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“ 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
• 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
Wireless Businesses in Asia
• Asia is the largest region for BWA deployment.
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
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
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) )
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, …….
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)
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)
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’
Terrestrial digital broadcasting in Japan
Shipment of terrestrial digital broadcasting receivers
Source: White Paper 2005 (MIC of Japan)
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/
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)
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
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,….)
Wireless Businesses in Asia
– China : • World leader in mobile subscribers and large opportunity to grow
China World Leader in….
Wireless Businesses in Asia
– China : • World leader in mobile subscribers and large opportunity to grow • MVAS sales for 2005 is $1B+ and growing
China’s MVAS Markets
Source : Morgan Stanley Research
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, …..)
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
Thank You.
Koji Osawa, Ph. D.Managing Principal and Co-Founder
Global Catalyst Partners
Dec. 8th 2005