chapter 3 · 6.8% business services 62.5 6.2% transportation equipment 57.9 5.8% personal services...

27
1. ICT Industry Trends (1) Domestic production value ICT industry’s production value was 97.5 trillion yen, making it the largest industry The ICT industry’s nominal domestic production val- ue in 2017 was 97.5 trillion yen, accounting for 9.7 per- cent of all industries and making it the largest industry in the country (Figure 3-1-1-1). It had reached 116.6 tril- lion yen in 2000, however, its production value cooled off for several years in response to the collapse of the IT bubble. The industry started growing again from 2005 and reached 113.8 trillion yen in 2007, but its production value plummeted to 98.9 trillion yen in 2009 due to the 2008-9 global financial crisis. Even after 2010 it contin- ued to slide, dropping to 89.9 trillion yen in 2012.How- ever, since 2013 signs of recovery finally started to ap- pear. (Figure 3-1-1-2). Section 1 Economic size of the ICT industry Construction 63.6 6.5% Construction 63.6 6.5% Business services 59.6 6.1% Business services 59.6 6.1% Business services 59.6 6.1% Transportation equipment 58.2 5.9% Transportation equipment 58.2 5.9% Transportation equipment 58.2 5.9% Personal services 49.9 5.1% Personal services 49.9 5.1% Personal services 49.9 5.1% 【Nominal domestic production】 【Real domestic production】 Nominal domestic production value of all industries (2017) 1,003.7 trillion yen Nominal domestic production value of all industries (2017) 1,003.7 trillion yen Nominal domestic production value of all industries (2017) 1,003.7 trillion yen Real domestic production value of all industries (2017) 982.5 trillion yen Construction 68.3 6.8% Construction 68.3 6.8% Business services 62.5 6.2% Business services 62.5 6.2% Business services 62.5 6.2% Transportation equipment 57.9 5.8% Transportation equipment 57.9 5.8% Transportation equipment 57.9 5.8% Personal services 52.0 5.2% Personal services 52.0 5.2% Personal services 52.0 5.2% ICT industry 97.5 9.7% ICT industry 97.5 9.7% ICT industry 97.5 9.7% Commerce 97.1 9.7% Commerce 97.1 9.7% Commerce 97.1 9.7% Real estate 74.5 7.4% Real estate 74.5 7.4% Real estate 74.5 7.4% Other industries 423.1 42.2% Other industries 423.1 42.2% Other industries 423.1 42.2% ICT industry 99.8 10.2% ICT industry 99.8 10.2% ICT industry 99.8 10.2% Commerce 91.7 9.3% Commerce 91.7 9.3% Commerce 91.7 9.3% Real estate 75.5 7.7% Real estate 75.5 7.7% Real estate 75.5 7.7% Medical, health and welfare 67.8 6.9% Medical, health and welfare 67.8 6.9% Medical, health and welfare 67.8 6.9% Other industries 416.3 42.4% Other industries 416.3 42.4% Other industries 416.3 42.4% Medical, health and welfare 70.9 7.1% Medical, health and welfare 70.9 7.1% (Unit: trillion yen) (Unit: trillion yen) Figure 3-1-1-1 Domestic production values of major industries (based on nominal domestic production and real domestic pro- duction) (breakdown) (2017) (Source) “Study on Economic Analysis of ICT,” MIC (2019) 【Nominal domestic production】 【Real domestic production】 116.6 97.5 0 20 40 60 80 100 120 140 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (trillion yen) (year) 87.0 99.8 0 20 40 60 80 100 120 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (trillion yen, 2011 values) (year) Medical, health and welfare Commerce Real estate Business services Construction ICT industries Transportation equipment Personal services Figure 3-1-1-2 Changes in domestic production values of major industries (based on nominal domestic production and real do- mestic production) (Source) “Study on Economic Analysis of ICT,” MIC (2019) 32 Chapter 3 Chapter 3 Basic Data on the ICT Field

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Page 1: Chapter 3 · 6.8% Business services 62.5 6.2% Transportation equipment 57.9 5.8% Personal services 52.0 5.2% ICT industry 97.5 ... Chapter 3 Chapter 3 Basic Data on the ICT Field

1. ICT Industry Trends(1) Domestic production value・�ICT industry’s production value was 97.5 trillion yen, making it the

largest industryThe ICT industry’s nominal domestic production val-

ue in 2017 was 97.5 trillion yen, accounting for 9.7 per-cent of all industries and making it the largest industry in the country (Figure 3-1-1-1). It had reached 116.6 tril-lion yen in 2000, however, its production value cooled off

for several years in response to the collapse of the IT bubble. The industry started growing again from 2005 and reached 113.8 trillion yen in 2007, but its production value plummeted to 98.9 trillion yen in 2009 due to the 2008-9 global financial crisis. Even after 2010 it contin-ued to slide, dropping to 89.9 trillion yen in 2012.How-ever, since 2013 signs of recovery finally started to ap-pear. (Figure 3-1-1-2).

Section 1 Economic size of the ICT industry

Construction63.66.5%

Construction63.66.5%

Businessservices

59.66.1%

Businessservices

59.66.1%

Businessservices

59.66.1%

Transportationequipment

58.25.9%

Transportationequipment

58.25.9%

Transportationequipment

58.25.9%

Personal services49.95.1%

Personal services49.95.1%

Personal services49.95.1%

【Nominal domestic production】 【Real domestic production】

Nominal domesticproduction value of

all industries(2017)

1,003.7 trillion yen

Nominal domesticproduction value of

all industries(2017)

1,003.7 trillion yen

Nominal domesticproduction value of

all industries(2017)

1,003.7 trillion yen

Real domesticproduction valueof all industries

(2017)982.5 trillion yen

Construction68.36.8%

Construction68.36.8%

Businessservices

62.56.2%

Businessservices

62.56.2%

Businessservices

62.56.2%

Transportationequipment

57.95.8%

Transportationequipment

57.95.8%

Transportationequipment

57.95.8%

Personalservices

52.05.2%

Personalservices

52.05.2%

Personalservices

52.05.2%

ICTindustry

97.59.7%

ICTindustry

97.59.7%

ICTindustry

97.59.7%

Commerce97.19.7%

Commerce97.19.7%

Commerce97.19.7%

Real estate74.57.4%

Real estate74.57.4%

Real estate74.57.4%

Otherindustries

423.142.2%

Otherindustries

423.142.2%

Otherindustries

423.142.2%

ICTindustry

99.810.2%

ICTindustry

99.810.2%

ICTindustry

99.810.2%

Commerce91.79.3%

Commerce91.79.3%

Commerce91.79.3%Real estate

75.57.7%

Real estate75.57.7%

Real estate75.57.7%

Medical,health

and welfare67.86.9%

Medical,health

and welfare67.86.9%

Medical,health

and welfare67.86.9%

Otherindustries

416.342.4%

Otherindustries

416.342.4%

Otherindustries

416.342.4%Medical,

healthand welfare

70.97.1%

Medical,health

and welfare70.97.1%

(Unit: trillion yen) (Unit: trillion yen)

Figure 3-1-1-1 Domestic production values of major industries (based on nominal domestic production and real domestic pro-duction) (breakdown) (2017)

(Source) “Study on Economic Analysis of ICT,” MIC (2019)

【Nominal domestic production】 【Real domestic production】

116.6

97.5

0

20

40

60

80

100

120

140

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(trillion yen)

(year)

87.0

99.8

0

20

40

60

80

100

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(trillion yen, 2011 values)

(year)

Medical, health and welfareCommerce Real estateBusiness services

ConstructionICT industriesTransportation equipment Personal services

Figure 3-1-1-2 Changes in domestic production values of major industries (based on nominal domestic production and real do-mestic production)

(Source) “Study on Economic Analysis of ICT,” MIC (2019)

32

Chap

ter 3 Chapter 3

Basic Data on the ICT Field

Page 2: Chapter 3 · 6.8% Business services 62.5 6.2% Transportation equipment 57.9 5.8% Personal services 52.0 5.2% ICT industry 97.5 ... Chapter 3 Chapter 3 Basic Data on the ICT Field

In 2017 the ICT industry’s real domestic production value based on constant 2011 values was 99.8 trillion yen and accounted for 10.2% of all industries. In contrast to the nominal values, it has increased since 2000 and reached 102.7 trillion yen in 2007. It decreased to 91.3 trillion yen in 2012, but signs of recovery could be seen from 2013.

(2) Gross Domestic Product (GDP)・�The nominal GDP of the ICT industry in 2017 was 43.9 trillion yen and

accounted for 8.6 percent of all industriesThe nominal GDP of the ICT industry rose in 2017 by

0.9 percent year-on-year to 43.9 trillion yen. Looking at the size of nominal GDP of the main industries shows that the ICT industry’s nominal GDP accounts for 8.6 percent of the combined nominal GDPs of all industries and is the third largest after the commerce and real es-tate industries. Real GDP according to constant 2011 values accounted for 9.5% of the real GDP of all indus-tries (Figure 3-1-1-3).

Looking at the growth rate in 2016-2017, ICT industry rose by 2.0% year-on-year, and is the third highest after the transportation equipment (9.2%) and construction

(4.4%) industries (Figure3-1-1-4).Similar to the nominal domestic production value, the

nominal GDP of the ICT-related manufacturing and ICT-related construction industries has been decreasing. On the other hand, the Internet-related services industry has grown rapidly.

(3) Employment・�ICT industry employment totaled 3.99 million in 2017 and accounted

for 5.8 percent of total employment in all industries, which is a 15.9% decrease from 2000The ICT industry employed 3.99 million people in

2017 (up 0.1 percent from the previous year), and ac-counted for 5.8 percent of total employment in all indus-tries. Compared with 2016, Internet-related services (up 3.4% from the previous year), communications (up 2.4%), and information services (up 1.6%) were steadily grow-ing. However, video, audio and text information produc-tion (down 4.0%), broadcasting (down 1.8%), ICT-related services (down 1.5%), and ICT-related manufacturing (down 0.9%) decreased (Figure 3-1-1-5).

Nominal GDP ofall industries

(2017)508.4 trillion yen

Nominal GDP ofall industries

(2017)508.4 trillion yen

Nominal GDP ofall industries

(2017)508.4 trillion yen

Real GDP ofall industries

(2017)488.2 trillion yen

ICTindustry

43.98.6%

ICTindustry

43.98.6%

ICTindustry

43.98.6%

Commerce64.8

12.7%

Commerce64.8

12.7%

Commerce64.8

12.7%

Real estate58.5

11.5%

Real estate58.5

11.5%

Real estate58.5

11.5%

Medical,health

and welfare42.68.4%

Medical,health

and welfare42.68.4%

Construction31.56.2%

Construction31.56.2%

Construction31.56.2%

Businessservices

41.28.1%

Businessservices

41.28.1%

Businessservices

41.28.1%

Transportationequipment

11.72.3%

Transportationequipment

11.72.3%

Transportationequipment

11.72.3%

Personalservices

27.65.4%

Personalservices

27.65.4%

Personalservices

27.65.4%

Otherindustries

186.636.7%

Otherindustries

186.636.7%

Otherindustries

186.636.7%

ICTindustry

46.39.5%

ICTindustry

46.39.5%

ICTindustry

46.39.5%

Commerce60.0

12.3%

Commerce60.0

12.3%

Commerce60.0

12.3%

Real estate60.1

12.3%

Real estate60.1

12.3%

Real estate60.1

12.3%

Medical,health

and welfare39.28.0%

Medical,health

and welfare39.28.0%

Medical,health

and welfare39.28.0%

Construction29.76.1%

Construction29.76.1%

Construction29.76.1%

Businessservices

38.77.9%

Businessservices

38.77.9%

Businessservices

38.77.9%

Transportationequipment

10.52.2%

Transportationequipment

10.52.2%

Transportationequipment

10.52.2%

Personalservices

26.95.5%

Personalservices

26.95.5%

Personalservices

26.95.5%

Otherindustries

176.836.2%

Otherindustries

176.836.2%

Otherindustries

176.836.2%

【Nominal GDP】 【Real GDP】

(Unit: trillion yen) (Unit: trillion yen)

Figure 3-1-1-3 Nominal GDP and real GDP of major industries

(Source) “Study on Economic Analysis of ICT,” MIC (2019)

【Nominal GDP】 【Real GDP】

Medical, health and welfareCommerce Real estateBusiness services

ConstructionICT industriesPersonal servicesTransportation equipment

53.4

43.9

0

10

20

30

40

50

60

70

80

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(trillion yen)

30.6

46.3

0

10

20

30

40

50

60

70

80

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(trillion yen, 2011 value)

(year)2017(year)

Figure 3-1-1-4 Changes in the nominal GDP and real GDP of major industries

(Source) “Study on Economic Analysis of ICT,” MIC (2019)

33

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2. ICT industry contributions to the national economy(1) ICT industry’s economic spillover e�ects・�The scale of economic spillover e�ects caused by the ICT industry is

one of the largest in all industries in terms of induced added valueWhen different industries make intermediate inputs

to the production activities of the ICT industry, this gen-erates added value (e.g. operating surplus and employee compensation) in those industries. The economic spill-over effects54 of the ICT industry were estimated to be

84.8 trillion yen in induced added value, and 8.416 mil-lion in induced employment. ICT industry shows the largest economic spillover effect in terms of induced added value, and also shows higher inducement in jobs than the transportation equipment industry (2.859 mil-lion jobs), which is recognized as one of broad indus-tries.(Figure 3-1-2-1).

3. Trade in the ICT �eld(1) Technology trading・The ICT industry posted a surplus in technology exports55 in FY 2017

The received value from Japan’s technology exports in FY 2017 totaled 3.8844 trillion yen, to which the ICT industry contributed 512.3 billion yen, or 13.2 percent.

On the other hand, the cost of technology imports was 629.8 billion yen, of which 241.7 billion yen came out of the ICT industry, or 38.4 percent. While the total of tech-nology trading, together with the ICT industry, posted export surpluses, on the other hand the Information and

Figure 3-1-2-1 Changes in economic spillover e�ects (induced added value and jobs) from major industries’ production activities

(Source) “Study on Economic Analysis of ICT,” MIC (2019)

ICT industry Commerce Real estateConstruction

Medical, health care and welfarePersonal serviceBusiness service Transportation equipment

【Induced added value】 【Induced employment】

73.880.2

81.4 80.9

83.0 83.1 84.8

0

20

40

60

80

100

120

2000 2005 2011 2014 2015 2016 2017

(Trillion yen)

(year)

9.9259.140

8.634 8.253 8.299 8.398 8.416

02468

1012141618

2000 2005 2011 2014 2015 2016 2017

(millions)

(year)

54 There are two methods of calculating economic spillover effects: (1) calculating the economic spillover effects for all Japan’s industries brought about by each industry sector’s final demand, focusing on the goods and services that constitute the industry sector’s final demand and (2) calculating the economic spillover effects for all Japan’s industries brought about by each industry sector’s production activities (total of final demand and intermediate demand), focusing on the industry sector itself. The latter method was used here.

Figure 3-1-1-5 Changes in employment in the ICT industry

(Source) “Study on Economic Analysis of ICT,” MIC (2019)

ICT-related manufacturingVideo, audio and text information productionBroadcasting

Internet-related servicesICT-related services

Communications Information services

ICT-related construction Research

4.7434.531

4.194 4.139 4.164 4.156 4.201 4.187 4.203 4.118 4.01 3.949 3.903 4.021 3.978 3.952 3.985 3.99

0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(millions of jobs)

(year)

34

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communications posted import surpluses. ICT equip-ment and appliance manufacturing sector accounted for the largest share of the ICT industry’s technology ex-

ports, while Information and Communications account for the largest of share of imports. (Figure 3-1-3-1).

4. Research and development in the ICT �eld(1) Research and development spending・�The ICT industry56 spent 3.7117 trillion yen on research in FY 2017,

accounting for 26.9 percent of all corporate research spendingAccording to the “Survey of Research and Develop-

ment”, Japan’s total scientific and technological research spending (i.e., research spending) in FY 2017 stood at 19.0504 trillion yen (the combined research spending by enterprises, nonprofit organizations, public agencies,

universities, etc.).Corporate research spending, which accounts for

about 70 percent of all research spending, was 13.7989 trillion yen. Of this amount, 3.7117 trillion yen (26.9 per-cent) was spent on research by the ICT industry. The ICT equipment and appliance manufacturing sector was the largest research spender in the ICT industry (Figure 3-1-4-1).

55 The value of technology trade is the equivalent value received from the provision (export) of patents, knowledge, technical direction, and other forms of technology transfers to other countries or the equivalent value paid the reception (import) of the same forms of technology transfers from other countries.

56 ICT industry here refers to the ICT equipment and appliance manufacturing segment, the electrical equipment and appliance manufacturing segment, the electronic component, device, and circuitry manufacturing segment, and the information and communications segment (includ-ing information services, communications, broadcasting, Internet-related services, and other ICT sectors).

Figure 3-1-4-1 Breakdown of corporate research spending by industry (FY 2017)

(Source) Prepared from the “Survey of Research and Development,” MIC

ICT equipmentand appliancemanufacturing

1.33749.7% Electrical equipment and

appliance manufacturing1.12558.2%

Electronic component,device, and circuitry

manufactruing0.64274.7%

Communications0.28432.1%

Information services0.31192.3%

Total for othermannufacturing

industries8.876264.3%

Total for othermannufacturing

industries8.876264.3%

Total for other industries1.2109

8.8%

(corporate research spending: 13.7989 trillion yen)

Internet-related and otherICT services

0.00890.1%

Broadcasting0.00110.0%

(Unit: trillion yen)

Figure 3-1-3-1 Technology trading by industry (FY 2017)

(Source) Prepared from the “Survey of Research and Development,” MIC

Electrical equipmentand appliancemanufacturing

24.73.9%

Electrical equipmentand appliancemanufacturing

24.73.9%

Electrical equipmentand appliancemanufacturing

24.73.9%

Electroniccomponent,device, and

circuitrymanufacturing

7.81.2%

Electroniccomponent,device, and

circuitrymanufacturing

7.81.2%

Electroniccomponent,device, and

circuitrymanufacturing

7.81.2%

ICT equipment andappliance manufacturing

290.17.5%

ICT equipment andappliance manufacturing

290.17.5%

ICT equipment andappliance manufacturing

290.17.5%

Electrical equipment andappliance manufacturing

181.14.7%

Electrical equipment andappliance manufacturing

181.14.7%

Electrical equipment andappliance manufacturing

181.14.7%

Electronic component,device, and circuitry

manufacturing23.30.6%

Electronic component,device, and circuitry

manufacturing23.30.6%

Electronic component,device, and circuitry

manufacturing23.30.6%

Information andcommunications

17.80.5%

Information andcommunications

17.80.5%

Information andcommunications

17.80.5%Total for other

manufacturing industries3326.585.6%

Total for othermanufacturing industries

3326.585.6%

Total for othermanufacturing industries

3326.585.6%

Total for otherindustries

45.71.2%

Total for otherindustries

45.71.2%

Total for otherindustries

45.71.2%

Value of technology exports(all industries: 3.8844 trillion yen)

Value of technology exports(all industries: 3.8844 trillion yen)

Value of technology exports(all industries: 3.8844 trillion yen)

ICT equipmentand appliancemanufacturing

89.514.2%

ICT equipmentand appliancemanufacturing

89.514.2%

ICT equipmentand appliancemanufacturing

89.514.2%

Information andcommunications

119.819.0%

Information andcommunications

119.819.0%

Information andcommunications

119.819.0%

Total for othermanufacturing

industries355.356.4%

Total for othermanufacturing

industries355.356.4%

Total for othermanufacturing

industries355.356.4%

Total for otherindustries

32.75.2%

Total for otherindustries

32.75.2%

Total for otherindustries

32.75.2%

Value of technology imports(all industries: 629.8 billion yen)

Value of technology imports(all industries: 629.8 billion yen)

Value of technology imports(all industries: 629.8 billion yen)

(Unit: billion yen) (Unit: billion yen)

35

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(2) Number of researchers・�The ICT industry employed 171,235 researchers, or 34.3 percent of all

corporate researchers in JapanThere were 866,950 researchers in Japan as of March

31, 2018 (the total of all researchers at enterprises, non-profit organizations, public agencies, universities, etc.).

171,235 people (34.3 percent of all corporate research-ers) out of 498,732 corporate researchers (about 58 per-cent of all researchers) are in the ICT industry. The ICT equipment and appliance manufacturing sector had the most researchers of any ICT industry sector (Figure 3-1-4-2).

5. Current State of ICT enterprise operationsThe Basic Survey on the Information and Communi-

cations Industry is a general statistical survey (started in 2010) that MIC and the Ministry of Economy, Trade and Industry jointly conduct under the Statistics Act (Law No. 53 of 2007) to clarify the operations of enter-prises belonging to the ICT industry ― a Large Catego-ry G in the Japan Standard Industry Classification ― and to obtain basic data for ICT industry policies. The following sections provide an overview of the 2018 sur-vey that pertains to enterprises operations.

(1) Summary of enterprises engaging in ICT business operations (activity-base results)

a. General summary of the survey results・�5,467 enterprises were engaged in ICT business operations with sales

in excess of 49 trillion yenSales attributed to ICT business operations in FY 2017

totaled 49.7496 trillion yen (total sales by all enterprises were 66.5058 trillion yen). By sector, the telecommuni-cations sector accounted for 35.2 percent of all sales (up 0.1 percentage points from the previous year), the soft-ware sector 31.1 percent (up 0.1 points), and the data

processing and information sector 12.9 percent (up 0.8 points) (Figure 3-1-5-1).

The number of enterprises engaging in ICT business operations (irrespective of whether ICT business opera-tions are the enterprise’s mainstay operations) stood at 5,467. Operating profits were 6.2755 trillion yen, ordi-nary income was 6.9263 trillion yen, and the enterprises held 10,304 subsidiaries and associated companies.

b. Breakdown of sales・�Enterprises capitalized at less than 100 million yen accounted for

more than 60 percent of all enterprises in 8 out of 12 ICT industry sectorsA breakdown of ICT industry enterprises by capital

size reveals that enterprises capitalized at less than 100 million yen accounted for more than 60 percent of all enterprises in 8 out of 12 ICT industry sectors. Of par-ticular note are the sectors in video information produc-tion and distribution , and sound information production , where enterprises capitalized at less than 50 million yen accounted for more than 40 percent of all enterpris-es in each respective sector (Figure 3-1-5-2).

Figure 3-1-4-2 Corporate researchers by industry (as of March 31, 2018)

(Source) Prepared from the “Survey of Research and Development,” MIC

ICT equipmentand appliancemanufacturing

70,48014.1%

ICT equipmentand appliancemanufacturing

70,48014.1%

Electrical equipment andappliance manufacturing38,0177.6%

Electrical equipment andappliance manufacturing38,0177.6%

Electronic component, device,and circuitry manufacturing33,0406.6%

Electronic component, device,and circuitry manufacturing33,0406.6%Information services22,8474.6%

Information services22,8474.6%Communications5,6271.1%

Communications5,6271.1%Internet-related and otherICT services1,1740.2%

Internet-related and otherICT services1,1740.2%

Total for othermanufacturing

industries291,70958.5%

Total for othermanufacturing

industries291,70958.5%

Total forother

industries35,7887.2%

Total forother

industries35,7887.2%

(corporate researchers in all industries: 498,732)

Broadcasting500.0%

Broadcasting500.0%

(Unit: people)

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Figure 3-1-5-1 ICT industry sales

(Notes) *1 Figures in parentheses are the number of companies.*2 “Miscellaneous ICT businesses“ refers to enterprises that selected “other“ as the primary business in the breakdown of sales attributable to

ICT business operations.(Source) “2018 Basic Survey on the Information and Communications Industry,” MIC / METI

Telecommunications(372)

17.526135.2%

Telecommunications(372)

17.526135.2%

Software (2,878)15.487031.1%

Software (2,878)15.487031.1%

Internet-related services (667)3.31896.7%

Private broadcasting (373)2.34434.7%

Newspaperpublishers (127)

1.37202.8%

Publishers, exceptnewspapers (353)

1.03612.1%

Video picture informationproduction and

distribution (438)0.87941.8%

Cablecasting (216)0.50021.0%

Commercial art andgraphic design (171)

0.36670.7%

Audio programproducers (101)

0.15080.3%

Services incidential to videoinformation, sound information,

character information productionand distribution (170)

0.13330.3%

Miscellaneous ICTbusinesses

0.19810.4%

Data processingand informationservices (1,794)

6.436612.9%

Data processingand informationservices (1,794)

6.436612.9%

Sales in the ICTindustriesFY 2017

49.7496 trillion yen

(Unit: trillion yen)

Figure 3-1-5-2 Breakdown of ICT industry enterprises by capital size

(Source) “2018 Basic Survey on the Information and Communications Industry,” MIC / METI

1.5

1.1

1.3

1.2

0.7

1.0

0.6

0.6

0.3

0.60.6

Less than 50 million yen 50 million yen to less than 100 million yen 100 million yen to less than 300 milion yen300 million yen to less than 500 million yen 500 million yen to less than 1 billion yen 1 billion yen to less than 5 billion yen5 billion yen to less than 10 billion yen 10 billion yen or more

29.3

15.6

25.7

14.8

30.1

27.6

17.8

44.7

46.5

31.5

30.6

40.4

33.5

55.3

31.3

18.5

16.9

12.0

34.9

33.0

28.8

23.1

25.7

30.7

40.5

35.1

38.8

22.6

19.1

20.2

20.9

16.7

18.4

20.3

20.7

14.4

14.9

22.0

14.4

12.3

18.8

9.2

8.7

17.7

15.5

22.2

7.6

8.3

12.1

8.7

5.9

9.4

7.9

8.2

4.7

7.3

3.2

4.8

5.4

5.6

2.7

4.0

6.0

1.6

4.0

3.1

2.5

1.8

1.2

1.4

5.9

15.6

12.3

24.1

4.3

4.6

9.6

6.2

2.0

3.1

3.1

1.8

1.8

3.9

1.0

2.2

2.1

1.9

0.7

1.0

2.7

0.7

5.4

2.8

2.2

0.3

0 10 20 30 40 50 60 70 80 90 100(%)

Total (5,467)

Telecommunications (372)

Private broadcasting (373)

Cablecasting (216)

Software (2,878)

Data processing and information services (1,794)

Internet-related services (667)Video picture information production

and distribution (438)Audio program producers (101)

Newspaper publishers (127)

Publishers, except newspapers (353)

Commercial art and graphic design (171)Services incidential to video information, sound information,

character information production and distribution (170)(Reproduced) TV/radio program production work (358)

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6. Telecommunication market trends(1) Market size・�Mobile communications accounted for more than 50 percent of sales

in the telecommunications sector, while, by service category, the data transmission services’ share is increasing year by yearSales in the telecommunications sector in FY 2017

(Figure 3-1-6-1) were 14.0238 trillion yen (a decrease of 1.1 percent from the previous year). Fixed line commu-nications accounted for 32.4 percent of all sales in FY

2017, and mobile communications for 52.2 percent (Fig-ure 3-1-6-2). Looking at sales by service category shows that voice transmission services accounted for 27.6 per-cent and data transmission services for 56.9 percent (Figure 3-1-6-3). The average revenue per user (ARPU) among the main mobile communication service provid-ers was 4,800 yen for NTT DOCOMO, 6,560 yen for KDDI, and 4,360 yen for SoftBank (Figure 3-1-6-4).

Figure 3-1-6-1 Changes in telecommunications sector sales

(Note) Comparisons must be made with caution, as sales represent a simple sum of �gures from all responding carriers and the number of responding carriers di�ers from year to year.

(Source) Prepared from “Basic Survey on the Information and Communications Industry,” MIC / METI

13.2713 12.9551 13.6384 13.6904 14.0342 14.1862 14.0238

0

2

4

6

8

10

12

14

16

2011 2012 2013 2014 2015 2016 2017

(trillion yen)

(FY)

37.3 40.1 34.6 29.5 31.4 32.4

50.6 47.2 56.454.5 51.4 52.2

12.1 12.7 9.0 16.0 17.1 15.4

0102030405060708090

100

2006 2009 2012 2015 2016 2017

(%)

(FY)

Fixed line communications Mobile communications Other

Figure 3-1-6-2 Changes in telecom carriers’ sales broken down by �xed-line communications and mobile communications

(Note) Calculating excluding sales breakdown “Unknown“.(Source) Prepared from “Basic Survey on the Information and Communications Industry,” MIC / METI

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0102030405060708090

100(%)

63.152.5

40.529.2 26.1 27.6

24.834.8 50.5

54.8 56.8 56.9

12.1 12.7 9.0 16.0 17.1 15.4

2006 2009 2012 2015 2016 2017(FY)

Voice transmission Data transmission Others

Figure 3-1-6-3 Telecom carriers’ sales breakdown by voice transmission and data transmission

(Note) Calculating excluding sales breakdown “Unknown“.(Source) Prepared from “Basic Survey on the Information and Communications Industry,” MIC / METI

1,280 1,210 1,250 1,370

2,820 2,960 3,180 3,3105,530 5,690 5,830 5,910

4,190 4,150 3,950 3,800

420 440510 590

540490 550 5604,100 4,1704,430

4,680

4,800

4,800

5,950 6,130 6,340 6,500

5,860

700

6,560

4,670 4,700 4,500 4,350

4,360

4,360

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18NTTDOCOMO KDDI (au) SoftBank

(yen per month)

Voice ARPU +Data ARPUVoice ARPU

Other ARPUData ARPU

Figure 3-1-6-4 Changes in mobile ARPU in the past �ve years for three domestic mobile operators

(Notes) *1 Each company’s ARPU is calculated and published based on each respective company’s data. The �gures were not calculated using the same method.

*2 The ARPU for KDDI is taken from the ARPA (Average Revenue Per Account) of each year. The �gure for FY 2014 has been revised from ARPU to ARPA.

*3 The �gures for NTT DOCOMO and Softbank in FY2014 were revised to unify the conditions and values for FY 2015-2017.*4 The �gures in FY2018 for NTT docomo and Softbank have changed in terms of presentation, so comparisons must be made with caution.

(Source) Prepared from the �nancial statements of each company

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7. Broadcasting market trends(1) Size of the broadcasting marketa. Broadcaster sales・Broadcaster sales totaled 3.9337 trillion yen in FY 2017

Japanese broadcasters are divided into two catego-ries: Japan Broadcasting Corp., a public broadcaster known as NHK, which depends on license fee revenues, and private broadcasters that depend on advertisements or paid programming. Aside from these two categories, the Open University of Japan also provides broadcasting services for educational purposes.

Sales for the entire broadcasting sector, including rev-enues from broadcasting and non-broadcasting opera-

tions, increased from FY 2016 to 3.9337 trillion yen (by 0.1 percent up from the previous year) in FY2017. By category, terrestrial-based private broadcasters’ sales were 2.3471 trillion yen (down 1.3 percent), satellite-based private broadcasters’ sales were 369.7 billion yen (up 6.8 percent), and cable TV broadcasters’ sales were 499.2 billion yen (down 0.8 percent). NHK’s ordinary operating income was 717.7 billion yen (up 1.9 percent).

In terms of market share, terrestrial-based private broadcasters accounted for 73.0 percent (down 0.7 per-centage points) of private broadcasters’ sales. (Figure 3-1-7-1).

Figure 3-1-7-1 Changes in and breakdown of the broadcasting sector market size (total sales)

(Notes) *1 Calculated from operating revenues of satellite-based broadcasting services.*2 Cable TV broadcasters until FY 2010 were business enterprises providing independent broadcasting services with facilities licensed under

the former licensing scheme under the former Act on Cable Television Broadcasting. (Note that facilities registered under the former Act on Broadcast on Telecommunications Services included those that use the same broadcasting method as facilities licensed under the former licensing scheme). From FY 2011 onwards, cable TV broadcasters were registered general broadcasting enterprises with wired telecommu-nication facilities providing independent broadcasting services. (Both exclude business operators using IP multicasts.)

*3 Figures for NHK represent ordinary operating income.*4 Community broadcasting operators that also provide cable TV broadcasting services are excluded.

(Source) Prepared from MIC materials and NHK �nancial statements for each �scal year

Satellite-based broadcasters※1 NHK※3Terrestrial-based broadcasters Cable TV broadcasters※2

38,356 39,698 40,152 40,422 41,17839,689

38,254 39,089 39,115 38,915 39,307 38,759 39,152 39,312 39,337

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(FY)

(100 million yen)

�scal year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

private broad-caster

Terrestrial-based broadcasters 25,229 26,153 26,138 26,091 25,847 24,493 22,574 22,655 22,502 22,870 23,216 23,375 23,461 23,773 23,471

Community broadcasters included in total above※4

141 140 140 144 148 150 123 116 120 115 124 127 126 136 136

Satellite-based broadcasters※1 2,995 3,158 3,414 3,525 3,737 3,905 3,887 4,185 4,490 4,510 4,491 3,661 3,809 3,463 3,697

Cable TV broadcast-ers※2 3,330 3,533 3,850 4,050 4,746 4,667 5,134 5,437 5,177 4,931 5,030 4,975 5,003 5,031 4,992

NHK※3 6,803 6,855 6,749 6,756 6,848 6,624 6,659 6,812 6,946 6,604 6,570 6,748 6,879 7,045 7,177total 38,356 39,698 40,152 40,422 41,178 39,689 38,254 39,089 39,115 38,915 39,307 38,759 39,152 39,312 39,337

( )

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8. Content market trends(1) Size of Japan’s content market・�The Japanese content market was valued at 11.8099 trillion yen,

nearly 60 percent of which was attributable to video content, about 36 percent to text-based content, and about 6 percent to audio-based contentThe Japanese content market was valued at 11.8099

trillion yen in 2017. By content segment, video content accounted for nearly 60 percent of the market, text-based content, 36 percent, and audio-based content, 6 percent.57(Figure 3-1-8-1).

The overall size of the content market has been in-creasing since 2013. The size of each content segment stayed flat until 2012, however, after 2013 the video con-tent segment expanded while the text-based content segment contracted (Figure 3-1-8-2).

(2) Trends in the online content market・�The market for online content, which is consumed via the Internet on

computers and mobile phones, was 3.6784 trillion yen, accounting for 31.1 percent of the entire content marketWithin the overall content market, the market for on-

line content, which is consumed via the Internet on com-puters and mobile phones, reached 3.6784 trillion yen. By content segment, the video content segment ac-counted for 61.5 percent of the online content market, the text-based content segment accounted for 29.7 per-cent, and the audio-based content segment had 8.7 per-cent.(Figure 3-1-8-3).

The online content market has been growing steadily since 2013. The market size by content segment shows that the video content segment has been driving the ex-pansion of the online content market (Figure 3-1-8-4).

57 The market size was measured and analyzed not by media types, but by assessing the primary nature of the content works and recalculating the value at each distribution level, such as primary distribution or multi-use.

Video contentsegment

6.7766 trillion yen57.4%Audio-based

content segment0.7503 trillion yen

6.4%

Text basedcontent segment4.2830 trillion yen

36.3%

Movies766.66.5% Videos

433.03.7%

Terrestrial TVprograms2,812.423.8%

Satellite and cable TVbroadcast programs903.57.7%

Game software1,579.513.4%

OriginalInternetvideos281.52.4%

Music541.44.6%

Radio programs200.71.7%

Original Internetaudio-based content

8.2 0.1%

Newspaper articles1,541.1

13.0%

Comics426.73.6%

Magazines926.27.8%

Books835.37.1%

Database information247.22.1%

Original Internetcontent306.6 2.6%

total contentmarket

11.8099 trillion yen

(Unit: billion yen)Figure 3-1-8-1 Breakdown of Japan’s content market (2017)

(Source) “Survey on the Production and Distribution of Media Content,” Institute for Information and Communications Policy, MIC

6.0 6.2 6.3 6.5

0.8 0.8 0.7 0.8

4.5 4.5 4.5 4.4

11.3 11.5 11.5 11.7

0

2

4

6

8

10

12(trillion yen)

2013 2014 2015 2016 2017 (year)

Video content segment

Audio-basedcontent segment

Text-basedcontent segment

6.8

0.8

4.3

11.8

Figure 3-1-8-2 Changes in Japan’s content market size (by content segment)

(Source) “Survey on the Production and Distribution of Media Content,” Institute for Information and Communications Policy, MIC

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(3) Trends in the broadcast content market・�The export value of Japanese broadcast content was 44.45 billion yen

in FY 2017The export value of Japanese broadcast content in FY

2017 was 44.45 billion yen (Figure 3-1-8-5). Looking at the composition of the export value of Japanese broad-cast content, the total of program broadcast rights, Inter-net distribution rights, and merchandising rights ac-count for more than 90 percent. Especially, export value of Internet distribution rights and merchandising rights have shown significant growth since 2012. The export value of program broadcast rights includes cases in which program broadcast rights and Internet distribu-tion rights are sold as a set, so Internet distribution has a high impact on the overall exports. Looking at the ex-port value of Japanese broadcast content by entity, the combined total of “NHK”, “main commercial broadcast stations” and “production, etc.” covers over 90 percent.

When the comparison is limited to just the export value of program selling rights,then the ratio of broadcasting entities become higher.・�Anime accounts for over 80 percent of the export value for the

program category, this is followed by drama programs and variety shows. Asia accounts for nearly 60 percent of exports, followed by North America and EuropeLooking at the broadcast content export value by pro-

gram category finds that anime accounts for 80 percent of the total, this is followed by drama programs and vari-ety shows (Figure 3-1-8-6). The largest export market for broadcast content was Asia, with over 50 percent, fol-lowed by North America, Europe, and Central America. This shows that Japanese broadcast contents are export-ed across the world, particularly to Asia. When the com-parison is limited to just the export value of program selling rights, the ratio to Asia is much higher.

Figure 3-1-8-4 Changes in the online content market size (by content segment)

(Source) “Survey on the Production and Distribution of Media Content,” Institute for Information and Communications Policy, MIC

2.3

0.3

1.1

3.73.7

Video content Audio-based content Text-based content

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2013 2014 2015 2016 2017

(trillion yen)

(year)

1.31.6 1.7 1.9

0.30.3 0.3

0.40.7

0.81.0

1.0

2.32.3

2.72.73.03.0

3.33.3

Figure 3-1-8-3 Breakdown of the online content market (2017)

(Source) “Survey on the Production and Distribution of Media Content,” Institute for Information and Communications Policy, MIC

Video contentsegment

2.2632 trillion yen61.5%

Voice-basedcontent segment0.3217 trillion yen

8.7%

Text-basedcontent segment1.0935 trillion yen

29.7% Game software1,298.435.3%

Original Internetvideos281.57.7%

Videos257.97.0%

Movies254.56.9%

Satellite and cableTV broadcast

programs103.12.8%

Terrestrial TVprograms

67.72.6%

Music305.38.3%

Otheraudio-based

content16.50.4%

Original Internetcontent

306.68.3%

Books219.96.0%

Databaseinformation

200.85.5%

Newspaperarticles186.15.1%

Other text-basedcontent180.24.9%

Total onlinecontent market

3.6784 trillion yen

(Unit: billion yen)

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Figure 3-1-8-5 Export value of Japanese broadcast content

(Notes) *1 Export value of broadcast content: program broadcast rights, Internet distribution rights, video and DVD rights, format and restaging rights, merchandising rights, and similar rights.

*2 Calculated based on questionnaire responses by NHK, main commercial broadcast stations, producers, sub-main commercial broadcast stations in Osaka, local stations and satellite broadcasting stations.

*3 Calculations for FY 2016 and later include digital gaming rights.(Source) Prepared from “Survey on the State of Overseas Expansion of Broadcast Content” MIC

10.4313.78

18.25

28.85

39.3544.45

2012 2013 2014 2015 2016 20170

10

20

30

40

50(billion yen)

(FY)

Figure 3-1-8-6 Export value of Japanese broadcast content by program category

(Notes) *1 Figures for FY 2015 and later have been calculated by excluding unidenti�ed �gures.    *2 Unidenti�ed �gures in FY2016 include all values for “digital gaming rights”, and shows the mass amount of approximately 10 billion yen.    *3 Figures for FY 2017 includes the values provided by the Japan Foundation project.

(Source) Prepared from “Survey on the State of Overseas Expansion of Broadcast Content” MIC

0102030405060708090

100(%)

0102030405060708090

100(%)

2012 2013 2014 2015 2016 2017Anime 56.6 62.2 64.3 76.6 77.1Drama programs 16.4 15.6 17.0 10.0 10.2Variety shows 15.9 13.3 11.4 10.8 9.7Sports 1.6 1.8 0.9 0.9 0.6Documentaries 2.3 1.9 1.7 0.8 0.6Other 7.2 5.3 4.7 0.9 1.7

82.98.16.30.60.21.9

Among the total export value of broadcast content

(FY) 2012 2013 2014 2015 2017Anime 41.7 47.2 54.5 59.2 83.7Drama programs 23.9 18.8 18.2 16.8 8.9Variety shows 18.0 15.1 13.6 18.3 6.1Sports 1.9 3.3 1.6 2.5 1.0Documentaries 3.5 4.1 3.4 2.5 0.2Other 11.0 11.4 8.8 0.7 0.1

201684.28.85.30.80.30.5

Among program selling rights(until FY2015, program broadcast rights)

(FY)

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1. Internet usage trends(1) ICT device ownershipa. Major ICT device ownership (households)・�Ownership rate of smartphones for households was nearly 80 percent,

in contrast the rate for �xed line telephones was just over 60 percentThe ownership rate for ICT devices (households) in

2018 was 79.2 percent for “smartphones”, which is in-cluded in “mobile devices”(95.7 percent), and exceeds that of “computers” (74.0 percent). The rate for “fixed-line telephones” was 64.5 percent (Figure 3-2-1-1).

(2) Internet usagea. Internet usage rate (individuals)・�Usage of the Internet via smartphones exceeds the usage via

computersThe Internet usage rate (individuals) in 2018 was 79.8

percent (Figure 3-2-1-2). Looking at the Internet usage rate by devices, “smartphones” (59.5 percent) exceeded “computers” (48.2 percent) by 11.3 points (Figure 3-2-1-3).

Section 2 ICT Service Usage Trends

Fixed-line telephones 90.9 91.2 85.8 83.8 79.3 79.1 75.7 75.6 72.2 70.6FAX 53.5 57.1 43.8 45.0 41.5 46.4 41.8 42.0 38.1 35.3Mobile devices (overall) 95.6 96.3 93.2 94.5 94.5 94.8 94.6 95.8 94.7 94.8Smartphones 9.7 29.3 49.5 62.6 64.2 72.0 71.8 75.1Computers 85.9 87.2 83.4 77.4 75.8 81.7 78.0 76.8 73.0 72.5Tablets 7.2-

- -

--- - - - -

8.5 15.3 21.9 26.3 33.3 34.4 36.4Wearable devices 0.5 0.9 1.1 1.9

20.8 25.9 23.3 24.5 29.5 38.3 33.0 33.7 31.4 31.4

22.0 27.3 17.0 20.1 21.4 23.8 18.4 17.3 15.3 13.8

5.5 7.6 3.5 6.2 12.7 8.8 7.6 8.1 9.0 2.1

64.534.095.779.274.040.12.5

30.9

14.2

6.9

0

10

20

30

40

50

60

70

80

90

100(%)

2008(n=4,515)

2009(n=4,547)

2010(n=22,271)

2011(n=16,530)

2012(n=20,418)

2013(n=15,599)

2014(n=16,529)

2015(n=14,765)

2016(n=17,040)

2017(n=16,117)

2018(n=16,255)

Other Internet enabled appliances(smart appliances)

Internet-enabled portable music players

Internet-enabled home game consoles

Ow

ners

hip

rate

Figure 3-2-1-1 Changes in ownership rates for ICT devices (households)

(Source) “Communications Usage Trend Survey,” MIC

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Figure 3-2-1-3 Device used for Internet by category

(Note) Figures indicate the percentage of people who accessed the Internet using the corresponding device during the past twelve months.(Source) “Communications Usage Trend Survey,” MIC

0 20 40 60 80

Smartphones

Computers

Tablets

Mobile phones and PHS handsets

(excluding smartphones)Internet-enabled televisions

(%)

Internet-enabled home game consoles

2018 (n=40,664) 2017 (n=38,630)

59.5

48.2

20.8

9.7

8.8

6.5

59.7

52.5

20.9

8.8

9.9

7.2

Other 1.41.1

0

20

40

60

80

100(%)

72.6 73.0 75.378.0 78.2 79.1 79.5

82.8 82.8 83.0 83.5 80.9 79.8

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018(year)

Figure 3-2-1-2 Changes in the Internet usage rate

(Source) “Communications Usage Trend Survey,” MIC

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b. Purpose for using the Internet・�“Sending and receiving email” was the most common purpose for

using the InternetWhile among all age groups, the most common pur-

pose for using the Internet was “sending and receiving email”, the number of users varies by age groups for “us-ing social networking services,” and “using video post-ing / sharing sites” (Figure 3-2-1-4).

(3) Challenges for secure Internet usagea. Concerns about Internet usage and issues with usage of ICT networks・�Individuals are concerned about leaks of personal information, and

enterprises are concerned about computer virus infectionsThe percentage of individuals (aged 12 and older)

who feel concerned about their Internet usage is 70.7 percent including both respondents who said they “feel

concerned” and respondents who said that they “feel rather concerned” (Figure 3-2-1-5). Among more specif-ic concerns that they had about using the Internet, 84.6 percent cited “leak of personal information and Internet use history”. This was followed, in descending order, by “computer virus infections” (65.7 percent) and “concern about fraudulent email or fraud using the Internet” (48.3 percent). “Concern about the reliability of electronic payment methods” (37.8 percent) increased by 4.6 per-centage points over the previous year (Figure 3-2-1-6).

Among enterprises, the most common response at 47.2 percent cited “concern about virus infections” as a problem when using ICT networks (the Internet and in-ternal LANs) (Figure 3-2-1-7).

Figure 3-2-1-4 Applications / purpose for using the Internet by age group (multiple answers)

(Source) “Communications Usage Trend Survey,” MIC

total 13~19 (n=2,177) 20~29 (n=3,093) 30~39 (n=4,130)40~49 (n=5,145) 50~59 (n=5,159) 60 or older (n=7,362)

0

20

40

60

80

100(%)

0

20

40

60

80

100(%)

Send

ing

and

rece

ivin

g em

ail

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ning

, upd

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g an

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pos

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2018 (n=4,435)

Feel Concerned28.6%

Feel rather concerned42.1%

Feel rather unconcerned

15.4%

Feel not concerned

13.9%

Figure 3-2-1-5 Responses of individuals regarding concerns about using the Internet

(Source) “Communications Usage Trend Survey,” MIC

89.5

69.6

49.2

33.2

23.5

14.2

11.8

2.3

51.5

0 20 40 60 80 100Leak of personal information and

Internet use history

Computer virus infections

Spam

Security measures

Concern about the reliability of electronic payment means

Viewing of illegal and harmful information

Concern about trouble with communicationon social media, etc.

Internet addict

Other

Concern about fraudulent email or fraud using the Internet

(%)

84.6

65.7

43.3

37.8

21.1

11.6

11.2

2.3

47.9

48.3

53.5

2017 (n=2,477)2018 (n=3,091)

Figure 3-2-1-6 Types of concerns about using the Internet (multiple responses accepted)

(Source) “Communications Usage Trend Survey,” MIC

Figure 3-2-1-7 Issues associated with use of information-communication networks in enterprises (multiple answers permitted)

(Source) “Communications Usage Trend Survey,” MIC

2018 (n=2,081)2017 (n=2,527)

47.4

40.9

39.1

37.3

34.7

26.8

12.9

12.4

9.6

8.9

4.3

3.7

3.4

2.6

11.0

47.2

45.0

44.4

41.7

40.6

29.2

15.1

13.5

11.6

11.4

5.1

4.6

3.4

2.4

8.6

0 10 20 30 40 50

Concern about virus infections

Difficulties in establishing security measures

Lack of operational and administrative personnel

Rising operational and management costs

Low security awareness among employees

Difficulties in restoring operations after a fault

Difficulties in quantifying benefits of network adoption

High communication charges

Difficulties in achieving benefits from network adoption

Low communication speeds

Concern about the reliability of electronic payments

Concern about protection of copyrights and intellectual property

Concern about the reliability of authentication technology

Other

No particular issues

(%)

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b. Information security measures・�Almost 70 percent of households and almost all enterprises have

implemented some form of information security protective measuresLooking at the state of information security protective

measures taken by households that use the Internet shows that 68.5 percent of households have taken some form of security. The leading security measures were “installed or updated a security program” (53.4 percent) and “signed up or updated a security service” (24.2 per-cent) (Figure3-2-1-8).

Looking at the state of information security measures implemented by enterprises that use an ICT network, it shows that 97.8 percent of enterprises have implement-ed some form of security. The leading security measure was to “install anti-virus programs on PCs and other de-vices (operating system, software, etc.),” which 82.9 per-cent of enterprises have implemented. This was followed by the measure of “install anti-virus programs on serv-ers” (61.0 percent) (Figure 3-2-1-9).

Figure 3-2-1-8 Implementation of information security measures by households (multiple answers permitted)

(Source) “Communications Usage Trend Survey,” MIC

68.5

20.2

11.3

53.4

24.2

19.6

18.8

4.6

65.4

22.8

11.8

46.2

25.4

18.0

23.1

2.5

0 20 40 60 80

Took some measures

Took no measures

Don't know whether the measures have been taken or not

Installed or updated a security program

Signed up to or updated a security service

Set a password on devices

Did not connect to the Internet using unknown

or unsecured source

Set an administrator to check

(%)

2017 (n=1,776)2018 (n=1,885)

Figure 3-2-1-9 Implementation of information security measures by enterprises (multiple answers permitted)

(Source) “Communications Usage Trend Survey,” MIC

2017 (n=2,554)2018 (n=2,077)

97.8

2.2

82.9

61.0

51.6

50.6

45.2

44.6

36.7

32.7

25.6

21.0

17.1

16.9

14.6

14.2

13.0

12.8

12.5

10.5

33.0

99.3

0.7

88.9

66.5

53.7

57.6

44.2

48.2

41.2

34.2

26.3

22.0

18.9

19.8

15.8

17.4

12.7

13.3

15.0

11.1

29.3

0 20 40 60 80 100Implemented some measures

Not implemented any particular measures

Install anti-virus programs on computers and other devices (operating system, software, etc.)

Install anti-virus programs on servers

Control access with IDs, passwords, etc.

Training for employees

Apply security patches for operating systems

Install and maintain firewalls

Establish security policies

Maintain access logs

Construct anti-virus walls at external access points

Use proxy servers, etc.

Security audits

Encrypt data or networksInstall and maintain intrusion detection systems

(IDS) Line monitoring

Establish manuals on responding to virusesUser authentication by means of authentication

technologiesOutsource security management

Install and maintain Web application firewalls

Other measures

(%)

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(4) Trends of enterprises using cloud servicesa. Use of cloud services・�The percentage of enterprises using cloud services was nearly 60

percent in 2018Looking at the state of cloud service usage in 2018,

58.7 percent of enterprises answered they had used cloud services either partially or extensively, which is a significant rise of 1.8 percent from the previous year

when it stood at 56.9 percent. (Figure 3-2-1-10)

b. E�ectiveness of cloud services・Many enterprises recognize cloud services as being e�ective

Among the enterprises that do use cloud services, 83.2 percent responded that they found it to be “very beneficial” or “somewhat beneficial” (Figure3-2-1-11).

33.1 25.6 14.1 21.5 5.7

29.4

24.4

22.8

20.7

27.5

22.5

21.7

18.0

13.4

14.5

15.0

15.9

22.1

29.3

30.0

32.2

7.6

9.3

10.4

13.1

0 20 40 60 80 100 (%)

Used company wide Used by some offices of divisions Not used, but planning to use in the futureNot used and no plans to use in the future Do not understand cloud services

56.9

46.9

44.6

38.7

2017(n=2,570)

2018(n=2,107)

2016(n=2,071)

2015(n=1,821)

2014(n=2,098)

58.7

Figure 3-2-1-10 Use of cloud services

(Source) “Communications Usage Trend Survey,” MIC

number of enter-prises

number of enter-prises (after weight adjust-ment)

State of cloud service usageUsed Not used Do not

under-stand cloud services

N/Aused company wide

Used by some o�ces or divisions

Not used, but planning to use in the future

Not used and no plans to use in the future

All 2,119 2,119 1,236 697 539 751 297 453 119 13[Industry classi�cation]Construction 299 91 59 39 20 29 16 14 2 0Manufacture 371 567 307 172 135 236 96 141 22 1Transportation and Postal services

316 194 98 48 50 82 24 58 12 1

Wholesale and Retail 296 452 287 165 122 134 63 72 24 6Finance and Insurance 134 25 20 11 10 5 2 3 0 ―Real estate 132 31 22 16 6 7 3 4 1 1ICT 243 105 89 63 26 15 11 4 1 ―Services, others 328 654 354 183 171 241 83 158 56 3

Negative impact0.3%

Not very beneficial0.9% Very beneficial

28.9%

Somewhat beneficial54.3%

Do not know the impact

15.6%

2018(n=1,302)

Figure 3-2-1-11 Impact of cloud computing services

(Source) “Communications Usage Trend Survey,” MIC

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c. Breakdown of cloud service usage・�The most frequently used cloud service is “�le storage and data

sharing”The most frequently used cloud service is “file stor-

age and data sharing”, as cited by 53.1 percent of respon-dents, this is followed, by “email” with 52.2 percent and “server applications” with 51.0 percent. Very advanced use of cloud services, such as utilizing it for “sales sup-port” or “production management”, is still rather limited (Figure 3-2-1-12).

(5) Introduction and usage of IoT/AI systems and services by enterprises

a. Introduction of IoT/AI systems and services・�Approximately 20 percent of enterprises have introduced, or are

planning to introduce, IoT/AI systems and services.Enterprises that have already introduced IoT/AI sys-

tems and services, for example, in order to collect and analyze digital data, accounted for 12.1 percent of enter-prises. We can see that if enterprises that are planning to introduce these kinds of systems and services in the fu-ture are included, then this accounts for 20 percent of the total, (Figure 3-2-1-13).

b. Purpose behind collecting and analyzing digital data・�About 70 percent of enterprises collect and analyze digital data to

raise job performance and improve business processesLooking at the purpose for collecting and analyzing

digital data, the most frequent answer was “to raise job performance and improve business processes” with 73.8 percent, this was followed by “to improve customer ser-vices” (43.2 percent) and, “for the optimization of proj-ects” (23.9 percent) (Figure 3-2-1-14).

2017 (n=1,571)2018 (n=1,312)

53.1

52.2

51.0

40.5

38.4

31.9

29.3

16.7

14.3

12.6

9.2

9.0

8.4

8.4

7.0

6.4

6.3

2.1

6.8

51.2

46.3

47.6

37.7

34.1

27.1

34.4

14.5

12.3

10.4

9.2

7.9

8.6

7.7

6.8

5.6

4.7

1.6

7.5

0 20 4010 30 50 60File storage and data sharing

Email

Server applications

Information sharing/portal

Schedule sharing

Payment, financial accounting, HR

Data backups

Sales support

E-learning

Sharing information with business partners

System development and website constructionProduction management, distribution

management, store managementProject management

Purchasing

Orders and sales

Billing and payment systems

Authentication systems

R&D related

Other

(%)Figure 3-2-1-12 Breakdown of cloud service usage

(Source) “Communications Usage Trend Survey,” MIC

Introduced12.1%

Not introduced63.2%

I don't know16.2%

2018 (n=2,095)

Introduced of planning to in the future

20.6%

Not introduced, but planning to

in the future8.5%

Figure 3-2-1-13 Current state of the introduction of IoT/AI systems and services

(Source) “Communications Usage Trend Survey,” MIC

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c. Impact of introducing IoT/AI systems and services・�About 70 percent of enterprises recognized that there had been

positive impacts from IoT/AI systems and servicesLooking at the impact of IoT/AI systems and services,

enterprises that responded it had been “very beneficial” or “somewhat beneficial” totaled 73.3 percent of all en-terprises (Figure 3-2-1-15).

2. State of provision and usage of telecommunication services(1) State of provision of telecommunication servicesa. Overview(i) Subscriptions to voice communication services・�Subscriptions to �xed communications are on a downward trend

while subscriptions to mobile communications and 0ABJ-IP phone services have steadily increasedSubscriptions to fixed communications (including

NTT East and West subscription telephone services (in-cluding ISDN), non-NTT telephone services,58 and CATV telephone services but excluding 0ABJ-IP phone services) have been declining, while those for mobile communications (mobile phones and PHS handset ser-vices) and 0ABJ-IP phone services have been growing steadily. Subscriptions to 050-IP phone services have been flat in recent years.

There were about 9.0 times more mobile communica-tions subscriptions than fixed communications subscrip-tions (Figure 3-2-2-1).

(ii) Broadband usage・�Subscriptions to mobile ultra-high-speed broadband services have

leaped dramatically year on yearThe number of subscriptions to fixed line broadband

services59 at the end of FY 2018 stood at 40.25 million (up 1.5 percent from the previous year). Subscriptions to mobile ultra-high-speed broadband services was 136.64 million for 3.9G and 4G (LTE) services (up 13.2 per-cent), and 66.24 million for BWA services (up 13.8 per-cent) (Figure 3-2-2-2). Trends for the net increase in the number of subscriptions to FTTH and DSL show that DSL continues to decrease while FTTH continues to in-crease.

b. Mobile communications・�Subscriptions to mobile communication services have risen each year.

The proportion of subscriptions to MVNO services across all mobile communication subscriptions also surgedSubscriptions to mobile communications60 (mobile

58 Non-NTT services are subscriber phone services provided by telecom carriers other than NTT East and West and cover direct subscriber telephone, ISDN services, new-type non-NTT telephone, and ISDN services.

59 Figures for subscriptions to fixed-line broadband services cover FTTH, DSL, cable TV, and FWA services.

10.2

9.0

12.9

23.9

43.2

73.8

0 20 40 60 80

Other

New business/management

Business continuity

For the optimization of projects

To improve customer services

To raise job performance and improve business processes

2018 (n=256)

(%)

Figure 3-2-1-14 Purpose behind collecting and analyzing digital data

(Source) “Communications Usage Trend Survey,” MIC

Verybeneficial

17.5%

Somwwhatbeneficial

55.8%

Not very beneficial1.5%

Negative impact0.0%

Do not know the impact

25.1%

"Very beneficial" or "Somewhat beneficial"

73.3%

2018 (n=247)

Figure 3-2-1-15 Impact of introducing IoT/AI systems and services

(Source) “Communications Usage Trend Survey,” MIC

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phones, PHS handsets, and BWA) at the end of FY 2018 totaled 180.45 million (an increase of 4.0 percent from the previous year). Net growth in comparison to the end of FY2017 was 6.88 million subscriptions, which demon-strates a continuing upward trend (Figure 3-2-2-3).

By carrier (Group), the market share for mobile com-munication subscriptions was 37.9 percent for NTT DO-COMO (down 0.8 percentage points), 27.4 percent for the KDDI Group (up 0.2 percentage points), and 23.1 percent for the SoftBank Group (±0) (Figure 3-2-2-4). By carrier (Group), market share for MVNO services was

5.6 percent for NTT DOCOMO MVNO (up 0.2 percent-age points from the previous year), 3.4 percent for the KDDI Group MVNO (up 0.6 percentage points), and 2.6 percent for the SoftBank Group MVNO (up 0.2 percent-age points)

Subscriptions for MVNO services61, out of subscrip-tions for mobile communications (mobile phones, PHS handsets, and BWA), continue to increase, and reached 20.94 million in FY 2018 (an increase of 14.0 percent). (Figure 3-2-2-5)

60 Figures after adjusting for internal group transactions.61 Figures after subtracting subscriptions to MVNOs that are MNOs.

Fixed communications Mobile communications 0ABJ-IP phone services 050-IP phone services

55.15 51.23 47.32

43.34 39.57 35.96 32.74 30.04

27.74 25.07 22.9821.35

101.70 107.34 112.05 116.30123.29

135.07146.44 149.19

156.33 161.75 167.87 173.57

4.21 7.76

11.16 14.53 17.90 20.9624.07 26.50

28.46 30.75 32.41 33.59

10.27 9.78

9.06 8.64 7.90 7.53 7.21 7.28 7.18 7.71 8.54 8.85

19.96

180.45

34.41

8.890

20

40

60

80

100

120

140

160

180

200

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

(million subscriptions)

(FY)

Figure 3-2-2-1 Changes in subscriptions for voice communication services

(Notes) *1 Subscriptions for mobile communications cover mobile phones, PHS services and BWA.*2 Figures for mobile communications from FY 2013 onward are ‘after adjusting for internal group transactions’. ‘After adjusting for internal

group transactions’ refers to adjustments made to count 1 mobile phone device as 1 contract and not 2 contracts, so as not to diverge from the actual state, when an MNO receives mobile phone or BWA services as an MVNO from another MNO in the same group and provides these services together with its own services to 1 mobile phone device.

*3 Figures of the past years are di�erent from those in last year’s publication due to amendments by the target enterprises.(Source) Prepared from “O�cial Announcement of Quarterly Data on the Number of Telecommunications Service Subscriptions and Market Share

(FY2018 Q4 (End of March)),” MIC

0

5

10

15

20

25

30

35

40

45(million) (million)

FWACATVDSLFTTH BWA LTE

0.81 2.30 5.31 7.4619.47

35.1447.89

58.23

0.03 2.30

20.37

46.41

67.78

87.47

102.94

120.73

66.24

136.64

0

20

40

60

80

100

120

140

2010 2011 2012 2013 2014 2015 2016 2017 2018

20.22 22.30 23.86 25.34 26.68 27.97 29.46 30.60

8.20 6.70 5.42 4.47 3.75 3.20 2.51 2.155.67 5.91 6.01 6.22 6.43 6.73 6.85 6.880.01 0.01 0.01 0.01 0.01 0.01 0.01 0.0034.10 34.93 35.31 36.04 36.86 37.91 38.82 39.64

31.66

1.73

6.860.00

40.25

2010 2011 2012 2013 2014 2015 2016 2017 2018(end of FY) (end of FY)

【Fixed-line broadband services】 【Mobile ultra-high-speed broadband services】Figure 3-2-2-2 Changes in broadband service subscriptions

(Notes) Figures of the past years are di�erent from those in last years publication due to amendments by the target enterprises(Source) Prepared from “O�cial Announcement of Quarterly Data on the Number of Telecommunications Service Subscriptions and Market Share

(FY2018 Q4 (End of March)),” MIC

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(2) Telecommunication usagea. State of tra�c(i) Internet tra�c・�The total download tra�c of broadband service subscribers in Japan

reached an average of 11.0 Tbps as of November 2018, a 23.3 percent increase from the same month in the year before

(a) Changes in tra�c by broadband subscribersTraffic by the broadband service subscribers of ISP962

continues to grow, with download traffic (A1 OUT) reaching a monthly average of 7281.8 Gbps in Novem-

ber 2018 (a 21.8 percent increase from the same month the year before). Download traffic (A1 OUT) is 7.8 times larger than upload traffic (A1 IN: 929.1 Gbps), thus, most traffic is download traffic (Figure 3-2-2-6).

(b) Changes in tra�c exchanged between ISPsData inflow has exceeded outflow in all three types of

traffic between ISPs: the traffic exchanged with major domestic internet exchanges (IX)s63(B1), the traffic ex-changed with domestic ISPs without passing through

62 The total for nine cooperating ISPs, namely the Internet Initiative Japan (IIJ), NTT Communications, NTT Plala Inc. K-Opticom (changed its name to OPTAGE Inc. as of April, 2019), KDDI, Jupiter Telecommunications Co., Ltd., SoftBank Corp., NIFTY Corporation, and BIGLOBE Inc.

Mobile phones/PHS/BWA (net total) Mobile phones/PHS/BWA Mobile phones

100

120

140

160

180

200

220

240

260(million subscriptions)

135.07146.44

157.02

177.32

195.70

214.74

231.02

149.19

156.33 161.75 167.87 173.57

128.20136.04 141.88

148.79156.54

163.44170.09

233.84

174.67

171.40

237.20

176.10

173.07

240.58

177.75

174.84

246.11

180.45

177.73

March2012

March2013

March2014

March2015

March2016

March2017

March2018

June2018(1Q)

September2018(2Q)

December2018(3Q)

March2019(4Q)

Figure 3-2-2-3 Changes in mobile phone subscriptions

(Notes) *1 ‘After adjusting for internal group transactions’ refers to adjustments made to count 1 mobile phone device as 1 contract and not 2 contracts so as not to diverge from reality, such as when an MNO receives mobile phone or BWA services as an MVNO from another MNO in the same group and provides these services together with its services in 1 mobile phone device.

*2 Figures of the past years are di�erent from those in last year’s publication due to amendments by target enterprises.(Source) Prepared from “O�cial Announcement of Quarterly Data on the Number of Telecommunications Service Subscriptions and Market Share

(FY2018 Q4 (End of March)),” MIC

NTT DOCOMO NTT DOCOMO (MVNO)KDDI Group KDDI Group (MVNO)SoftBank Group SoftBank Group (MVNO)

40.2 39.8 38.7

3.6 4.8 5.3

26.6 26.8 27.6

2.3 2.6 2.825.3 23.9 23.11.9 2.1 2.4

38.5

5.4

27.3

3.2

23.02.4

38.3

5.4

27.5

3.2

22.92.6

38.1

5.5

27.5

3.3

22.92.6

37.9

5.6

27.4

3.4

23.12.6

0102030405060708090

100(%)

March2016

March2017

March2018

December2018(3Q)

March2019(4Q)

June2018(1Q)

September2018(2Q)

Figure 3-2-2-4 Changes in market share for carriers in mo-bile communication subscriptions (after ad-justing for internal group transactions)

(Note) KDDI Group market share includes KDDI, Okinawa Cellular, and UQ Communications; Softbank Group market share includes Softbank, Y!Mobile, and Wireless City Planning.

(Source) Prepared from “O�cial Announcement of Quarterly Data on the Number of Telecommunications Service Subscriptions and

Market Share (FY2018 Q4 (End of March)),” MIC

0

5

10

15

20

25(million subscriptions)

Mobile phones/PHS/BWA Mobile phones/PHSBWA

7.429.58

12.69

15.86

18.40

5.997.91

11.02

14.09

16.52

1.43 1.66 1.67 1.77 1.88

19.18

17.31

1.88

19.87

18.01

1.86

20.36

18.50

1.86

20.94

19.05

1.90

March2014

March2015

March2016

March2017

March2018

December2018(3Q)

March2019(4Q)

June2018(1Q)

September2018(2Q)

Figure 3-2-2-5 Changes in subscriptions fo MVNO services (excluding MVNOs that are MNO)

(Source) Prepared from “O�cial Announcement of Quarterly Data on the Number of Telecommunications Service Subscriptions and

Market Share (FY2018 Q4 (End of March)),” MIC

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major domestic IX (B2), and the traffic exchanged with overseas ISPs(B3). In all three types, data inflow has ex-

ceeded outflow (Figure 3-2-2-6).

63 The total for IXs run by Internet Multifeed, Equinix Japan, Japan Internet Exchange, BBIX, and WIDE Project.

Year Month

Total tra�c by broadband service subscribers in Japan (estimated) [Gbps]*3

Tra�c per broadband service subscriber (estimated) [kbps]

(A1)Tra�c by broadband service subscribeers (DSL. FTTH. CATV. FWA etc) [Gbps]

A2Tra�c by other subscribers (leased lines, data centers, etc.) [Gbps]

(B1)Tra�c exchanged between major domestic Ixs and ISP9 [Gbps]

(B2)Tra�c exchanged between domestic ISPs and ISP9 with-out passing through major domestic Ixs [Gbps]

(B3)Tra�c exchanged between overseas ISPs and ISP9 [Gbps]

(X)Share of nine cooper-ating ISPs

in out in out in out in out in out in out in out

20175 1,406 8,027 36.1 206.4 954.8 5,452.9 1,390.0 597.1 590.5 179.1 3,207.1 685.2 1,283.1 322.6 67.93%

11 1,160 8,903 29.6 227.1 779.1 5,980.2 1,428.9 688.1 690.6 157.1 3,591.1 661.6 1,437.5 362.5 67.17%

20185 1,309 10,289 33.2 261.1 870.1 6,837.9 1,441.9 726.4 736.8 214.7 3,864.7 559.4 1,746.4 452.6 66.46%

11 1,401 10,976 35.3 277.0 929.1 7,281.8 1,921.4 867.5 964.9 283.4 4,848.6 710.5 1,669.2 400.9 66.34%

Figure 3-2-2-6 Estimates for Internet tra�c in Japan*1*2

【Tra�c estimates】

(Notes) *1 The total for nine cooperating ISPs, namely the Internet Initiative Japan (IIJ), NTT Communications, NTT Plala Inc., K-Opticom (changed its name to OPTAGE Inc. in April, 2019), KDDI, Jupiter Telecommunications Co., Ltd., SoftBank Corp., NIFTY Corporation, and BIGLOBE Inc.

*2 The total tra�c by broadband service subscribers in Japan (estimated), the tra�c per broadband service subscriber (estimated). For A1 and A2 columns, In stands for uploads and Out stands for downloads.

*3 Total tra�c by broadband service subscribers in Japan was estimated from the tra�c of broadband service subscribers of the nine cooperat-ing ISPs (A1) and the share of all subscriptions of the nine cooperating ISPs (X).

*4 Estimation by linear interpolation using the data of “O�cial Announcement of Quarterly Data on the Number of Telecommunications Ser-vice Subscriptions and Market Share ”

【Types of tra�c】

*1 A1 includes the following types of tra�c:�・�Some tra�c on public wireless LAN services from some ISP carriers�・�Some tra�c on femtocell services from some mobile communications carriers*2 It was de�ned from November 2016 that tra�c by CDN cache and tra�c by customer ISPs connecting with cooperating ISPs which provide transit

are handled as A2.*3 B2 includes tra�c exchanged via the following:�・Private peering with domestic ISPs�・Transit provided by domestic ISPs�・Public peering at other domestic IXs other than major domestic IXs*4 B3 includes tra�c exchanged via the following; however, it was de�ned from November 2016 that among the tra�c, the tra�c at domestic connec-

tion points are handled as B2.�・Private peering with overseas ISPs�・Transit provided by overseas ISPs�・Public peering at overseas IXs.

(Source) Prepared from “Aggregation and Provisional Calculation of Internet Tra�c in Japan (Announcement of aggregate results as of November 2018),” MIC

ISP9Internet Initiative Japan(IIJ)

NTT CommunicationsNTT Plala Inc.OPTAGE Inc.

KDDIJupiter Telecommunications Co., Ltd.

SoftBank Corp.NIFTY Corporation

BIGLOBE Inc.

Domestic ISPsOverseas ISPs

B1 Traffic exchanged with major domestic IXs

A2 Traffic by other subscribers

B1In Out

In

Out

A1In

Out

A2

In

Out

B2

In

Out

C Traffic at major domestic IXs

A Traffic by subscriber type

B Traffic exchanged between ISPs

Broadband service subscribers(FTTH, DSL, CATV, FWA)

BB BBOther subscribers

(leased lines, data centers, etc.)

MajorDomestic

IXC

CDNCacheDC

BBEnterprises

Run by Internet Multifeed, Equinix Japan, Japan Internet Exchange, BBIX, and WIDE Project

B3

B2 Traffic exchanged between domestic ISPs without passing through major domestic IXs

B3 Traffic exchanged with overseas ISPs

A1 Traffic by broadband service subscribers

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(c) Estimations for Internet tra�c in JapanMIC have estimated the total download traffic by

broadband service subscribers in Japan from A1 ― the traffic of ISP9 broadband service subscribers (DSL, FTTH, CATV, FWA) ― and the percentage of the nine ISP’s subscriptions among all broadband subscriptions in Japan. This estimate found that traffic internet, on av-erage, was approximately 11.0 Tbps during November 2018. This is a 23.3 percent increase from the same month a year ago, and demonstrates a continuing rise in internet traffic (Figure 3-2-2-6).(ii) Mobile communication tra�c・�Mobile communication tra�c increased at a rate of about 1.3 times

over the last yearThe rapid increase in traffic, particularly data commu-

nications, in recent years is a significant factor in radio spectrum congestion in the frequencies assigned to mo-bile communication systems. In view of this, five mobile communications carriers (NTT DOCOMO, KDDI, Soft-Bank, UQ Communications, and Wireless City Plan-ning) worked together to tabulate and analyze data on the volume of mobile communication traffic (non-voice traffic). They found that, as of December 2018, mobile communication traffic increased about 1.3 times over the last year, and has reached an average of 2911.2 Gbps (Figure 3-2-2-7).

3. Provision and use of broadcasting services・�Subscriptions to NHK terrestrial, NHK-BS, WOWOW and cable TV

services in FY 2017 increased from the previous yearSubscriptions to all broadcasting services increased

in FY 2017, except for 110° East CS, 124/128° East CS broadcasts (Figure 3-2-3-1).

Tabulated Month June 2017 September 2017 December 2017 March 2018 June 2018 September 2018 December 2018

Average monthly tra�c up down total up down total up down total up down total up down total up down total up down total

Average (Gbps) 266.9 1,724.2 1,991.1 289.3 1,910.4 2,199.7 315.3 1,998.9 2,314.2 335.9 2,209.8 2,545.7 346.4 2,366.5 2,712.8 373.5 2,564.4 2,937.9 375.8 2,535.4 2,911.2

Figure 3-2-2-7 Transitions in the monthly average mobile communications tra�c in Japan

(Source) Prepared from “Information and Communications Statistics Database,” MIC

67.25 69.71 71.89 73.08 74.26 75.36 76.30 77.31 78.06 79.33

Satellite broadcasts etc.

NHK

WOWOW

124/128° East CS

110° East CS

Cable TV

0

10

20

30

40

50

60

70

80(million subscribers)

2008 2009 2010 2011 2012 2013 2014 2015 2016 (FY)2017

23.007 24.706 26.016 26.556 27.070 27.670 28.170 28.520 28.850 29.303

0.830 1.126 1.404 1.737 1.963 2.056 2.120 2.195 2.093 2.084

2.737 2.456 2.211 1.963 1.762 1.571 1.254 1.203 1.144 1.094

2.476 2.490 2.512 2.548 2.631 2.648 2.756 2.805 2.823 2.876

38.202 38.932 39.751 40.274 40.829 41.412 42.001 42.583 43.154 43.974

13.999 14.752 15.672 16.496 17.374 18.232 19.113 19.933 20.667 21.476

Figure 3-2-3-1 Subscribers to broadcasting services

(Notes) *1 NHK terrestrial subscribers are includesall types of NHK subscription contracts.*2 NHK-BS subscribers are the sum of NHK satellite contracts.*3 WOWOW subscribers are the sum of WOWOW contracts.*4 110° East CS subscribers are the sum of Sky PerfecTV contracts.*5 124/128° East CS subscribers are the sum of Sky PerfecTV premium contracts.*6 Up until FY 2010, cable TV subscribing households is the sum of households that subscribe to business enterprises which provided indepen-

dent broadcasting services with facilities licensed under the former licensing scheme. From 2011 onwards, it represents the number of subscribing households to registered business enterprises with wired telecommunication facilities providing independent broadcasting services. (Both exclude broadcasts using IP multicasts.)

(Source) Prepared using materials from Japan Electronics and Information Technology Industries Association, materials from Japan Cable Laborato-ries, materials from NHK, and “State of Satellite Broadcasting” and “State of Cable Television” from MIC

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4. Promoting online government services(1) Promoting e-government・�Promotion of e-government based on the inventory of administrative

proceduresIn order to improve the convenience of overall admin-

istrative services, the Cabinet Secretariat conducted a detailed survey on government administrative proce-dures (inventory survey). The results show that about 1.5% (867 types) of all types of procedures (57,668 types), which had more than 0.1 million filings in a year, account-ed for 98% (approximately 2.1 billion) of the sum of proce-dure fillings. In particular, the online usage rate for 57 types of procedures under improvement promotions64, which are frequently used by citizens and enterprises,

has steadily been rising (about 208.27 million procedures out of all 431.33 million procedure fillings were filed on-line, an online usage rate is 48.3%, and an increase of 2.6 percentage points from the previous fiscal year) (Figure 3-2-4-1).

(2) Promoting online governance by local governmentsa. Use of online procedures・�The usage rate for local government procedures which were selected

for online-usage promotion increased over the previous �scal yearThe online usage rate of local government administra-

tive procedures65 was 52.4 percent in FY 2017 (Figure 3-2-4-2).

1. Usage and number of radio stations(1) Radio stations・�The number of radio stations in Japan has increased steadily since

2006The number of radio stations (excluding PHS and

wireless LAN handsets and other radio stations for which no license is required) at the end of FY 2018 in-

creased by 7.1 percent from a year earlier to 251.01 mil-lion, including 247.48 million mobile phones and other land mobile stations. Mobile phones and other mobile land stations accounted for 98.6 percent of all radio sta-tions. The number of convenience stations climbed by 5.6 percent to 1.25 million (Figure 3-3-1-1).

FYProcedure �lings

(unit: million)Filings done online

(unit: million)Online usage rate

(unit: %)2017 431.33 208.27 48.32016 417.87 191.07 45.7

Figure 3-2-4-1 Changes in the online usage of improvement promotion procedures

(Source) “Online of Inventory Results of Administrative Procedures” Cabinet Secretariat and MIC

40.0

42.6

45.247.1

49.151.2

52.4

2011 2012 2013 2014 2015 2016 2017 (FY)30

35

40

45

50

55(%)

FYTotal procedure

�lings for the yearFilings done

onlineOnline usage

rate [%]

2011 337,590,000 135,031,153 40.0

2012 349,000,000 148,496,598 42.6

2013 367,327,00 165,922,189 45.2

2014 368,733,000 173,807,766 47.1

2015 384,473,000 188,831,889 49.1

2016 389,170,000 199,207,981 51.2

2017 390,757,000 204,740,838 52.4

Figure 3-2-4-2 Changes in the usage of local government procedures selected for online-usage promotion

(Notes) *1 The total yearly �lings are an estimate for the entire country calculated based on the total number of �lings and the populations in the juris-dictions of local governments that had already placed the targeted procedures online.

*2 The �gure for FY 2016 was revised due to a miscalculation.(Source) “State of Online Use of Procedure, Noti�cation etc. by Local Public Entities in FY 2017,” MIC

Section 3 Radio Spectrum Usage Trends

64 Improvement promotion procedures are frequently used procedures that are filed 1 million or more times a year by citizens or enterprises or that are mainly used iteratively or continuously by enterprises even if annual filings are less than 1 million.

65 The targeted procedures are those selected for online-usage promotion under the E-Local Government Online Usage Advancement Policy.

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2. Radio surveillance to eliminate interference with key radio communica-tions

・�There were 412 reports of interference with key radio communica-tions in FY 2018, and 1,344 actions were taken against illegal radio stationsIn the interests of eliminating radio interference and

obstructions and maintaining a favorable radio spec-trum usage environment, officials at the 11 Regional Bu-reaus of Telecommunications and elsewhere use illegal radio station search vehicles and sensor stations in-stalled in towers and on building rooftops in major urban areas nationwide. These investigate the sources of radio signals that interfere with fire and emergency services radio, aeronautical and maritime radio, mobile phones, and other key radio communications. Officials also crack down on illegal radio stations and undertake pub-lic awareness activities to ensure more people use the radio spectrum properly.

Since FY 2010, radio authorities have been working to promptly eliminate interference with key radio commu-nications with a system that can receive interference re-

ports around the clock. Radio authorities also monitor shortwave radio and cosmic radio waves from interna-tional radio surveillance facilities registered with the In-ternational Telecommunication Union (ITU).

In FY 2018, there were 1,813 reports of radio interfer-ence or obstructions of all kinds, 436 fewer (down 19.4 percent) than the previous year. Among these, there were 412 reports of interference with key radio commu-nications, 110 fewer (down 21.1 percent) than the previ-ous year. In response to these reports, 1,946 actions66 were taken in FY 2018 (Figure 3-3-2-1).

In FY 2018, 4,694 illegal radio stations were detected, 76 less (down 1.6 percent) than the previous year. In re-sponse, 1,334 actions18 were taken in FY 2018, a decrease of 124 actions (down 8.4 percent) from the previous year. These actions included 208 indictments (15.5 per-cent of all actions) and 1136 directives (84.5 percent of all actions).

66 The number of actions includes incomplete actions remaining from the previous fiscal year.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20182017other

Base stations

Convenience stations *2Amateur stations

Land mobile stations *1

Percentage of land mobile stations

0

(million stations)

0

20

40

60

80

100

(End of FY)

(%)

(%)

97.9 97.9 97.9 98.1 98.2 98.2 98.3 98.4 98.4 98.5 98.6 98.7 98.6 98.6

50.00

100.00

150.00

200.00

250.00

300.00

0.41

0.62

0.66

0.53

100.59

97.9

0.49

1.25

1.18

0.43

231.09

98.6

0.55

1.32

1.25

0.41

247.48

98.6

0.49

0.73

1.12

0.43

214.57

98.7

0.55

0.70

1.05

0.44

197.11

98.6

0.50

0.71

0.97

0.44

174.93

98.5

0.50

0.68

0.90

0.44

154.72

98.4

0.46

0.63

0.84

0.44

143.88

98.4

0.43

0.58

0.77

0.44

132.66

98.3

0.46

0.54

0.74

0.45

118.79

98.2

0.48

0.41

0.72

0.47

114.48

98.2

0.49

0.41

0.70

0.49

109.93

98.1

0.49

0.63

0.68

0.51

105.73

97.9

0.36

0.62

0.65

0.56

102.12

97.9

Figure 3-3-1-1 Changes in the number of radio stations

(Notes) *1 “Land mobile stations” refers to a radio station that is operated either while in motion on land or while stationary in an unspeci�ed location (such as mobile phones).

*2 “Convenience stations” refers to a radio station used for simple radio communications.

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0

500

1,000

1,500

2,000

2,500

3,000

3,500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20182017

(FY)

(reports/actions)

Number of interference/obstruction reports 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

592 674 684 512 532 513 689 501 532 605 771 676 603

1,711 1,991 2,344 2,364 2,241 2,041 1,934 1,873 1,826 1,740 1,995 1,821 1,8112,303 2,665 3,028 2,876 2,773 2,554 2,623 2,374 2,358 2,345 2,766 2,497 2,414

Number of actions in response to interference/obstruction reports2,155 2,403 2,745 3,179 2,772 2,289 2,669 2,453 2,389 2,346 2,667 2,348 2,414

522

1,7272,249

2,310

412

1,4011,813

1,946

Reports of interference with key radio communicationsOther interference reportActions taken in response to reports

Reports of interference with key radio communicationsOther interference reportActions taken in response to reports

Number of actions in response to reports

Figure 3-3-2-1 Changes in the number of radio station interference / obstruction reports and the number of actions taken in response

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