1. 1 Current Status of Broadband Services in Japan Hideki Yagi Communications and Information network Association of Japan

2. 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. 3 Target of Broadband Service Penetration of e-Japan Actual Always-on environment achieved in 2003 High-speed DSL 35 million households CATV 23 million households Ultra high-speed FTTH 17.7 million households Target Always-on environment by 2005  High-speed: 30 million households Ultra high-speed: 10 million households

4. 4 Fiber Optic Infrastructure in Japan 100% 72% 20% 1994 2000200320052010(FY) Private Sector Initiative achievement Government Support for Carriers Ultra-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e-Japan Strategy Coverage Current Status of Establishment of Fiber Optic Cable Backbone  Almost all networks have been replaced by fiber optic cables Access network  About 72% of feeder points have been covered (at the end of March 2003) Previous Target released in May 94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. 5 Broadband Service Subscribers in Japan (Thousand subscribers) (Year/month) Source: MIC (Ministry of Internal Affairs & Communications)

6. 6 Comparison of Broadband Services in Japan Monthly Charge (USD) Max. Speed No. of Operators DSL Approx. $30 Normally 24 to 26 Mbps More than 40 Mbps in metropolitan areas 44 FTTH $35 to $50100 Mbps12 CATV $30 to $40 Normally 8 to 10 Mbps 30 Mbps in metropolitan areas 347 Source: MIC

7. 7 Int’l Comparison of Charge of Always-on DSL Service Note: Flat rate including comm. charge & ISP charge (US$ per month) (Speed of Downlink) 24Mbps8M40M1.5M1M 3M2.4M Source: MIC

8. 8 Changes in the Number of Mobile Phone Subscribers (FY) 3G (26%) Can connect with Internet (86%) Number of mobile phone subscribers( 83.5 mil.) 2000 First mobile phones with cameras 2001 Start of 3G service Million subscribers 1999 Start of mobile internet access service Mobile phone with camera (66%) Source: MIC

9. 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: 200Mbps Frequency: 2-30MHz

10. 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. 11 Fukuoka NICT Keihanna Okayama Kochi NICT Kita- kyushu Nagoya Kanazawa Sapporo Sendai NICT Tsukuba Tokyo Nagano NICT Osaka Okinawa 20Gbps Diagram of the New R&D-Use Test Bed Network (JGN II) 10Gbps 1Gbps Core network Optical test bed U. S. A. (10 Gbps) site Since August 2004