Although I'm strongly against the Japanese cell phone business model, I bought a new cutting-edge model from au in order to try the new digital TV for mobile devices.
In a sense, it's really amazingly advanced; it has 3inch 800x480 pixel beautiful LCD, bluetooth, a digital TV function, with which you can watch about 8 broadcasts in metropolitan areas in Japan now, 3M pixel camera with AF and shake reduction, 1GB memory, 2.4Mbps internet access with a flat rate connection service, GPS system with a capability of 3D display etc. In short, it's a milestone of the Japanese state-of-the-art technologies.
I changed from the old one to this new one for about USD250. Way too cheap.
Japanese cell phone business is completely messed up. No matter how advanced the devices look, it will demise sooner or later.
There has been a lot of argument going around this issue. The biggest and almost the only problem is the vertically integrated business model. We cannot choose any services, devices and connection services on our own. You choose either NTT DoCoMo, au or Softbank, the 3 big players in the market. And, there are a bunch of devices for each carriers, all of which you cannot use for a different carrier than you originally signed up for. Your device can only connect to your carrier since they make the SIM card not reusable. And the services like GPS, news, online music, are all specific for your carrier. This is ridiculous.
I will have to pay about USD60-80 each month, 20-25% of which goes to the device manufacturer. Sellers get a hefty payback for each device they sell from a carrier. This is why we can buy a device so cheap. Old models are for free, well at least it apears to be 0 yen in retailers.
This model has ensured manufactures and application providers a certain income. They invested a lot and developped quite advanced devices and services, which no users in other countries would be intereted in, and unable to use.
Japanese are good at making small devices, but the world wide market share of cell phone is less than 1%. Japanese market itself is huge, but it looks to me that sometime in the future, this business model will not hold.
Oh, my cell phone can record a TV program even though I cannot do a reservation-record(why??) and with the recorde movie, a bluetoogh headset does not work(why???). It plays online music, but I cannot play like MP3, OGG, AAC, WMA, anything popular in the outer world(why???). It's a really messed device.