Japan has experienced two developmental stages in the mobile telephony innovation since 1979 when the first mobile phone was commercially launched. The stages can be identified as traditional mobile phone with only voice function and mobile phone with IP (Internet Protocol). This paper discusses how mobile phone with IP function offers diversified services, influences people’s daily lives by changing their ways of communication, and interaction by adopting mobile broadband. The paper examines key economic, technology and policy factors based on monthly datasets from 2000-2007 in the provision of both second (2G) and third generation (3G) mobile phones adoption. Particularly, the study uses a linear regression model and presents extended and reduced models using the Pearson correlation method. The results of the empirical study examine how innovations in services contribute to the mobile broadband deployment in Japan. Main findings of this study suggest policy and strategy implications for developing countries which are adopting IP functionality in mobile phones. The paper also presents brief recommendations for India’s 3G mobile phone adoptions in terms of opportunities, challenges, and policies which drive on growth.
