There are as many mobile handsets in the crowded discomfort of a Japanese commuter train as in the commuter trains of any other rich economy. Yet in Japan, the telephones are curiously silent. Instead of speaking into sleek silver gadgets, users are busy sending e-mails or downloading pictures of their favourite pop stars. NTT DoCoMo, the largest Japanese mobile phone operator, forecasts that, by the end of March, 20m people will use its mobile internet service. That is almost one in six Japanese and a third more than use i-mode today.
European operators look on Japan with envy - and desperation.
Meanwhile, operators have spent billions acquiring third-generation mobile licences to support even more advanced services. The more European telecom shares are hit by scepticism about Wap and worries about the debt taken on to pay for new investment, the more European operators turn to Japan for inspiration and hope. To begin with, there is a widespread misperception in the west that wireless internet is all about technology. With packet switching, the telephone can be continuously connected to various websites. It also lowers the cost of sending data.