April28, 2004, Vol. 15, No. 01-02 ISSN 1346-5317

Finnish side: Mr. PURSIAINEN Harri, Director-General of the CommunicationsDepartment, Ministry of Transport and Communications; et al.
 Mr. PURSIAINEN Harri

[Topics]
1.  Pro-competitive policy
Both sides exchanged information on the current status of Japanesepro-competitive policy and the Finnish new competition frameworks suchas the "Communications Market Act."  Both sides agreed to maintaincooperation in order to further promote competition in the telecommunicationsfield for ensuring user benefits.

2.  ICT Policy
Both sides exchanged information on ICT policies in each country suchas the Japanese ICT policy including the "e-Japan Strategy II" and theFinnish ICT strategy based on the "e-Europe 2005."  Both sides agreedto maintain cooperation for exchanging opinions on points of acceleratingactual use of established infrastructures hereafter and promoting advancementof ICT in order to realize an ICT society for all.

3.  Radio Policy (Radio Strategy and Mobile Communications)
Both sides also exchanged opinions and information on the radio policyin both countries such as Japanese views for spectrum trading and the reviewof spectrum/radio policy in Finland.  Both sides agreed to try touse radio spectra more effectively and cooperate with each other in orderto ensure frequencies for introducing systems that constitute the coreof a "Ubiquitous Networks Society."
Both sides exchanged opinions and information on the current statusof IMT-2000 (3G systems), the prospects for systems beyond IMT-2000. Both sides agreed to further promote cooperation between the two countries,which has been already implemented at mITF, FICORA and other fora, andto continue to exchange opinions on R&D and standardization.

4.  Reliability of Networks 
Both sides exchanged opinions and information on the major effortsto combat against SPAM mail.  Both sides agreed to continue to exchangeopinions on R&D in this area and keep cooperation through various channelssuch as international conferences.

5.  Digitalization of broadcasting
Both sides exchanged information on policies and on the current statusof digitalization of broadcasting in the two countries, and agreed to continueto exchange opinions thereon between the two countries and cooperate onpromotion of the diffusion of digital broadcasting.

[Background]

1. Along with development of high-speed access networks tothe Internet, such as expansion of transmission capacities for subscriberlocal loops, etc., it is anticipated that various equipment with communicationsfunctions will be networked in order to improve efficiency of work at officeand convenience of daily life at home.  Such networks will enablehigh-speed communications that transmit large-sized data, such as video.
2. In recent years, UWB radio systems have been a focus of attentionas wireless technology for high-speed transmission over a short distance. UWB radio systems transmit digital pulses across a very wide spectrum offrequency bands wider than several GHz bandwidth, thus enabling 100-Mbpsclass high-speed transmission and precision radio location systems.
Upon introduction of UWB systems, it is necessary to deliberate upontechnical conditions, such as frequency sharing conditions with other radiosystems using spectrums within the frequency bands to be used for transmissionby the UWB systems.

[Outline of this interim report]
Matters deliberated upon to date and compiled in this interim reportinclude: situation in overseas for introduction of UWB; compatible modelsnecessary for considering shared use; studies on interference with otherradio systems; and approaches to introduce UWB in the future. 
For details of the outline of this interim report, please see the followingURL;
http://www.soumu.go.jp/main_sosiki/joho_tsusin/eng/Releases/Telecommunications/040324.pdf

[Highlights of the survey results]
- The number of Internet users was 77.30 million.
The number of Internet users was 77.30 million, an increase of 7.88million over the previous year.
- The population coverage rate surpassed the 60% mark for the firsttime.
The population coverage rate was 60.6%, growing by 6.1 percentage pointsover the previous year.
- The number of household subscribers to broadband circuits grew toalmost one-half of all households in Japan.
Taking a look at access methods to the Internet, households that subscribeto broadband access circuits increased by 18.2 percentage points to 47.8%. On the contrary, subscribers to ISDN and dial-up access to the Internetdecreased.
- The digital divide still exists.
The usage rates for the age groups of their 40s and 50s have considerablyincreased.  The divide by income and gender tended to narrow. The digital divide, however, still exists.
- One-third of Internet users via PCs have suffered from viruses, SPAMs,etc.
Of Internet users via PCs, victims of viruses, SPAMs, etc. increasedby 3.8 percentage points to 33.6%.  By type of damages, "detectionor infection of viruses" was the worst, reaching 21.5% of users.

<Outlines of the survey> 
The "Communications Usage Trend Survey," which is composed of the following3 sections: "Households/household members," "Offices (establishments)"and "Companies (enterprises)," has been conducted annually since 1990*as a statistical survey authorized by MPHPT in accordance with the StatisticalReport Coordination Law.  The survey on "household members" was addedin 2001.  In 2002, the survey was conducted as indicated in the Table[Details of the survey]: 
(*The section "Companies (enterprises)"was conducted as the annual survey on "Corporate Networks" in 1993, 1995and 1996 separately, has been added in 1997 as a section of "CommunicationsUsage Trend Survey.")

1. Penetration rate of the Internet
- The number of Internet users and population coverage as of the endof 2003
The number of Internet users increased by 7.88 million to 77.30 millionand the population coverage was 60.6% (an increase of 6.1 percentage pointsover the previous year), surpassing the 60% mark for the first time.
 

Notes:
1)    The number of Internet users includes: i) personswho use one or more equipment such as PC, cellular/PHS telephones, gameconsole, TV units with access functions, etc. and ii) Aged six or higher.
2)    Ò60.6%Ó in 2003 indicates the Internet penetrationrate to the population of Japan (including aged 5 and younger), and itwas calculated as follows:
 77.30 million Internet users /127.52 million persons (nationÕstotal population*) = 60.6%
 *The total population of Japan was based on the data ÒProjectedfuture population and proportion by age group, 2000-2050: Medium variantÓ(NationalInstitute of Population and Social Security Research)
3)    The figures for 1997 to 2000 were excerpts fromthe Ò2003 WHITE PAPER Information and Communications in JapanÓ (Ministryof Public Management, Home Affairs, Posts and Telecommunications). Figures for CY2001 and 2002 were estimates of this survey.
4)    Upon estimate, taking into consideration the increasein the number of Internet users in the age groups of the elderly and studentsof elementary/lower secondary schools, the scope of surveyed age groupshas been widened year on year.  Thus, the comparison with estimatedresults in 2000 or earlier is not accurate. (Surveyed were aged 15- 69in 1999 or earlier; 15 Ð 79 in 2000; aged six or higher since 2001).

¥ The Internet penetration rates for households (households andhouseholds members), offices (establishments) and companies (enterprises)
The household Internet penetration rate for households was 88.1% (increasedby 6.7 percentage points over the previous year), that for offices (establishments)82.6% (increased by 1.2 percentage points over the previous year) and companies(enterprises) 98.2% (decreased by 0.2 percentage points over the previousyear). 
 
The penetration rate for households indicates the ratio of householdshaving one or more members who use(s) the Internet at home or other locationsthrough use of PCs, mobile telephones, etc. for individual purposes.

2. Broadband penetration rates for households/individuals
- Access methods to the Internet at home via PCs
Taking a look at access methods to the Internet, households that subscribeto broadband access circuits increased by 18.2 percentage points to 47.8%. On the contrary, subscribers to ISDN (flat-rate services to the Internet),ISDN (dial-up access) and subscriber telephone services (dial-up access)decreased over the previous year.

Fig. 1  Transition in the ratios by accesscircuit at home (multiple replies) (Of household Internet users via PCs)

Note: "Broadband circuits": DSL, cable Internet, wireless access(FWA, etc.) and fiber-optic cables

Fig. 2.    Transition in Internetpenetration rate by age group

Fig. 3.    Transition in Internetpenetration rate by household annual income

Fig. 4.    Transition in Internetpenetration rate by gender

Fig. 5.    Transition in Internetpenetration rate by municipality size

4.    Situation of anxiety,complaints and damages in Internet use by individuals
With respect to anxiety, complaints and damages in Internet use byindividuals, 55.4% of the surveyed replied "protection of privacy" followedby "viral infection" (43.1%).  The ratio of "no worries, no complaints"was 7.8%.  Thus, these results indicate that many Internet users areusing the Internet despite anxiety/complaints to some extents.

Fig. 6.    Anxiety/complaintsupon Internet use (multiple replies)

Fig. 7    Victims of the Internetuse via PCs by type (multiple replies) (in the past one year)
- Victims of viruses, SPAMs, etc. among Internet users via PCs increasedby 3.8 percentage points to 33.6%.  By type of damages, "detectionor infection of viruses" was the worst, reaching 21.5% of users, followedby "unsolicited e-mails" of 19.1%.
- Current status of Internet security measures taken by users
With regard to security measures, "introduction of virus checking software"was the most popular measures, totaling 32.0%.  However, persons whodid not take security measures comprised still higher 26.5%.

Fig. 8    Security measuresby type (multiple replies)

5.    Reasons not to use theInternet for individuals (who have not used the Internet)
Regarding reasons not to use the Internet for individuals (who havenot used the Internet), "no need to use" was the highest, 36.1%, followedby "difficult to operate PC, etc." (21.8%).  "Anxiety for privacyprotection" comprised 13.0%.

Fig. 9  Reasons not to use the Internetfor individuals (multiple replies)
 
6.    Damages, countermeasures,etc. concerning companies' information and communications networks
- Damages, countermeasures, etc. concerning companies' informationand communications networks (the Internet, intranets, etc.)
"Companies suffered from damages" decreased by 3.5 percentage pointsto 72.7%.  By damage, "detection or infection of viruses" was thehighest, reaching 72.1%.

Fig. 10    Damages and detailsthereof on companies' information and communications networks (multiplereplies over the past one year)
  

Notes:  1.    To access without permissionto computer systems of companies, etc. for causing some kind of damages,or to use them illegally
 2. Denial-of-service (DoS) attack sends a flood of e-mails toa mail server for making the server down, thereby it cannot offer any service.

Fig. 11.    Companies takingsome security measures