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Mobile Internet in Germany: How to Explain its Lack of Development
Paper to be presented at the 17
th
European Regional ITS Conference,
22-24 August 2006, Amsterdam
By Arnd Weber
Institute for Technology Assessment and Systems Analysis (ITAS)
Forschungszentrum Karlsruhe (Research Centre Karlsruhe), Germany
Abstract
This paper addresses the lack of deployment and use of the mobile Internet on mobile phones
in Germany compared to Japan. Key causes identified for this lack are the missing support for
links in emails and the need for the configuration of handsets. Underlying causes are risk-
averseness, lack of competition, and lack of customer-orientation, as compared to Japan. The
paper also sketches options for action by industry and by the regulator.
Background
Compared to Japan, at least since 1997, Germany turned out to be one or more years behind in
terms of availability of new mobile services, such as packet-based services, camera and music
phones, and deployment of 3G technologies (Weber, Wingert 2006; Haas 2006). In contrast,
for years, Japanese citizens have been using such new services, can easily be reached via mo-
bile email, and have flat-rate services available. Such services are not in widespread use in
Germany and network effects didn’t develop sufficiently. In short, Germany appears to be
behind, and not as innovative with regard to discovering such new technologies. This situation
is also reflected in mobile data revenues, which are around
€
4 per subscriber per month in
Germany, while in Japan they have been estimated to be between
€
10 and
€
25, for 2003
(sources: Büllingen et al. 2004; Funk 2004).
In this environment, the related mobile-phone business of Siemens has been sold to BenQ,
meaning that German manufacturers do not lead the emerging market for mobile phones,
which are currently converging with music recorders, digital cameras, mobile email devices,
etc.; Germany once had a lead with consumer electronics, cameras, etc. and successfully par-
ticipated in the GSM business.
It would have been beneficial to the operators and equipment manufacturers if higher reve-
nues from the mobile data market had contributed to covering the costs of 3G band licenses.
This would have meant more employment in the related telecommunications, content, optics
etc. industries, but such a development did not take place.
As Germany is a country which was once leading in consumer electronics, and still is a highly
industrialised country, this developmental malaise deserves explanation and must be of con-
cern for German policy makers, managers and employees. The causes to be identified, and
options for actions, may also be relevant for any other country aiming at using wireless data
services or aiming at producing mobile equipment.
The paper is based on research conducted with support by the German Federal Ministry of
Education and Research. Findings on the causes for the development of the Japanese mobile
Internet have been presented at the 15th Biennial ITS Conference in Berlin, 2004. Key find-
ings were that Japanese mobile Internet services are of very high quality and that competition
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