section 1 ict industry trends 1. economic size of the ict ... · economic size of the ict industry...

23
1. Economic size of the ICT industry (1) Market size (domestic production) ICT industry market accounted for about 9.9 percent of all industries, making it the largest industry The ICT industry’s market size in 2015 was 95.7 tril- lion yen (based on nominal domestic production), ac- counting for 9.9 percent of all industries and making it the largest industry in the country (Figure 6-1-1-1). Looking at the industry’s performance over time finds that its production value cooled off for several years af- ter 2000 in response to the collapse of the IT bubble. The industry entered positive growth territory again starting in 2005, but its production value plummeted between 2008 and 2009 due to the global financial crisis. ICT’s production value continued to slide even after 2010 until signs of recovery finally started to appear in the years after 2012 (Figure 6-1-1-2). Looking at the transitions in market size (based on real domestic production ) of the main industries in con- stant 2011 values reveals that the ICT industr y fell down by the 2008 – 2009 global financial crisis to 91.3 trillion yen in 2012 but trended gradual upward after 2013 (Fig- ure 6-1-1-2). The ICT industry’s market size (based on real domestic production) in 2015 was 95.7 trillion yen. The industry’s average annual growth rate from 2000 to 2015 was 0.6 percent. (2) Gross domestic product (GDP) The real GDP of the ICT industry in 2015 accounted for 9.3 percent of all industries The nominal GDP of the ICT industr y rose in 2015 by 4.9 percent year-on-year to 44.2 trillion yen. Conversely, the real GDP of the ICT industr y in constant 2011 values increased 1.8 percent year-on-year in 2015 to 44.4 trillion yen. (Figure 6-1-1-3). Looking at the size of nominal GDP of the main indus- tries finds that the ICT industr y’s nominal GDP accounts for 8.9 percent of the combined nominal GDPs of all in- dustries and is the third largest after the commerce and real estate industries. The growth rate of the ICT indus- try in terms of nominal GDP rebounded to plus 4.9 per- cent over 2014 and 2015. Examining the real GDPs of the main industries finds that the ICT industry’s real GDP accounts for 9.3 percent of all industries, making it the third largest industries following commerce and real estate industries (Figure 6-1-1-4). Section 1 ICT Industry Trends (Source) “Study on Economic Analysis of ICT,” MIC (2017) Figure 6-1-1-1 Market sizes of major industries (based on nominal domestic production) (breakdown) (2015) ICT industry 95.7 9.9% ICT industry 95.7 9.9% Commerce 90.7 9.4% Real estate 73.8 7.6% Medical, health care and welfare 68.4 7.1% Construction 64.3 6.6% Business services 56.2 5.8% Transportation equipment 52.9 5.5% Transportation equipment 52.9 5.5% Personal services 50.5 5.2% Other industries 416.0 43.0% Other industries 416.0 43.0% Nominal market size of all industries (2015) 968.5 trillion yen (trillion yen) 56 Part 2 Chapter 6 Basic Data on the ICT Field

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Page 1: Section 1 ICT Industry Trends 1. Economic size of the ICT ... · Economic size of the ICT industry (1) ... has a large impact on the ICT industry, ... on Science and Technology”,

1. Economic size of the ICT industry(1) Market size (domestic production)⃝� ICT industry market accounted for about 9.9 percent of all industries,

making it the largest industryThe ICT industry’s market size in 2015 was 95.7 tril-

lion yen (based on nominal domestic production), ac-counting for 9.9 percent of all industries and making it the largest industry in the country (Figure 6-1-1-1). Looking at the industry’s performance over time finds that its production value cooled off for several years af-ter 2000 in response to the collapse of the IT bubble. The industry entered positive growth territory again starting in 2005, but its production value plummeted between 2008 and 2009 due to the global financial crisis. ICT’s production value continued to slide even after 2010 until signs of recovery finally started to appear in the years after 2012 (Figure 6-1-1-2).

Looking at the transitions in market size (based on real domestic production ) of the main industries in con-stant 2011 values reveals that the ICT industry fell down by the 2008 – 2009 global financial crisis to 91.3 trillion yen in 2012 but trended gradual upward after 2013 (Fig-ure 6-1-1-2). The ICT industry’s market size (based on real domestic production) in 2015 was 95.7 trillion yen.

The industry’s average annual growth rate from 2000 to 2015 was 0.6 percent.

(2) Gross domestic product (GDP)⃝� The real GDP of the ICT industry in 2015 accounted for 9.3 percent of all

industriesThe nominal GDP of the ICT industry rose in 2015 by

4.9 percent year-on-year to 44.2 trillion yen. Conversely, the real GDP of the ICT industry in constant 2011 values increased 1.8 percent year-on-year in 2015 to 44.4 trillion yen. (Figure 6-1-1-3).

Looking at the size of nominal GDP of the main indus-tries finds that the ICT industry’s nominal GDP accounts for 8.9 percent of the combined nominal GDPs of all in-dustries and is the third largest after the commerce and real estate industries. The growth rate of the ICT indus-try in terms of nominal GDP rebounded to plus 4.9 per-cent over 2014 and 2015. Examining the real GDPs of the main industries finds that the ICT industry’s real GDP accounts for 9.3 percent of all industries, making it the third largest industries following commerce and real estate industries (Figure 6-1-1-4).

Section 1 ICT Industry Trends

(Source) “Study on Economic Analysis of ICT,” MIC (2017)

Figure 6-1-1-1 Market sizes of major industries (based on nominal domestic production) (breakdown) (2015)

ICT industry95.79.9%

ICT industry95.79.9%

Commerce90.79.4%

Real estate73.87.6%

Medical,health careand welfare

68.47.1%

Construction64.36.6%

Business services56.25.8%

Transportationequipment

52.95.5%

Transportationequipment

52.95.5%

Personal services50.55.2%

Other industries416.043.0%

Other industries416.043.0%

Nominal marketsize of all industries(2015)

968.5 trillion yen

(trillion yen)

56

Part

2Chapter 6

Basic Data on the ICT Field

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Page 2: Section 1 ICT Industry Trends 1. Economic size of the ICT ... · Economic size of the ICT industry (1) ... has a large impact on the ICT industry, ... on Science and Technology”,

(3) Employment⃝� ICT industry employment totaled 4.01 million in 2015 accounting for

6.0 percent of total employment in all industriesThe ICT industry employed 4.01 million people in

2015 (up 0.8 percent from the previous year), accounting for 6.0 percent of total employment in all industries. Em-ployment declined by 6.1 percent from 2014 in the

Broadcasting sector, by 3.5 percent in the video, audio and text information production sector, and by 1.4 per-cent in the communications sector. But employment in the research sector and the ICT-related services sector increased, by 3.3 percent and 2.6 percent respectively (Figure 6-1-1-5).

(Source) “Study on Economic Analysis of ICT,” MIC (2017)

Figure 6-1-1-2 Trends in market sizes of major industries (based on nominal domestic production and real domestic produc-tion)

116,627

95,664

010,00020,00030,00040,00050,00060,00070,00080,00090,000

100,000110,000120,000

(in billions of yen)

010,00020,00030,00040,00050,00060,00070,00080,00090,000

100,000110,000120,000(in billions of yen, 2011 values)

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

86,97495,737

Medical, health care and welfare

Business services personal services

Real estate ConstructionTransportation equipment

Commerce

ICT industry

Medical, health care and welfare

Business services personal services

Real estate ConstructionTransportation equipment

Commerce

ICT industry

Nominal domestic production Real domestic production

(Source) “Study on Economic Analysis of ICT,” MIC (2017)

Figure 6-1-1-3 Transitions in the nominal GDP and real GDP of major industries

53,360

44,221

010,00020,00030,00040,00050,00060,00070,00080,000

010,00020,00030,00040,00050,00060,00070,00080,000

(in billions of yen)

30,552

44,432

(in billions of yen,2011 values)

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

Nominal GDP Real GDP

Medical, health care and welfare

Business services personal services

Real estate ConstructionTransportation equipment

Commerce

ICT industry

Medical, health care and welfare

Business services personal services

Real estate ConstructionTransportation equipment

Commerce

ICT industry

(Source) “Study on Economic Analysis of ICT,” MIC (2017)

Figure 6-1-1-4 Nominal GDP and real GDP of major industries

(trillion yen)(trillion yen) ICTindustry

44.28.9%

ICTindustry

44.28.9%

Commerce60.4

12.2%

Real estate59.2

12.0%

Medical,health careand welfare

40.68.2%

Construction29.96.0%Business services

35.77.2%

Transportationequipment

11.72.4%

Personalservices

27.75.6%

Otherindustries

185.037.4%

Otherindustries

185.037.4% Nominal GDP of

all industries(2015)

494.5 trillion yen

ICTindustry

44.49.3%

ICTindustry

44.49.3%

Commerce61.5

12.8%

Real estate60.5

12.6%

Medical,health careand welfare

40.08.3%Construction

29.66.2%

Business services34.57.2%

Transportationequipment

10.42.2%

Personalservices

27.25.7%

Otherindustries

171.735.8%

Otherindustries

171.735.8% Real GDP of all

Industries (2015)479.9 trillion yen

(2011value)

Nominal GDP Real GDP

57

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Page 3: Section 1 ICT Industry Trends 1. Economic size of the ICT ... · Economic size of the ICT industry (1) ... has a large impact on the ICT industry, ... on Science and Technology”,

2. ICT industry contributions to the national economy (1) ICT industry’s economic spillover effects⃝� The ICT industry contributes the largest class economic spillover effects

of all industries in terms of added value and job inducementsThe ICT industry’s real domestic production in 2015

was 95.7 trillion yen. The industry’s economic spillover effects,35 estimated to be 80.8 trillion yen in added value and 8.263 million jobs. By comparison, in 2000 the ICT

industry’s real domestic production value was 87 trillion yen, which contributed 73.8 trillion yen in added value and 9.925 million jobs. Because technological innovation has a large impact on the ICT industry, the industry is believed to be a stronger driver of added value than em-ployment (Figure 6-1-2-1).

3. Research and development in the ICT field(1) Research and development spending⃝� The ICT industry36 spent 3.9591 trillion yen on research in FY 2015, ac-

counting for 28.9 percent of all corporate research spendingAccording to the “2016 Research Investigation Report

on Science and Technology”, Japan’s total scientific and

technological research spending (i.e., research spend-ing) in FY 2015 stood at 18.9391 trillion yen (the com-bined research spending by enterprises, nonprofit orga-nizations, public agencies, universities, etc.).

Corporate research spending, which accounts for

35 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.

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

(Source) “Study on Economic Analysis of ICT,” MIC (2017)

Figure 6-1-1-5 Transitions in ICT industry employment

Communications Broadcasting Information services Internet-related services Video, audio and text information productionICT-related manufacturing ICT-related services ICT-related construction Research

(thousands of jobs)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

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

4,7434,531

4,194 4,139 4,164 4,156 4,201 4,187 4,203 4,118 4,010 3,949 3,903 4,021 3,978 4,010

(Source) “Study on Economic Analysis of ICT,” MIC (2017)\

Figure 6-1-2-1 Transitions in economic spillover effects (induced added value and jobs) from major industries’ production activities

73.880.2

81.4 80.9 80.8

0102030405060708090

100

2000 2005 2011 2014 2015

(in trillions of yen)

(year) 2000 2005 2011 2014 2015(year)

992.5914.0

863.4827.3 826.3

0

200

400

600

800

1,000

1,200

1,400

1,600(tens of thousands of jobs)

Medical, health care and welfareBusiness servicePersonal service

Real estateConstructionTransportation equipment

CommerceICT industryMedical, health care and welfareBusiness servicePersonal service

Real estateConstructionTransportation equipment

CommerceICT industry

【Induced added value】 【Induced jobs】

58

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Page 4: Section 1 ICT Industry Trends 1. Economic size of the ICT ... · Economic size of the ICT industry (1) ... has a large impact on the ICT industry, ... on Science and Technology”,

about 70 percent of all research spending, was 13.6857 trillion yen. Of this amount, 3.9591 trillion yen (28.9 per-cent) was spent on research by the ICT industry. The ICT equipment and appliance manufacturing segment was largest research spender in the ICT industry (Fig-ure 6-1-3-1).

(2) Technology trading⃝�The ICT industry posted a surplus in technology exports37 in FY 2015

The value received from Japan’s technology exports in FY 2015 totaled 3.9498 trillion yen, to which the ICT industry contributed 570.8 billion yen, or 14.5 percent. On the other side of technology trades, the costs of tech-nology imports was 602.6 billion yen, of which the ICT industry paid out 274.1 billion yen, or 45.5 percent. Both Japan and the ICT industry posted export surpluses in technology trading.

The ICT equipment and appliance manufacturing seg-ment accounted for the largest share of the ICT indus-try’s technology imports and exports (Figure 6-1-3-2).

(3) Number of researchers⃝�The ICT industry employed 169,717 researchers, or 34.9 percent of all

corporate researchers in JapanThere were 847,093 researchers in Japan on March

31, 2016 (the total of all researchers at enterprises, non-profit organizations, public agencies, universities, etc.). Enterprises employed 486,198 researchers, or about 60 percent of the total. The ICT industry employed 169,717 researchers, or 34.9 percent of all enterprise research-ers in Japan. The ICT equipment and appliance manufac-turing segment had the most researchers of any ICT in-dustry sector (Figure 6-1-3-3).

37 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 to receive (import) the same forms of technology transfers from other countries.

(Source) Prepared from the “2016 Research Investigation Report on Science and Technology,” MIC

Figure 6-1-3-1 Breakdown of corporate research spending by industry (FY 2015)

ICT equipment and appliance manufacturing

1.5476 11.3%

Electrical equipment and appliance manufacturing

1.1569 8.5%

Electronic component, device, and circuitry manufacturing

0.6093 4.5%

Communications0.3796

2.8%Information services

0.2615 1.9%

Internet-related and other ICT services

0.0034 0.0%

Broadcasting0.0008

0.0%

Total for other manufacturing industries

8.5503 62.5%

Total for other manufacturing industries

8.5503 62.5%

Total for other industries

1.1763 8.6%

(corporate research spending :13.6857 trillion yen)(trillion yen)

(Source) Prepared from the “2016 Research Investigation Report on Science and Technology,” MIC

Figure 6-1-3-2 Technology trading by industry (FY 2015)

(billion yen) (billion yen)ICT equipment and appliance manufacturing

348.2 8.8% Electrical equipment and

appliance manufacturing166.9 4.2%

Electronic component, device, and circuitry

manufacturing22.6 0.6%

Information and communications

33.1 0.8%

Total for other manufacturing

industries3324.9 84.2%

Total for other manufacturing

industries3324.9 84.2%

Total for other industries

54.2 1.4%

Value of technology exports (all industries:3.9498 trillion yen)

ICT equipment and

appliance manufacturing

140.0 23.2%

ICT equipment and

appliance manufacturing

140.0 23.2% Electrical equipment

and appliance manufacturing

35.7 5.9%

Electronic component, device, and circuitry

manufacturing7.3 1.2%

Information and communications

91.0 15.1%

Information and communications

91.0 15.1%

Total for other manufacturing

industries311.4 51.7%

Total for other manufacturing

industries311.4 51.7%

Total for other industries

17.1 2.8%

Value of technology imports (all industries: 602.6 billion yen)

59

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Page 5: Section 1 ICT Industry Trends 1. Economic size of the ICT ... · Economic size of the ICT industry (1) ... has a large impact on the ICT industry, ... on Science and Technology”,

4. 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 2016 sur-vey that pertains to ICT enterprises.

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

a. General summary of the survey results⃝�5,474 enterprises were engaged in ICT business operations with sales

in excess of 48 trillion yenSales attributed to ICT business operations in FY 2015

totaled 48.0504 trillion yen (total sales by the enterprises were 71.9513 trillion yen). By sector, the telecommuni-

cations sector accounted for 34.6 percent of all sales (down 1.9 percentage points from the previous year), the software sector 31.5 percent (down 0.5 points), and the information processing services sector 11.7 percent (up 0.5 points) (Figure 6-1-4-1).

The number of enterprises engaging in ICT business operations (irrespective of whether ICT business opera-tions are the enterprise’s mainstay operations) stood at 5,474. Operating profits were 5.9992 trillion yen, ordi-nary income was 6.1655 trillion yen, and the enterprises held 9,806 subsidiaries and associated companies.

b. Breakdown of sales⃝� Enterprises capitalized at less than 100 million yen accounted for more

than 50 percent of all enterprises in 8 of the 12 ICT industry sectorsA breakdown of ICT industry enterprises by capital

size discovers that enterprises capitalized at less than 100 million yen accounted for more than 50 percent of all enterprises in 8 of the 12 ICT industry sectors. Of par-

(Source) Prepared from the “2016 Research Investigation Report on Science and Technology,” MIC

Figure 6-1-3-3 Corporate researchers by industry (as of March 31, 2016)

ICT equipment and appliance manufacturing

78,14616.1%

ICT equipment and appliance manufacturing

78,14616.1%

Electrical equipment and appliance manufacturing

38,767 8.0%

Electronic component, device, and

circuitrymanufacturing28,788 5.9%

Information services

18,417 3.8%

Communications5,312 1.1%

Internet-related and other ICT services

247 0.1%Broadcasting40 0.0%

Total for other manufacturing industries

283,001 58.2%

Total for other manufacturing industries

283,001 58.2%

Total for other industries

33,480 6.9%

(corporate researchers in all industries:486,198)

(Note) “Miscellaneous communication service providers” refers to enterprises that selected “other” as the primary business in the breakdown of sales attributable to ICT business operations.

(Source) “2016 Basic Survey on the Information and Communications Industry,” MIC / METI

Figure 6-1-4-1 ICT industry sales

Telecommunicationservice operators (379)

166,37634.6%

Telecommunicationservice operators (379)

166,37634.6%

Software service providers (2,880)

151,35631.5%

Software service providers (2,880)

151,35631.5%

Information processing service providers (1,720)

56,15011.7%

Information processing service providers (1,720)

56,15011.7%

Internet-related service providers(706)

30,402 6.3%

Private broadcasters(390) 23,108 4.8%

Newspaper companies (128)14,534 3.0%

Publication companies (349)10,808 2.2%

Film makers and distributors (431)

8,642 1.8%

Cable broadcasting service providers (221)

5,118 1.1%

Advertising agencies (148)

2,464 0.5%Audio program producers (102)

1,508 0.3% Service providers related to video, audio, or text information (156)

1,283 0.3%

Miscellaneous communication service providers

8,755 1.8%

Figures in parentheses are the number of companiesUnit: 100s of millions of yen

Sales in the ICT industryFY2015

48.0504 trillion yen

60

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Page 6: Section 1 ICT Industry Trends 1. Economic size of the ICT ... · Economic size of the ICT industry (1) ... has a large impact on the ICT industry, ... on Science and Technology”,

ticular note is the video information production and dis-tribution sector and the audio information production sector, where enterprises capitalized at less than 50 mil-

lion yen accounted for more than 40 percent of all enter-prises in the respective sectors (Figure 6-1-4-2).

5. Telecommunication market trends(1) Market size⃝� Mobile communications accounted for more than 50 percent of sales in

the telecommunications sector, while, by service category, the data transmission services’ share is the highestSales in the telecommunications sector in FY 2015

were 14.0342 trillion yen (an increase of 2.5 percent from the previous year) (Figure 6-1-5-1). Fixed-line communi-cations accounted for 29.5 percent of all sales in FY 2015,

and mobile communications for 54.5 percent (Figure 6-1-5-2). Looking at sales by service category finds voice transmission services accounted for 29.2 percent and data transmission services for 54.8 percent (Figure 6-1-5-3). The average revenue per user (ARPU) among the main mobile communication service providers was 4,430 yen for NTT Docomo, 6,340 yen for KDDI, and 4,500 yen for SoftBank (Figure 6-1-5-4).

6. Broadcasting market trends(1) Size of the broadcasting marketa. Broadcaster sales⃝� Broadcaster sales totaled 3. 9152 trillion yen in FY 2015

Japanese broadcasters are divided into 2 categories: Japan Broadcasting Corp., a public broadcaster known as NHK, which depends on reception fee revenues, and private broadcasters that depend on advertisements or

paid programming. Apart from these categories, the Open University of Japan provides broadcasting servic-es for educational purposes.

The entire broadcasting sector’s sales, including rev-enues from broadcasting and non-broadcasting opera-tions, increased in FY 2015 (by 1.0 percent from the pre-vious year) to 3.9152 trillion yen. By category,

(Source) “2016 Basic Survey on the Information and Communications Industry,” MIC / METI

Figure 6-1-4-2 Breakdown of ICT industry enterprises by capital size

28.7

16.1

24.1

13.1

30.7

27.5

15.7

44.1

46.1

31.3

27.5

31.1

30.8

53.8

31.0

15.8

16.9

10.9

34.5

32.7

28.6

23.0

26.5

28.9

39.8

43.9

40.4

21.4

19.219.2

20.3

20.5

17.2

18.6

20.3

23.4

13.5

13.7

24.2

16.9

14.2

17.3

8.0

9.1

19.0

16.2

25.8

7.4

8.5

13.0

10.2

7.8

9.4

8.0

7.4

5.8

9.6

3.3

4.2

6.2

5.4

2.6

3.4

6.1

0.9

2.03.1

2.32.0

1.3

1.4

6.1

17.2

12.8

23.5

4.2

5.1

8.8

7.02.0

3.1

3.7

0.7

3.2

5.5

1.1

2.4

2.3

1.80.7

1.1

2.40.7

1.0

1.4

0.6

1.4

5.0

1.0

2.3

1.2

1.3

2.0

0.71.0

0.3

0.7

0.60.3

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

All reponses (5474)Telecommunication

service operators (379)Private broadcasters (390)

Cable broadcasting service providers (221)

Software service providers (2880)Information processing

service providers (1720)Internet-related service

providers (706)Film makers and distributors (431)

Audio program producers (102)

Newspaper companies (128)

Publication companies (349)

Advertising agencies (148)Service providers related to video,

audio, or text information (156)TV / radio program producers

(included in other results) (364)

Less than 50 million yen500 million yen to less than 1 billion yen 1 billion yen to less than 5 billion yen 5 billion yen to less than 10 billion yen 10 billion yen or more

50 million yen to less than 100 million yen 100 million yen to less than 300 million yen 300 million yen to less than 500 million yen

(Note) Comparisons must be made with caution, as sales represent the simple sum of figures from all responding carriers and the number of responding carriers differs from year to year.

Prepared from “2016 Basic Survey on the Information and Communications Industry,” MIC / METI

Figure 6-1-5-1 Transitions in telecommunications sector sales

132,713 129,551 136,384 136,904

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

20152011 2012 2013 2014 (FY)

(in 100s of millions of yen)

140,342

61

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(Note) Calculating excluding sales breakdown "Unknown"Prepared from “2016 Basic Survey on the Information and Communications Industry,” MIC / METI

Figure 6-1-5-3 Telecom carriers’ sales breakdown by service category

Voicetransmissionservices29.2%

Voicetransmissionservices29.2%

Datatransmissionservices54.8%

Datatransmissionservices54.8%

Others16.0%Others16.0%

(Note) Calculating excluding sales breakdown "Unknown"Prepared from “2016 Basic Survey on the Information and Communications Industry,” MIC / METI

Figure 6-1-5-2 Telecom carriers’ sales breakdown by fixed-line communications and mobile communications

Fixed-linecommunications

29.5%

Fixed-linecommunications

29.5%

Mobilecommunications

54.5%

Mobilecommunications

54.5%

Other16.0%Other16.0%

(Notes) * Each company’s ARPU is calculated and released based on the respective company’s criteria. The figures were not calculated using the same method.

*Due to rounding, the total of individual ARPU figures may not equal the total ARPU figures. *NTT Docomo includes Smart ARPU, KDDI includes value added ARPU, and SoftBank includes service ARPU. * The ARPU figures for KDDI after FY 2012 were taken from au Communications ARPU under the personal segment. Applied discount

amounts were subtracted from the voice ARPU. *SoftBank ARPU figures included communication modules until FY 2011. *SoftBank Mobile took over SoftBank BB, SoftBank Telecom, and Y!Mobile on April 1, 2015 (name changed to SoftBank on July 1, 2015).

Prepared from financial statements from each company

Figure 6-1-5-4 Transitions in mobile ARPU in the past five years for 3 domestic mobile operators

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

NTTdocomo KDDI(au) softbank

(yen per month)

FY16FY12 FY13 FY14 FY15 FY16FY12 FY13 FY14 FY15 FY16FY12 FY13 FY14 FY15

Voice ARPU Data ARPU Voice ARPU + Data ARPU Other ARPU

1,7301,370 1,180 1,210 1,330

940 7801,520 1,520

2,6902,640

2,6002,960 2,850

3,210 3,4502,770 2,9305,690

4,150

420490 590

250 290 320

440

540

4,840

4,500 4,3704,170

4,430 4,490 4,550

6,130

4,290 4,4504,230

4,700

1,250

3,1805,830

3,950

510

5504,430

6,340

4,500

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terrestrial-based private broadcasters’ sales were 2. 3461 trillion yen (up 0.4 percent from the previous year), sat-ellite-based private broadcasters’ sales were 380.9 billion yen (up 4.0 percent), cable TV broadcasters’ sales were 500.3 billion yen (up 0.6 percent), and NHK’s ordinary

operating income was 687.9 billion yen (up 1.9 percent).In terms of market share, terrestrial-based private

broadcasters accounted for 72.7 percent (down 0.3 per-centage points from the previous year) of private broad-casters’ sales. (Figure 6-1-6-1).

7. Content market trends(1) Size of Japan’s content market⃝� The Japanese content market was valued at 11.5081 trillion yen, over

50 percent of which was attributable to video content, about 40 per-cent to text-based content, and less than 10 percent to audio-based contentThe Japanese content market was valued at 11.5081

trillion yen in 2015. By content segment, video content accounted for over 54.3 percent of the market, text-based content, about 39.2 percent, and audio-based con-tent, 6.5 percent.38(Figure 6-1-7-1).

The overall size of the content market in 2015 has re-mained essentially unchanged since 2011. The size of each content segment as well stayed flat between 2011

and 2012, after 2013 the video content segment expand-ed while the text-based content segment contracted (Figure 6-1-7-2).

(2) Trends in the online content market⃝� The market for online content, which is downloaded or streamed via

the Internet to computers or mobile phones, grew to 2.9633 trillion yen, accounting for 25.7 percent of the entire content marketAs part of the overall content market, the market for

online content, which is downloaded or streamed via the Internet to computers or mobile phones, reached 2. 9633 trillion yen. By content segment, the video content segment accounted for 55.7 percent of the online con-

38 The market size was measured and analyzed by assessing the primary nature of the content works and recalculating the value at each distribu-tion level, such as primary distribution or multiuse. The value of content was not calculated by media channel.

(※1) Figures for satellite-based broadcasters represent operating revenues from 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 on, cable TV broadcasters were registered business enterprises with wired telecommunication 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.

Prepared from MIC materials and the “NHK financial statements” for each fiscal year

Figure 6-1-6-1 Transitions in and breakdown of the broadcasting sector market size (total sales)

38,356 39,698 40,152 40,422 41,17839,689 38,254 39,089 39,115 38,915 39,307 38,759

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

20152003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (FY)

Terrestrial-based broadcasters

(100s of millions of yen)

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

39,152

fiscal year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Private broadcaster

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

Community broadcasters included in total above※4

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

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

Cable TV broadcasters※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 5,003NHK※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 6,879total 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

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tent market, the text-based content segment, 34.1 per-cent, and the audio-based content segment, 10.2 per-cent. (Figure 6-1-7-3).

The online content market has been growing steadily since 2011. The market by content segment shows that the video content segment which more than doubled

from 2011 to 2015 in particular due to the hot game soft-ware portion increase, has been driving the online con-tent’s market expansion (Figure 6-1-7-4).⃝� The 2016 mobile content industry’s market increased 14.5 percent

from the previous year to 5.0619 trillion yenThe Japanese mobile content industry’s market,39which

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

Figure 6-1-7-1 Breakdown of Japan’s content market (2015)

Movies736.8 6.4%

Videos405.0 3.5%

Terrestrial TV programs2796.4 24.3%

Satellite and cable TV broadcast programs

921.1 8.0%

Satellite and cable TV broadcast programs

921.1 8.0%

Game software1184.9 10.3%

Original Internet videos210.4 1.8%

Music534.1 4.6%

Radio programs202.0 1.8%

Original Internet audio-based

content7.9 0.1%

Newspaper articles1632.6 14.2%

Comics475.0 4.1%

Magazines1049.49.1% Books

827.2 7.2%

Database information271.8 2.4%

Original Internet other content253.4 2.2%

total content market11.5081 trillion yen

(billion yen)

Text based content segment4.5095 trillion yen

39.2%

Video content segment

6.2547 trillion yen54.3%Audio-based

content segment0.7440 trillion yen

6.5%

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

Figure 6-1-7-2 Transitions in Japan’s content market size (by content segment)

0

2

4

6

8

10

12

20152011 2012 2013 2014Video content segment

Audio-based content segment

Text-based content segment

(trillions of yen)

(year)

5.6 5.6 6.0 6.2

0.9 0.8 0.8 0.8

4.7 4.8 4.5 4.5

11.2 11.2 11.3 11.5

6.3

0.7

4.5

11.5

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

Figure 6-1-7-3 Breakdown of the online content market (2015)

Video content segment1.6513 trillion yen55.7%

Tex-based content segment1.0097 trillion yen

34.1%

Game software920.4 31.1%

Original Internet videos210.4 7.1%

Videos196.3 6.6%

Movies196.0 6.6%

Terrestrial TVprograms

68.8 2.3%

Satellite and cable TV broadcast programs

59.4 2.0%

Music286.5

9.7%

Music286.5

9.7%

Other audio-based

content15.8 0.5%

Original Internet other content

253.4 8.6%

Original Internet other content

253.4 8.6%

Database information226.8

7.7%

Database information226.8

7.7%

Books198.2 6.7%

Newspaper articles176.9 6.0%

Other text-based content154.4 5.2%

Total digital content market

2.9633 trillion yen

(billion yen)

Voice-based content segment0.3023 trillion yen

10.2%

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is made up of the mobile content market40 and the mobile commerce market, continued to expand in 2016, reach-ing 5.0619 trillion yen (14.5 percent increase year-on-year), due to the growth and proliferation of smart-phones and tablets. By individual segments, the mobile content market reached 1.8757 trillion yen (up 20.0 per-cent) and the mobile commerce market reached 3.1862 trillion yen (up 11.4 percent) (Figure 6-1-7-5).

(3) Trends in the broadcast content market⃝�Export value of Japanese broadcast content was 28.85 billion yen in FY

2015The export value of Japanese broadcast content in FY

2015 was 28.85 billion yen. Note that from FY 2010 on-ward, Internet distribution rights, video and DVD rights, format and restaging rights, merchandising rights, and similar rights, in addition to program broadcast rights, have been included in the export value of broadcast con-tent (Figure 6-1-7-6). The traditional method of export-

ing broadcast content had been to sell the program broadcast rights. But today, methods have diversified, so that revenue streams other than program broadcast rights account for more than half of all revenue.

⃝� Cartoons and animations account for over 70 percent of export value by program category, followed by dramatic programs and variety shows, and Asia accounts for more than 50 percent of exports, followed by North America and EuropeLooking at the broadcast content export value by pro-

gram category finds cartoons and animations account for 76.6 percent of total, variety shows, 10.8 percent, and dramatic programs, 10.0 percent, followed by documen-taries and sports programs (Figure 6-1-7-7). The largest export market for broadcast content was Asia, at 56.4 percent of the total, followed by North America at 27.6 percent, Europe at 12.0 percent, and South and Central America. Diverse export destinations for Japanese broadcast content are developing, particularly in Asia.

39 The mobile content market refers to the market for digital content provided over the mobile Internet (including ringtones, music streaming, videos, games, and fortune-telling). The mobile commerce market refers to the sales of physical goods (mail-order sales, etc.), sales of ser-vices (ticket sales), and transaction fees (including stock brokerage commissions, auction fees, and other payments) conducted over the mo-bile Internet.

40 In 2010, the scope of the mobile content market was expanded to encompass the open platform market (such as smartphones).

(Source) “Study Report on Technical Factors and Systems Pertaining to Open Platforms Promoting Mobile Content Business,” MIC

Figure 6-1-7-5 Mobile content industry market size

18,757

31,862

50,619

0

10,000

20,000

30,000

40,000

50,000

60,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(in 100s of million of yen)

(year)

Mobile content market Mobile commerce market

4,272 4,835 5,525 6,465 7,345 8,510 10,783 14,56615,6327,329 8,689 9,681 10,085 11,716

14,99719,359

24,48028,596

11,60113,524 15,206

16,55019,061

23,507

30,142

39,046

44,228

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

Figure 6-1-7-4 Transitions in the online content market size (by content segment)

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

20152011 2012 2013 2014

Video content Audio-based content Text-based content

3.5(trillion yen)

(year)

0.8 0.91.3

1.60.4 0.4

0.30.3

0.70.8

0.7

0.81.8

2.12.3

2.7

1.7

0.3

1.0

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1. Internet usage trends(1) State of ICT device proliferationa. State of major ICT device proliferation (households)⃝�Ownership�gap�between�smartphones�and�comput-

ers�is�closing�to�just�1.2�percentage�pointsThe household ICT device penetration rate of 2016

was 94.7 percent for mobile terminals41 and 73.0 percent for computers. The penetration rate for smartphones, which are included in the mobile terminals category, has remained flat to 71.8 percent (down 0.2 percentage points from a year earlier), reducing the ownership gap with computers from 4.8 percentage points to just 1.2 percentage points, due to the decline of computer pene-tration rate (Figure 6-2-1-1).

(2) State of Internet proliferationa. State of Internet usage⃝�Both the number of Internet users and the Internet population pene-

tration rate roseThe number of Internet users42 of 2016 was 100.84 mil-

lion, an increase of 380,000 from 2015. The Internet pen-etration rate as a percent of the general population was 83.5 percent (up 0.5 points) (Figure 6-2-1-2). Those us-ing computers to access the Internet accounted for 58.6 percent (up 1.8 points) of all Internet users, the largest portion, followed by 57.9 percent (up 3.6 points) for smartphones and 23.6 percent (up 5.3 points) for tablets (Figure 6-2-1-3).

Section 2 ICT Service Usage Trends

41 The figures for mobile terminals includes, mobile phones and PHS handsets, personal digital assistants, or PDAs, since the end of 2009 to the end of 2012 and smartphones since the end of 2010.

(Source) “Survey on the State of Overseas Expansion of Broadcast Content (FY 2015),” Institute for Information and Communications Policy, MIC

Figure 6-1-7-7 Export value of Japanese broadcast content by program category

Cartoons and

animations76.6%

Cartoons and

animations76.6%

Variety shows10.8%

Variety shows10.8%

Dramatic programs

10.0%

Dramatic programs

10.0%

Sports0.9%

Documentaries0.8%

Other0.9%

Export value of broadcast content (by program category)

28.85 billion yen

*Aggregated excluding unknown *Aggregated excluding unknown

Cartoons and

animations59.2%

Cartoons and

animations59.2%

Variety shows18.3%

Variety shows18.3%

Dramatic programs

16.8%

Dramatic programs

16.8%

Documentaries2.5%

Sports2.5% Other

0.7%

Export value of program broadcast rights (by program category)

9.66 billion yen

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

* From FY 2010 onward, the export value from other revenue streams has been included along with program broadcast rights in the export value of broadcast content. Figures prior to FY 2010 are the export value for program broadcast rights only.

Source: “Survey on the State of Overseas Expansion of Broadcast Content (FY 2013, 2014, 2015),” Institute for Information and Communications Policy, MIC

Figure 6-1-7-6 Export value of Japanese broadcast content

91.8 92.575.0

66.3 71.6

104.3

137.8

182.5

0

100

300

250

350

150

50

200

20152007 2008 2009 2010 2011 2012 2013 2014 (FY)

(in 100s of million of yen)

288.5

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b. Purposes of using the Internet⃝ “Sending and receiving emails” was the most common purpose of us-

ing the Internet

Among all age groups, the most common purpose of using the Internet was “sending and receiving emails.” Viewing the results by age group finds that larger num-

42 (1) The survey covers an age range of 6 and up. (2) The estimated number of Internet users is based on the results to a question on whether the respondents, aged 6 or older, had used the Internet in the year covered by the survey. The number of Internet users was calculated by multiplying the estimated population aged 6 or older (estimated from Population Census and death table data) by the Internet usage rate ob-tained in the survey for people aged 6 or older. Internet access devices include computers, mobile phones / PHS handsets, smartphones, tab-lets, game consoles, and all other devices (irrespective of device ownership). The purposes of using the Internet cover all possible purposes including personal, work, and school. (3) The Communications Usage Trend Survey does not include the number of ‘no answer’ responses in the calculations (except for Figure 6-2-1-1).

(Source) “Communications Usage Trend Survey,” MIC

Figure 6-2-1-1 Transitions in household ownership rates for ICT devices

Fixed-line telephonesFAXMobile terminalsSmartphonesComputersTabletsWearable devicesHome game consoles with Internet connectivity

Other appliances (information appliances) with Internet connectivity

Portable music players with Internet connectivity

2007(n=3,640)

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(year)(n=17,040)

90.7 90.9 91.2 85.8 83.8 79.3 79.1 75.7 75.6 72.255.4 53.5 57.1 43.8 45.0 41.5 46.4 41.8 42.0 38.195.0 95.6 96.3 93.2 94.5 94.5 94.8 94.6 95.8 94.7

9.7 29.3 49.5 62.6 64.2 72.0 71.885.0 85.9 87.2 83.4 77.4 75.8 81.7 78.0 76.8 73.0

7.2 8.5 15.3 21.9 26.3 33.3 34.40.5 0.9 1.1

15.2 20.8 25.9 23.3 24.5 29.5 38.3 33.0 33.7 31.4

19.1 22.0 27.3 17.0 20.1 21.4 23.8 18.4 17.3 15.3

4.3 5.5 7.6 3.5 6.2 12.7 8.8 7.6 8.1 9.0

- - -

- - -- - - - - - -

0

10

20

30

40

50

60

70

80

90

100Ownership rate (%)

8,754 8,811 9,0919,408 9,462 9,610 9,652

10,044 10,018 10,046 10,084

72.6 73.0 75.3 78.0 78.2 79.1 79.582.8 82.8 83.0 83.5

0

10

20

30

40

50

60

70

80

90

100

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(%)(tens of thousands)

(year)

No. of Internet users Penetration rate among the general population

(Source) “Communications Usage Trend Survey,” MIC

Figure 6-2-1-2 Transitions in the number of Internet users and the penetration rate among the general population

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ber of users in all age groups use the Internet for “send-ing and receiving emails,” the number of users varies by age groups for “using social media,” and “using video posting / sharing sites” (Figure 6-2-1-4).

(3) Challenges for safe, secure Internet usagea. Matters of concern with Internet usage and problems with ICT

networks⃝ Individuals are concerned about personal information, and enterprises

are concerned about personnel shortageThe percentage of individuals who feel insecure with

the Internet which includes respondents of both “inse-cure” and “somewhat feel insecure” reached 61.6%,

some 60% feel insecure (Figure 6-2-1-5). Among house-holds with concerns about using the Internet, 87.8 per-cent cited “personal information and internet access histories will be disclosed or exposed externally without permission” as a concern. This was followed, in order, by “computer virus infections” (67.4 percent) and “False billing and other types of Internet fraud” (51.6 percent) (Figure 6-2-1-6).

Among enterprises, 48.8 percent, the highest re-sponse rate, mentioned “concern about virus infections” as a problem when using the Internet, internal LANs, or other networks, indicating heightened security con-cerns among enterprises (Figure 6-2-1-7).

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

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

taken by households that use the Internet finds that 67.7 percent of households have taken some form of informa-tion security measures. The leading security measures were “install or update security software” (47.7 percent) and “sign up for or renew a security service” (24.6 per-cent) (Figure 6-2-1-8).

Looking at the state of information security measures implemented by enterprises that use ICT networks finds that 98.4 percent of enterprises have implemented some form of information security measures, almost all the enterprises. The leading security measure was “install anti-virus programs on computers and other devices (operating systems, software, etc.),” which is done by 88.2 percent of enterprises. This was followed, in order,

83.0

56.8

54.3

18.3

15.8

7.7

4.5

83.5

58.6

57.9

23.6

13.3

9.2

6.8

0 20 40 60 80 100Internet usage rate

(all devices)

Computers

Smartphones

Tablets

Mobile phones andPHS handsets

(excluding smartphones)Home game consoles with

Internet connectivity

Televisions withInternet connectivity

(%)

2015 (n=33,525) 2016 (n=40,297)

(Note) Figures indicate the percentage of people who accessed the Internet using the corresponding device during the past one year.

(Source) “Communications Usage Trend Survey,” MIC

Figure 6-2-1-3 Internet usage by device

13~19 (n=2,405) 20~29 (n=3,507) 30~39 (n=4,724)40~49 (n=5,549) 50~59 (n=5,440) 60 and older (n=7,768)

0102030405060708090100(%)

Send

ing

and

rece

ivin

g em

ails

Brow

sing,

pos

ting,

cre

atin

g an

d up

datin

gw

ebsit

es a

nd b

logs

Usin

g so

cial

med

ia

Usin

g fre

e vo

ice

call

apps

or v

oice

cha

t site

s

Usin

g vi

deo

post

ing

/ sh

arin

g sit

es

Usin

g on

-dem

and

stre

amin

g se

rvic

es fo

r rad

io,

TV p

rogr

ams,

mov

ies,

etc.

Usin

g on

line

gam

es

Parti

cipa

ting

in q

uiz

/ pr

ize c

ompe

titio

ns o

rqu

estio

nnai

res

Map

or t

rans

porta

tion

info

rmat

ion

serv

ices

(free

of c

harg

e)

Usin

g w

eath

er fo

reca

sts

(free

of c

harg

e)

Usin

g ne

ws

sites

Usin

g di

ctio

narie

s an

d en

cycl

oped

ias

Usin

g e-

lear

ning

Purc

hasin

g or

trad

ing

good

s an

d se

rvic

es (t

otal

)

Purc

hasin

g or

trad

ing

good

s an

d se

rvic

es(e

xclu

ding

dig

ital c

onte

nt p

urch

ases

and

finan

cial

tran

sact

ions

Purc

hasin

g or

trad

ing

digi

tal c

onte

nt

finan

cial

tran

sact

ions

Inte

rnet

auc

tions

Usin

g e-

gove

rnm

ent a

nd e

-loca

lgo

vern

men

t ser

vice

s

othe

r

(Source) “Communications Usage Trend Survey,” MIC

Figure 6-2-1-4 Applications / purposes of using the Internet by age group

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feel insecure21.5

feel insecure21.5

somewhat feel insecure

40.1

somewhat feel insecure

40.1

somewhat do not

feel insecure21.3

somewhat do not

feel insecure21.3

do not feel insecure

17.1

do not feel insecure

17.1

2016 (n=4,213)

(%)

(Source) “Communications Usage Trend Survey,” MIC

Figure 6-2-1-5 Percentage to feel insecurity with Internet usage at individuals (multiple answers per-mitted)

87.8

67.4

51.6

47.7

46.4

31.0

23.5

13.8

10.1

2.4

0 20 40 60 80 100Personal information or internet usage

history external disclosure or exposure without permission

Computer virus infections

False billing and other types of Internet fraud

Unsolicited email

security measures

Trustworthiness of electronic paymentsBrowsing illegal and harmful information

Conflict with communication partners

Internet addiction

Others

2016(n=2,578)

(%)

(Source) “Communications Usage Trend Survey,” MIC

Figure 6-2-1-6 Matters of concern with Internet usage of individuals

(Source) “Communications Usage Trend Survey,” MIC

Figure 6-2-1-7 Problems with Internet and intranet LAN usage at enterprises (multiple answers permitted)

47.8

44.0

43.5

44.2

37.0

28.3

14.3

11.1

12.5

8.3

3.5

4.6

3.4

2.2

8.9

48.8

41.3

38.2

36.8

32.8

25.2

11.8

9.4

8.9

6.8

4.3

3.1

2.4

2.2

12.7

0 10 20 30 40 50

Concern about virus infections

Operational and management personnel shortages

Operational and management cost increases

Difficult to develop security measures

Low security awareness among employees

Difficult to recover from failures, outages, etc.

Difficult to quantify benefits

Difficult to obtain benefits

High communication charges

Low communication speeds

Concern about trustworthiness of electronic payments

Concern about protection of copyrights and intellectual property

Concern about trustworthiness of authentication technology

Others

No particular problems

(%)

2015 (n=1,805) 2016 (n=1,963)

(Source) “Communications Usage Trend Survey,” MIC

Figure 6-2-1-8 Implementation of information security measures at households (multiple answers permitted)

73.2

16.9

9.9

53.0

25.8

21.2

16.4

2.6

67.7

22.3

10.0

47.7

24.6

22.6

17.9

2.6

0 20 40 60 80

Taken measures

Have not taken measures

Don't know whether measureshave been taken

Install or update security software

Sign up for or renew a security service

Do not connect to untrusted Internet connections

Set passwords on devices

Set administrator and check

(%)

2015 (n=10,945) 2016 (n=1,892)

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by “install anti-virus programs on servers” (66.8 per-cent) and “control access with IDs and passwords” (55.3 percent) (Figure 6-2-1-9).

c. Personal information protection measures⃝� Nearly 90 percent of all enterprises have implemented personal infor-

mation protection measuresThe percentage of enterprises that have implemented

some form of personal information protection measures was 86.0 percent. The most cited protection measure, given by 49.5 percent of enterprises, was “enhance inter-nal training” followed, in order, by “appoint a personal information protection and management officer” (47.8 percent) (Figure 6-2-1-10).

(4) Cloud service usage trends of enterprisesa. State of cloud service usage⃝� The percentage of enterprises using cloud services rose from 2015

Of enterprise respondents to the survey, 46.9 percent said they had used cloud services either partially or ex-tensively, up 2.3 percentage points from 44.6 percent at 2015 (Figure 6-2-1-11).

b. Breakdown of cloud service usage⃝� The most frequently used cloud service is “email”

The most frequently used cloud service is “email,” cited by 51.7 percent of respondents, followed, in order, by 50.7 percent for “file storage and data sharing” and 46.7 percent for “server usage” (Figure 6-2-1-12).

(Source) “Communications Usage Trend Survey,” MIC

Figure 6-2-1-9 Implementation of information security measures at enterprises (multiple answers permitted)

2015 (n=1,834) 2016 (n=2,014)

98.9

1.1

90.8

68.8

62.5

47.9

49.1

40.5

43.2

38.1

27.2

24.3

20.0

18.5

15.6

15.7

13.5

12.8

11.5

9.6

28.4

98.4

1.6

88.2

66.8

55.3

50.5

46.1

39.9

37.0

34.0

23.4

19.6

18.5

17.1

15.1

14.9

14.1

13.2

12.2

10.5

28.3

0 20 40 60 80 100

Implemented measures

Have not implemented measures

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

Install anti-virus programs on servers

Control access with IDs and passwords

Train employees

Set up and deploy firewalls

Apply operating system security patches

Establish security policies

Retain access logsConstruct virus walls for

external connectionsUse proxies (proxy servers)

Encrypt data and networks

Audit security measuresAuthenticate users with

authentication technologyMonitor access lines

Set up and deploy intrusion detection systems(IDS) or intrusion protection systems (IPS)Establish anti-virus response manuals

Outsource security managementSet up and deploy Web

application firewallsOther measures

(%)

(Source) “Communications Usage Trend Survey,” MIC

Figure 6-2-1-10 Implementation of personal information protection measures at enterprises (multiple answers permitted)

87.7

12.3

46.9

49.5

30.8

26.6

19.2

9.2

7.9

8.8

86.0

14.0

49.5

47.8

28.3

27.5

18.8

10.0

8.0

9.7

0 10 20 30 40 50 60 70 80 90 100

Implemented some measures

Have not implemented any measures

Enhance internal training

Appoint a personal information protection and management officer

Establish a privacy policy

Reduce amount of required personal information

Rebuild systems and structures

Obtain Privacy Mark certification

Strengthen requirements when selecting suppliers (require Privacy Mark certification, etc.)

Other measures

(%)

2015 (n=1,802) 2016 (n=1,979)

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(Source) “Communications Usage Trend Survey,” MIC

Figure 6-2-1-11 State of cloud service usage

22.8

24.4

21.7

44.6

46.9

22.5

15.0

14.5

30.0

29.3

10.4

9.3

0 20 40 60 80 100(%)

2015(n=1,821)

2016(n=2,017)

Use company wide Use at some sales locations and divisions Do not use presently, but plan to use in the futureDo not use presently and have no plans to use in the future Do not have a firm understanding of cloud services

(Source) “Communications Usage Trend Survey,” MIC

Figure 6-2-1-12 Breakdown of cloud service usage

51.9

51.3

42.9

36.6

35.9

26.8

26.0

14.6

11.0

7.7

9.1

7.4

7.1

6.6

8.5

5.7

3.5

1.8

10.0

51.7

50.7

46.7

38.4

38.3

27.0

26.4

14.8

12.2

8.6

8.3

8.2

7.8

7.2

7.0

5.0

4.9

1.2

7.4

0 10 20 30 40 50 60

Email

File storage and data sharing

Server usage

Internal information sharing / portals

Schedule sharing

Data backups

Payrolls, financial accounting, HR

Marketing assistance

e-LearningProduction, distribution,

and retail-outlet managementSharing information with trading partners

System development and Website construction

Purchasing

Order-taking and sales

Project control

Billing and payment systems

Authentication systems

Research and development

Other uses

(%)

2015 (n=838) 2016 (n=960)

42.3

33.4

30.8

31.9

23.7

22.7

21.6

22.8

17.5

19.4

15.8

13.6

10.6

8.9

5.6

8.8

40.9

36.5

29.6

27.0

25.9

23.8

21.3

21.2

17.2

15.1

15.1

12.5

8.4

5.1

4.8

10.4

0 10 20 30 40 50

Cheap initial costs

Cheaper than existing systems

High service reliability

Greater system scalability

Proposals from system vendors

Fast deployment speeds

Simple license management

Enhanced service lineup

Other reasons

(%)

2015 (n=829) 2016 (n=958)

No need for in-house assets or maintenance arrangements

Can terminate services at any time

Able to adjust system capacity quickly

Use equivalent services on all devices

Services can be accessed anywhere

Stable operation and higher availability

Greater security against information theft, breaches, etc.

(Source) “Communications Usage Trend Survey,” MIC

Figure 6-2-1-13 Reasons for introducing cloud services

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c. Reasons for introducing cloud services⃝� “No need for in-house assets or maintenance arrangements” was the

most frequently cited reason for introducing cloud services, chosen by about 40 percent“No need for in-house assets or maintenance arrange-

ments” was the most frequently cited reason for intro-

ducing cloud services, chosen by 40.9 percent of respon-dents, followed, in order, by “services can be accessed anywhere” (36.5 percent) and “stable operation and higher availability” (29.6 percent). Respondents mainly cited functional and cost reasons for introducing cloud services (Figure 6-2-1-13).

2. State of telecommunication service provision and usage(1) State of provision a. Overview(i) Subscriptions to telecommunication services⃝�Subscriptions to fixed-line communications are trending downward

while subscriptions to mobile communications and 0ABJ-IP phone ser-vices have increased steadilySubscriptions to fixed-line communication services

(including NTT East and West subscriber telephone ser-vices (including ISDN), non-NTT telephone services,43 and cable TV-based telephone services but excluding 0ABJ-IP phone services) have been declining, while those to mobile communication services (mobile phone and PHS handset services) and 0ABJ-IP phone services have been growing steadily. Subscriptions to 050-IP phone services have been flat in recent years.

There were about 7.2 times more mobile communica-tion subscriptions than fixed-line communication sub-scriptions (Figure 6-2-2-1).

(ii) State of broadband usage⃝� Subscriptions to mobile ultra-high-speed broadband services have

leaped dramatically year by yearThe number of subscriptions to fixed-line broadband

services44 at the end of FY 2016 stood at 38.69 million

(up 2.3 percent from the previous year). Subscriptions to mobile ultra-high-speed broadband services broke down into 102.19 million for 3.9G and 4G (LTE) services (up 17.0 percent) and 47.89 million for BWA services (up 36.3 percent) (Figure 6-2-2-2).

b. Mobile communications⃝� Subscriptions to mobile communication services have risen each year;

subscriptions to MVNO services counted as mobile communication sub-scriptions also surgedSubscriptions to mobile communication services45

(mobile phones, PHS handsets, and BWA) at the end of FY 2016 totaled 167.92 million (an increase of 3.6 per-cent from the previous year). The net growth was 5.84 million subscriptions, which continues the upward trend (Figure 6-2-2-3).

The carrier (Group) shares by mobile communication subscription numbers were 44.6 percent for NTT Doco-mo (up 1 percentage points from the previous year), 29.4 percent for the KDDI Group (up 0.5 percentage points), and 26.0 percent for the SoftBank Group (down 1.5 per-centage points) (Figure 6-2-2-4).

Subscriptions to MVNO services46 counted as sub-scriptions to mobile communication services (mobile

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

44 Figures for subscriptions to fixed-line broadband services cover FTTH, DSL, cable TV, and FWA services.45 Figures after adjusting for internal group transactions.46 Figures after subtracting subscriptions to MVNOs that are MNOs.

5,515 5,1234,732 4,334 3,957 3,595 3,274

3,004

2,773

10,170 10,734 11,205 11,63012,329

13,27614,113

14,78915,514

421 776

1,1161,453 1,790 2,096

2,407 2,650

2,846

1,027 978

906 864 790 753 721 728 7180

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(tens of thousands subscriptions)

(FY)

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

2,508

3,075

771

2,298

16,046 16,609

3,241

854

(Notes) *Subscriptions to mobile communication services cover mobile phone and PHS services.* Figures for mobile communication services from FY 2013 forward are the figures after adjusting for internal group transactions. After adjust-ing for internal group transactions refers the adjustments made to count 1 mobile phone device as 1 contract and not 2 contracts so as not to diverge from the actual state of affairs, 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.

Prepared from “Announcement of Quarterly Data on Telecommunication Service Contracts and Market Shares (4Q of FY 2016 (March 31, 2017)),” MIC

Figure 6-2-2-1 Transitions in subscriptions to telecommunication services

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phones, PHS handsets, and BWA) continue to increase, reaching 15.86 million (an increase of 25.0 percent from the previous year) at the end of FY 2016 (Figure 6-2-2-5)

(2) State of telecommunication usagea. Traffic conditions(i) Internet traffic⃝�Total download traffic by broadband service subscribers in Japan

reached an average of 8.3 Tbps during November 2016, 52.2 percent increase from the same month of a year ago

(a) Transitions in traffic by broadband subscribersTraffic by ISP547 broadband service subscribers con-

tinues to grow, with download traffic (A1 OUT) reaching a monthly average of 3396.6 Gbps in November 2016 (45.4 percent increase from the same month a year ago). Download traffic (A1 OUT) widened its gap with upload traffic (A1 IN: 602.5 Gbps), from 5.2 times last fiscal year to 5.6 times. Thus, most traffic is download traffic (Fig-ure 6-2-2-6).

47 ISP5 is the total for five cooperating ISPs, namely the Internet Initiative Japan (IIJ), NTT Communications, K-Opticom, KDDI, and SoftBank.

Fixed-line broadband services

2,022 2,230 2,385 2,531 2,661 2,788

820 670 542 447 375 320567 591 601 623 643 6731 1 1 1 1 13,410 3,493 3,530 3,602 3,680 3,782

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

02010 2011 2012 2013 2014

(tens of thousands of subscriptions)

FWACATVDSLFTTH

81 230531 746

1,947

3 230

2,037

4,641

6,778

12,00010,0009,0008,0007,0006,0005,0004,0003,0002,0001,000

02010 2011 2012 2013 2014 2015 2016

(End of FY)

Mobile ultra-high-speed broadband services

(tens of thousands of subscriptions)

2015 2016(End of FY)

BWA LTE

2,9322,932

251251

68568511

3,8693,869

3,5143,514

4,7894,789

8,7378,737

10,21910,219

Prepared from “Announcement of Quarterly Data on Telecommunication Service Contracts and Market Shares (4Q of FY 2016 (March 31, 2017)),” MIC

Figure 6-2-2-2 Transitions in broadband service subscriptions

10,000

12,000

14,000

16,000

18,000

20,000

22,000(tens of thousands of subscriptions)

March 2012 March 2013 March 2014 March 2015 March 2016 June 2016(1Q)

Sept 2016(2Q)

Dec. 2016(3Q)

March 2017(4Q)

Mobile phones (net total)

13,50714,644

15,702

17,732

19,559 19,978 20,496 20,909

14,97615,722

16,209 16,313 16,499 16,609

12,82013,604

15,646 15,757 15,953 16,068

21,397

16,792

16,273

14,401(14,234)

15,270(14,998)

Mobile phones / PHS / BWA (net total)Mobile phones / PHS / BWA (after adjusting for internal group transactions)

*(Note) After adjusting for internal group transactions refers the adjustments made to count 1 mobile phone device as 1 contract and not 2 contracts so as not to diverge from the actual state of affairs, 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 to 1 mobile phone device.*The figures in parenthesis are the figures after adjustment within intragroup related to the number of mobile phone subscriptions.*Figures of the past years are different from those in the last year’s publication due to amendments by the target enterprises.

Prepared from “Announcement of Quarterly Data on Telecommunication Service Contracts and Market Shares (4Q of FY 2016 (March 31, 2017)),” MIC

Figure 6-2-2-3 Transitions in mobile phone subscriptions

44.644.6

29.429.4

26.026.0

0102030405060708090

100(%)

March2015 (4Q)

March2016 (4Q)

June2016 (1Q)

Sept2016 (2Q)

Dec2016 (3Q)

March2017 (4Q)

NTT Docomo KDDI Group SoftBank Group

42.4 43.6 43.7 44.0 44.1

28.6 28.9 29.1 29.1 29.2

29.0 27.5 27.2 26.9 26.7

KDDI Group share includes KDDI, Okinawa Cellular, and UQ Communi-cations; SoftBank Group share includes SoftBank, Y!Mobile, and Wire-less City Planning.Prepared from “Announcement of Quarterly Data on Telecommunica-tion Service Contracts and Market Shares (4Q of FY 2016 (March 31, 2017)),” MIC

Figure 6-2-2-4 Transitions in carrier shares in mobile com-munication subscriptions (after adjusting for internal group transactions)

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(b) Transitions in traffic exchanged between ISPsThe traffic exchanged with major domestic internet�

exchanges� (IX)s48 (B1), the traffic exchanged with do-mestic ISPs without passing through major domestic Internet exchanges (IX)(B2) and traffic exchanged with overseas ISPs (B3), data inflow has exceeded outflow in all types. The gap has been increasing (Figure 6-2-2-6).

(c) Estimations in traffic passing over the Internet in JapanWe estimated the total download traffic by broadband

service subscribers in Japan from A1 — the traffic of ISP5 broadband service subscribers (DSL, FTTH, CATV, FWA) — and the percentage of ISP5 subscrip-tions among all broadband subscriptions in Japan. This estimate found that an average of approximately 8.3 Tbps of traffic passed over the Internet during Novem-ber 2016. This was a 52.2 percent increase from the same month 1 year ago, continuing the increase in traf-fic over the Internet (Figure 6-2-2-6).

(ii) Mobile communication traffic⃝�Mobile communication traffic increased at a pace of about 1.4 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 communication carriers (NTT Docomo, KDDI, Soft-Bank, UQ Communications, and Wireless City Plan-ning) worked together to tabulate and analyze data on mobile communication traffic volumes (non-voice traf-fic). According to this group’s figures, as of March 2016 mobile communication traffic increased about 1.4 times over the last year, reaching an average of 1815.6 Gbps (Figure 6-2-2-7).

48 Total for IXs run by Internet Multifeed, Equinix Japan, Japan Internet Exchange, BBIX, and WIDE Project.

Figure 6-2-2-6 Tabulations and estimates of Internet traffic in Japan*1*2

【Traffic tabulations and estimates】

Year Month

Total traffic by broadband service subscribers in Japan (estimat-ed) [Gbps]*3

Traffic per broadband service subscriber (estimated) [kbps]

(A1) Traffic by broadband service subscribers (DSL, FTTH, CATV, FWA, etc.) [Gbps]

(A2) Traffic by other subscribers (leased lines, data centers, etc.) [Gbps]

(B1) Traffic exchanged between major domestic IXs and ISP5 [Gbps]

(B2) Traffic ex-changed between domestic ISPs and ISP5 without passing through major domestic IXs [Gbps]

(B3) Traffic exchanged between overseas ISPs and ISP5 [Gbps]

(X) ISP5 share (calcu-lated from sub-scrip-tion num-bers)*4

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

2012May 658 1,730 18.8 49.3 287.8 756.6 251.5 243.0 118.4 98.6 317.4 145.1 528.7 178.8 43.82%

November 666 1,905 18.9 54.0 294.0 840.3 268.3 257.2 103.2 83.2 316.6 135.7 571.3 201.6 43.99%

2013May 770 2,275 21.7 64.2 347.8 1,027.8 300.3 286.4 114.5 85.5 423.3 161.3 633.9 231.6 44.52%

November 834 2,584 23.3 72.3 370.0 1,146.3 336.5 326.2 138.9 94.9 520.8 186.2 714.5 259.7 44.28%

2014May 905 2,892 25.2 80.4 398.9 1,274.5 359.2 317.2 163.6 101.5 614.9 214.3 808.3 282.3 44.02%

November 930 3,552 25.7 98.2 407.6 1,557.0 496.1 426.1 192.3 104.6 765.1 246.5 924.6 340.6 43.80%

2015May 1,086 4,582 29.3 123.5 457.0 1,928.9 525.6 440.2 198.9 117.5 955.6 287.5 941.5 308.1 43.10%

November 1,051 5,423 28.0 144.5 452.9 2,336.1 581.1 503.0 251.9 137.1 1,306.4 366.6 1,059.7 307.9 42.48%

2016May 1,324 6,876 34.8 180.5 551.5 2,863.3 652.7 570.5 277.0 112.6 1,765.1 453.8 1,080.1 292.4 41.64%

November 1,464 8,254 37.9 213.5 602.5 3,396.6 1,246.0 653.6 311.0 113.6 1,989.2 518.2 1,221.9 353.8 41.15%

(Notes) *1 ISP5 is the total for five cooperating ISPs, namely the Internet Initiative Japan (IIJ), NTT Communications, K-Opticom, KDDI, and SoftBank.*2 the Total traffic by broadband service subscribers in Japan (estimated), the Traffic per broadband service subscriber (estimated) For A1, and

A2 columns, In stands for uploads and Out stands for downloads.*3 Total traffic by broadband service subscribers in Japan was estimated from the traffic of ISP5 broadband service subscribers (A1) and the

ISP5 share of all subscriptions (X).*4 Estimation by linear interpolation using the data of “Announcement of Quarterly Data on Telecommunication Service Contracts and Market

Shares”

BWAMobile phones / PHSMobile phones / PHS / BWA

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

March 2014 March 2015 March 2016 June 2016 Sept 2016 Dec 2016 March 2017

(tens of thousands of subscriptions)

142 166 167 169 171 171 177

599

791

1,102 1,176

1,256 1,314 1,409

742

958

1,269 1,346

1,427 1,485

1,586

Prepared from “Announcement of Quarterly Data on Telecommunication Service Contracts and Market Shares

(4Q of FY 2016 (March 31, 2017)),” MIC

Figure 6-2-2-5 Transitions in subscriptions to MVNO servic-es (excluding MVNOs that are MNO)

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3. State of broadcasting service provision and usage⃝�Subscriptions to NHK terrestrial, NHK-BS, WOWOW, 110° East CS, and

cable TV services in FY 2016 increased from the previous yearSubscriptions to all broadcasting services, except

124/128° East CS broadcasts, increased in FY 2016 (Fig-ure 6-2-3-1).

OutB3

In InB2

Out

OutA1

In InA2

Out

DC CDNcache

Other subscribers(leased lines, data centers, etc.)

B1In Out

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

BB BB BB

B: Traffic exchanged between ISPs

Overseas ISPs Domestic ISPs

B3: Traffic exchangedwith overseas ISPs ISP5

A2: Traffic by other subscribers

A: Traffic by subscriber type

A1: Traffic by broadbandservice subscribers

C: Traffic at majordomestic IXs

Majordomestic

IXs

EnterprisesEnterprises

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

B1: Traffic exchanged withmajor domestic IXs

*A1 includes the following types of traffic:• Some traffic on public wireless LAN services from some ISP carriers• Some traffic on femtocell services from some mobile communication carriers

* Clarified that from November 2016, traffic by CDN cache and traffic by customer ISPs connecting with cooperating ISPs which provide transit are handled as A2.

*B2 includes traffic exchanged via the following:• private peering with domestic ISPs • transit provided by domestic ISPs • public peering at other domestic IXs than major domestic IXs

* B3 includes traffic exchanged via the following; however, clarified that from November 2016, among the traffic, the traffic at domestic connection points are handled as B2. • private peering with overseas ISPs • transit provided by overseas ISPs• traffic exchanged via public peering at overseas IXs.

Prepared from “Announcement Japan’s Internet Traffic Tabulations and Estimates for November 2016,” MIC

Types of tabulated traffic

Figure 6-2-2-7 Transitions in the monthly average mobile communication traffic in JapanTabulated Month June 2015 September 2015 December 2015 March 2016 June 2016 September 2016 December 2016 March 2017

Average monthly traffic up down total up down total up down total up down total up down total up down total up down total up down total

Average (Gbps) 141.1 891.2 1032.3 154.6 1027.1 1181.6 169.1 1047.9 1216.9 184.5 1144.1 1328.7 196.7 1227.9 1424.6 217.5 1345.0 1562.5 225.0 1411.6 1636.6 249.0 1566.6 1815.6

Prepared from “Information and Communications Statistics Database,” MIC

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4. Promoting ICT applications in government services(1) Promoting e-government⃝� The online usage rate increased for procedures handled by national

administrative bodiesThe usage rate of applications, notifications, and other

national administrative procedures filed online49 versus all applications, notifications, and procedures filed was 47.3 percent (261,316,784 procedures were filed online, an increase of 1.9 percentage points from the previous fiscal year). The online usage rate of the improvement promotion procedures50 frequently used by citizens and

enterprises was 43.3 percent (174,681,859 procedures were filed online, an increase of 2.1 percentage points from the previous fiscal year) (Figure 6-2-4-1).

(2) Promoting ICT applications in local governments⃝�The usage rate of local government procedures selected for online-us-

age promotion increased over the previous fiscal yearThe online usage rate of local government administra-

tive procedures51 was 49.1 percent in FY 2015 (Figure 6-2-4-2).

49 The total number of applications, notifications, and procedures filed is for those procedures placed online.50 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. In FY 2014, the improvement promo-tion procedures accounted for 79.4 percent of all filings made for applications, notifications, and procedures available online. Improvement promotion procedures excluded procedures with high usage rates (90 percent or more) from the priority procedures selected in the New On-line Usage Plan, which operated until FY 2013.

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

Figure 6-2-4-1 Transitions in the online usage of applications, notifications, and procedures handled by national administrative bodies

fiscal year

All application, notification, and other procedure filings

Filings done online Online usage rate [%]

Improvement promotion procedures

Improvement promotion procedures

Improvement promotion procedures

2015 552,359,761 403,222,027 261,316,784 174,681,859 47.3 43.3

2014 497,521,456 394,918,846 226,076,760 162,577,184 45.4 41.2

(Priority procedures) (Priority procedures) (Priority procedures)

2013 475,409,156 432,579,446 209,558,511 199,656,173 44.1 46.2

2012 458,496,901 421,297,165 188,960,305 181,479,301 41.2 43.1

(Source) Prepared from “State of Online Administrative Procedures in FY 2015,” MIC press materials

6,7256,725 6,9716,971 7,1897,189 7,3087,308 7,4267,426 7,5367,536 7,6307,630 7,7317,731

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2008 2009 2010 2011 2012 2013 2014 2015 2016(fiscal year)

(tens of thousands of subscribers)

  NHK-BS

Terrestrial-basedbroadcasters (NHK)

WOWOW

124/128º East CS

110º East CS

Cable TV 2,300.7 2,470.6 2,601.6 2,655.6 2,707.0 2,767.0 2,817.0 2,852.0

83.0 112.6 140.4 173.7 196.3 205.6 212.0 219.5

273.7 245.6 221.1 196.3 176.2 157.1 125.4 120.3

247.6 249.0 251.2 254.8 263.1 264.8 275.6 280.5

3,820.2 3,893.2 3,975.1 4,027.4 4,082.9 4,141.2 4,200.1 4,258.2

1,399.9 1,475.2 1,567.2 1,649.6 1,737.4 1,823.2 1,911.3 1,993.3 2,066.7

4,315.4

282.3

114.4

209.3

2,885.0

7,806 7,806

(Notes) NHK terrestrial subscribers are the number of all NHK subscription contracts.NHK-BS subscribers are the number of NHK satellite contracts.WOWOW subscribers are the number of WOWOW contracts.CS digital and 110° CS subscribers are the number of Sky PerfecTV contracts.Cable TV subscribing households are the number of subscribing households to business enterprises providing independent broadcasting services with facilities licensed under the former licensing scheme, until FY 2010, and to registered business enterprises with wired telecom-munication facilities providing independent broadcasting services, from FY 2011 on. (Both exclude broadcasts using IP multicasts.)Prepared using materials from Japan Electronics and Information Technology Industries Association, materials from Japan Cable Laboratories, materials from NHK, and “State of Satellite Broadcasting” and “State of Cable Television” from MIC

Figure 6-2-3-1 Subscribers to broadcasting services

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1. State of radio spectrum usage and number of radio stations(1) Radio stations⃝�The number of radio stations in Japan has increased steadily since 2006

The 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 2016 in-creased by 8.8 percent from a year earlier to 217.35 mil-lion, including 214.57 million mobile phones and other

land mobile stations, a jump of 8.9 percent. Mobile phones and other mobile land stations accounted for a huge 98.7 percent of all radio stations. The number of convenience stations climbed by 6.7 percent to 1.12 mil-lion (Figure 6-3-1-1).

Section 3 Radio Spectrum Usage Trends

fiscal year

Total procedure filings for the year

Filings done online

Online usage rate [%]

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

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

2013 367,327,000 165,922,189 45.2

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

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

(Note) The total yearly filings are an estimate for the entire country calculated based on the total number of filings and the populations in the jurisdic-tions of local governments that had already placed the targeted procedures online.

(Source) “State of Online Administrative Procedures in FY 2015,” MIC

Figure 6-2-4-2 Transitions in the usage of local government procedures selected for online-usage promotion

40.0

42.6

45.247.1

49.1

30

35

40

45

50

55

2011 2012 2013 2014 2015 (FY)

(%)

20162005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015other 36

62

65

56

10,212

97.9%

41

62

66

53

10,059

97.9%

49

63

68

51

10,573

97.9%

49

41

70

49

10,993

98.1%

48

41

72

47

11,448

98.2%

46

54

74

45

11,879

98.2%

43

58

77

44

13,266

98.3%

46

63

84

44

14,388

98.4%

50

68

90

44

15,472

98.4%

50

71

97

44

17,493

98.5%

55

70

105

44

19,711

98.6%

Base stationsConveniencestations※2

Amateur stationsLand mobilestations※1

Percentage of landmobile stations

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

0

20

40

60

80

100

0

5,000

10,000

15,000

20,000

25,000

(tens of thousands of stations)(%)

(End of FY)49

73

112

43

21,457

98.7%

(※1) “Land mobile station” refers to a radio station that is operated either while in motion on land or while stationary in an unspecified location (such as mobile phones).

(※2) “Convenience station” refers to a radio station used for simple radio communications.

Figure 6-3-1-1 Transitions in the number of radio stations

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

⃝� There were 603 reports of interference with key radio communications in FY 2016, and 1,364 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 to investigate the sources of radio sig-nals that interfere with fire and emergency services ra-dio, 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 accepts interference reports

around the clock. Radio authorities also monitor short-wave radio and cosmic radio waves at international radio surveillance facilities registered with the International Telecommunication Union (ITU).

In FY 2016, there were 2,414 reports of radio interfer-ence or obstructions of all kinds, 83 fewer (3.3 percent) than the previous year. Among these, there were 603 reports of interference with key radio communications, 73 fewer (10.8 percent) than the previous year. In re-sponse to these reports, 2,235 actions were taken in FY 2016 (Figure 6-3-2-1).

In FY 2016, 4,441 illegal radio stations were detected, 711 fewer (13.8 percent) than the previous year. In re-sponse, 1,364 actions52 were taken in FY 2016, a decrease of 1,022 actions (42.8 percent) from the previous year. These actions included 168 indictments (12.3 percent of all actions) and 1,196 directives (87.7 percent of all ac-tions).

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

Number of interference / obstruction reports20152004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2016(Fiscal Year)

Reports of interference with keyradio communications

Other interference reportActions taken in response to reportsNumber of actions in response to interference / obstruction reportsNumber of actions in response to reports

0

500

1,000

1,500

2,000

2,500

3,000

3,500(reports / actions)

5921,7112,303

6741,9912,665

6842,3443,028

5122,3642,876

5322,2412,773

5132,0412,554

6891,9342,623

5011,8732,374

5321,8262,358

6051,7402,345

7711,9952,766

6761,8212,497

6031,8112,414

2,155 2,403 2,745 3,179 2,772 2,289 2,669 2,453 2,389 2,346 2,667 2,348 2,235

Reports of interference with key radio communications Other interference report Actions taken in response to reports

Figure 6-3-2-1 Transitions in the number of radio station interference / obstruction reports and the number of actions taken in response

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