June 6, 2005
In Japan, Prices Go Down as Web Service Speeds Up
American cellphone carriers are beginning to unveil third-generation data services in hopes of increasing revenue. But they may want to look at the experience of Japanese carriers, which are locked in a bruising price war. The New York Times reports.
"Like the Japanese carriers, Verizon Wireless, Cingular and others hope faster networks can persuade customers to pay more to use their cellphones for linking to the Internet. But Japan's experience suggests that data services may not turn into a pot of gold.
The faster data services have persuaded millions of customers to upgrade their phones - and made Japan the world's most advanced cellphone market.
But the deals have lowered total customer spending. Because talking is more expensive than sending data.
"The U.S. carriers have watched what has gone on overseas very closely," said Roger Entner, vice president at Ovum, a telecommunications consultancy. "They have to be careful because customers have been burned once or twice with the promises of 3G."
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