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Japan - Telecoms, Mobile, Broadband and Forecasts

Published By :

BuddeComm

Published Date : Mar 2013

Category :

Broadband

No. of Pages : 145 Pages


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 97% of all mobile subscribers into 2013, 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 2013 (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 97% of Japan’s 130 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 4 million subscribers going into 2013;
  • FttX continues to make impressive strides taking 65% market share in 2012 and over 23 million subscribers. Japan has established the second largest FttX subscriber base at around 25% of the world market after China at about 435%;
  • 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
3.10.3 Competition policy
3.10.4 Network non-discrimination
3.10.5 Spectrum policy

4. Fixed Network Market
4.1 Market background
4.2 MYLINE Carrier Selection Service (CSS)
4.2.1 MYLINE calling categories

5. Major Operators
5.1 Operating environment
5.2 Major operators
5.3 NTT Corporation
5.3.1 Company Overview
5.3.2 Financial statistics
5.3.3 Government intervention
5.3.4 Business strategy
5.3.5 International expansion
5.3.6 NTT East and West broadband
5.4 NTT DoCoMo
5.4.1 Company overview
5.4.2 Financial statistics
5.4.3 Capex allocation
5.4.4 ARPU statistics
5.4.5 Operational statistics
5.4.6 Applications
5.4.7 LTE
5.4.8 International investments
5.5 KDDI Corporation
5.5.1 Company Overview
5.5.2 Financial statistics
5.5.3 Operations statistics
5.5.4 Business strategy
5.6 Softbank Corporation
5.6.1 Company overview
5.6.2 Company background
5.6.3 Financial statistics
5.6.4 Operations statistics
5.7 Internet Initiative Japan (IIJ)
5.7.1 Company overview and background
5.7.2 Financial statistics
5.8 Jupiter Telecommunications (J:COM)
5.8.1 Company overview
5.8.2 Company background
5.8.3 Financial statistics
5.8.4 Operations statistics
5.9 eAccess
5.9.1 Company Overview
5.9.2 Company Background
5.9.3 Financial statistics
5.9.4 Operations statistics
5.9.5 Business strategies
5.10 Willcom (DDI Pocket)
5.11 SKY PerfecTV! Communications Inc (Sky Perfect JSAT)

6. Telecommunications Infrastructure
6.1 Overview
6.2 Stimulus package for ICT infrastructure
6.3 International infrastructure
6.3.1 Submarine cables
6.3.2 Satellite
6.4 Other infrastructure development
6.4.1 Data centres
6.4.2 Cloud computing
6.4.3 High-speed fibre
6.4.4 Smart grid
6.4.5 Earthquake damage: March 2011
6.4.6 Smart city project for Tsunami-effected cities in Japan
6.4.7 Solar power projects
6.4.8 Internet exchange points

7. Broadband Market
7.1 Background
7.2 Overview
7.3 Broadband statistics
7.3.1 Aggregate broadband subscribers
7.3.2 Broadband subscribers by access type
7.4 Electric power utilities
7.5 Broadband policy
7.5.1 Overview
7.5.2 Regulatory framework
7.5.3 U-Japan
7.5.4 New IT reform strategy
7.5.5 Next Generation Broadband strategy FY 2010
7.5.6 Japan’s New Generation Network 
7.6 Broadband Technologies
7.6.1 Overview
7.6.2 Broadband charges into 2012
7.6.3 Cable modems
7.6.4 Digital Subscriber Line (DSL)
7.6.5 Fibre-to-the-Home (FttH)
7.6.6 World Interoperability for Microwave Access (WiMAX)
7.6.7 Broadband Internet via satellite
7.7 Voice over Internet Protocol (VoIP)
7.7.1 Background
7.7.2 Statistics
7.8 Internet Protocol TV (IPTV)
7.8.1 Hulu
7.8.2 Softbank acquisitions
7.9 Broadband Survey results
7.9.1 2008
7.9.2 2009
7.9.3 2010

8. Digital Media / Digital Economy
8.1 Television in Japan
8.1.1 Overview and statistics
8.1.2 Digital TV
8.1.3 Cable TV (CATV)
8.1.4 Satellite TV
8.2 E-government
8.2.1 Overview
8.2.2 Comprehensive government decisions on e-government
8.2.3 Promotion of online use of administrative procedures
8.2.4 Promotion of electronic provision of government information
8.2.5 Promotion of activities to publicise and disseminate e-government
8.2.6 Promotion of optimisation of work and systems
8.2.7 Improvement of government procurement related to information systems
8.2.8 Promotion of information security measures
8.2.9 Promotion of local e-governments
8.2.10 Status 2010

9. Mobile Communications
9.1 Mobile communications market
9.1.1 Background
9.1.2 Mobile statistics
9.1.3 Market status 2012
9.1.4 Differentiation efforts
9.2 Mobile technologies
9.2.1 PDC
9.2.2 CDMA
9.2.3 PHS
9.2.4 Third Generation (3G) mobile
9.2.5 LTE (Long-Term Evolution)/4G
9.2.6 LTE-Advanced
9.3 Mobile handset market
9.3.1 Smartphone adoption
9.3.2 Unlocked handsets
9.3.3 iPhone
9.3.4 Android
9.3.5 iPads
9.3.6 E-Readers
9.3.7 Tablets
9.4 Major mobile operators
9.4.1 Overview
9.4.2 Statistics
9.5 Mobile Virtual Network Operators (MVNO)
9.6 Mobile services
9.6.1 Market background
9.6.2 Prepaid cards
9.6.3 SMS
9.6.4 Wi-Fi
9.6.5 Mobile Internet 
9.7 Mobile content
9.7.1 Operators extend video, gaming services to competitor’s networks
9.7.2 Global Positioning System (GPS)
9.7.3 Mobile payment
9.7.4 Mobile banking
9.7.5 Mobile contactless payment (NFC)
9.7.6 Mobile advertising
9.7.7 Mobile TV and radio
9.7.8 Mobile ringtone and music downloads
9.7.9 Mobile social gaming
9.7.10 M2M
9.8 Mobile applications
9.8.1 Earthquake alerts
9.8.2 Personal trainer
9.8.3 QR code readers
9.8.4 Environmental sensors

10. Forecasts
10.1 Forecast Fixed line subscribers – 2013 - 2014; 2018
10.2 Forecast: Mobile subscribers 2012-2018
10.2.1 Forecast: Total mobile subscribers 2012-2018
10.3 Forecast broadband subscribers: 2012-2013; 2017
10.4 Forecast FttX subscribers: 2012-2013; 2017

List of Table


Table 1 – Country statistics Japan – 2013
Table 2 – Telecom revenue and investment statistics – 2012
Table 3 – Telephone network statistics – December 2012
Table 4 – Internet user statistics – March 2012
Table 5 – Broadband statistics – December 2012
Table 6 – Mobile statistics – December 2012
Table 7 – National telecommunications authorities
Table 8 – Percentage share of global GDP – 1991; 2014
Table 9 – Telecoms service revenue – 1985; 1989; 1993; 1997; 2001; 2006 - 2011
Table 10 – Number of competitive telecommunications carriers: 1985; 1989; 1993; 1997; 2001; 2005 - 2012
Table 11 – Number of telecommunications carriers in Japan – September 2012
Table 12 – Subscribers and penetration: fixed-line versus mobile – 1993 - 2014
Table 13 – Fixed-line subscribers by technology – 1997 - 2012
Table 14 – Broadband subscribers and population penetration – 2005 - 2012
Table 15 – Carrier share of broadband subscribers – 2005 - 2010
Table 16 – Internet users, growth and penetration rate – 1998 - 2012
Table 17 – Broadband household connectivity and service availability – 2006 - 2008; 2011
Table 18 – MYLINE subscribers – 2002 - 2013
Table 19 – MYLINE operator market share – February 2012
Table 20 – Internet, broadband, IP telephony and telecoms statistics for Japan – 2005 - 2012
Table 21 – NTT major shareholders – March 2012
Table 22 – NTT financial data – 2000 – 2013
Table 23 – NTT proportion of operating revenue by segment – 2001 – 2011
Table 24 – NTT forecast consolidated revenue composition – 2008 - 2013
Table 25 – NTT subscribers by service – December 2012
Table 26 – NTT Broadband subscribers and market share by segment – 2004 – 2013
Table 27 – NTT video service subscribers – 2009 - 2013
Table 28 – NTT DoCoMo major shareholders – March 2012
Table 29 – NTT DoCoMo revenue, net income, capex and EBITDA – 2005 – 2013
Table 30 – NTT DoCoMo CAPEX breakdown – 2007 – 2013
Table 31 – NTT DoCoMo subscribers – December 2012
Table 32 – NTT DoCoMo ARPU, MOU and Churn – 2004 - 2013
Table 33 – NTT DoCoMo aggregate ARPU, mova and FOMA – 2005 - 2012
Table 34 – NTT DoCoMo’s subscribers by technology and ARPU – 2002 - 2013
Table 35 – NTT DoCoMo ID payment terminals and DCMX members – 2007 - 2012
Table 36 – NTT DoCoMo infrastructure deployments: technology and speed – 2006 - 2011
Table 37 – KDDI financial data – 2001 - 2013
Table 38 – KDDI proportion of revenue by segment – 2001 - 2012
Table 39 – KDDI total capital expenditure on mobile and fixed line – 2005 - 2013
Table 40 – au subscribers by technology and market share – 1997 – 2013
Table 41 – KDDI au ARPU, MOU and churn – 2001 – 2013
Table 42 – TU-KA subscribers and market share – 1997 – 2009
Table 43 – ADSL and FttH subscribers – 2005 – 2013
Table 44 – Fixed access lines – 2008 – 2013
Table 45 – Softbank major shareholders – March 2012
Table 46 – Softbank distribution of ownership among shareholders – March 2012
Table 47 – Softbank financial data – 1995 – 2012
Table 48 – Softbank proportion of revenue by segment – 2006 – 2012
Table 49 – Softbank mobile ARPU and churn – 2004 - 2012
Table 50 – Softbank operational data – thousands of subscribers – 2006 - 2012
Table 51 – IIJ revenue and net income – 2006 - 2013
Table 52 – J:COM financial data – 2003 – 2012
Table 53 – J-COM subscribers by service and monthly ARPU – 2000 – 2012
Table 54 – J-COM households by service bundling – 2003 - 2012
Table 55 – eAccess stakeholders – September 2011
Table 56 – eAccess financial data – 2004 – 2013
Table 57 – eAccess subscribers, ARPU, churn and acquisition cost – 2008 – 2013
Table 58 – eMobile subscribers, ARPU, churn and acquisition cost – 2007 – 2013
Table 59 – SKY Perfect JSAT Corporation individual subscribers – 1997 - 2012
Table 60 – International internet bandwidth – 1995 - 2010
Table 61 – Selected cloud computing investments in Asia
Table 62 – Cloud computing services market in Japan forecasts – 2010 - 2015
Table 63 – Broadband subscribers and households – September 2012
Table 64 – Broadband subscribers and market share by access type – September 2012
Table 65 – Broadband subscribers by access type – 1998 – 2013
Table 66 – Broadband subscriber annual change and market share by access type – 2001 - 2012
Table 67 – Broadband internet access from the home by technology type – 1998 – 2013
Table 68 – Broadband household connectivity and service availability – 2006 - 2008; 2011
Table 69 – Tariffs for broadband services – 2008
Table 70 – DSL subscribers and market share by operator – June 2012
Table 71 – FttH subscribers and market share by operator – June 2012
Table 72 – Change in ARPU from FttH – 2005 - 2010
Table 73 – WiMAX subscribers (BWA) - UQ Communications: 2009 - 2012
Table 74 – VoIP subscribers and annual change – 2004 - 2012
Table 75 – VoIP subscribers and market share by operator – June 2012
Table 76 – NTT services and charges – 2009
Table 77 – Key television metrics in Japan – 2012
Table 78 – Japan TV industry revenue – 2003 - 2012
Table 79 – Japan take-up of DTV by platform – 2012
Table 80 – Japan pay-TV market share versus free-to-view TV – 2003; 2008; 2010; 2012
Table 81 – Cable TV operators, subscribers and household penetration – 1999 - 2011
Table 82 – Satellite broadcasters and BS and CS subscribers – 1999 - 2011
Table 83 – Mobile subscriber, annual change and penetration rate – 1995 - 2014
Table 84 – Market share of mobile operators in Japan – December 2012
Table 85 – Mobile subscribers by system – December 2012
Table 86 – Carrier share of mobile telephone and PHS market – 2004 - 2012
Table 87 – cdmaOne, CDMA2000 1x and WCDMA subscribers – 1999 - 2012
Table 88 – PHS subscribers by carrier – 2004 – 2012
Table 89 – PHS subscribers – 1995 – 2012
Table 90 – 3G mobile subscribers by operator – December 2012
Table 91 – Japan 3G subscribers – 2001 – 2013
Table 92 – Japan LTE subscribers – 2010 - 2013
Table 93 – NTT DoCoMo LTE roadmap – 2011 – 2013; 2015
Table 94 – Number of handsets sold – 2006 - 2010
Table 95 – Google and Apple Smartphone platform audience in Japan – 2010 - 2012
Table 96 – Mobile subscribers, ARPU and churn by operator – 2004 - 2012
Table 97 – Net addition share by operator – 2006 - 2011
Table 98 – MVNO subscribers – 2009 - 2012
Table 99 – Prepaid mobile subscribers – December 2010
Table 100 – Mobile Internet subscribers, services and technology by provider – December 2012
Table 101 Mobile Internet subscribers by providers – 2004 - 2012
Table 102 – Mobile Internet subscribers – 2000 – 2012
Table 103 – Forecast fixed line subscribers and penetration - lower band: 2013-2014; 2018
Table 104 – Forecast fixed line subscribers and penetration - higher band: 2013-2014; 2018
Table 105 – Forecast mobile subscribers and penetration lower band forecast – 2013 - 2014; 2018
Table 106 – Forecast mobile subscribers and penetration higher band forecast – 2013 - 2014; 2018
Table 107 – Forecast broadband subscribers and penetration – lower band: 2012-2013; 2017
Table 108 – Forecast broadband subscribers and penetration – higher band: 2012-2013; 2017
Table 109 – Forecast FttX subscribers and penetration - lower band: 2012-2013; 2017
Table 110 – Forecast FttX subscribers and penetration - higher band: 2012-2012; 2017

List of Chart


Chart 1 – Japan fixed-line and mobile subscribers – 1993 - 2014
Chart 2 – Internet penetration rate of key countries – June 2012
Chart 3 – NTT Group revenue, capex, ARPU – 2003 – 2012
Chart 4 – KDDI revenue, capex, ARPU – 2004 - 2013
Chart 5 – Softbank revenue, capex, ARPU – 2005 – 2012
Chart 6 – International bandwidth – 2005 - 2010
Chart 7 – Japan broadband subscribers and population penetration – 2000 - 2013
Chart 8 – Japan cable modem subscribers and population penetration – 1998 - 2013
Chart 9 – Japan DSL subscribers and population penetration – 1999 - 2013
Chart 10 – Japan FttX subscribers and population penetration – 2002 - 2013
Chart 11 – Japan mobile subscriber growth and population penetration – 1995 - 2014
Chart 12 – Japan 2G, 3G and LTE growth – 2000 - 2013

Exhibit 1 – Map of Japan
Exhibit 2 – Major members of MYLINE Carriers Association – February 2012
Exhibit 3 – Significant telecoms operators in Japan
Exhibit 4 – NTT Group structure – March 2011
Exhibit 5 – NTT DoCoMo investment in international operators – March 2012
Exhibit 6 – Softbank operations
Exhibit 7 – Major global/regional submarine cables with landing point in Japan - 2010
Exhibit 8 – Differences between NXGN and NWGN
Exhibit 9 – Representative charges per service in Tokyo – 2008
Exhibit 10 – NTT IPTV services and features – 2009 - 2010
Exhibit 11 – Long-term evolution (LTE) roadmap in Japan – 2008 - 2012

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