Number of Internet Users in CY2000 Reaches 47,080,000

Note: Due to the differences of samples covered between CYs 1999 and 2000, as explained in the [Individuals surveyed] item 1., strict comparison may not be possible.

[Individuals surveyed]

1. The number of individual Internet users in Japan aged 15 to 79 as of the end of December 2000 (as for surveys conducted in CYs 1997 through 1999, individual Internet users aged 15 to 69 were sampled for estimates; in order to obtain more detailed survey results, this time, the target age group was expanded to "individuals aged 15 to 79.")
2. The term "individual Internet users" is defined as "individuals having access to the Internet (for browsing websites and/or sending/receiving e-mail), through use of such terminals as PCs, cellular telephones, at and/or outside home."

[Reference]

1. Number of individual Internet users by terminal

Notes:	1.	Includes Personal Handyphone System (PHS) terminals.
	2.	Because there are users utilizing two or more terminals, the total number of users in this table does not tally to the total number of Internet users.

2. Countries and economies with Internet penetration rate of 25% or higher

Sources: Data for other than Japan (as of March 2001), Nua Ltd. (http://www.nua.com)

[Methods of the survey]

1. Questionnaire

1) Target
Males/females aged 15 to 79 nationwide

2) Period
Late December 2000
(Target individuals replied on data as of the end of December 2000.)

3) Methodology
Mailing (real postal service) questionnaires to samples selected through the RDD (random digit dialing) sampling methodology, and receiving replies
- Number of questionnaires sent: 7,001
- Number of effective replies: 4,038 (reply rate: 57.7%)

2. Estimates for number of individual Internet users

Based on the survey, the number of individual Internet users in Japan (47,080,000) was obtained by the following formula: 47,080,000 = [ratio of individual Internet users using terminals as listed below to the total number of individuals sampled] x [the number of Japanese people aged 15 to 79 as of the end of CY2000]
- PCs
- Cellular telephones, PHS terminals, PDAs
- Game consoles, TV receivers equipped with TAs

(This survey was consigned to Nomura Research Institute, Inc.)

Results of "CY 2000 Communications Usage Trend Survey" Compiled

Now, MPHPT has compiled results of the survey as follows:
The use of the Internet has increased in households, offices and companies. Along with this, households' PC ownership ratio has grown. As regards companies, installation of LANS and intranets has been developed.

1. Usage trends for info-communications services (households)

1) Rate of households having access to the Internet became 34.0% (increase by 14.9 percentage points), i.e., one household in every three is accessing the Internet.
- Along with this, the ownership of PCs and use of ISDN lines have drastically increased.
- In reflection of expectation for broadband networks, the expectation for video-on-demand increased widely over the previous year.

2) As for info-communications equipment, penetration rates for mobile telephones and PCs have increased to about 80% and about 50% of all households, respectively.
- Although the number of PC users in the elderly has slightly improved, the figure is still about half that of wordprocessors.

3) About 50% of all households are subscribing to either of satellite broadcasting or cable TV. - Especially, the penetration rate for cable TV has increased by 6.7 percentage points to more than 20%.

2. Usage trends for info-communications services (offices)

1) The rate of offices having access to the Internet was 44.8%, or, increased by 13 percentage points over the previous year. - In offices with equal to or more than 100 employees, more than 80% are having access to the Internet.

2) The penetration rate of PCs also has reached 82.4%, or, increased by 8.4 percentage points from the last year.
- Ownership rates of mobile telephones and facsimiles level off, and that of wordprocessors decreased.

3. Current status of corporate networks (companies)

1) The rate of companies having access to the Internet was 89.3%, or, increased by 11 percentage points over the previous year.
- One in three companies are conducting sales activities via the Internet.

2) Installation of corporate LANS and intranets has developed widely.
- Penetration rates of LANS and intranets was 86.4% (increased by 8.5 percentage points) and 44.2% (increased by 11 percentage points), respectively.
- 88.2% of companies are using e-mail (increased by 13.7 percentage points).

[Survey outline]

This survey, as an approved statistical survey based on the Statistical Reports Coordination Law, has been annually conducted since CY1990. (Survey on corporate networks was added in CY1993.)

Report Compiled by the Research Meeting for Next-Generation Broadcasting

MPHPT (formerly MPT) has been holding the "Research Meeting for Next-Generation Broadcasting" (Chair: Dr. Mitsutoshi Hatori, Professor, Multimedia Information Research Division, the National Institute of Informatics: NII) for studying i) a future image of the next-generation broadcasting system in 10 to 15 years ahead, ii) necessary R&D elements to realize the next-generation broadcasting system and iii) technical standards thereof. On April 12, 2001, the meeting compiled their findings as a report.

1. Research background

In recent years, the info-communications field that includes broadcasting has been changing drastically, referred to as the IT revolution, as exemplified by the rapid spread of access to the Internet, the sharp increase in the number of subscriptions to mobile communications services and large-capacity, high-speed lines.
Under these circumstances, as BS (broadcasting satellite) digital broadcasting started in December 2000, Japan has fully embarked on the digital broadcasting age. Conspicuously different from other communications media, broadcasting services provide a large amount of information simultaneously to a large number of people. Along with the digitalization of broadcasting, it is now expected to see novel broadcasting services. Through the convergence of broadcasting, computer and telecommunications technologies, as well as innovations in key technologies such as displays, broadcasting services combined with consumer electronics, the Internet and mobile telephones, will be realized such as high-quality presence broadcasting.
To this end, it has become vital to offer a long-term program for realizing the next-generation broadcasting system, taking technological trends into consideration.

2. Outlines of the report

The next-generation broadcasting system will feature i) large-capacity storage functions enabling record of broadcast programming more than 4,000 hours, and ii) agent functions enabling viewers to automatically retrieve, view and store favorite content. With the system, viewers can enjoy their favorite content from multichannel broadcast programming without restrictions by program schedules.
Collaborating with mobile communications system, consumers can receive broadcast programming outdoors while moving with small/lightweight receivers with recording functions and can view content outside home through transfer/storage of the content from indoor receivers with large-capacity storage functions.

1) The next-generation broadcasting system
With a hybrid system utilizing the following two types of receivers with storage functions and different purposes, diversified broadcasting services will be realized.
- "Hyper-vision" (stationary receiver installed at home):
Carrying automatic program selection/large-capacity storage functions, platforms of home networks, multimodal interface, agent functions, etc.
- "Hyper-agent" (mobile receiver carried by users):
Small/portable, storage functions and interconnection functions with mobile communications system

2) Services to be realized
With the "hyper-vision" and "hyper-agent," diversified broadcasting services with the following six features will be realized:
- Viewing/listening anytime: By utilizing storing functions, etc., viewing/listening is enabled without restrictions of program schedules.
- Viewing/listening anywhere: By utilizing mobile receivers, etc., viewing/listening outdoors is enabled.
- Easy handling by anybody: By utilizing multimodal interface, etc., viewing/listening without complicated operation is enabled.
- Viewing/listening favorite programming: By utilizing agent functions, etc., desired content can be selected easily from diversified broadcast programming.
- Realistic video/sound: By utilizing storing functions, etc., viewing/listening 3D-images using additional information is enabled.
- Multifunctional receiver: uses other than viewing/listening broadcasting content, such as controlling consumer electronics by interconnecting to a home network, are enabled.

3) Priority R&D projects
In order to realize the next-generation broadcasting system, it is required to study 61 R&D themes and 17 issues for standardization. As the tasks to be engaged from the perspective for advancing receivers, transmission methods and broadcasting services, the following three projects are proposed:
- Project for hyper-intelligent broadcasting:
Development of i) multimodal interface, ii) large-capacity storage technology and iii) agent technology. Standardization of content management protection systems
- Project for seamless network:
Development of i) technology for seamless networking between communications and broadcasting networks, and ii) optimal layout technology. Standardization of common interface
- Project for 3D broadcasting:
Development of technologies for i) 3D imaging/reproducing and ii) stereophonic recording/replaying, etc.

Survey on "Overall Results on Japan's Communications Industry" (Third Quarter of FY2000)

-- Communications industry revenues increased by 5.1% in second quarter (Q-III) of FY2000; revenues forecast to "rise" from now on --

MPHPT released the survey on "overall results on Japan's communications industry (telecommunications carriers and broadcasters)" for the third quarter (October - December 2000) of FY2000 on 128 companies. The outline of the survey is as follows:

-Actual revenues in the third quarter of FY2000 grew by 5.1% over the same period in the previous fiscal year.

Actual revenues in the third quarter of FY2000 by the communications industry, including telecommunications carriers and broadcasters, increased by 5.1% over the same period in the previous fiscal year. Revenues of all industries during the third quarter increased by 4.2% over the same period in the previous fiscal year.

-At the end of the third quarter of FY2000, revenues of the communications industry are forecast to "grow."

Revenues forecast indices of the communications industry at the end of the third quarter of FY 2000 are 16.7 in the fourth quarter of FY2000 (January-March 2001) and 12.3 in the first quarter of FY2001 (April-June 2001), meaning that the revenues are forecast to go up.

1. Revenues

Communications industry revenues during FY 2000 third quarter grew by 5.1% over the same period in the previous fiscal year. As for the revenues of each type of business, Type I telecommunications carriers increased by 5.0% (mobile: +7.0%, other than mobile: +3.4%), Type II telecommunications carries: +1.6%, and, broadcasters: +6.7% (commercial broadcasters: +6.1%, cable TV operators: +31.9%), respectively.

Reference: Growth rates of other industries

(The third quarter in comparison with the same period in the previous fiscal year)
Food: +4.9%, Chemical: +6.3%, Petroleum/Coal products: +23.4%, Iron and steel: -3.3%, General machinery: +19.7%, Electrical machinery/Consumer electronics: +10.1%, Transportation equipment: +1.1%, Construction: -3.0%, Wholesale/Retail: +6.8%, Real estate: +22.3%, Power: -0.1%, Services: +2.2%.

Source: Financial Statements Statistics of Corporations by Industry (October-December 2000), the Ministry of Finance

Table 1 Growth Growth rate in the 3rd quarter in comparison with the same period in the previous fiscal year

Note: The data on the all industries are based on Financial Statistics of Corporations by Industry (October-December 2000), the Ministry of Finance

Table 2 Revenues

2. Revenues forecast

- Revenues forecast indices of the communications industry at the end of the third quarter of FY2000 are 16.7 in the fourth quarter of FY2000 (January-March 2001) and 12.3 in the first quarter of FY2001 (April-June 2001), meaning that the revenues are forecast to go up.
- As for the revenues of each type of business, Type I telecommunications business: 16.2, 10.8, Type II telecommunications carriers: 44.5, 11.1, commercial broadcasters: -16.7, -7.1, cable TV operators: 70.6, 64.7, respectively.

Table 3 Revenues forecast indices

Reference: In all industries, it is forecast that FY2000 4th quarter: -2, FY2001 1st quarter: -3.

Note: Based on the Business and Investment Survey of Incorporated Enterprises (Conducted in December 2000), the Economic and Social Research Institute

Revenues forecast index = "the ratio (%) of businesses forecasting to increase" - "the ratio (%) of businesses forecasting to decrease"

On the "Survey on Overall Results on Japan's Communications Industry"

The "Survey on Overall Results on Japan's Communications Industry" is conducted monthly on revenues, etc., of the communications industry (telecommunications carriers and broadcasters) in order to timely grasp the business trends thereof. Since April 1995, the survey has been conducted as a statistical survey authorized by the Director-General, the Management and Coordination Agency (currently MPHPT).

[Business surveyed]

The number of surveyed businesses of each type of business is calculated proportionally with the type's share in revenues as of April 2000. The businesses surveyed are sampled from ones in the descending order of revenues size up to the calculated numbers.
In FY2000 3rd quarter, the number of Type I telecommunications carriers decreased by 14 companies (13 companies through mergers and 1 company through transfer of business operations). However, since the merger partners and the carrier transferred the business operations are also surveyed, the effects on survey results are limited to a negligible scale. Therefore, there was no review/addition upon sampling of businesses.

[Survey method]

Conducted by questionnaire (mailing survey cards, entered by businesses via the Internet)

[Survey period]

Each month

[Survey items]

Revenues and business forecast (conducted only in June, September, December and March), etc.

[Others]

Due to rounding figures, total figures may not agree with breakdown figures. As revenues amounts that partially include tentative figures, those figures may be corrected later.

ITU Reform for Meeting Market Demands

-- Results of the Working Group on ITU Reform --

In telecommunications markets worldwide, privatization of telecommunications businesses is ongoing. As regards telecommunications technology, technological development is proceeding as the IP networks are diffused in addition to existing circuit switching networks, or as voice telephony technology is shifted to multimedia technology. Furthermore, the importance of coping with new challenges such as IMT-2000, the Internet, international proliferation of electronic commerce and closing of the digital divide, is becoming evident. Under such rapidly changing circumstances surrounding global info-communications, it has become necessary for the International Telecommunication Union (ITU) to deal with new market demands with speed and accuracy.
For that purpose, ITU has been studying reform of its activities and working methods in the "Working Group on ITU Reform (WGR on ITU Reform)," established in December 1999. From April 2 through 6, 2001, the fourth meeting of the WGR was held in Salvador, Brazil. Ninety-six people from 35 countries (including eight private companies) and seven international organizations participated in the meeting, including Japan, four from MPHPT. The final report of the meeting will be submitted to the 2001 Session of Council (ITU Council 2001) to be held in June 2001. Then, the final report will be reflected in the deliberation for reforming the ITU Constitution and Convention at the 2002 ITU Plenipotentiary Conference (PP-02).

Main results of the meeting are as follows:

1. Reform of the Telecommunication Standardization Sector (ITU-T)

Along with vigorous activities of private-sector standardization fora, related industries are raising opinions that ITU standardization activities be accelerated through expansion of the role of the private sector.
Against such a backdrop, European nations proposed establishing a standardization entity (a Forum) inside the ITU-T, which is similar to private-sector standardization fora.
Toward this proposal, a recommendation was made to divide ITU-T works clearly into the technical area and the area includes policy and regulatory implications, and to empower Sector Members in a group studying the technical area. Several Member States presented a proposal that ITU reform is possible by improving existing processes of ITU-T.
It was decided upon that each proposal be discussed further at the ITU Council 2001.

2. Expansion of the rights and obligations of Sector Members

In the context of expanding private sector's participation in ITU, the meeting discussed the Sector Members' participation in the Council.
At the fourth meeting, it was agreed that Sector Members should be allowed to join the Standing Committee on Finance of the Council as "observers" and that the observers should be given the right "to make written and oral contributions to the Committee, but that they have no right to vote, which in practice may mean that they have no decision-making power."

3. Reform of the ITU Secretariat

At this meeting, it was agreed that i) the Secretary-General has the highest responsibility in the ITU management and ii) it should be provided for in the ITU Constitution and Convention, and iii) the Council should be empowered with functions to supervise the Secretary-General, along with the enhancement of the Secretary-General's authority.
On the other hand, concerning the review of the current electoral systems and the number of five elected posts (the Secretary-General, Deputy Secretary-General, and Directors of three Bureaux), opinions of Member States were classified into the following three groups:
i) Elections for all five posts should be held during the Plenipotentiary Conferences.
ii) Three Bureau Directors should be appointed by Sector Assemblies/Conferences of the sectors.
iii) From viewpoints of improving the ITU management efficiency and of clarifying that the Secretary-General has the responsibility in the ITU management, only the Secretary-General and the Deputy Secretary-General should be elected, and other posts should be appointed. (Japan supported view iii).)
As a result of a study at the meeting, those opinions are to be discussed further at the Council 2001.