Japanese Cellular Carriers Impose Data Caps Due to Surging Adult Content Sales

It would be considered a given that the country with the world’s first 3G W-CDMA and 1xEVDO networks would have more than enough capacity and backhaul to handle all of their services offered, which include everything from Internet access, mobile music portals, messaging, video calling, video streaming and real-time push to talk…. but according to Bloomberg its facing an American-style crunch due to a once surprising and quickly obvious product.

According to a report filed by Bloomberg and syndicated by the Japan Times, Japanese carriers NTT DoCoMo and KDDI Corp are implementing usage caps on unlimited data access because of the recent surge in traffic leading to data network issues due to the sheer volume of content being downloaded putting strain on the networks.

Because most of the data issues occur at midnight and later, customers have been complaining of slow access and complete network stoppages at certain points during the night. Japanese carriers typically price unlimited data access on a flat-rate scale between 6400-7900 yen, with many customers using it in lieu of a dedicated PC.

The added difficulty of pirating mobile adult content compared to other conventional distribution methods has led the mobile pornography industry to surging growth compared to the DVD sales market with Soft On Demand’s mobile site, which offers free movie samples and DVD sales reporting revenue surging 40 percent in the year to last March and now totals about ¥15 million a month according to Hirotaka Ishimori, head of the online division.

Such content available over mobile typically comprises small clips sold by production companies such as Soft On Demand and market leader Hokuto for as little as 100 yen (about $1.05) al the way up to 10,000 yen (about $105) for full portal access via cellphone, with NTT DoCoMo customers being able to download full movies from the aforementioned market leader.

Officially, representatives from NTT DoCoMo and KDDI cite the recent availability of over the air music downloads contributing to the growth, but more money is made through porn, dating sites and even fortunetelling services, according to Sairns Group CEO Tim Smith who has followed the Japanese wireless industry since 1999.

Juniper Research analyst Windsor Holden had this to say in closing:

“Whenever there is a new distribution method for adult content, adult content will go that medium,” “It’s gone that way since cavemen drew adult pictures in the cave.”