On a trip on the Tokyo subway last year, almost everyone ignored the young man talking on one wireless phone, messaging with another and juggling a third.
Such cell phone overload would almost certainly get noticed in the US, which lags the rest of the developed world in wireless use.
An estimated 57 percent of the US population chats on wireless phones -- not much greater than the percentage of wireless phone users in much poorer Jamaica, where 54 percent of the people have mobile phones, according to the International Telecommunications Union.
By comparison, in Hong Kong there are 105.75 mobile subscribers for every 100 inhabitants. In Taiwan, there are 110.
Sprint Corp's US$35 billion deal this week to buy Nextel Communications Inc is likely to spark another round of price wars and handset giveaways in the US, but it will take more than industry consolidation and aggressive marketing to increase use.
Why? The reasons range from credit checks to network quality to coverage areas.
Wireless networks elsewhere are simply better than those in the US, said Albert Lin, an analyst at American Technology Research.
"For a long time, the US had way too many networks being supported by not enough investment," he said. "The quality of US networks is only now coming close to the quality you would see in major European and Asian markets."
Not that the European model was perfect: Companies there paid US$125 billion for licenses to operate "third-generation" mobile networks that enable European users to zap videos and data by phone. The result: Mountains of debt, but a chance to sell phones packed with features James Bond would love. That hasn't been the case in the US.
Wireless companies were the No. 2 sector for complaints to Better Business Bureaus last year, trailing only car dealers. They were the second-lowest ranked industry in the University of Michigan's customer satisfaction index, second only to the hated cable companies.
One reason US consumers are miffed is what Forrester Research analyst Lisa Pierce calls "big holes in rural coverage." In the Tampa, Florida, area where she lives, her wireless calls start breaking up one mile south of her home. Her husband uses a different carrier; his calls break up one mile north.
Another reason for lower cell phone use in the US is how service is sold. The largest carriers sell phones by subscription, requiring a credit check and a commitment of at least one year.
"We have tapped out the prime-credit segment in the US," said Roger Entner, a Yankee Group analyst. "Everyone who wants to have a wireless phone and can pass a credit check has one. Everyone who can pass a credit check and doesn't have one -- after ten years of a continuous barrage [of advertising], they're not going to cave."
If the industry wants more users, it will have to change its business model to embrace people with iffy credit who are willing to buy prepaid phones, he said.
Companies are hesitant to do that because it doesn't help them with Wall Street analysts, who score wireless companies' stock by the number of subscribers added to their networks, the average revenue per user and the rate customers drop their service, a figure known in the industry as "churn."
Prepaid customers won't help average revenue per user, so the largest mobile companies aren't interested, Entner said.
One way around that is joint ventures with companies such as Virgin Mobile USA Llc. Their customers have a higher churn rate and lower revenue per user, but they still pay, Entner said.
No one in the industry is likely to say this, but the fact is, many companies may not want more customers if those customers won't be big spenders. They would rather focus on getting existing customers to spend more money by signing up for extra services and sending text messages and photos.
At Verizon Wireless, wireless data services contributed US$300 million, or 4.7 percent, to third quarter 2004 revenue, up from 2.3 percent in the same period a year ago. One third of the company's customers use data services, which add an average of US$7 to their monthly bills.
That's one reason that while the number of Verizon Wireless customers increased 16.9 percent in the most recent quarter, revenue increased 23 percent.
What's true for Verizon Wireless holds for the rest of the industry.
The average monthly wireless phone bill bottomed out at US$39.88 in 1988. Since then, it's been edging up, hitting US$49.49 this year, thanks to increased data use.
That's why all the major carriers are adding wireless broadband to their existing networks, so customers can get used to sending more information faster -- and paying more for the privilege of subscribing to such premium services such as video news clips.
The next generation of wireless users may be machines, not people. Services such as OnStar, a subsidiary of General Motors Corp, use a combination of cell phones built into cars and Global Positioning Systems, to call for help in emergencies, Lin said. Cars that call 911 when air bags are deployed use the same technology.
"People who think we're at a point of saturation are not including all the possible uses of technology," Lin said.
purpose: Tesla’s CEO sought to meet senior Chinese officials to discuss the rollout of its ‘full self-driving’ software in China and approval to transfer data they had collected Tesla Inc CEO Elon Musk arrived in Beijing yesterday on an unannounced visit, where he is expected to meet senior officials to discuss the rollout of "full self-driving" (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter. Chinese state media reported that he met Premier Li Qiang (李強) in Beijing, during which Li told Musk that Tesla's development in China could be regarded as a successful example of US-China economic and trade cooperation. Musk confirmed his meeting with the premier yesterday with a post on social media platform X. "Honored to meet with Premier Li
Dutch brewing company Heineken NV on Friday announced an investment of NT$13.5 billion (US$414.62 million) over the next five years in Taiwan. The first multinational brewing company to operate in Taiwan, Heineken made the statement at a ceremony held at its brewery in Pingtung County. It also outlined its efforts to make the brewery “net zero” by 2030. Heineken has been in the Taiwanese market for 20 years, Heineken Taiwan managing director Jeff Wu (吳建甫) said. With strong support from local consumers, the Dutch brewery decided to transition from sales to manufacturing in the country, Wu said. Heineken assumed majority ownership and management rights
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI