There it was again, a comparison between Europe, Japan and the United States. In a recent report on the worldwide telematics industry, UBS Warburg noted significant differences between the telematics markets in the three global regions. “Ultimately, perhaps 10-15 years down the road, we envision a truly global telematics market,” the research report noted. However, today the telematics market should be considered in three distinct geographic regions, the company said.
For the most part, Japan dominates the telematics market. Europe is close behind and, as usual, the United States is lagging. The Japanese are using telematics solutions as navigation systems and for traffic information. In the United States, telematics solutions are used for safety and security reasons. The business models also are different: in Japan, people buy the hardware and get services for free; in the U.S., the hardware is subsidized, but people must pay for services.
Different regions and different uses.
Just like the developing wireless Internet market.
Just like smart-card use.
Just like short messaging service.
People keep talking about global strategies, but the more correct term is regional strategies, albeit really big regions.
Several recent articles have highlighted the disappointing take-up of WAP services in Europe compared with the impressive number of people in Japan using i-mode service. And it’s true.
But does that mean i-mode service has a better future than WAP? Not necessarily. In Japan, i-mode service is controlled by one carrier-NTT DoCoMo, which dominates the telecom market in that country. Even though western Europe has one digital wireless standard, competing operators offer service. It’s not an apples-to-apples comparison.
Likewise, comparing the success of WAP services in the United States with the success of data offerings in either Japan or Europe is ridiculous. The United States enjoys more wired Internet users than either Europe or Japan. U.S. Internet users may be frustrated with slow and less reliable wireless service, while their Japanese counterparts may not care.
The same has been said of smart-card adoption in the United States vs. Europe. In the U.S., people can get money from any ATM right around the corner. In Europe, ATMs aren’t as prevalent so a smart card with money-dispensing capabilities may see widespread use.
So while there may be a global standard for data offerings, applications may not have global appeal. For what plays in Peoria may not play in Paris or Tokyo.
Vive la difference!
