References

1. Status of Facilities Competition in G7 Countries
2. Major Telecommunications Carriers' Revenues
3. Construction of Fiber-optic Network
4. Schedule for Construction of Fiber-optic Network
5. Support for Implementation of Fiber-optic Network
6. Activation of Telecommunications Equipment Market
7. International Procurement Amounts of Type I Telecommunications Carriers
8. Trends in Technology Trade
9. Current Status of Broadcasting Business in Japan

1) 1993

Source:OECD Communications Outlook (1997)

Country Classification		Japan	U.S.	U.K.	Canada	France	Germany	Italy
Public switched telephone network	Local	C	C	C	C	1998	1998	1998
	Trunk	C	C	C	C	1998	1998	1998
	International	C	C	C	M	1998	1998	1998
Data communi- cations and Leased circuits	X.25	C	C	C	C	C	C	1998
	LLs	C	C	C	C	C	C	1998
Mobile communi- cations	Analog cellular	C	C	C	RD	RD	M	M
	Digital cellular	C	C	C	C	C	C	RD
	Radio paging	C	C	C	C	C	C	-
Number of mobile carriers within the same market		7	up to 8	4	4	3	3	2

Notes:

1.

Comparison based on operating revenues (sales) figure for FY 1996

1)

For NTT, data are based on figures for FY 1996 financial results.

2)

For AT&T, data used are for operating revenues from telecommunications services.

3)

For all companies including NTT, data used are for consolidated revenues. For NTT alone, revenues were 6,371.2 billion yen.

4)

NTT East figure comprises combined revenues for Hokkaido, Tohoku, Kanto, Tokyo and Shinetsu regional divisions. NTT West figure comprises combined revenues for Tokai, Hokuriku, Kansai, Chugoku, Shikoku and Kyushu regional divisions.

5)

Figure for NTT Long-distance indicates revenues for long-distance division.

2.

Exchange rate to Japanese yen used is the closing rate on January 6,1997. (US Dollar 1=116.65 yen; DM1=74.29 yen; FF 1=21.98 yen; Pound sterling 1=197.61 yen; Canadian Dollar=85.11 yen)

3.

"*" are 7 RHCs (Regional Holding Companies) in the U.S.

4.

SBC and Pacific Telesis were merged on April 1, 1997.

5.

Bell Atlantic and NYNEX were merged on August 15, 1997.

1)Installation conditions in terms of cable length used

(As of the end of FY96; unit:1,000 km)

Item	Cable length	Fiber-optic cable (ratio)
Transit System	291.6	191.9 (66%)
Subscriber Loop     System	1,106.1	107.1 (9.7%)
Total	1,397.7	299.0 (21.4%)

2)Change in usage rate of fiber-optic cables (cable length)

(Unit: %)

Item	FY89	FY90	FY91	FY92	FY93	FY94	FY95	FY96
Transit System	-	-	36	42	48	55	60	66
Subscriber Loop System	-	-	2.3	2.9	3.8	4.7	6.4	9.7
Total	4.9	6.7	8.6	10.1	12.4	15.1	17.3	21.4

3)Investment in fiber-optic networks

(unit: 1 billion yen)

End of Fiscal Year	FY1994	FY1995	FY1996
Transit System	341.4	297.2	338.7
Subscriber Loop     System	129.9	244.7	331.5
Total	471.3	541.9	670.2

Special loan system

Special Loan System for the Implementation of Subscriber Fiber-Optic Network

A subsidy for loan interest from the Telecommunications Advancement Organization of Japan can be used to supplement interest payments on NTT-C' loans (long-term 15-year loans ) for Type I telecommunications carriers and cable TV operators. The aforementioned loans are provided by the Japan Development Bank and others, based on the Special Measures Law for Development of Social Infrastructure. The subsidy covers up to 2% of the loan interest, while the minimum interest rate after subsidization is set at 2% for the first five years and 2.5% after that.

Tax incentives

Corporate tax

  Application of special depreciation of corporate tax
  Benefits of special depreciation of the corporate tax (Transit system : 7%, Subscriber loop system : 8% in FY 1998) can be applied for by Type I carriers intending to implement subscriber fiber-optic networks.

Fixed property tax

Reduction of the taxation standard for fixed property tax (1/4 reduction in FY 1998) can be applied for by Type I carriers intending to implement subscriber fiber-optic networks.

Transition in Production of Communications Equipment



Note:

Data are based on the Statistics of Actual Production by the Ministry of Trade and Industry (MITI).

Transition in Shipment of Cables



Notes:	*1:	Data are based on the annual statistics of electric wire and cables by Japanese Electric Wire and Cable Makers Associat ion, etc.
	*2:	Figures on fiber-optic cable shipments include other opticaldevices.
	*3:	Figures on communications cable are based on actual copper cable shipments in the telecommunications field.




Transition in Personal Computer Shipments



Note:

Data are based on the material from JEIDA (Japan Electronic Industry Development Association).

Operating Status of Broadcasters

Notes:	1.	Numbers of broadcasters include NHK, the University of the Air and other broadcasters.
	2.	Figures in parenthesis are the numbers of program supplying broadcasters who entrust broadcasting to facility supplying broadcasters (broadcast station licensees).

	FY91	FY92	FY93	FY94	FY95	FY96	FY97	5.98
AM broadcasters	48	48	48	48	48	48	48	48
Shortwave broadcasters	2	2	2	2	2	2	2	2
FM broadcasters	41	42	46	46	49	51	51	51
Community broadcasters		1	6	16	30	68	93	103
FM sound multiplex broadcasters	1	1	1	1	1
FM teletext multiplex broadcasters					34	40	40	40
FM teletext multiplex broadcasters  by community broadcasters								1
TV broadcasters	117	119	122	123	125	128	128	128
TV sound multiplex broadcasters	110	113	116	119	122	126	68	58
TV teletext multiplex broadcasters	25	25	25	25	24	25	26	26
TV data multiplex broadcasters						2	13	14
TV teletext multiplex and TV data multiplex broadcasters							16	16
BS TV broadcasters	2	2	2	2	2	2	2	2
BS sound multiplex broadcasters	3	3	3	3	3	3	2	2
BS data multiplex broadcasters				1	1	1	1	1
CS digital TV broadcasters						1 (56)	2 (71)	3 (115)
CS digital sound broadcasters						1 (6)	2 (8)	3 (8)
CS digital data broadcasters						1 (1)	2 (2)	3 (4)
CS analog TV broadcasters		2 (6)	2 (9)	2 (10)	2 (13)	2 (13)	2 (13)	2 (8)
CS analog sound multiplex broadcasters		2 (6)	2 (9)	2 (10)	2 (13)	2 (13)	2 (13)	2 (8)
CS analog teletext multiplex broadcasters					1 (2)	1 (2)	1 (2)	1 (2)
CS-PCM sound multiplex broadcasters		2 (6)	1 (4)	1 (3)	1 (2)	1 (1)	1 (1)	1 (1)
CS analog data multiplex broadcasters					1 (1)	1 (1)	1 (1)	1 (1)

Diffusion of Terrestrial Broadcasting

Note:

In addition to the above, the University of the Air Foundation broadcasts one TV and one FM channel, targeting a major part of the Kanto Region as its coverage area.

	Commercial broadcasters	NHK
TV Broadcasting	Four to six broadcast channels are viewable in 90% of total household.	One general and one education channel are broadcast nationwide.
AM Broadcasting	Available nationwide. In major areas,two or three channels are broadcast.	One general and one education channel are broadcast nationwide.
FM Broadcasting	Available nationwide. In major areas two channels are broadcast. In addition,community broadcasting is conducted.	One channel is broadcast nationwide.
Short Wave	One channel is broadcast nationwide.	(Overseas broadcasting is Broadcasting conducted.)

Current Status of DBS in Japan

a)

DBS via broadcasting satellite


b)

DBS via communications satellites

i. Transition of receiver's contract


(Unit: 1,000 households)

		Mar. 1993	Mar. 1994	Mar. 1995	Mar. 1996	Mar. 1997	Apr. 1998
CS TV broadcasting	Analog	44	127	275	516	626	279
	Digital	-	-	-	-	236	672
CS-PCM		-	12	25	38	45	128

ii. Numbers of licensees and channels by type
Digital broadcasting


Notes:	*1.	Four of 7 sound broadcasters operate standard TV broadcasting service.
	*2.	The data broadcaster operates standard broadcasting service.

	Type of broadcasting	No. of licensees	No. of channels
JSAT (JCSAT-3)	Standard TV broadcasting Sound broadcasting Data broadcasting	61 7*1 1*2	103 107 26
JSAT (JCSAT-4)	Standard TV broadcasting Sound broadcasting Data broadcasting	58 1 2	68 29 17
SCC (SUPERBIRD-C)	Standard TV broadcasting Sound broadcasting Data broadcasting	18 1 1	90 29 16


Analog broadcasting


Satellite	Type of broadcasting	No. of licensees	No. of channels
JSAT (JCSAT-2)	PCM sound broadcasting Data broadcasting	1 1	17 1
SCC (SUPERBIRD-B)	Standard TV broadcasting	8	9