Interenational Affairs Department, Telecommunications Bureau MIC Communications News Vol.17 No.12 September 29, 2006 Biweekly Newsletter of the Ministry of Internal Affairs and Communications(MIC), Japan

Please feel free to use articles in this publication, with proper credits.


MIC has compiled the results of the survey on “overall results of Japan’s communications industry,” conducted in July 2007, for the second quarter of FY2007 (Q-II) and the third quarter of FY2007 (Q-III).

- The sales forecast diffusion index (DI)*1 continues to be “positive” among telecommunications carriers and cable TV operators (which means that a majority of the carriers and operators expect sales to increase), while that of commercial broadcasters remains “negative.”

- The business conditions diffusion index (DI)*2 continues to be “positive” among telecommunications carriers and cable TV operators (which means that a majority of the carriers and operators expect business conditions to improve), while that of commercial broadcasters remains “negative.”

Notes:
*1. Sales forecast diffusion index (DI): the “percentage of companies predicting an increase in sales” minus the “percentage of companies predicting a decrease in sales over the previous quarter.”
*2. Business conditions diffusion index (DI): the “percentage of companies predicting improvement in business conditions” minus the “percentage of companies predicting decline in business conditions.”


Survey on “Overall results of Japan’s Communications Industry”

Since April 1995, MIC has conducted surveys on Japan’s communications industry, on sales and sales forecasts etc, in order to promptly comprehend the management trends in the communications industry (telecommunications carriers and broadcasters).

Survey Target:

Based on the sales share in each business category (e.g., telecommunications and commercial broadcasting) in FY2005, a total of 133 sample companies in the overall communications industry were allocated to determine the number of samples in each business category (the number of samples (133) was calculated as the significant sample value based on the population in the overall communications industry). The data was subsequently processed in two steps for each business category, on a total sample basis and on a random sampling basis, in order to minimize the standard error. The total number of samples was determined and top companies in sales were extracted until the number of companies reached the allocated number. Random sampling was then conducted from the remaining population.

Survey Method:

Questionnaire survey (by sending questionnaire sheets and receiving responses via fax or as input over the Internet)

Survey Items:

1) Surveys in July, October, January, and April
Sales forecast, financial position forecast, and business condition forecast as of the end of the previous month
2) Monthly surveys
Sales conditions

Response Rate (for this flash report):

Sales forecast




Financial position forecast




Business conditions forecasts



top



Number of Subscription Contracts to Broadband Services (as of the end of June 2007)

Pursuant to the provisions of the Rules for Reporting on Telecommunications Business (Ministerial Ordinance of MPT No. 46 of 1988), MIC has compiled reports on numbers of subscription contracts to broadband services (as of the end of June 2007) submitted by telecommunications carriers. Thus, MIC discloses those data.

Major Trends

The number of subscription contracts to broadband services reaches 27.15 million

The number of subscription contracts to broadband services reached 27.15 million as of the end of June 2007. The number at the end of March 2007 was 26.44 million, so there was an increase of 710,000 subscribers over the previous quarter.

The number of subscription contracts to FTTH access services reaches 9.66 million

The number of subscription contracts to FTTH access services reached 9.66 million as of the end of June 2007, a net increase of 860,000 over the previous quarter.

Breakdown of various services
* Figures in parentheses show the percentage of the individual services within broadband services
* Number of broadband subscribers: Total of subscribers to FTTH access services, DSL access services, CATV access services, and FWA access services
* The figures for the total of broadband services, subscriptions to FTTH, DSL and CATV for March 2007 were corrected. The corrected figures are underlined.


Trends in the number of subscription contracts to broadband services, etc.

Trends in the number of subscription contracts to broadband services

• Trends in the number of subscription contracts to broadband services
The number stood at 27.15 million as of the end of June 2007. The number at the end of March 2007 was 26.44 million, so there was an increase of 710,000 subscribers over the previous quarter.



• Broadband subscription breakdown by service type
The proportion of FTTH continues to increase.



•The number of broadband service contracts by prefecture
There are 8 prefectures with over 1.0 million subscribers each. These are Tokyo, Kanagawa, Osaka, Saitama, Aichi, Chiba, Hyogo and Fukuoka.



• Increases and decreases for each type of broadband service by prefecture (compared to previous term)
The number of FTTH subscriptions is on the increase for all prefectures.



• The breakdown of broadband services by prefecture
The proportion of CATV is high in Mie, Toyama and Fukui. FTTH accounts for more than 30% of the total in 22 prefectures, with some areas over 40% of the total.



• The number of operators providing FTTH and DSL by prefecture
Operators providing DSL are spread across the entire country whereas those providing FTTH tend to be concentrated in urban areas.



The number of subscription contracts to FTTH access services

• Trends in the number of contracts to FTTH access services
The number reached 9.66 million as of the end of June, 2007.



• Net increase by quarter for FTTH access services
The net increase in the number of FTTH access services for this term was 860,000.

Note: With regard to the net increase figure for April to June 2004, the method used for calculations was changed starting in April 2004, so the figure is a dummy value calculated based on statistics and so differs from results obtained from published values.



The number of subscription contracts to DSL access services

The number reached 13.79 million as of the end of June 2007.



Comparison of net increase for FTTH and DSL

FTTH is pulling along the overall growth in broadband contracts.

Note: With regard to the FTTH net increase figure for April to June 2004, the method used for calculations was changed starting in April 2004, so the figure is a dummy value calculated based on statistics and so differs from results obtained from published values.



The number of subscription contracts to CATV access services

The number reached 3.69 million as of the end of June 2007.



The number of subscription contracts to FWA access services

The number reached 12,501 as of the end of June 2007.



top