Some issues in recent ICT policies in Japan

Some issues in recent ICT policies in Japan
Toshiya Jitsuzumi, D.Sc., MBA
Professor, Chuo University
T. JITSUZUMI@APT seminar Tokyo, 2022/6/27)
（

Broadband in Japan
T. JITSUZUMI@APT seminar Tokyo,2022/6/27)
（
Source: http://kouwa-cc.co.jp/images/06.jpg

Economic impacts of broadband penetration (ITU 2020)
The findings based on cross-country data:
1. Developed countries with high penetration of fixed broadband enjoy a “return to scale” effect.
2. The impact of mobile broadband is driven by a “saturation” or “diminishing returns” effect.
T. JITSUZUMI@APTseminar Tokyo,2022/6/27)
（
Source: ITU (2020) “How broadband,
digitization and ICT regulation impact the
global economy: Global econometric
modelling November 2020,”
https://www.itu.int/dms_pub/itu-d/opb/pref/D-
PREF-EF.BDR-2020-PDF-E.pdf

Economic impacts of fixed broadband penetration
“return to scale” effect
（
Source: ITU (2020) “How broadband, digitization and ICT regulation impact the global economy: Global econometric modelling November 2020,” https://www.itu.int/dms_pub/itu-d/opb/pref/D-PREF-EF.BDR-2020-PDF-E.pdf

Economic impacts of fixed broadband penetration
Globally, the economic contribution of mobile broadband is higher than that of fixed broadband, but its
impact decreases with economic development.
（

Economic impacts of broadband speed (ITU 2020, pp.23-24)
Research on the contribution of
broadband speed to economic growth
generally concludes that faster Internet
access has a positive impact on GDP
growth.
◦ Faster broadband contributes to an
improvement of productivity resulting
from the adoption of more efficient
business processes.
◦ Faster connectivity yields an
acceleration of the rate of
introduction of new products,
services, and the launch of
innovative business models.
（
While all studies conclude that
broadband speed has an impact on
GDP, the range of contribution varies.

Broadband “availability” in Japan
（
Prefectural variation of FTTH coverage
Source: Created using the data of MIC (https://www.soumu.go.jp/main_content/000801102.pdf) Source: MIC (https://www.soumu.go.jp/main_content/000801102.pdf)
Prefectures

Broadband “penetration” in Japan
（
FTTH 33.1M
DSL 1.4M
cable 6.7M
ISDN 2.5M
Source: Created using the data from MIC’s White Paper 2021 (https://www.soumu.go.jp/johotsusintokei/whitepaper/r03.html) and MIC’s press releases on Jun. 18, 2021 and on Mar. 18, 2022.
3G 20.7M
LTE 142.9M
BWA 78.2M
5G 36.4M

Policies that have contributed to Japan becoming a broadband society
Stages Policies
1st stage: Development of ICT infrastructure • e-Japan Strategy (2001)
2nd stage: Promotion of ICT utilization • e-Japan Strategy II (2003)
• New IT Reform Strategy (2006)
• i-Japan Strategy 2015 (2009)
• New Strategy in ICT (2010)
3rd stage: Utilization of digital data • Declaration to be the World’s Most Advanced IT Nation (2013)
• Basic Act on the Advancement of Public and Private Sector
Data Utilization (2016)
• Declaration to be the World’s Most Advanced IT Nation (2017)
• Digital Government Strategy (2017)
• Digital Government Strategy (2017)
4th stage: Formation of a digital society • Declaration to be the World’s Most Advanced Digital Nation -
Basic Plan for the Advancement of Public and Private Sector
Data Utilization (2018)
• Vision for a Digital Garden City Nation (2021)
（
Because development of ICT infrastructure
progressed ahead of the schedule, not only
infrastructure development but also many
measures for ICT utilization were implemented.
The focus was on the development of ICT
infrastructure.
Utilization of various digital data was
promoted and measures were taken toward
creation of a “society that utilizes public and
private sector data.”
Until the 3rd stage, the goal was to become
the world’s most advanced “IT nation,” but in
2018, the goal was set to become the world’s
most advanced “digital nation.”
Source: Created based on MIC’s White Paper 2021 (https://www.soumu.go.jp/johotsusintokei/whitepaper/r03.html)

Vision for a Digital Garden City Nation (2021)
I. Building digital infrastructure
◦ The first is the building of digital infrastructure that stretches to every corner
of the country, comprising the following four goals:
1. The completion, in roughly three years, of a digital superhighway using
submarine cables surrounding the islands of Japan;
2. The building of more than a dozen regional data centers in about five years;
3. Making optical fiber a universal service by 2030, with 99.9% coverage of
households, and;
4. Achieving 5G coverage for 90% of the Japanese population by the end of
fiscal 2023 (March 31, 2024).
◦ With those objectives completed, it will be possible to use high-speed, large-
capacity digital services anywhere in Japan.
II. Developing and securing human resources with digital skills
III. Implementing digital services to solve rural issues
IV. Initiatives to leave no one behind
（
Source: https://www.japan.go.jp/kizuna/2022/01/vision_for_a_digital_garden_city_nation.html
a total of 5.7 trillion yen to be spent
in the FY2021 and in FY2022.

Comparison among OECD nations
Since the Basic Act on the Formation of an Advanced Information and Telecommunications Network
Society was established in 2000, Japan has tackled digitalization under various national strategies,
including the e-Japan Strategy, and has made great progress in developing fiber-optic and other
broadband networks.
According to the OECD, Japan is at the world’s top level in terms of the proportion of optical fibers in fixed
broadband and diffusion rate of mobile broadband.
（
Source: MIC’s White Paper 2021 (https://www.soumu.go.jp/johotsusintokei/whitepaper/eng/WP2021/2021-index.html)

Broadband usage in Japan
（
+
distance-learning
teleworking
Source: MIC’s White Paper 2021
(https://www.soumu.go.jp/johotsu
sintokei/whitepaper/eng/WP2021/
2021-index.html)
The use of digital technologies is far-ranging in everyday life.
• Most used services are “Internet shopping,” “payment /
settlement” and other consumption-related services. These are
followed by “map/navigation” that is used when travelling,
“information search/news” for information gathering and “video
distribution” for entertainment, etc.
• Only 6.3% of the respondents do not use any such services.

Impact of COVID-19
（
(https://www.soumu.go.jp/johotsusintokei/whit
epaper/eng/WP2021/2021-index.html)
Spread of COVID19 infection increased
“stay-at-home consumption” and
changed consumption behavior. The
proportion of households using Internet
shopping rapidly increased after March
2020 and more than half of the
households with two or more members
have been using Internet shopping
(Figure 2-1-3-1).

Impact of COVID-19
The amount of time spent online per week increased by 44% from 94.8 min. in 2019 to 136.6 min. in
2020. And, the time spent watching internet videos increased by 80% from 18.1 to 32.5 min. during the
same period.
（
Source: Adapted from “A Research for Information and Media Society 2021” by Dentsu Media Innovation Research Department (Ed.)

Dramatic increase in broadband usage
（
(https://www.soumu.go.jp/johotsusintokei/whitepaper/eng/WP2021/2021-index.html)
With the increase in hours of being at
home under the COVID-19 pandemic,
Internet traffic has sharply increased.
Traffic had been increasing around 20%
annually, but in 2020 it increased more
than 50% over the previous year
(Figure 2-1-3-5)

Increasing stress on Japan’s broadband infrastructure
（
Measurements (Nov. 2021-Mar. 2022) by MIC's proprietary app.
The median "actual speed" of broadband with "advertised speed" of 1 Gbps
or higher was 199.1 Mbps; with ad speed of 1 Gbps, 193.7 Mbps; and with
ad speed of less than 1 Gbps, 94.6 Mbps.
https://www.soumu.go.jp/main_con
tent/000821464.pdf
N
Average
Median
S.D.
25% percentile
75% percentile

MIC’s proposals for “universal broadband service”
As for broadband services, the volume of usage is growing year by year, and “maintenance of
existing infrastructure” is becoming increasingly important in addition to “expanding/upgrading
broadband network.”
Designate a certain broadband services as “universal service” and establish a subsidy system
or a universal service fund to ensure the stable provision of broadband services in
unprofitable areas.
（
◦ According to the MIC’s study group:
◦ Based on the concept of beneficiary-pays, it is appropriate that the subsidy
should be borne by broadband service providers.
◦ OTT service providers are also beneficiaries. However, it is appropriate to
continue to consider whether or not to collect contributions from OTT
service providers, referring to overseas examples.
◦ On June 13, 2022, an necessary amendment to the TBA was
enacted. It is envisioned that the costs required to maintain
broadband (approx. 22.7B yen per year).

Possible “overseas example”?: zero-price rule vs. paid peering
（
Source: https://www.theverge.com/2021/10/1/22704313/sk-broadband-netflix-suing-for-payment-squid-game
Source: https://www.lightreading.com/ossbsscx/the-time-may-have-arrived-for-big-tech-to-pay-up-
for-telecom/a/d-id/769742

Wi-Fi and disaster response
T. JITSUZUMI@APT seminar Tokyo,2022/6/27)
（

Two targets of muni Wi-Fi projects in Japan
（
Source: Photos by author Source: https://www.jnto.go.jp/mobiletips/

Muni Wi-Fi in Japan
（
Source:
http://www.soumu.go.jp/main_sosi
ki/joho_tsusin/top/local_support/ic
t/musenlan.html
408 systems out of 1,718 municipalities as of May 2015

Case of my town
（
Source: https://translation2.j-
server.com/LUCHOJC/ns/tl.cgi/https://ww
w.city.hachioji.tokyo.jp/kurashi/sangyo/00
3/004/p018282.html?SLANG=ja&TLANG
=en&XMODE=0&XCHARSET=utf-
8&XJSID=0

Expected externality and “dual” use
（
All the benefits are
captured by the
operator.
Benefits are enjoyed by third parties
but can be partially captured
through tax.
Benefits are enjoyed
by third parties and
are difficult to be
captured.
No externality Small externality Large externality
Ordinary times
Emergency
Targeted users
Municipal gov. Local utility providers Local residents/business Tourists
Office
use
Facility
monitoring
Urban
development
Community
service Service
for
tourists
Backup office
network in an
emergency
Backup
internet
access
Disaster
information
service
Mainly for the pure
Internet access
Used as an integrated part
of a system or applications
Source: Created based on APPLIC (2015) https://www.applic.or.jp/infra/2015/2015_wifigb_ver1.1.zip

00000JAPAN: Disaster response of carrier’s Wi-Fi
（
Source: Created from information in http://www.wlan-business.org/customer/introduction/feature/00000japan

Case of the “2016 Kumamoto Earthquakes”
（
Foreshock
◦ A magnitude 6.2 at 21:26 JST
(12:26 UTC) on April 14,
2016, at a depth of about 11
km (6.8 mi)
Mainshock
◦ A magnitude 7.0 at 01:25 JST
on April 16, 2016 (16:25 UTC
on April 15) beneath
Kumamoto City of Kumamoto
Prefecture in Kyushu Region,
Japan, at a depth of about 10
km (6.2 mi)
Source: Photos by author

Means Used for Information Collection (in time series)
Mobile phones were the most common means of gathering information from the time of the disaster to
the recovery period, followed by terrestrial TV and SNS.
（
The number of users
of terrestrial TV and
governmental
websites tended to
increase as time
passed.

Information Collection Means Used by Municipalities
The Kumamoto Earthquake
is characterized by the fact
that information was
collected from dispersed
places using multiple ICT
tools.
Local government officials
themselves independently
collected information and
used tablet terminals for
information integration and
sharing. Additionally, SNS
information sent by disaster
victims was also used for
ascertaining their needs.
（

Disaster response of muni Wi-Fi
（
Source: Created based on the data from Wi-Biz (2016) https://www.wlan-business.org/wp-content/uploads/2016/09/67dd0e3629b5df36969a4e6c51bd2565.pdf
No authentication
is required due to
a severe natural
disaster
Over 15,000 access points were opened free of charge throughout Kyushu.
◦ kumamoto-free-wifi
◦ Onsen_Oita_Wi-Fi_City
◦ Miyazaki_Free_Wi-Fi
◦ Kagoshima_Free_Wi-Fi, etc.

Disaster response of 00000JAPAN
Major mobile operators (MNOs) opened a total of about 55,000 access points (APs) throughout Kyushu.
（
Carriers In Kumamoto Pre. In Kyushu area
NTT DoCoMo approx. 800 approx. 9,000
KDDI approx. 1,000 approx. 10,000
Softbank approx. 3,000 approx. 36,000
TOTAL approx. 4,800 approx. 55,000
Source: Wi-Biz (2016, https://www.wlan-business.org/wp-
content/uploads/2016/09/67dd0e3629b5df36969a4e6c51bd2
565.pdf), Google Map, and National Disaster Institute for
Earth Science and Disaster Resilience
NTT DoCoMo
KDDI
Softbank
Earthquake (Apr. 14, 21:26)
Kumamoto Pre.
Kumamoto P.
Kumamoto P.
Kyushu
Kyushu
Kyushu
Kyushu
Kumamoto P.
72 hours after the earthquake
12:00

Usage of 00000JAPAN
（
It is estimated that 27% of all Wi-Fi traffic
in all of Kyushu from Apr. 15 to Apr. 30
comes from the use of 00000JAPAN.
Source: Created based on the data from Wi-Biz (2016) https://www.wlan-business.org/wp-content/uploads/2016/09/67dd0e3629b5df36969a4e6c51bd2565.pdf
A) Traffic on 00000JAPAN increased after the
opening of evacuation centers.
B) The scope of service was limited to
Kumamoto Prefecture and evacuation
centers on April 28 following the complete
restoration of the cell phone network. Free
service in other Kyushu areas was
terminated.
C) Free service in Kumamoto Prefecture
ended on May 31, 2016.
4/25-27 Restoration of the cell phone network
4/14 Earthquake
4/25-28 Free service in other
Kyushu areas was terminated.

Public Wireless LAN Environment Improvement Support Project
From the viewpoint of disaster prevention, the Government subsidizes a part of the cost for local
governments that develop public Wi-Fi environments at disaster prevention sites (evacuation centers,
shelters, public offices) and public sites (museums, cultural assets, natural parks, etc.).
（
Source: https://www.soumu.go.jp/main_content/000719695.pdf

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