Japanese mobile firms target children

Growth in the Japanese mobile market will centre on the under 14s and over 55s

Japanese mobile phone companies are hoping to equip children as young as five with their own phones, because almost all other potential customers already own a handset, according to recent research.

"Future growth in the Japanese mobile market will be centred on the under 14s and over 55s as 100 per cent penetration is reached in all other age groups," said research group the Wireless World Forum in a report published last week. 

Most of Japan's mobile operators reported improved revenues in 2005, but this was because they attracted new subscribers, not because they generated more money from existing customers.

The percentage of phone-toting five to nine year olds in Japan will more than double from 29 per cent to 64 per cent by 2007, according to the report.

Revenues from mobile games and music, most popular with younger customers, will grow in tandem with the burgeoning youth market.

In the short term, however, the fastest growing new market segment will be at the opposite end of the age spectrum: 55 to 65 year-olds, 1.62 million of whom are predicted to pick up their first handset this year.

"NTT Docomo is including specialised pricing plans in its strategy to entice the young and old, " wrote Jan Kuczynski, research manager at the Wireless World Forum, in his blog. 

"The service will automatically suspend itself if usage goes over a certain amount, so phones can be given to kids and old folks without worrying about them running up a huge bill."

Phones aimed at under tens have attracted harsh criticism in the UK over perceived radio emission health risks. Following protests, a handset was withdrawn by its distributor last year. But a more recent variant, the TeddyFone, remains on sale. 

TeddyFone looks like a toy and has very simple controls. Similarly, Japanese mobile phone vendors are designing phones specifically for the remaining market segments.

Mitsubishi's 'Raku Raku Simple Keitai' phone, which is aimed at the over-60s, has limited features, an extra loud earpiece, easy-to-push buttons, and a large, clear display. 

"It will be interesting to see what other tactics operators come up with to sign up the last remaining parts of the Japanese population without a mobile phone," said Kuczynski.