Empirical analysis of factors promoting the Japanese 3G mobile phone

This paper aims to specify factors promoting the 3G mobile in Japan. The factors are represented by value-added services such as FeliCa, which enables e-payment, data roaming services, and full music downloads. Panel data from the three main carriers, which occupy over 90% of the Japanese mobile market, is utilized. In order to control network effects as well as the endogeneity of variables, the Arellano–Bond dynamic panel estimation is adopted. As a result, the launch of the iPhone 3G, FeliCa, data roaming, full music downloads, and the flat rate are revealed to have affected the diffusion of the 3G mobile in Japan. The results, reflecting the importance of value-added services, can be applied not only to the next generation mobile development, but also to the promotion of 3G networks in other countries.