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A monthly review of the latest developments in Japan’s IT, telecom, and life sciences sectors

February 2002 - Volume V, Issue II

Triangle Technologies is the leading Japan Israel business development and investment advisory firm
www.triangletech.com

Dan's Desk

From Triangle's CEO

AVOIDING FALSE NEGATIVES (2) - HOW TO KNOW WHEN YOU ARE GETTING SOMEWHERE

Last newsletter I wrote about how difficult it can be for non-Japanese suppliers to detect progress within Japanese companies/customers. Here are some pointers for when things are going well:

1. When you are introduced to increasingly senior people AFTER negotiations take place.

2. When more and more people get involved in meetings.

3. When you are asked to attend a meeting to discuss business terms.

4. When a list of questions is followed by a longer list of questions.

5. When you are introduced to your partner's business partners or end customers.

6. When the key person says, following lengthy discussions and meetings, "we have decided to move ahead."

7. When people answer your questions rapidly (that does not mean that things are going poorly when response is slow – it depends).

8. When a very nice dinner is arranged following extensive, lengthy discussions of business terms.

9. When a general manager brings a company director with him to visit.

10. When lawyers are involved from the Japanese side.

Recently Triangle Technologies has made some pretty amazing deals, if I may say so. Each one required us to carefully assess progress, obstacles, and how to overcome them!

Dan

***ISRAEL-JAPAN NEWS***

+FUJITSU FIRST TO USE INTERWISE ECP SYSTEM

Interwise has launched its Interwise Enterprise Communications Platform (ECP), a single platform for live and on-demand collaboration, communications and eLearning. Interwise ECP will provide a single platform integrating audio, video and data on existing infrastructure. The first customer worldwide of the ECP system is Fujitsu.

+ITRAN IN JOINT VENTURE WITH KEPCO AND MATSUSHITA ELECTRIC WORKS

Itran Communications, which develops technology for communications over power lines, has signed an agreement with Kansai Electric Power and Matsushita Electric Works to form a joint venture called Linecom. The new venture will develop and deploy a complete end-to-end solution to provide telecommunications services over existing power line infrastructure.

+COMVERSE AND NECSIC IN COOPERATION

Comverse (NASDAQ: CMVR), a provider of network based communications services, plans to collaborate with NEC System Integration & Construction (NECSIC) to deliver enhanced communications services in Japan. Under the terms of the distribution agreement, Comverse will provide NECSIC with its network communications products.

***GENERAL TECHNOLOGY NEWS***

+JAPAN ADSL USERS REACH 1.78 MILLION

According to the Ministry of Telecommunications, the number of users in Japan of ADSL Internet services reached 1.78 million people at the end of January 2002. Compared with the end of 2001, the number of users has risen by 17%, or 260,000, and the number may well top 2 million before March 31, the end of fiscal 2001. As a result of intense competition among providers, ADSL service charges have fallen rapidly and are now in the monthly range of about $15.

+DOCOMO TO START NET SERVICE FOR PDA USERS

NTT DoCoMo plans to launch an Internet information service for users of personal digital assistants (PDAs) called Infogate. The new service will give PDA users access to news, weather forecasts, maps and a wide range of other data provided by Quick Corp., Kyodo News Service, Japan Weather Association and some 40 other companies.

+BROADBAND USERS SPEND TWICE AS LONG ONLINE

According to NetRatings Japan, people with broadband connection to the Internet spend more than twice as much time online than those with narrowband connection. The results of the survey showed that broadband users spent an average of 17 hours and 45 minutes online during the month of December 2001, while narrowband users spent 7 hours and 24 minutes online. Broadband users accessed 2,138 Web pages during that time, compared with 714 pages for narrowband users. Broadband users connected an average of about 28 times to the Internet, compared with around 15 times for narrowband users.

+DOCOCMO TO OPEN I-MODES NETWROK TO OTHER ISPS

NTT DoCoMo plans to open its i-mode Internet-compatible cellular phone network to other Internet service providers. The move will enable Japanese ISPs to start offering news content as well as e-mail and online banking services to users of Net-compatible cell phones.

+BROADCASTERS FORM DIGITAL CONTENT DISTRIBUTION JOINT VENTURE

Fuji Television Network, Tokyo Broadcasting System, and Asahi National Broadcasting have jointly set up a firm that distributes digital content using broadband Internet technology. The move follows similar action taken by both Nippon Television Network and Television Tokyo Channel 12.

+SONY, DENTSU TO LAUNCH JOINT BROADBAND BUSINESS

Sony and Dentsu, Japan's largest advertising agency, have agreed work together to promote their new broadband venture. Dentsu will acquire a 40% equity stake in Intervision, Sony's wholly owned ad subsidiary.

+11 MILLION I-APPLI CELL PHONE USERS

NTT DoCoMo claims that it has about 11.13 million users of its Java-capable i-Appli phone. Currently there are 241 of official i-Appli sites, and 5,035 unofficial ones.