CIS Working Paper Series

WIRELESS INTERNET DIFFUSION: THE JAPAN EXPERIENCE

Recent research in Internet diffusion has identified many key factors of how diffusion takes place. Up to now, the diffusion has been measured using land telephone lines. We understand very little about how the wireless technology will change the pattern and characteristics of Internet diffusion. There has been limited information from few adopters of wireless Internet around the globe. The only exception is Japan. In the past two years, Japan has accumulated the world's largest base of wireless Internet users. Based on the phenomenal success of NTTDoCoMo's imode services, we propose a model that describes how government telecommunication policies, industry factors, and business and technology factors affect Wireless Internet Diffusion (WLID). The model also describes the retail market and how the interactions between the mobile Internet Service Providers (ISP) and users affect the adoption process. Rogers' diffusion theory and the literature of Internet diffusion metrics and frameworks are used. We conclude with nine propositions.