1

Current Status of Broadband Services

in JapanHideki Yagi

Communications and Information network Association of Japan

2

e-Japan Strategy

Basic IT Law(Basic Law on Formation of an Advanced Information and

Telecommunications Network Society)

November 2000

“e-Japan Strategy” Objective: Make Japan the world’s leading IT nation by Y2005

January 2001

“e-Japan Strategy II” Objective: The practical application and implementation of Japan’s IT

infrastructure and advanced technology

July 2003

Focusing on the promotion of broadband infrastructure

Focusing more on broadband content and application

3

Target of Broadband Service Penetration of e-Japan

Actual

Always-on environment achieved in 2003High-speed DSL 35 million householdsCATV 23 million households

Ultra high-speed FTTH 17.7 million households

TargetAlways-on environment by 2005

High-speed:30 million households

Ultra high-speed:

10 million households

4

Fiber Optic Infrastructure in Japan

100%

72%

20%

1994 2000 2003 2005 2010(FY)

Private Sector Initiative

achievement

Government Support for CarriersUltra-low interest financing (since FY95)Tax benefit incentive (since FY91)

e-Japan Strategy

Coverage

Current Status of Establishment of Fiber Optic Cable

Backbone Almost all networks have been replaced by fiber optic cables

Access network About 72% of feeder points have been covered (at the end of March 2003)

Previous Target released in May 94

5

Broadband Service Subscribers in Japan

0 0 70 650

4,220

9,23011,200

12,330

2,380

7,020

2,7402,5802,3402,0701,8001,4601,150780460220903030 120 310 690 1,5101,140

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

99/3 99/9 00/3 00/9 01/3 01/9 02/3 02/9 03/3 03/9 04/3 04/7

ADSL

CATV

FTTH

(Thousand subscribers)

(Year/month)

Source: MIC (Ministry of Internal Affairs & Communications)

6

Comparison of Broadband Services in Japan

Monthly Charge (USD) Max. Speed No. of

Operators

DSL Approx. $30Normally 24 to 26 Mbps

More than 40 Mbps in metropolitan areas

44

FTTH $35 to $50 100 Mbps 12

CATV $30 to $40Normally 8 to 10 Mbps

30 Mbps in metropolitan areas

347

Source: MIC

7

Int’l Comparison of Charge of Always-on DSL Service

28.8 30

60 59.854

78.873.3

37.8

0

25

50

75

100

Note: Flat rate including comm. charge & ISP charge

(US$ per month) (Speed of Downlink)

24Mbps 8M40M 1.5M 1M 1M 3M 2.4M

Source: MIC

8

Changes in the Number of Mobile Phone Subscribers

0

10

20

30

40

50

60

70

80

90

1996 1997 1998 1999 2000 2001 2002 2002 2003 2003 Aug.2004

Aug.2004(FY)

3G(26%)

Can connect with Internet

(86%)

Number of mobile phone

subscribers(83.5 mil.)

2000First mobile phones with

cameras

2001Start of 3G

service

Million subscribers

1999Start of mobile internet access

service

Mobile phone with

camera (66%)

Source: MIC

9

Concept of High Speed PLC

ADSL/FTTH

Technological break-through modulation methods:Wide Bandwidth Spectrum Spread, Multi-Carrier, OFDM

PLC Modem Outlet

PCs

Router

Internet TV

Home Server

Max. Speed: 200MbpsFrequency: 2-30MHz

10

Evolution of Access Speed

Next Generation of FTTH Service

High Speed Mobile Internet Service

Current 3G (W-CDMA)

Max. Speed: 384 Kbps

3.5G Service by HSDPA

Max. Speed: 14.4 Mbps

1st phase (2005):

3.6Mbps

Current Service

Max. Speed: 100 Mbps

New Service

expected in 2006

Max. Speed: 1Gbps

11

Fukuoka NICT Keihanna

Okayama

Kochi

NICT Kita-kyushu Nagoya

Kanazawa

Sapporo

Sendai

NICT Tsukuba

Tokyo

Nagano

NICTOsaka

Okinawa

20Gbps

Diagram of the New R&D-Use Test Bed Network (JGN II)

10Gbps1Gbps

Core network

Optical test bed

U. S. A.

(10 Gbps)

site

Since August 2004