leaflets on the streets of Tokyo, but modems? No way. But that's a classic Sohn move.

So Mr Sohn seems to be using the tactic again with Softbank Mobile, and the result is that you see SB Mobile's ads featuring Cameron Diaz literally everywhere in Tokyo. You can't get out of it. People call Mr Sohn a madman, but it'madmen who change the world - think Steve Jobs.

Docomo, once regarded as the innovator, looks so defensive when put next to SB Mobile. We'll see if their 2.0 marketing will help them re-gain the market share, and more importantly, the innovator image.