Vol.16 No.10, March 10, 2006
Please feel free to use the articles in this publication, with proper credits.
 
CONTENTS

Implementation of World’s First International Transmission Experiment of 3D High-Resolution Graphic Images

Announcement of Quarterly Data Concerning State of Competition in the Telecommunications Business Field
(the Second Quarter of FY2005)

Communications Industry Forecasts of Business Conditions
—The Results (Prompt Report) of January 2006 Survey on “Overall Results of Japan's Communications Industry”

Promoting the Digitization of Education
—Approaches to Promoting the Installation of in-School LANS in Public Schools

Conference on the Future Digital Economy Held in Rome

The Tenth Japan-France Consultation Successfully Closed

Implementation of World's First International Transmission Experiment of 3D High-Resolution Graphic Images

As part of the “Advanced IT joint experiments for creating international info-communication hub” based on the Asia Broadband Program (March 2003), MIC is conducting experiment relating to the international transmission of 3D high-definition graphic images, which will be the first in the world in the ophthalmologic field, between Japan and Singapore.

In concrete terms, the experiment have started in the field of telemedicine using the ultra-high-speed R&D test-bed network, "JGN II," of the National Institute of Information and Communications Technology (NICT), over Japan and Singapore lines, with 3D high-definition graphic image transmissions between the Asahikawa Medical College and the Singapore National Eye Centre.

Start of experiment
February 16, 2006

Location
Asahikawa Medical College Hospital Telemedicine Center (Japan)
Singapore National Eye Centre (Singapore)

Outline of technology
The current experiment of 3D high-definition graphic image transmissions compresses the images seen by the left and right eyes into 2 separate projections, and differs from the frame switching method that has been used until now. By working to improve the resolution in the time axis direction, a high-resolution image can be achieved, making it possible to reproduce binocular vision faithfully.

With this experiment, it will become possible to reproduce remotely and faithfully the detailed operating conditions of an ophthalmology unit as images of the 3-D high-definition, broadening the possibilities of remote surgical procedures in the future. In addition, this technology is not limited to the medical field but also is expected to have applications in a wide variety of fields where a high degree of realistic sensation is required.

 

 

Announcement of Quarterly Data Concerning State of Competition in the Telecommunications Business Field
(the Second Quarter of FY2005)

MIC has evaluated the state of competition in the telecommunications field since 2003. As part of this, it announces quarterly data concerning the state of competition, based on information-gathering of telecommunications carriers. The latest data, for the second quarter (Q-II) of FY2005 has just been compiled, and the outline is as shown below.
Main points
Fixed communications
(i) In terms of contracts for subscriber telephones, NTT East and west together account for 95.8% of the total (47.7% for NTT East and 48.1% for NTT West).

(ii) In terms of the number of telecommunications numbers allocated to IP telephony services, SoftBank BB accounts for 43.4% of market share, with NTT Communications at 24.5% and KDDI at 13.4%. Together, the top three account for 81.3% of the market.

Mobile communications
In terms of the number of cellular telephones and PHSs (Personal Handy-phone System), the NTT DoCoMo group accounts for 54.4% of market share, with the au group at 22.1%, and the Vodafone at 16.0%. The au group is continuing to increase its share of the market.

Internet
(i) In terms of the number of DSL services subscribers contract, NTT East and West together account for 39.0% of the market (20.8% for NTT East and 18.2% for NTT West), with SoftBank BB at 34.8%. Together, the top three account for 73.8% of the market.

(ii) In terms of the number of fiber-to-the home (FTTH) subscribers, NTT East and West together account for 72.9% of the market for single family homes and corporate users, (37.7% for NTT East and 35.2% for NTT West), and electric power company carriers account for 23.1% of the market.
For apartments and condominiums, NTT East and West together account for 41.1% of the market (26.1% for NTT East and 15.0% for NTT West), with USEN at 20.1%. NTT East and West are continuing to increase their share of the market.

Fixed communications
Telephones subscribers
The number of contracts for subscriber telephones (including ISDN) has been on the downward trend since March 1999.
- In terms of the market share for all subscriber telephones held by NTT East and West, both NTT East and NTT West lost a percentage point each compared to the end of March 2005, but their combined market share remains at 95.8% (47.7% for NTT East and 48.1% for NTT West).




IP telephony services
- The number of IP telephony services numbers in use reached 10.02 million as of the end of September 2005, an increase of 7.8% over the end of June 2005, with both 050 numbers and OAB-J numbers on an upward trend.
- Looking at the number of telecommunications numbers allocated to IP telephony services, SoftBank BB had a market share of 43.4% as of the end of September 2005, with NTT Communications’ share at 24.5%, and KDDI’s at 13.4%. Together, the top three account for 81.3% of the market.




Mobile communications
- Even though the combined subscriptions for cellular telephones and PHS(Personal Handy-phone System) remains on an upward trend, growth rates have been on a downward trend since March 2004.
- Compared to figures for the end of June 2005, the NTT DoCoMo group has seen a 0.3% reduction in market share to 54.4%, with Vodafone losing 0.2% to 16.0%. On the other hand, the au group has seen a 0.4% increase in share to 22.1%.



The Internet
DSL
- The number of DSL subscribers continues to increase and has surpassed 14.31 million but the growth rate has slowed down compared to the end of June 2005.
- Looking at figures nationwide, NTT East and West’s share has increased by 0.4% compared to the end of June 2005, to 39.0% (20.8% for NTT East, and 18.2% for NTT West). SoftBank BB’s share is at 34.8%, bringing the total for the largest three to 73.8% of the market.




FTTH (Fiber to the home)
-The total number of FTTH contracts has reached 3.98 million, an increase of 16.7% compared to the end of June 2005.
- In terms of FTTH market share (for single family homes and corporate users), NTT East and West together account for 72.9% of the market (37.7% for NTT East and 35.2% for NTT West). Compared to the end of June 2005, NTT East increased its market share by 0.3% but NTT West saw a drop of 0.7%, and electric power company carriers saw a drop of 0.8%.
- For apartments and condminiums housing, the combined FTTH share for NTT East and West increased by 2.2% compared to the end of June 2005, to 41.1% (26.1% for NTT East and 15.0% for NTT West). The market share for NTT East and West is on an upward trend.

 

Communications Industry Forecasts of Business Conditions
EThe Results (Prompt Report) of January 2006 Survey on "Overall Results of Japan's Communications Industry

MIC has compiled the results (prompt report) of the survey on "overall results of Japan's communications industry (telecommunications and broadcasting)," conducted in January 2006, for the fourth quarter of FY2005 and the first quarter of FY2006.

Fixed figures including sales will be posted at the end of March 2006 at the Information and Communications Statistics Database.
URL: http://www.soumu.go.jp/johotsusintokei/

- The sales forecast diffusion index (DI)*1 remains on a positive trend for the telecommunications business (with a majority of operators expecting an increase of sales). The commercial broadcasting business has improved, with a shift from a negative to a positive index. The cable television industry continues to show a large-scale positive trend.

- The business conditions diffusion index (DI)*2 continues to show a positive trend for the telecommunications and cable television businesses (with a majority of operators expecting business conditions to improve). Commercial broadcasting business has improved, with a shift from a negative to a positive index.

Notes:
1. Sales forecast diffusion indices (DIs): the "percentage points of companies saying that their sales amounts are increasing compared to the previous quarter" minus the "percentage points of companies saying that their sales amounts are decreasing compared to the previous quarter."
2. Business conditions diffusion indices (DIs): the "percentage points of companies saying that business conditions are improving compared to the previous quarter" minus the "percentage points of companies saying that business conditions are worsening compared to the previous quarter."

Survey outline
The survey on the “overall result of Japan’s communication industry” is designed to grasp the business trends in the communications industry (telecommunications and broadcasting). The survey has been carried out on sales, sales forecasts etc. since April 1995.

Businesses surveyed
The number of surveyed businesses for each type of business (telecommunications carriers and broadcasters) is calculated proportionally with the type’s share in revenues for FY2004. To be statistically significant, the sampling number, as calculated from the number of parent populations in the communications industry, is set at 133. The businesses surveyed are sampled in descending order from the one with the largest sales down to the 133rd one.

Survey method
Conducted by questionnaires (mailing of survey card, responses by businesses via fax or the Internet).

Survey topics
Sales, financial position and business conditions forecasts (conducted only in July, October, January and April and reported in the following month, respectively*) and sales (every month).
* Reporting sales forecast, etc., as of June, September, December, and March next month



Sales forecasts
The sales forecast diffusion indices (DIs) in the fourth quarter of FY2005 and the first quarter of FY2006 indicate the following:
- Telecommunications carriers continue to indicate a positive trend (a majority of operators expecting an increase ion sales), with figures of +33.3 for Q-IV of FY2005 and +28.2 for Q-I of FY2006.
- For commercial broadcasting, the trend remains negative for Q-IV of FY2005 at –9.7, but there is an improvement to +9.7 for Q-I of FY2006.
- Cable casting continues to show a major upward trend, with figures of +40.0 for Q-IV of FY2005 and +33.3 for Q-I of FY2006.


Financial positions
The financial position indices for Q-IV of FY2005 and Q-I of FY2006 are as follows:
- The telecommunications and commercial broadcasting businesses continue to retain a positive trend (their financial positions are in surplus).
- The cable television business has shifted from somewhere between zero and negative trends, to a major positive trend at +26.7 and +20.0 respectively.


Business conditions forecasts
The business survey indices for Q-IV of FY2005 and Q-I of FY2006 are as follows:
- The telecommunications business continues to show an upward trend (a majority of companies anticipating an improvement in business) with figures of +23.1 and +20.5 respectively for the two quarters.
- The commercial broadcasting business is showing a shift from negative to positive trends, with figures of 0.0 and +3.2 respectively.
- The cable television business continues to shown an upward trend with both quarters at +13.3


 

Promoting the Digitization of Education
EApproaches to Promoting the Installation of in-School LANS in Public Schools

The government of Japan, based on the e-Japan Priority Policy Program (decided by the IT Strategic Headquarters on March 29, 2001), targeted an environment in which all elementary, junior high and senior high schools will have use of computers in each classroom by the end of FY2005, and has been working to promote the digitization of school-based education.

However, looking at the results of the interim report dated the end of September 2005 on a survey regarding the implementation of the digitization of education in schools, the installation of LANs in schools has not even reached the 50% mark, and achieving the target during the current fiscal year looks increasingly difficult.

MIC is fully aware of the great importance of the digitization of education from the point of view of bringing about a ubiquitous network society, and will coordinate in the future with related government organizations, such as MEXT that is addressing education digitization, in order to speed up the implementation process.

Support for LAN introduction into schools
MIC is to support smooth introduction of LANs into schools, for instance, developing a "model plan" (guidelines for constructing school LANs including the use of wireless LANs) tailored to the actual situation at each school.

Support for participation of private sector
Through preparation of a support scheme (consultation services, holding of explanatory meetings, etc.) under Regional Bureaus of Telecommunications, etc. of MIC, MIC will prepare an environment for encouraging telecommunications carriers, manufacturers, etc. to participate in LAN construction.

Requesting local public entities for cooperation
MIC will encourage efforts to prepare school LANs through providing requests to local public entities for provision of various information, etc.

 

Conference on the Future Digital Economy Held in Rome

The conference was held in Rome, Italy, over a 2-day period on January 30 and 31, 2006. Vice-Minister for Policy Coordination (MIC) ARITOMI Kan’ichiro took part in as a panelist and gave an address on the theme of “How on-line delivery and digital products affect creators, supply and industry structure of digital content.” Details of the address can be found on the MIC website:
http://www.soumu.go.jp/joho_tsusin/eng/presentation/pdf/060131_1.pdf

In addition, it is also available on the OECD website, complete with video graphics, at http://www.oecd.org/sti/digitalcontent/conference

The Tenth Japan-France Consultation Successfully Closed

The Ministry of Internal Affairs and Communications (MIC) and the French Ministry of Economy, Finance and Industry (MINEFI) held the 10th Japan-France Policy Consultation on ICT in Paris, France, on Wednesday, February 1, to promote a mutual understanding and partnership through exchange of opinions on a broad range of themes in telecommunications administration in Japan and France.
At this Consultation, we confirmed that both countries have many problems in common in ICT field and agreed to make efforts toward development of our relationship under the “Declaration for a new Japan-France partnership”

Attendances
Japan: Mr. ARITOMI Kan'ichiro, Vice-Minister for Policy Coordination, MIC, and others
France: Mr. L. Rousseau, Directeur générale des entreprises (DGE) , and others

Main discussion topics and outline of results
Deployment of ICT strategies
Both sides exchanged information and opinions on Japanese ICT policies starting with the “e-Japan Strategy”, the “u-Japan Concepts” and the “New IT Reform Strategies”, and on the French ICT policies centering on promotion of e-government alongside the “ADELE plan.”

We confirmed the importance of telecommunications in both countries and agreed to exchange opinions more frequently.

Development of new technologies including wireless communications
Both sides exchanged information and opinions on the present status and future perspective of frequent policies and mobile communications, and the introduction of wireless broadband in both countries. Particularly, the government of France described the licensing procedure of WiMAX, whose deadline was the day of this consultation.

We agreed to exchange information more frequently on measures for effective use of frequency and on the introduction of wireless broadband.

Appropriate regulations responding to changes in network structure
Both sides exchanged information and opinions on the present status of telecommunications services and regulations in both countries. Particularly, the government of Japan described the deployment status of an optical fiber network and its competitive regulation.
Regarding the progress of network structure changes through deployment of NGN, optical fiber network, etc. in both countries, we agreed to exchange opinions more frequently to share our best practices.

Spam and cyber security
Both sides exchanged information and opinions on anti-spam measures and information security promotion framework in both countries.

We recognized the importance of international cooperation regarding anti-spam measures and agreed that both countries will consider specific cooperative measures.

Digitization of broadcasting and media convergence
Both sides exchanged information and opinions on the present status of digitization of terrestrial broadcasting and of new services such as IP television and mobile broadcasting in both countries. Particularly, the government of Japan described the schedule of termination of terrestrial analog broadcasting and its announcements.

We confirmed that both countries have common problems in the broadcasting field, such as digitization and the emergence of new services, and agreed to exchange opinions more frequently.

Other issues
We confirmed that both countries have many common problems in the ICT field, and agreed to consider establishing a cooperative relationship, such as an interchange of human resources under the “Declaration for a new Japan-France partnership.”

 
 
 

International Policy Division,
International Affairs Department,
Telecommunications Bureau,
Ministry of Internal Affairs and Communications (MIC)
1-2, Kasumigaseki 2-chome, Chiyoda-ku, Tokyo 100-8926, Japan
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Tel: +81-3-5253-5920
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