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Japan’s Mobile Carriers Play Chicken with Smartphone Data Plans

On multiple occasions this week, Japan’s mobile carriers have publicly addressed a looming problem: networks are not prepared for the smartphone revolution (see here and here, subscription required). Smartphones still only comprise a small fraction of the mobile phones in Japan, but compared to so-called ‘feature phones’, smartphones use 10 to 20 times more data. By the year 2015 data traffic from smartphones is expected to increase 18-fold. Koji Tanaka, the president of Japan’s second largest carrier, KDDI (33.5 million subscribers), has admitted that without change the KDDI network will become overloaded.