Japan is a country leading in technology use. The report covers trends and
developments in telecommunications, mobile, Internet, broadband, digital TV
and converging media including VoIP and IPTV developments.
Subjects include:
Key statistics;
Market and industry analyses, trends and developments
Government policies and regulations affecting the telecoms industry;
Estimates for end-2012 and 2013 for fixed-line and Internet market;
Forecasts for broadband, FttX and mobile subscribers up to 2017;
Infrastructure development;
International submarine fibre optic cables;
Major players (fixed, mobile and broadband);
Major telecoms operators - profiles, financial results, subscribers, ARPU,
business strategy;
Internet development and VoIP, IPTV;
Mobile voice and data markets, including 3G;
Broadband (FttX, DSL, cable modem, WiMAX);
Mobile applications including m-banking.
Executive Summary
Telecommunications operators face a coming of age, ramp up initiatives to counter threats by OTT competitors / allies
Japan enters the following decade faced with looming social changes and
challenges. Accelerated globalisation sees the increasing influence of
emerging countries in the international community and the economy. This is
coupled with the global shift to a more sustainable society forcing
governments and industry to engage with environmental issues and ensure
efficient use of energy and resources.
In its home market, Japan has an aging and decreasing population base that
requires the creation of services and social systems for support. The market
has also seen a change in values and the behaviour of people wanting quality
instead of mass consumption, and a move from ownership to efficient resource
use and sharing. Japan's sophisticated IT infrastructure and high broadband
penetration sets the scene for improved productivity, convergence of
industries and a more flexible industrial structure.
Japan has assumed a dynamic leadership role in many aspects of global and
regional telecommunications. The government has been active in regulating its
telecommunication industry to introduce more effective competition. This
competitive market is challenged to develop the most effective business
structures to achieve commercial success.
A key 2010 government-led initiative is the “New ICT Strategy”
which aims to realise a “knowledge/information society” by
switching from a society led by government and providers to a society led by
citizens (taxpayers and consumers). It focuses on key strategies in the lead
up to 2020 to support the sustained growth of Japan. The goals include:
improved e-government; high-quality medical services using ICT; a nationwide
environment for school education and lifelong learning using ICT; creation of
new markets worth approximately \70 trillion; universal deployment of the
smart grid; using ICT to halve traffic congestion on key roads nationwide; by
2013 to advance intensive R&D in strategic fields (eg. next-generation optic
networks, next-generation wireless, cloud computing, smart grid, robotics, 3D
video). These initiatives support and drive technological development and
advanced infrastructure.
Through this sustained oversight, the government has already led Japan to have
one of the world's leading mobile telephone markets, not only in terms of size
but also in terms of innovation and its ability to be early with the
introduction of advanced technologies. With 3G subscribers making up around
98% of all mobile subscribers into 2012, Japan had become the fourth country
in the world to introduce LTE. Competition was intensifying in areas such as
low pricing, a wide variety of handsets, music, video, e-books, and other
content services. Increases are expected in the areas of smart phones and
telecommunications modules.
Japan has also developed one of the most advanced broadband environments in
the world and is the third largest broadband country in the world after the US
and China. Especially noteworthy has been the continued strong uptake of FttH
services into 2012 (with a corresponding move away from DSL). In the
fixed-line market the expansion of broadband services centred on FttX, is
accompanied by an ongoing convergence between fixed-line and mobile
communications broadcasting. As a result, competition between services has
entered a new phase.
The technical advancements in fixed-line and mobile communications are however
not sufficient for the traditional telecommunications operators. The
prevalence of content and services driving revenue and profitability means a
coming of an age for the telecommunications operators who now, more than ever,
need to focus on leveraging their full-service network capabilities and take
advantage of the new opportunities in a digital age.
Market Highlights:
Over 98% of Japan's 120 million mobile subscribers use 3G services after
10 years in operation. Japan became the fourth country in the world to deploy
Long-term Evolution (LTE) technology in 2010 with DoCoMo's competitors to
launch their own LTE networks into 2013;
Mobile operator eMobile launched its LTE network in February 2012 and was
acquired by Softbank in October 2012;
Over 100 million mobile internet subscribers embraced iPhones, smart
phones and tablets and drove data usage to new levels as the society continued
to move from connecting places, to connecting people and devices;
New operator UQ Communications, in which KDDI is the largest shareholder,
continued its WiMAX rollout and had over 3 million subscribers by mid 2012;
FttX continues to make impressive strides taking 60% market share in 2012
and over 22 million subscribers. Japan has established the second largest FttX
subscriber base at around 30% of the world market after China at about 40%;
Cloud-based services with virtual hosting and online storage started to
take hold as companies sought to reduce system-operating costs as the
financial downturn continued to depress the economy;
Analogue to digital switchover also took place during 2011 except in
tsunami affected areas, presenting opportunities for all in the value chain.
Table of Contents
1. Key Statistics
1.1. Country Overview
1.1.1. Background
1.1.2. Japan's Economy
2. Telecommunications Market
2.1. Overview of Japan's telecom market
2.2. Competition in the market
2.3. Telecommunications market sectors
2.3.1. Fixed-line and mobile phones
2.3.2. Internet and broadband
2.3.3. Internet statistics
3. Regulatory Environment
3.1. Major stages of reform - industry
3.2. Major stages of reform - Broadband
3.3. Major stages of reform - ‘New ICT strategy'
3.4. The MPHPT/MIC
3.5. Radio Regulatory Council
3.6. Telecommunications Council
3.7. Telecommunications Carriers Association
3.8. Japan Internet Providers' Association (JAIPA)
3.9. Universal Service Fund Obligation
3.10. Policy interventions and outcomes
3.10.1. Government investment in infrastructure
3.10.2. Skill building, education and demand programs
