2. Current Status & Future Prospects of The Telecommunications Industry & ICT Infrastructure in Japan Hiroshi Okazaki Senior Vice President Communications and Information network Association of Japan 30 November 2002, Hong Kong The 8th ATIE Forum

3. 1  Ultra High-Speed Networks to be built, with the goal of achieving within 5 years : High-Speed Networks accessible by 30 million households Ultra High-Speed Networks accessible by 10 million households Broadcasting to be digitised and converge with telecommunications  e-Commerce to be facilitated by legislation for new rules  e-Government to be realised  High-Quality Human Resources to be nurtured e-Japan Priority Policy Areas To Become The World’s Most Advanced IT Nation within 5 Years.

4. 2 Evolution of Networks in Japan Broadband Services Mobile Services

5. 3 Broadband Services  4.6 Million DSL Sub’s (as at Oct)  1.8 Million CATV Sub’s (as at Sep)  115 Thousand FTTH Sub’s (as at Sep)  e-Japan Thrust

6. 4 Source: Ministry of Public Management, Home Affairs, Posts and Telecommunications Subscribers to Broadband Internet Access Services Sep 99Sep 00Sep 01 Sep 02

7. 5 4,850 5,050 4,984 4,613 1.5M 8M 768K 512K 500K 512K1.5M （ Yen/month ） Int’l Tariff Comparison for 24-Hr Connected ADSL Services Upper Part: ISP access fee Lower Part: Communications fee Source: Ministry of Public Management, Home Affairs, Posts and Telecommunications Tokyo 1 NTT Tokyo 2 NTT Tokyo Yahoo BB N.Y. 1N.Y. 2 London Paris Dusseldorf Geneva Seoul

8. 6 Mobile Services  72 Million Cellular Phones (as at Sep)  79% or 57 Million are Internet-accessible  Function-richness

9. 7 0 10 20 30 40 50 60 70 80 199019911992199319941995199619971998199920002001 PHS Mobile Fixed + ISDN Fixed M The Mobile Phones exceeded the Fixed Phones. Subscribers of Fixed and Mobile Phones

10. 8 Source: Ministry of Public Management, Home Affairs, Posts and Telecommunications IP Non-IP No of Sub’s to IP Connection Services via Cellular Phones 80M 70 60 50 30 40 20 10 0

11. 9 Display Screen:-Large (2.1 inch) and fully coloured (65,536 colours) with high resolution CPU:- High speed Memory:- Large memory size and memory card Image processing:-Built-in camera with various image formats such as JPEG, BMP, PNG, etc Audio processing:-Increased number of sounds in harmony from various built-in sound sources (PCM, etc.) - Various built-in sound sources (PCM, etc.) Security:- Utilises SSL (Secure Sockets Layer) Software:- Utilises Java Battery Life Standby:- Over 400 hours Continuous Talktime:- Over 2 hours Weight:- 70 – 100 grams (2.50 – 3.57 oz) Size (Foldable):- 93 x 48 x 24 mm when folded Advanced Cellular Phone Functions in Japan

12. 10 Camera-Equipped Mobile Phones  The First camera-equipped model launched in Nov 2001, contributing to revenue to Sharp and J-Phone.  53.6% of J-Phone sub’s use camera-type phones as at end of October 2002.  33.7% of Mobile Phones have cameras built-in.  Camera phones instead of digital cameras

13. 11 Current Status Measures for Improvement 2G for Comparison Service areas Major Urban Areas only 90% of Population by March 2003 100% Handset PriceUS$250-400US$150-280US$50-200 Weight150g 100-110g by this year-end 70-110g Battery life 55 hours125-150 hours Over 400 hours Diagram-11 Current Status of FOMA and Measures for Improvement

14. 12 Carriers’ Business Strategies 3G Mobile Service Migration to IP Technologies  IPv6 Faster Broadband Access

15. 13 Commercialisation Plan of 3G Services W-CDMA cdma2000 NTT DoCoMo J-Phone KDDI au 2001 2002 2003 Introductory service Tokyo Area Osaka, Nagoya Major cities for 60% of Pop’n 90% Postponed Summer Osaka, Nagoya 800MHz 2GHz CDMA2000 1X 100 % CDMA2000 1X Tokyo Area For 99% of Pop’n 97%+

16. 14 2G Tech Rev in H1 of FY02 ( US$ ) Ope Profit in H1 of FY02 ( US$ ) No of Subs (Sep 02) Browser Phones NTT DoCoMo PDC W-CDMA 19,541M5,246M42,162K i-mode 34,883K au cdmaOne CDMA2000 1x PDC 6,615M107M13,053K EZ Web 11,150K TU-KAPDC1,328M(82M) 3,864K J- PHONE PDC5,836M107M13,001K J-Sky 11,079K KDDI Japan Telecom Mobile Carriers in Japan

17. 15 3G Mobile Service Migration to IP Technologies  IPv6 Faster Broadband Access Carriers’ Business Strategies

18. 16 Features of IPv6 Virtually unlimited number of addresses  IPv4: Total 4.3B IPv6:3.4X10 28 Security function is standard  Authentication in EC etc., secured traffic Framework for QoS guarantee (flow label):  Stream data (voice, video) Easy configuration by Plug&Play  IP enabled information appliance Multicasting is standard  one-to-many, conversion of broadcasting and communications Interconnection with Mobile Network  Seamless interworking between fixed network and mobile network via Mobile IP

19. 17 Vendors’ Trends Migration to IP-related business  IPv6 technologies Concentrated Investment in Mobile Business 3G Mobile Service

20. 18 Vendors’ Alliance for 3G (W-CDMA) Matsushita (Panasonic) Siemens Mar/99 : Joint venture for development & marketing of infrastructure Aug 01: Joint development of mobile terminals NEC Sony Alcatel Fujitsu Ericsson Joint Venture estab. In Oct 00 for mobile terminal business Joint venture estab. in Jun 00 to develop infrastructure Evolium Sony Ericsson Mobile

21. 19 CIAJ’s Direction CIAJ will work together: with not only vendors of network infrastructure equipment & terminals, but also ISPs and other service providers and also corporate network users, with our govt departments and agencies, and with your organisations to create new business models and proliferate advanced use of ICT technologies and applications, to formulate policy proposals for presentation to our govt to achieve appropriate business environment, and to contribute to the economic development in East Asia region for our mutual benefits