Pajama Entrepreneur

Bill Gates: “We’re hopeful that that will be made available so that Wi-Fi can explode in terms of its usage, even out into some of these less dense areas (of the United States) where distance has been a big problem for Wi-Fi.”

Microsoft has been an advocate for unlicensed use of the television “white spaces” spectrum. Click here to read more.

I just returned from a trip to Japan. What amazed me was that I did not hear any mobile phones ringing in subway cars or trains. Neither did I hear (or see) people talking on their phones. I was so eerily quiet. But people are using their phones — texting, reading mini-novels, playing games, looking at video. Everyone’s staring into them, oblivious to the other passengers. Note that in Japan, nearly all the phones are the flip model (none of them from Nokia).

What accounts for the silence? On the shinkansen (high-speed train) people are requested to put their phones in silent mode. If you want to talk to someone, you have to do it in the area between the carriages. As a result, even though the subways and trains can be very crowded, it’s more civilized experience unlike in Europe or the US, where people chat loudly and talk about their personal problems within earshot of everyone. I also noticed that when two or more people are talking in a subway car, they do so in hushed voices.

I witnessed the same thing in a cafe at the train station in Kyoto where I was having coffee, waiting for the shinkansen to Tokyo. The guy sitting next to me suddenly rose and ran outside when his mobile phone rang. He did not take the call in the restaurant.

What amazes me though is that during the week and a half that I was in Japan, I did not see one person violate this “rule”. Not even the wildly dressed young guys with punky orange hair boarding the subway in Harajuku (a Tokyo district where a lot of young people hang out). Think of the thousands of people who use public transport in Japan.

What does this have to do with i-mode?

i-mode is a wireless service launched by NTT Docomo in Japan which provides access to mobile Internet sites. In other words, it delivers online content to mobile phones. It’s popular in Japan because on those long boring commutes and subway rides, people can simply stare at their phones and view the content. Since they don’t talk on their phones, it’s the one thing that occupies their time and allows them to not have to look at other passengers.

NTT Docomo entered into partnerships with European telecom operators a few years ago to launch i-mode in Europe. It was a flop everywhere. I know that in the Netherlands, KPN Mobile is giving it away and even then, most people I know who have it, rarely use it.

Why? People talk on their mobile phones in the Netherlands (which irritates other passengers but the chatting commuters don’t care). They don’t have such long commutes either. Many people bike or drive to work, too. Europeans and Americans are more “PC centric”, that is, when they think of online content, they like to look at it on a computer.

I have written in the past about Blyk, a mobile virtual network operator in the UK, that offers free mobile phone calls to 16-24 year olds in exchange for receiving ads via SMS or MMS. According to this article in the The Times:

The response rate to Blyk’s advertising campaigns, which take the form of text and picture messages, is, it says, 29 per cent. That is more than double the typical response rate to direct marketing and a figure that independent analysts say is extraordinarily high.

Many people are skeptical about the free-calls-for-ads business model since it hasn’t worked in the past. Blyk, however, targets a particular demographic, young people, and they are focusing only on the UK (for now). I can only think of similar free-WiFi-for-ads models such as MetroFi’s and EarthLink’s. EarthLink pulled out of the metro Wi-Fi business and MetroFi wants cities to become anchor tenants; it seems they have abandoned their original business model which had 2 elements: (a) free WiFi with ads; and (b) WiFi with no ads, but pay a fee.

For a Wi-Fi service provider to succeed on the ad model, it needs a lot of people using the service and the “right” people, i.e. the users that the advertisers on the network are seeking to reach. There are a few ad-serving companies targeting ISPs that have launched recently: NebuAd, JiWire (although they’re not a startup, they launched their targeted ad serving business last year), and others.

Nonetheless, I think it is great that people are experimenting with different ways of delivering wireless services to people.