Experience and Challenges in Collecting Mobile Broadband Statistics in Japan ______

INTERNATIONAL TELECOMMUNICATION UNION

TELECOMMUNICATION Document 010-E DEVELOPMENT BUREAU 26 February 2009 Original: English

7TH WORLD TELECOMMUNICATION/ICT INDICATORS MEETING, CAIRO, EGYPT, 3-5 MARCH 2009

SOURCE: Ministry of Internal Affairs and Communications, Japan TITLE: Experience and Challenges in Collecting Mobile Broadband Statistics in Japan ______

ExperienceExperience andand ChallengesChallenges inin CollectingCollecting MobileMobile BroadbandBroadband StatisticsStatistics inin JapanJapan

Atsushi Umino （海野敦史） Institute for Information and Communications Policy Ministry of Internal Affairs and Communications of Japan

Progress in Broadband (Telecommunications) Services in Japan

Changes in Broadband Contracts （As of Aug. 2008、Million） Fiber-Optic（FTTH） 1,600 Fiber-Optic（FTTH） ○○SubscribersSubscribers ：：13,756,48913,756,489 ○Operators ： 171 1,400 ○Operators ： 171

1,200 ＤＳＬＤＳＬ 1,000 ○○SubscribersSubscribers ：：11,966,83811,966,838 ○○OperatorsOperators ：：4747 800

600 CATVCATV InternetInternet ○○SubscribersSubscribers ：：4,019,7884,019,788 400 ○○OperatorsOperators ：：381381 200 WirelessWireless（ＦＷＡ）（ＦＷＡ） 0 ○○SubscribersSubscribers :12,838:12,838 ○○OperatorsOperators :: 2929

Changes in Telecommunications Service Contracts（As of Aug. 2008、10 thousand）

Mobile Phones (including PHS)

Fixed Phones(including BroadbandISDN) (DSL+CATV+FTTH+Wireless)

ＩＰ Telephone 1 Broadband Service in Global Comparison

Change in DSL Price DSL Price

Price fell by ７，８００ almost 70%. JPY

２,４００ JPY

（The lowest DSL Price per month）

Sources: Respective company web sites Source: ITU Internet Reports 2006 ”digital.life” (Dec. 2006) 2

Broadband Service Area Coverage Rate of Households in Japan (Estimate)

FY2010 March, 2006 March, 2007 March, 2008 Targets 93･9% 95･2% 98･3% Eliminate Broadband all zero- (47･33M households) (48･63M households) (50･83M households) broadband areas -New IT Reform Strategy （IT Strategic Headquarter, 2006.） - Strategy on bridging the Digital Divide （MIC, 2008） Ultra high- 79･7% 83･5% 86･5% 90% speed (40･15M households) (42･68M households) (44･71M households)

- Strategy on bridging the Digital Divide （MIC, 2008）

3 Japan’s National ICT Strategies e-Japan New IT Reform e-Japan Strategy Strategy II Strategy

Infrastructure Valuing IT Development Applications Ubiquitous Network Society Realization of a Self‐sustaining ICT Society Priority Policy Network Program ‐ 2007 Ubiquitous （July 2007） Realizing Priority Policy

Program ‐ 2006 Society e‐Japan Priority Policy （）

July 2006 e‐Japan Priority Policy a

Program ‐ 2004 Program ‐ 2002 (June 2004) (June 2002) e‐Japan Priority e‐Japan Priority Policy uu-Japan-Japan PromotionPromotion ProgramProgram 20062006 （September 2006） Policy Program Program ‐ 2003 （September 2006） (March 2001) (August 2003) e‐Japan Strategy u‐Japan Policy of MIC

2001 2003 2004 2005 2006 2007 2010 4

Transition in Competition Policy in the Broadband Market in Japan technology Emergence of Transition to Full Age of Telephony Internet IP-based networks policy “ex-ante” regulation Monopoly Promotion of fair competition to “ex-post” to competition regulation 1985- 1997- 2001- 2004 - 1990- Deregulation of NTT’s 1990- IntroductionIntroduction ofof ReorganizationReorganization ofof Deregulation of NTT’s AbolitionAbolition ofof businessbusiness regional businesses LiberalizationLiberalization independentindependent NTTNTT regional businesses categoriescategories ofof telecomtelecom divisionsdivisions withinwithin RelaxingRelaxing entryentry && DrasticDrastic deregulationderegulation ofof marketsmarkets NTTNTT priceprice regulationsregulations priceprice andand tarifftariff regulations PrivatizationPrivatization ofof SeparationSeparation ofof AbolitionAbolition ofof foreignforeign regulations investment regulation NTTNTT datadata && mobilemobile investment regulation Realizing a (except(except forfor NTT)NTT) NewNew entriesentries businessbusiness fromfrom open/speedy/flexible NTTNTT policy-making (transparency)(transparency) IntroductionIntroduction ofof Deregulation & competitioncompetition reviewreview new competition rules (market(market analysis)analysis) DisclosureDisclosure ofof marketmarket (competition rules) Building (competition rules) informationinformation Strengthening of competitive market Strengthening of (safety(safety andand security)security) asymmetric (asymmetric(asymmetric asymmetric ExpansionExpansion ofof useruser regulations regulation)regulation) regulations protectionprotection rulesrules Building a RequiringRequiring unbundlingunbundling Building a MeasuresMeasures toto enforceenforce mechanismmechanism forfor Traditional public-utility type regulation type Traditional public-utility IntroductionIntroduction ofof informationinformation securitysecurity New toward industries network regulation universal service interconnectioninterconnection rulesrules universal service EnhancementEnhancement ofof fund fund privacyprivacy protectionprotection 5 Comprehensive Broadband Policies in Japan Transition to IP Networks (Mainly Broadband Networks)

- Full Transition from PSTN to IP based networks (-> “Everything over IP” ) - Emergence of a variety of new business models (-> review of vertically integrated business models) - Transition to IP based networks means that the rationale for the concept of “distance” has become obsolete.

Direction of Implementing Policies - Promotion of information & communication network usage as a base for support of the socio-economic system. - Acceleration of effective interaction between communication networks and content/applications. (“Creation of Virtuous Cycle Related to Development of Markets”). - Development of a competitive environment which allows for a rapid, smooth response to rapidly changing market situations.

Development of Broadband Policies

Balanced Improvement of Promotion of Innovation of International development environment protecting users new industries contribution of infrastructure promoting -Promotion of Asia -Eliminating the competition -Prevention of spam - -Establishment of a Protecting private Broadband Program Broadband-Zero legal System capable -Fair Competition (personal) Information of overseeing the -Contribution to Areas by FY2010 -Predictability of -Prevention of distribution convergence of Activities in Competition Rules illegal/harmful information telecom & broadcasting international -Protection against -R&D organizations New Competition viruses -Promotion of Strategy on bridging (ITU,OECD,APEC) Promotion -Protection from cyber Standardization the DigitalDivide -Promotion of attacks -Promotion of content Program 2010 bilateral/multilateral (June 2008) markets (September 2006*) policy consultations

*revised in October 2007 “Realization of u-Japan in FY2010 (World's fastest IT revolution) 6

“Mobile Broadband Statistics” in Japan

Mobile Phones Number of subscribers: 106,094,200 (Jan. 2009)

IMT-2000 Number of subscribers: 96,878,100 (Jan. 2009) Internet via Mobile Phones Number of users: 72,870,000 (2007)

Wireless LANs Number of subscriptions: 6,723,000 (Dec. 2007)

Number of base stations: 22,414 (Sep. 2007)

WiMAX * Commercial service launched in Feb. 2009

XGP (Next Generation PHS) * Commercial service to be launched in Apr. 2009

* Total Population in Japan is estimated 127,663 thousand persons as of September 2008. 7 Mobile System Evolution Roadmap in Japan

Cellular 3.5G 3.9G 3G HSDPA 2G W-CDMA LTE､UMB EV-DO CDMA-2000

4G （IMT-Advanced）

～kbps ～384kbps ～14Mbps 100Mbps Mobile 100Mbps Nomadic 1Gbps Voice Internet High data rate, various services… ≒Mobile × FTTH Wireless Access Wireless MAN WiMAX, XGP, etc Wide Area （about 20Mbps） Mobility Wireless LAN

High Speed Ultra-high- 11Mbps 54Mbps 100Mbps 1Gbps speed W-LAN

2000 2010 8

Changes in the Number of Mobile Phone Subscribers in Japan

～TCA investigation～

(million) JanJan 20092009 NumberNumber ofof subscriberssubscribers -Mobile-Mobile phones:phones: Approx.Approx. 106,094,200106,094,200 unitsunits 100 -IMT-2000:-IMT-2000: Approx. Approx. 96,878,10096,878,100 unitsunits 91.3%

30 IMT-2000

10 Number of mobile phone subscribers 20012001 0 StartStart ofof IMT-2000IMT-2000 serviceservice 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 (FY) 2009.1 9 Internet Users and Penetration Rate for Population in Japan

10,000 users ％ 8,754 8,811 9,000 8,529 80 Number of users 7,730 7,948 8,000 70 Penetration rate 6,942 7,000 69.0 66.8 68.5 60 62.3 6,000 5,593 60.6 54.5 50 5,000 4,708 40 4,000 44.0 37.1 30 3,000 2,706

2,000 1,694 20 1,155 21.4 1,000 13.4 10 9.2 0 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 (end of the year)

Mobile Internet (Terminals using Internet) in Japan (End of 2007)

Only PC 14.7 million【１６．７％】 Users of PC 78.1 million 【８８．７％】

PC and Mobile Phones etc. 【６８．０％】 Users of Mobile 59.9 million 0.5 million Phones etc. 【０．６％】 72.9 million【８２．７％】

3.0 million 【３．４％】 Users of Game Machines and TV 3.6 million【４．１％】

Only Mobile Phones etc. Only Game Machines 9.9 million 【１１．３％】 and TV 0.06 million 0 million【０．０％】【０．１％】

* “Mobile Phones etc.” include PHS (Personal Handyphone System) and PDA (Personal Digital Assistance).

11 Changes in the Number of Wireless LAN Subscriptions in Japan

800 （10 thousand）

700 672.3 650.5 636.4 609.9 590.0 600 570.4 550.2 527.1

500

400

300

200

100

0 Mar. ０６ Jun. ０６ Sep. ０６ Dec. ０６ Mar. ０７ Jun. ０７ Sep. ０７ Dec. ０７

Mobile Internet Users by Ages in Japan

(%) 90 82.9 82.4 77.3 79.8 77.3 78.3 80 69.2 70 63.8 55.4 57.7 60 50.1 50 45.8 37.2 40 27.4 30 24.3 25.3 17.3 20 13.9 15.5 7.6 10 2.1 3.4 0 Entire Ages 6-12 Ages 13-19 Ages 20-29 Ages 30-39 Ages 40-49 Ages 50-59 Ages 60-64 Ages 65-69 Ages 70-79 Age 80 or population above above age 6 End of 2004 End of 2007

13 Mobile Content Market in Japan

（100 million yen）

11,464 12,000 9,285 10,000 7,224 8,000 7,231 5,624 6,000 5,196 3,842 4,074 4,000 2,986 2,593 1,709 1,193 4,233 2,000 3,150 3,661 1,793 2,133 2,603 0 2002 2003 2004 2005 2006 2007

Mobile Content Market Mobile Commerce Market

Challenges in ICT (including Mobile) International Benchmarking

１．How should we evaluate new technologies such as mobile broadband and set relevant indices in light of the rapid progress of technological innovation in the ICT field? →While data on new technologies can only be obtained for a limited number of countries, would it be appropriate to use the indicators that are generally associated with conventional technologies, which are on the decrease? 【Examples of Conventional Technologies】 Fixed-line phone、Payphone etc. 【Examples of New technologies】 Fiber-optic network (FTTH)、３G（and beyond）、WiMAX etc.

２．Which indicators should be used to measure data on non-infrastructure areas of ICT, such as ICT usage and safety & security? 【Examples of Data on ICT Utilization】 Proportion of Electronic Prescriptions, LAN Penetration Rate into Schools and Percentage of Administrative Procedures Available On-line etc. 【Examples of Data on Safety & Security of ICT】 Number of Secure Servers and “Bot-Infected” PCs etc.

15 Relevant Data on Benchmarking

■Penetration Rate of Computer Processing Systems for ■Number of Payphone Installed by NTT Statements of Medical Expenses into Hospitals in Japan →Approximately thirty-fold increase in five years →The number more than halved in seven years

70.00%

800,000 60.00%

50.00% 700,000 40.00%

30.00% 600,000 20.00%

500,000 10.00% 0.00% 03/2003 08/2003 03/2004 08/2004 03/2005 01/2006 05/2006 05/2007 05/2008 400,000 ■LAN Penetration Rate in Regular Classes at 300,000 Schools in Japan →Approximately 7.5-fold increase in seven years 200,000 70.00%

60.00% 100,000 50.00%

0 40.00%

2000 2001 2002 2003 2004 2005 2006 2007 30.00%

20.00%

10.00%

0.00% 03/2001 03/2002 03/2003 03/2004 03/2005 03/2006 03/2007 03/2008 16

Methods of International Comparison and Evaluation １．Setting forth 12 indicators in six fields related to ICT infrastructure, thereby comparing those indicators of 23 major countries/regions. ※Two new indices, Ratio of optical fiber use, and Number of bot-infected PCs, have been added to previous evaluation indices (May 2005). ２．Evaluation methods are as follows: ① Obtain deviation values using data for each indicator（Data used is quantitative data released from international ranking organizations, etc.） ② As a comprehensive evaluation, establish international ranking by comparing mean deviation values for each indicator ③ Plot deviation values of each country/region on radar charts Twelve indicators in six fields for ICT infrastructure evaluation

(Quantitative data released from international organizations, etc. are adopted in a well-balanced manner.)

(1) User charges for ICT infrastructures

※ ① Local telephone charge (6) ICT infrastructures as ※ ② Broadband charge (2) Speed of ICT social infrastructures infrastructures （Per population） International ranking ⑪ Number of Internet hosts ③ Ratio of optical fiber use ⑫ Ratio of ICT investments ④ Transmission speed of Broadband platform Indices for ICT Deviation infrastructure evaluation （Per population） value ⑤ Number of secure servers value ⑨ Internet penetration rate ※ Penetration rate of ⑥ Number of bot-infected PCs ⑩ （） Broadband platforms Per Broadband user ⑦ Ratio of 3G cellular telephones By country/region (5) Penetration rate of ⑧ Penetration rate of cellular telephones (3) Security of ICT ICT infrastructures infrastructures Radar chart (4) Degree of Availability for mobile Radar chart (4) Degree of Availability for mobile users upon connecting to ICT infrastructures ※ Inverse numbers were used for indices. ◇ Evaluation targets（23 major countries/regions）

Asia ：Japan, South Korea, China, Singapore, Taiwan, Hong Kong North America：U.S., Canada Oceania ：Australia, New Zealand Europe ：Switzerland, France, Portugal, U.K., Germany, Scandinavia ：Finland, Netherlands, Denmark, Sweden Spain, Belgium, Italy, Austria 17 Examples in International Rankings

◇ Features of some countries exemplified as achieving world’s leading edge results in each field are as shown below. The fields differ by country. ・ South Korea:No.1 in “Broadband speed,” “Ratio of 3G cellular telephones,” “Penetration rate of Broadband platform.” ・ Finland:No.1 in “Number of bot-infected PCs,” No.2 in “Broadband charge.” ・Sweden:No.2 in “Broadband charge” and “Internet penetration rate.” ・Netherlands:No.1 in “Penetration rate of Broadband platform,” No.2 in “Broadband charge” and “Number of Internet hosts.”

【Rader Chart of Some Countries in International Ranking】 Local電話基本料金 telephone charge 100.0 Ratio of ICT ICinvestments T 投資割合ブローBroadband ドバンド charge料金 80.0

60.0 Numberインタ ofーネッ Internetトホスト hosts数 Ratio光ファ ofイバ optical ー比率 fiber use 40.0

20.0 Japan日本 Penetration rate Transmission speed South韓国 Korea ブロードバンド普及率 0.0 ofブロー Broadband ドバンド platform速度 of Broad platforms Finlandフィンランド Swedenスウェーデン Netherlandsオランダ

Internetインタ penetrationーネット普及率 rate Number安全なサーバ数 of secure servers

Penetration携帯電話普及率 rate NumberBot感染Ｐ ofＣ bot-infected台数 PCs of cellular telephones Ratio of 3G３Ｇ携 cellular 帯比率telephones

Transmission speed Number of secure Number of bot- Ratio of 3G cellular Penetration rate Internet penetration Penetration rate Number of Ratio of ICT Local telephone charge Broadband charge Ratio of optical fiber use Name of country of Broadband platform servers infected PCs telephones of cellular telephones rate of Broad platforms Internet hosts investments Japan 53.4 92.1 77.1 76.1 46.1 77.6 62.0 42.0 47.9 51.0 49.1 47.4 South Korea 61.0 53.1 72.5 76.1 37.9 50.2 89.2 44.6 59.4 63.9 48.0 61.4 Finland 53.4 53.1 44.4 57.7 51.1 77.6 47.9 54.3 56.0 59.2 55.7 45.0 Sweden 48.8 53.1 58.9 57.7 52.1 55.2 50.1 51.2 64.6 55.6 50.4 46.2 Netherlands 53.4 53.1 45.3 55.4 50.4 58.0 46.0 53.1 55.1 63.9 63.7 46.6 18