chapter 5...production value continued to slide even after 2010 until signs of recovery finally...

1. Economic size of the ICT industry(1) Market size (domestic production value)⃝ ICT industry market accounted for about 9.6 percent of all industries,

making it the largest industryThe ICT industry’s market size in 2016 was 94.4 tril-

lion yen (based on nominal domestic production value), accounting for 9.6 percent of all industries and making it the largest industry in the country (Figure 5-1-1-1). 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 2013. After it rose to 96.4 trillion yen in 2015, it de-creased to 94.4 trillion yen in 2016 (Figure 5-1-1-2).

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 and recovered to 98.2 trillion yen in 2015 (Figure 5-1-1-2). The ICT industry’s market size (based on real domestic production) in 2016 was 96.6 trillion yen. The industry’s average annual growth rate from 2000 to 2016 was 0.7 percent.

(2) Gross domestic product (GDP)⃝ The real GDP of the ICT industry in 2016 is 45.4 trillion yen accounting

for 9.4 percent of all industriesThe nominal GDP of the ICT industry rose in 2016 by

0.5 percent year-on-year to 43.6 trillion yen. Conversely, the real GDP of the ICT industry in constant 2011 values increased 0.3 percent year-on-year in 2016 to 45.4 trillion yen. (Figure 5-1-1-3).

Looking at the size of nominal GDP of the main indus-tries finds that the ICT industry’s nominal GDP accounts

Section 1　ICT Industry Trends

Nominal market size of all industries

(2016) 982.7 trillion

ICT industry94.49.6%

ICT industry94.49.6%

Commerce91.29.3%

Commerce91.29.3%

Real estate74.17.5%

Real estate74.17.5%

Medical, health care and welfare

70.57.2%


70.57.2%

Construction65.56.7%

Construction65.56.7%

Business services61.56.3%

Transportation equipment

55.85.7%

Personal services52.15.3%

Other industries417.642.5%

Other industries417.642.5%

(Unit: trillion yen)Figure 5-1-1-1 Market sizes of major industries (based on nominal domestic production) (breakdown) (2016)

(Source) “Study on Economic Analysis of ICT,” MIC (2018)

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Chap

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Chapter 5Basic Data on the ICT Field

for 8.7 percent of the combined nominal GDPs of all in-dustries and is the third largest after the ‘commerce’ and ‘real estate’ industry. The growth rate of the ICT indus-try in terms of nominal GDP bounded to plus 0.5 percent over 2015 and 2016. Examining the real GDPs of the main industries finds that the ICT industry’s real GDP in 2016 accounts for 9.4 percent of all industries, making it the third largest industries following ‘commerce’ and

‘real estate’ industries (Figure 5-1-1-4).

(3) Employment⃝ ICT industry employment totaled 3.949 million in 2016 accounting for

5.8 percent of total employment in all industriesThe ICT industry employed 3.949 million people in

2016 (down 0.1 percent from the previous year), ac-counting for 5.8 percent of total employment in all indus-


Figure 5-1-1-2 Transitions in market sizes of major industries (based on nominal domestic production and real domestic production)

116,627116,627

94,39194,391

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

100,000110,000120,000

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

（in billions of yen）【Nominal domestic production】【Real domestic production】

（year）

86,97486,97496,59496,594

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

100,000110,000120,000

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

(in billions of yen, 2011 values)

（year）

Medical, health care and welfareCommerce Real estateBusiness services

ConstructionICT industryTransportation equipment Personal services

Figure 5-1-1-3 Transitions in the nominal GDP and real GDP of major industries


【Nominal GDP】【Real GDP】

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

43,62943,629

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000（in billions of yen）

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

45,38045,380

53,36053,360

30,55230,552

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000（in billions of yen，2011 values）

Medical, health care and welfareCommerce Real estateBusiness services

ConstructionICT industryTransportation equipment Personal services


Figure 5-1-1-4 Nominal GDP and real GDP of major industries【Nominal GDP】【Real GDP】

Nominal GDP of all industries

（2016）504.2 trillion yen





ICTindustry

43.68.7%

ICTindustry

43.68.7%

ICTindustry

43.68.7%

Commerce59.9

11.9%

Commerce59.9

11.9%

Commerce59.9

11.9%

Real estate58.7

11.6%

Real estate58.7

11.6%

Real estate58.7

11.6%


42.18.3%


42.18.3%

Constrution30.56.0%

Constrution30.56.0%

Constrution30.56.0%Business services

40.48.0%




11.42.3%


11.42.3%


11.42.3%

Personal services

28.25.6%

Personal services

28.25.6%

Personal services

28.25.6%

Other industry189.537.6%



Real GDP of all Industries

（2016）(2011value）

480.4 trillion yen

ICTindustry

45.49.4%

ICTindustry

45.49.4%

ICTindustry

45.49.4%

Commerce60.7

12.6%

Commerce60.7

12.6%

Commerce60.7

12.6%

Real estate60.1

12.5%

Real estate60.1

12.5%

Real estate60.1

12.5%


38.98.1%

Constrution30.36.3%



9.72.0%

Personalservices

27.05.6%

Otherindustries

170.235.4%

Otherindustries

170.235.4%

Otherindustries

170.235.4%

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

55

Chap

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tries. Employment increased by 5.7 percent from 2015 in the communications sector, by 1.0 percent in the infor-mation services sector, and by 5.8 percent in the Inter-

net-related services sector. However, employment in other sectors in the ICT industry decreased respectively (Figure 5-1-1-5).

2. ICT industry contributions to the national economy(1) ICT industry’s economic spillover effects⃝ The ICT industry contributes to large economic spillover effects of all

industries in terms of added valueThe ICT industry’s real domestic production in 2016

was 96.6 trillion yen. The industry’s economic spillover effects,22 were estimated to be 82.1 trillion yen in in-duced added value and 8.237 million in induced jobs. By

comparison, in 2000 the ICT industry’s real domestic production value was 87 trillion yen, which contributed 73.8 trillion yen in induced added value and 9.925 million in induced jobs. Since technological innovation has a large impact on the ICT industry, the industry is be-lieved to be a stronger driver of added value than em-ployment (Figure 5-1-2-1).

Figure 5-1-2-1 Transitions in economic spillover effects (induced added value and jobs) from major industries’ production ac-tivities


ICT industry Commerce Real estateConstruction

Medical, health care and welfarePersonal serviceBusiness service Transportation equipment

(year)

73.880.2

81.4 80.983.0

82.1

0

20

40

60

80

100

120

2000 2005 2011 2014 2015 2016

(in trillions of yen）

(year)2000 2005 2011 2014 2015 2016

992.5914.0

863.4 825.3 829.9 823.7

0200400600800

1,0001,2001,4001,6001,800(tens of thousands of jobs）

【Induced added value】【Induced jobs】

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


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

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 2016

（thousands of jobs）

(year)

ICT-related manufacturingVideo, audio and text information productionBroadcasting

Internet-related servicesICT-related services

Communications Information services

ICT-related construction Research

4,7434,7434,5314,531

4,1944,194 4,1394,139 4,1644,164 4,1564,156 4,2014,201 4,1874,187 4,2034,203 4,1184,118 4,0104,010 3,9493,949 3,9033,903 4,0214,021 3,9783,978 3,9523,952 3,9493,949

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3. Research and development in the ICT field(1) Research and development spending⃝ The ICT industry23 spent 3.6715 trillion yen on research in FY 2016,

accounting for 27.6 percent of all corporate research spendingAccording to the “2017 Research Investigation Report

on Science and Technology”, Japan’s total scientific and technological research spending (i.e., research spend-ing) in FY 2016 stood at 18.4326 trillion yen (the com-bined research spending by enterprises, nonprofit orga-nizations, public agencies, universities, etc.).

Corporate research spending, which accounts for about 70 percent of all research spending, was 13.3183 trillion yen. Of this amount, 3.6715 trillion yen (27.6 per-cent) was spent on research by the ICT industry. The ICT equipment and appliance manufacturing segment was the largest research spender in the ICT industry

(Figure 5-1-3-1).

(2) Technology trading⃝ The ICT industry posted a surplus in technology exports24 in FY 2016

The value received from Japan’s technology exports in FY 2016 totaled 3.5719 trillion yen, to which the ICT industry contributed 467.1 billion yen, or 13.1 percent. On the other side, the costs of technology imports was 452.9 billion yen, of which the ICT industry paid out 178.8 billion yen, or 39.5 percent. Both total 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 5-1-3-2).

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

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

Figure 5-1-3-1 Breakdown of corporate research spending by industry (FY 2016)

(Source) Prepared from the “2017 Research Investigation Report on Science and Technology,” MIC

ICT equipment and appliance manufacturing

1.357210.2%

Electrical equipment and appliance manufacturing

1.12118.4%

Electronic component, device, and circuitrymanufacturing

0.60754.6%

Communications0.33722.5%Information services

0.24131.8%

Internet-related and other ICT services

0.00630.0%

Broadcasting0.00080.0%

Total for other manufacturing

industries8.488962.5%



Total for other industries1.15798.7%

(corporate reseach spending: 13.3183 trillion yen)(Unit: trillion yen)

Figure 5-1-3-2 Technology trading by industry (FY 2016)



252.9 7.1%


164.6 4.6%

Electronic component, device, and circuitry

manufacturing20.2 0.6%

Information and communications

29.4 0.8%

Total for other manufacturing industries

3,040.185.1%


3,040.185.1%


3,040.185.1%

Total for other industries

64.81.8%

Value of technology exports(all industries: 3.5719 trillion yen)


86.0 19.0%


86.0 19.0%


86.0 19.0%


24.4 5.4%

Electronic component, device, and

circuitry manufacturing

3.50.8%


64.914.3%


64.914.3%


64.914.3%







Total for other industries

22.4 4.9%

Value of technology imports(all industries: 452.9 billion yen)

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

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Chap

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(3) Number of researchers⃝ The ICT industry employed 166,334 researchers, or 34.0 percent of all

corporate researchers in JapanThere were 853,704 researchers in Japan on March

31, 2017 (the total of all researchers at enterprises, non-profit organizations, public agencies, universities, etc.).

Enterprises employed 488,828 researchers, or about 60 percent of the total. The ICT industry employed 166,334 researchers, or 34.0 percent of all corporate researchers in Japan. The ICT equipment and appliance manufactur-ing segment had the most researchers of any ICT indus-try sector (Figure 5-1-3-3).

Figure 5-1-3-3 Corporate researchers by industry (as of March 31, 2017)



72,48414.8%


72,48414.8%


38,040 7.8%

Electronic component, device, and circuitry

manufacturing29,413

6.0%Information services

19,997 4.1%

Communications5,953 1.2%

Internet-related and other ICT services

410 0.1%


industries286,80758.7%



Total for other


Total for other


（corporate researchers in all industries: 488,828）

Broadcasting37

0.0%

(Unit: people)

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 2017 sur-vey that pertains to enterprises operations.

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

a. General summary of the survey results⃝ 5,519 enterprises were engaged in ICT business operations with sales

in excess of 48 trillion yenSales attributed to ICT business operations in FY 2016

totaled 48.0099 trillion yen (total sales by all enterprises were 71.9756 trillion yen). By sector, the telecommuni-cations sector accounted for 35.1 percent of all sales (up 0.5 percentage points from the previous year), the soft-ware sector 31.0 percent (down 0.5 points), and the in-formation processing services sector 12.1 percent (up 0.4 points) (Figure 5-1-4-1).

The number of enterprises engaging in ICT business

Figure 5-1-4-1 ICT industry sales

Telecommunicationservice operators

(356)168,49135.1%

Telecommunicationservice operators

(356)168,49135.1%

Software service providers (2,930)

148,96631.0%

Software service providers (2,930)

148,96631.0%

Internet-related service providers (687)

30,2616.3%

Private broadcasters (374)23,599

4.9%

Newspaper companies (125)

14,251 3.0%

Publication companies (351)

10,853 2.3%

Film makers and distributors (451)

9,060 1.9%

Cable broadcasting service providers (218)

5,299 1.1%

Advertising agencies (144)

3,3150.7%

Audio program producers (113)

1,8010.4%

Service providers related to video, audio, or text information (158)

1,331 0.3%

Miscellaneous communication service providers

4,8941.0%

Sales in the ICT industriesFY2016

48.0099 trillion yen

Information processing service providers (1,776)

57,97812.1%

Figures in parentheses are the number of companies

(Unit: 100s of millions of yen)

(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) “2017 Basic Survey on the Information and Communications Industry,” MIC / METI

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Chap

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operations (irrespective of whether ICT business opera-tions are the enterprise’s mainstay operations) stood at 5,519. Operating profits were 6.1015 trillion yen, ordi-nary income was 6.4894 trillion yen, and the enterprises held 10,842 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-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 5-1-4-2).

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 increasing year by yearSales in the telecommunications sector in FY 2016

were 14.1862 trillion yen (an increase of 1.1 percent from the previous year) (Figure 5-1-5-1). Fixed-line communi-cations accounted for 31.4 percent of all sales in FY 2016,

and mobile communications for 51.4 percent (Figure 5-1-5-2). Looking at sales by service category finds voice transmission services accounted for 26.1 percent and data transmission services for 56.8 percent (Figure 5-1-5-3). The average revenue per user (ARPU) among the main mobile communication service providers was 4,680 yen for NTT docomo, 6,500 yen for KDDI, and 4,350 yen for SoftBank (Figure 5-1-5-4).

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

(Source) Prepared from “2017 Basic Survey on the Information and Communications Industry,” MIC / METI

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

132,713132,713 129,551129,551 136,384136,384 136,904136,904 140,342140,342 141,862141,862

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2011 2012 2013 2014 2015 2016 (FY)

（in 100s of millions of yen）

(Source) “2017 Basic Survey on the Information and Communications Industry,” MIC / METI

Figure 5-1-4-2 Breakdown of ICT industry enterprises by capital size28.4

13.8

24.3

11.9

29.9

26.5

16.7

42.6

44.2

31.2

30.2

34.0

29.1

52.5

31.3

17.4

15.5

12.8

35.3

33.4

26.8

25.1

24.8

28.0

37.9

40.3

39.9

23.5

19.7

20.5

22.2

17.4

18.9

20.8

23.3

14.0

12.4

24.0

15.7

13.9

20.9

8.4

8.9

19.4

16.0

25.7

7.4

8.8

12.8

9.3

9.7

9.6

8.3

8.3

6.3

8.7

3.2

4.5

5.6

5.0

2.5

3.6

6.7

1.8

3.5

4.0

2.8

2.1

1.3

1.8

5.9

16.9

13.1

22.0

4.1

4.7

9.2

6.0

2.7

3.2

3.4

0.7

1.3

4.7

1.1

2.0

2.1

2.3

0.6

1.0

2.8

0.7

1.8

-

1.1-

0.6

-

1.4

5.6

1.1

2.8

1.3

1.2

1.7

0.7

0.9

-

0.6

0.7

0.6

0.30 10 20 30 40 50 60 70 80 90 100

Total (5,519)Telecommunication

service operators (356)Private broadcasters (374)

Cable broadcasting service providers (218)Software service providers (2,930)

Information processingservice providers (1,776)

Internet-related service providers (687)Film makers and distributors (451)

Audio program producers (113)Newspaper companies (125)Publication companies (351)

Advertising agencies (144)Service providers related to video,

audio, or text information (158)TV / radio program producers

(included in other results)

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

（％）

59

Chap

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

(Note) Calculating excluding sales breakdown "Unknown"(Source) Prepared from “2017 Basic Survey on the Information and Communications Industry,” MIC / METI

Fixed-linecommunications

31.4%

Fixed-linecommunications

31.4%

Mobilecommunications

51.4%

Mobilecommunications

51.4%

Other17.1%Other17.1%

(Note) Calculating excluding sales breakdown "Unknown"(Source) Prepared from “2017 Basic Survey on the Information and Communications Industry,” MIC / METI

Figure 5-1-5-3 Telecom carriers’ sales breakdown by voice transmission and data transmission

Voicetransmission

26.1%

Voicetransmission

26.1%

Datatransmission

56.8%

Datatransmission

56.8%

Others17.1%Others17.1%

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

(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).*NTT docomo’s and KDDI’s ARPU in FY15 are monthly sales per user.

(Source) Prepared from financial statements from each company

1,370 1,180 1,210 1,250 940 7801,520

2,6402,600

2,960 3,1803,210 3,450

2,9305,690 5,830

4,230 4,150 3,8003,950

490 590290 320

440510

540550

4,5004,500 4,3704,3704,1704,170

4,4304,430 4,4904,490 4,5504,550

6,1306,1306,3406,340

4,4504,4504,2304,230

4,7004,7004,5004,500

1,370

3,310 5,910

590

560

4,6804,680

6,5006,500

4,3504,350

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY13 FY14 FY15 FY16 FY17FY13 FY14 FY15 FY16 FY17FY13 FY14 FY15 FY16 FY17NTTdocomo KDDI (au) SoftBank

(yen per month)

Data ARPU Other ARPUVoice ARPU Voice ARPU + Data ARPU

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6. Broadcasting market trends(1) Size of the broadcasting marketa. Broadcaster sales⃝ Broadcaster sales totaled 3. 9312 trillion yen in FY 2016

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 since FY 2015 and to 3.9312 trillion yen

(by 0.4 percent up from the previous year) in FY2016. By category, terrestrial-based private broadcasters’ sales were 2. 3773 trillion yen (up 1.3 percent from the previ-ous year), satellite-based private broadcasters’ sales were 346.3 billion yen (down 9.1 percent from the previ-ous year), cable TV broadcasters’ sales were 503.1 bil-lion yen (up 0.6 percent from the previous year), and NHK’s ordinary operating income was 704.5 billion yen (up 2.4 percent from the previous year).

In terms of market share, terrestrial-based private broadcasters accounted for 73.7 percent (up 1.0 percent-age points from the previous year) of private broadcast-ers’ sales. (Figure 5-1-6-1).

7. Content market trends(1) Size of Japan’s content market⃝ The Japanese content market was valued at 11.6986 trillion yen, over 50

percent of which was attributable to video content, less than 40 percent to text-based content, and less than 10 percent to audio-based contentThe Japanese content market was valued at 11.6986

trillion yen in 2016. By content segment, video content accounted for 55.7 percent of the market, text-based con-tent, 37.3 percent, and audio-based content, 7.0 per-cent.25 (Figure 5-1-7-1).

The overall size of the content market has been in-

Figure 5-1-6-1 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 39,152 39,312

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

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

（100s of millions of yen）

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

(※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 Broad-cast 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 general broadcasting 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.

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

fiscal year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

privatebroadcaster

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

Community broadcasters included in total above※4

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

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

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 5,003 5,031NHK※3 6,803 6,855 6,749 6,756 6,848 6,624 6,659 6,812 6,946 6,604 6,570 6,748 6,879 7,045total 38,356 39,698 40,152 40,422 41,178 39,689 38,254 39,089 39,115 38,915 39,307 38,759 39,152 39,312

( )

25 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.

61

Chap

ter 5

creasing since 2012. The size of each content segment as well stayed flat by 2012, after 2013 the video content segment expanded while the text-based content seg-ment contracted (Figure 5-1-7-2).

(2) Trends in the online content market⃝ The market for online content, which is via the Internet to computers

or mobile phones, was 3.2904 trillion yen, accounting for 28.1 percent of the entire content marketAs part of the overall content market, the market for

online content, which is via the Internet to computers or mobile phones, reached 3.2904 trillion yen, which ex-ceeded 3 trillion yen for the first time. By content seg-ment, the video content segment accounted for 58.6 per-cent of the online content market, the text-based content segment, 29.8 percent, and the audio-based content seg-ment, 11.6 percent. (Figure 5-1-7-3).

The online content market has been growing steadily since 2012. The market by content segment shows that the video content segment, which more than doubled from 2012 to 2016 in particular due to the hot game soft-ware portion increase, has been driving the online con-tent’s market expansion (Figure 5-1-7-4).

(3) Trends in the broadcast content market⃝ Export value of Japanese broadcast content was 39.35 billion yen in FY

2016The export value of Japanese broadcast content in FY

2016 was 39.35 billion yen (Figure 5-1-7-5). Looking at the composition of the export value of Japanese broad-cast content, ‘program broadcast rights’ (31.4%) and ‘merchandising rights’ (32.7%) accounts for the majority, and ’Internet distribution rights’ (26.9%) is the next. ’Format and restaging rights’ (5.3%) holds a certain

Figure 5-1-7-1 Breakdown of Japan’s content market (2016)

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

Video content segment

6.5187 trillion yen55.7%

Movies755.76.5% Videos

417.63.6%

Terrestrial TV programs2806.524.0%

Satellite and cable TV broadcast programs909.17.8%

Game software1391.911.9%

Original Internet videos237.82.0%

Music598.95.1%

Radio programs208.21.8%

Original Internet audio-based content

11.90.1%

Newspaper articles1579.513.5%

Comics416.43.6%

Magazines1008.1

8.6%Books834.17.1%

Database information278.02.4%

Original Internet other content

244.72.1%

total content market

11.6986 trillion yen

Audio-based content segment


Text based content segment


(Unit: billion yen)


Figure 5-1-7-2 Transitions in Japan’s content market size (by content segment)

5.6 6.0 6.2 6.3 6.5

0.8 0.8 0.8 0.7 0.8

4.8 4.5 4.5 4.5 4.4

11.2 11.3 11.5 11.5 11.7

0

2

4

6

8

10

12

2012 2013 2014 2015 2016

（trillions of yen）

（year）

Videocontent segment

Audio-based content segment

Text-based content segment

62

Chap

ter 5

Figure 5-1-7-3 Breakdown of the online content market (2016)


Video content segment

1.929trillion yen58.6%

Voice-based content segment0.3811trillion yen

11.6%

Tex-based content segment0.9804trillion yen

29.8%

Game software1128.634.3%

Original Internet videos237.87.2%

Videos224.06.8%

Movies201.46.1%

Terrestrial TVprograms53.21.6%

Satellite and cable TV broadcast programs

83.92.5%

Music357.210.9%

Other audio-based

content23.90.7%


244.77.4%


244.77.4%

Database information

232.07.1%

Books203.96.2%

Newspaper articles167.45.1%

Other text-based content132.44.0%

Total digital content market

3.2904 trillion yen

(billion yen)


Figure 5-1-7-4 Transitions in the online content market size (by content segment)

Video content Audio-based content Text-based content

0.91.3

1.6 1.7 1.90.4

0.30.3 0.3

0.4

0.80.7

0.81.0

1.0

2.12.3

2.73.0

3.3

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2012 2013 2014 2015 2016

（trillion yen）

（year）

(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.

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

* Calculation of FY 2016 was changed in that survey sheet questionnaire was changed from the FY 2015 survey and calculated by including digital gaming rights in merchandising rights.

(Source) “Survey on the State of Overseas Expansion of Broadcast Content (FY 2016),” MIC

Figure 5-1-7-5 Export value of Japanese broadcast content

0

50

100

150

200

250

300

400

350

2012 2013 2014 20162015

（in 100s of million of yen）

(FY)

104.3137.8

182.5

288.5

393.5

63

Chap

ter 5

1. Internet usage trends(1) State of ICT device ownershipa. State of major ICT device ownership (households)⃝ Ownership of smartphones exceeds that of computers

The household ICT device ownership rate of 2017 was 94.8 percent for ‘mobile terminals26’ and 72.5 percent for ‘computers’. The rate for ‘smartphones’, which are in-cluded in ‘mobile terminals’ category, increased to 75.1 percent (up 3.3 percentage points from a year earlier), exceeding the households ownership rates of “comput-ers” (Figure 5-2-1-1).

(2) State of Internet usagea. Internet usage rate (personal)⃝ The usage of Internet via smartphone exceeds the usage via computers

The Internet usage rate (personal) was 80.9 percent

(Figure 5-2-1-2). Those using smartphones to access the Internet accounted for 59.7 percent of all Internet users, which is the highest and exceeded 52.5 percent for com-puters (Figure 5-2-1-3).

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

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

pose of using the Internet was “sending and receiving emails”, the number of users varies by age groups for “using social media,” and “using video posting / sharing sites” (Figure 5-2-1-4).

Section 2　ICT Service Usage Trends

scale. Looking at the value of the export of Japanese broadcast content by entity, 49.0% is by “NHK and main commercial broadcast stations”, “production etc.” is 45.2%, “sub-main commercial broadcast stations in Osa-ka” is 5.2%, “local stations” is 0.5% and “satellite broad-casting stations” is 0.3%. In the export value of program selling rights (total of program broadcast rights, Inter-net distribution rights and video and DVD rights), ratio of “production” is lower.

⃝ Cartoons and animations account for over 80 percent of export value by program category, followed by drama programs and variety shows, and Asia accounts for nearly 60 percent of exports, followed by North America and EuropeLooking at the broadcast content export value by pro-

gram category finds ‘cartoons and animations’ account

for nearly 80 percent of total, ‘drama programs’, 10.2 per-cent, and ‘variety shows’, 9.7 percent, followed by ‘docu-mentaries’ (0.6%) and ‘sports programs’ (0.6%) (Figure 5-1-7-6). The largest export market for broadcast content was Asia, at 58.7 percent of the total, followed by North America at 27.2 percent, Europe at 8.0 percent, and South and Central America (1.6%). Diverse export desti-nations for Japanese broadcast content are developing, particularly in Asia.

26 The figures for “mobile terminals” includes mobile phones and PHS handsets, and personal digital assistants, or PDAs from 2009 to 2012 and smartphones since 2010.

Figure 5-1-7-6 Export value of Japanese broadcast content by program category

(Source) “Survey on the State of Overseas Expansion of Broadcast Content (FY 2016),” MIC

Other1.7%

Documentaries0.6%Sports

0.6%

Variety shows9.7%

Variety shows9.7%Drama

programs10.2%

Drama programs

10.2%

Cartoons and

animations77.1%

Cartoons and

animations77.1%

64

Chap

ter 5

Figure 5-2-1-1 Transitions in household ownership rates for ICT devices

(Source) “Communications Usage Trend Survey,” MIC

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

－－

－－－－－－－

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

20.8 25.9 23.3 24.5 29.5 38.3 33.0 33.7 31.4 26.3

22.0 27.3 17.0 20.1 21.4 23.8 18.4 17.3 15.3 13.8

5.5 7.6 3.5 6.2 12.7 8.8 7.6 8.1 9.0 2.1

0

10

20

30

40

50

60

70

80

90

100（％）

2008（n＝4,515）

2009（n＝4,547）

2010（n＝22,271）

2011（n＝16,530）

2012（n＝20,418）

2013（n＝15,599）

2014（n＝16,529）

2015（n＝14,765）

2016（n＝17,040）

2017（n＝16,117）

Other appliances (Smart appliances) with Internet connectivity

Portable music players with Internet connectivity

Home TV game consoles with Internet connectivity

Ow

ners

hip

rate

Figure 5-2-1-2 Transitions in the Internet usage rate


72.6 73.0 75.375.378.0 78.2 79.1 79.5

82.8 82.8 83.0 83.5 80.9

0

20

40

60

80

100

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

(%)

(year)

65

Chap

ter 5

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

networks usage⃝ Individuals are concerned about personal information exposure, and

enterprises are concerned about virus infectionsThe percentage of individuals who feel insecure with

the Internet usage which includes respondents of total of “insecure” and “somewhat insecure” reached 66.8 per-cent, about 70 percent feel insecure (Figure 5-2-1-5). Among matters of concerns about using the Internet, 89.5 percent cited of “external disclosure or exposure of per-sonal information or Internet usage histories without per-mission” as a concern. This was followed, in order, by “computer virus infections” (69.6 percent) and “unsolicit-ed email” (53.5 percent) (Figure 5-2-1-6). Among enter-prises, 47.4 percent, the highest response rate, mentioned “concern about virus infections” as a problem when using the ICT networks (the Internet and internal LANs) (Fig-ure 5-2-1-7).

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 65.4 percent of households have taken some form of informa-tion security measures. The leading security measures were “install or update security software” (46.2 percent) and “sign up for or renew a security service” (25.4 per-cent) (Figure 5-2-1-8).

Looking at the state of information security measures implemented by enterprises that use ICT networks finds that 99.3 percent of enterprises have implemented some form of information security measures, which represents 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 88.9 percent of enterprises. This was followed, in order, by “install anti-virus programs on servers” (66.5 percent) and “train employees” (57.6 percent). (Figure 5-2-1-9).

Figure 5-2-1-3 Internet usage device by category

(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

59.7

52.5

20.9

9.9

8.8

7.2

57.9

58.6

23.6

13.3

9.2

6.8

0 20 40 60 80

Smartphones

Computers

Tablets

Home game consoles withInternet connectivity

Televisions withInternet connectivity

(%)

Mobile phones andPHS handsets

(excluding smartphones)

2017（n=38,630） 2016（n=40,297）

Figure 5-2-1-4 Applications / purposes of using the Internet by age group (multiple answers)


0

20

40

60

80

100（％）

Usin

g e-

lear

ning

Send

ing

and

rece

ivin

g em

ails

Brow

sing,

pos

ting,

cre

atin

g an

d up

datin

g w

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

/ s

harin

g sit

es

Usin

g on

line

gam

es

Parti

cipa

ting

in q

uiz

/ pr

ize c

ompe

titio

ns o

r que

stio

nnai

res

Map

or t

rans

porta

tion

info

rmat

ion

serv

ices

(fre

e of

cha

rge)

Usin

g w

eath

er fo

reca

sts

(fre

e of

cha

rge)

Usin

g ne

ws

sites

Usin

g di

ctio

narie

s an

d e

ncy c

lope

dias

Purc

hasin

g or

trad

ing

goo

ds a

nd s

ervi

ces

(tota

l)

Usin

g e-

gove

rnm

ent

and

e-lo

cal

gov

ernm

ent s

ervi

ces

Purc

hasin

g or

trad

ing

good

s an

d s

ervi

ces

(exc

ludi

ng d

igita

l con

tent

pur

chas

es a

nd fi

nanc

ial t

rans

actio

ns)

Purc

hasin

g or

trad

ing

dig

ital c

onte

nt

finan

cial

tran

sact

ions

Inte

rnet

auc

tions

Usin

g on

-dem

and

stre

amin

g s

ervi

ces

for r

adio

, TV

prog

ram

s, m

ovie

s, et

c.

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

66

Chap

ter 5

Figure 5-2-1-5 Percentage of individuals to feel insecure with Internet usage (multiple answers permitted)


(Unit: %)

2017year (n=3,645)

feel insecure24.8

feel insecure24.8

somewhat feel insecure

42.0

somewhat feel insecure

42.0

somewhat do not

feel insecure20.2

somewhat do not

feel insecure20.2

do not feel insecure

12.9

do not feel insecure

12.9

Figure 5-2-1-6 Matters of concern with Internet usage


89.5

69.6

49.2

33.2

23.5

14.2

11.8

2.3

87.8

67.4

51.551.6

53.547.7

46.4

31.0

23.5

13.8

10.1

2.4

0 20 40 60 80 100External disclosure or exposure of

personal information or Internet usage history without permission

Computer virus infections

Unsolicited email

security measures

Trustworthiness of electronic paymentsBrowsing illegal and harmful information

Conflict with communication partners

Internet addiction

Others

False billing and other types ofInternet fraud

(%)

2016 year（n=2,578）2017 year (n=2,477）


Figure 5-2-1-7 Problems with ICT network usage at enterprises (multiple answers permitted)

47.4

40.9

39.1

37.3

34.7

26.8

12.9

12.4

9.6

8.9

4.3

3.7

3.4

2.6

11.0

48.8

36.8

38.2

41.3

32.8

25.2

11.8

8.9

6.8

9.4

3.1

4.3

2.4

2.2

12.7

0 10 20 30 40 50Concern about virus infections

Difficult to develop security measures

Operational and management cost increases

Operational and management personnel shortages

Low security awareness among employees

Difficult to recover from failures, outages, etc.

Difficult to quantify benefits

High communication charges

Low communication speeds

Difficult to obtain benefitsConcern about protection of

copyrights and intellectual propertyConcern about trustworthiness

of electronic paymentsConcern about trustworthiness

of authentication technologyOthers

No particular problems

(%)

2017 year (n=2,527) 2016 year(n=1,963)

67

Chap

ter 5

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

from 201656.9 percent of enterprises answered they had used

cloud services either partially or extensively, which sig-nificantly rose from 46.9 percent from the previous year. (Figure 5-2-1-10)

b. Effectiveness of cloud services⃝ Many enterprises recognized the effectiveness of cloud services

Among enterprises using cloud services, 85.2 percent responded “very effective” or “somewhat effective”. Many enterprises recognized the effectiveness (Figure 5-2-1-11).

Figure 5-2-1-8 Implementation of information security measures at households (multiple answers permitted)


0 20 40 60 80(%)

65.4

22.8

11.8

46.2

25.4

23.1

18.0

2.5

67.7

22.3

10.0

47.7

24.6

22.6

17.9

2.6

Implemented measures

Have not implemented 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

2016 year (n=1,892)2017 year (n=1,776)


Figure 5-2-1-9 Implementation of information security measures at enterprises (multiple answers permitted)

0.7

22.0

19.8

18.9

11.1

29.3

99.3

88.9

66.5

48.2

44.2

41.2

34.2

26.3

1.6

98.4

88.2

66.8

53.755.3

57.650.5

46.1

39.9

37.0

34.0

23.4

19.6

18.5

17.1

10.5

28.3

0 20 40 60 80 100

Implemented measures

Have not implemented measures

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 logs

Construct virus walls for external connections

Use proxies (proxy servers)

Encrypt data and networks

Audit security measures

13.315.1

Authenticate users with authentication technology

17.414.9Monitor access lines15.8

14.1

12.713.2Establish anti-virus response manuals

15.012.2Outsource security management

Set up and deploy Web application firewalls

Other measures

（％）

2016 year (n=2,014)2017 year (n=2,554)

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

Set up and deploy intrusion detection systems (IDS) or intrusion protection systems (IPS)

68

Chap

ter 5

c. Breakdown of cloud service usage⃝ The most frequently used cloud service is “file storage and data shar-

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

age and data sharing” cited by 51.2 percent of respon-dents, followed, in order, by 47.6 percent for “server us-age” and 46.3 percent for “emails” (Figure 5-2-1-12).

Figure 5-2-1-10 State of cloud service usage


29.4

24.4

22.8

20.7

15.0

27.5

22.5

21.7

18.0

18.0

13.4

14.5

15.0

15.9

17.5

22.1

29.3

30.0

32.2

34.4

7.6

9.3

10.4

13.1

15.0

0 20 40 60 80 100 (%)

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 plan to use in the future Do not fully understand cloud services

56.9

46.9

44.6

38.7

33.1

2017 year(n=2,570)

2016 year(n=2,071)

2015 year(n=1,821)

2014 year(n=2,098)

2013 year(n=2,183)

Figure 5-2-1-11 Effectiveness of cloud services


negatively effective0.4%

not effective1.0%

very effective30.9%

very effective30.9%

somewhat effective54.3%

somewhat effective54.3%

uncertain13.3%

uncertain13.3%

2017 year(n=1,550）

Figure 5-2-1-12 Breakdown of cloud service usage


51.2

47.6

46.3

37.7

34.4

34.1

27.1

14.5

12.3

10.4

9.2

8.6

7.9

7.7

6.8

5.6

4.7

1.6

7.5

50.7

46.7

51.7

38.4

27.0

38.3

26.4

14.8

12.2

8.3

8.2

7.0

8.6

7.8

7.2

5.0

4.9

1.2

7.4

0 10 20 30 40 50 60

File storage and data sharing

Server usage

Email

Internal informaition sharing / portals

Data backups

Schedule sharing

Marketing assistance

Payrolls, financial accounting, HR

Sharing information with trading partners

Project management

Production, distribution, and retali-outlet management

Purchasing

Order-taking and sales

Billing and payment systems

Authentication systems

Research and development

Other uses

(%)

2016 year (n=960)2017 year (n=1,571)

e-Learning

System development and Website construction

69

Chap

ter 5

2. State of telecommunication service provision and usage(1) State of provision a. Overview(i) Subscriptions to voice communication 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,27

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 8.1 times more mobile communica-tion subscriptions than fixed-line communication sub-scriptions (Figure 5-2-2-1).

(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

services28 at the end of FY 2017 stood at 39.35 million (up 1.9 percent from the previous year). Subscriptions to mobile ultra-high-speed broadband services was 120.73 million for 3.9G and 4G (LTE) services (up 17.3 percent) and 58.22 million for BWA services (up 21.6

percent) (Figure 5-2-2-2). Trends of the net increase in the number of subscriptions to FTTH and DSL shows that DSL continues to decrease while FTTH continues to increase.

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 services29

(mobile phones, PHS handsets, and BWA) at the end of FY 2017 totaled 173.57 million (an increase of 3.4 per-cent from the previous year). The net growth compared to end of FY2016 was 5.70 million subscriptions, which continues the upward trend (Figure 5-2-2-3).

The carrier (Group) shares by mobile communication subscription were 38.7 percent for NTT docomo (down 1.1 percentage points from the previous year), 27.6 per-cent for the KDDI Group (up 0.8 percentage points), and 23.1 percent for the SoftBank Group (down 0.8 percent-age points) (Figure 5-2-2-4). The carrier (Group) shares by MVNO services were 5.3 percent for NTT docomo MVNO (up 0.5 percentage points from the previous year), 2.8 percent for the KDDI Group MVNO (up 0.2 percentage points), and 2.4 percent for the SoftBank Group (up 0.3 percentage points)

Subscriptions to MVNO services30 in the subscrip-tions to mobile communication services (mobile phones,

27 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.

28 Figures for subscriptions to fixed-line broadband services cover FTTH, DSL, cable TV, and FWA services.29 Figures after adjusting for internal group transactions.30 Figures after subtracting subscriptions to MVNOs that are MNOs.

Figure 5-2-2-1 Transitions in subscriptions to voice communication services

(Notes) *Subscriptions to mobile communication services cover mobile phone, PHS services and BWA.* Figures for mobile communication services from FY 2013 forward are the figures ‘after adjusting for internal group transactions’. ‘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, 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.

*Figures of the past years are different from those in the last year’s publication due to amendments by the target enterprises. (Source) Prepared from “Announcement of Quarterly Data on Telecommunication Service Contracts and Market Shares

(4Q of FY 2017 (March 31, 2018)),” MIC

5,515 5,123 4,732

4,334 3,957 3,596 3,274 3,004

2,774 2,507 2,298

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

13,50714,644 14,919

15,633 16,17516,787

421 776

1,116 1,453 1,790 2,0962,407 2,650

2,846 3,075 3,241

1,027 978

906 864 790 753 721 728 718 771 854

2,135

17,357

3,359

8850

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 2017

（tens of thousands subscriptions）

（FY）

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

70

Chap

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PHS handsets, and BWA) continue to increase, reaching 18.40 million (an increase of 16.0 percent from the FY 2016). (Figure 5-2-2-5)

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

reached an average of 10.8 Tbps as of November 2017, 31.6 percent increase from the same month of a year ago

(a) Transitions in traffic by broadband subscribersTraffic by ISP531 broadband service subscribers con-

tinues to grow, with download traffic (A1 OUT) reaching a monthly average of 4,359.2 Gbps in November 2017 (28.3 percent increase from the same month a year ago). Download traffic (A1 OUT) widened its gap with upload traffic (A1 IN: 597.1 Gbps), from 5.6 times last fiscal year to 7.3 times. Thus, most traffic is download traffic (Fig-ure 5-2-2-6).(b) Transitions in traffic exchanged between ISPs

The traffic exchanged with major domestic internet exchanges (IX)s (B1), the traffic exchanged with do-

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

Figure 5-2-2-2 Transitions in broadband service subscriptions

*Figures of the past years are different from those in the last year’s publication due to amendments by the target enterprises. (Source) Prepared from “Announcement of Quarterly Data on Telecommunication Service Contracts and Market Shares

(4Q of FY 2017 (March 31, 2018)),” MIC

2,022 2,230 2,382 2,527 2,656 2,782 2,925

820 670 542 447 375 320 251567 591 601 623 643 673 6851 1 1 1 1 1 13,4103,410 3,4933,493 3,5263,526 3,5973,597 3,6753,675 3,7763,776 3,8623,862

3,030

215

6891

3,9353,935

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2010 2011 2012 2013 2014 2015 2016 2017

(tens of thousands of sbuscriptions）

FWACATVDSLFTTH

81 230 531 746

1,947

3,514

4,789

3 230

2,037

4,641

6,778

8,747

10,294

5,822

12,073

0

2,000

4,000

6,000

8,000

10,000

12,000

2010 2011 2012 2013 2014 2015 2016 2017

(tens of thousands of subscriptions）

BWA LTE

（end of FY）（end of FY）

【Fixed-line broadband services】【Mobile ultra-high-speed broadband services】

Figure 5-2-2-3 Transitions in mobile phone subscriptions

*(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, when an MNO receives mobile phone or BWA services as an MVNO from another MNO in the same group and provides these services together with its services in 1 mobile phone device. *Figures of the past years are different from those in the last year’s publication due to amendments by the target enterprises.

(Source) Prepared from “Announcement of Quarterly Data on Telecommunication Service Contracts and Market Shares (4Q of FY 2017 (March 31, 2018)),” MIC

13,50714,644

15,702

17,732

19,570

21,474 21,760 22,133 22,556

14,91915,633 16,175

16,787 16,821 16,929 17,098

12,82013,604 14,188

14,87915,654

16,344 16,405 16,534 16,727

23,102

17,357

17,009

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

March 2012 March 2013 March 2014 March 2015 March 2016 March 2017 June 2017（1Q）

September 2017（2Q）

March 2018（4Q）

December 2017（3Q）

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

（tens of thousands of subscriptions）

Figure 5-2-2-4 Transitions in carrier shares in mobile com-munication subscriptions (after adjusting for internal group transactions)

KDDI Group share includes KDDI, Okinawa Cellular, and UQ Communi-cations; Softbank Group share includes Softbank, Y!Mobile, and Wire-less City Planning.

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

(4Q of FY 2017 (March 31, 2018)),” MIC

(%)

40.2 39.8 39.8 39.5 39.1

3.6 4.8 4.9 5 5.2

26.6 26.8 26.9 27 27.2

2.3 2.6 2.7 2.8 2.825.3 23.9 23.6 23.5 23.41.9 2.1 2.1 2.2 2.3

38.7

5.3

27.6

2.823.12.4

0

20

40

60

80

100

16・3 17・3 17・6（1Q）

17・9（2Q）

18・3（4Q）

17・12（3Q）

NTTDocomo NTTDocomo (MVNO） KDDI GroupKDDIGroup (MVNO） Softbank GroupSoftbank Group (MVNO）

71

Chap

ter 5

mestic ISPs without passing through major domestic IX32(B2) and traffic exchanged with overseas ISPs(B3), data inflow has exceeded outflow in all types. The gap has been increasing (Figure 5-2-2-6).

(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 10.8 Tbps of traffic passed over the Internet during Novem-ber 2017. This was a 31.6 percent increase from the same month 1 year ago, continuing the increase in traf-fic over the Internet (Figure 5-2-2-6).

(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). As of December 2017 mobile communication traffic increased about 1.4 times over the last year, reaching an average of 2314.2 Gbps (Figure 5-2-2-7).

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

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

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

(4Q of FY 2017 (March 31, 2018)),” MIC

742

958

1,269

1,586 1,636 1,6871,764

599

791

1,102

1,409 1,454 1,501 1,575

142 166 167 177 182 186 188

1,840

1,652

188

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

March2014

March2015

March2016

March2017

June 2017(1Q)

Sept 2017(2Q)

March 2018(4Q)

Dec 2017(3Q)

（tens of thousands of subscriptions）

Mobile phones / PHS / BWAMobile phones / PHS BWA

Figure 5-2-2-6 Tabulations and estimates of Internet traffic in Japan*1*2

【Traffic tabulations and estimates】

Year Month

Total traffic by broadband service subscribers in Japan (estimated) [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 exchanged 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-scription num-bers) ※4

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

20125 652 1,714 18.6 48.9 287.8 756.6 251.5 243.0 118.4 98.6 317.4 145.1 528.7 178.8 44.13%

11 664 1,897 18.8 53.8 294.0 840.3 268.3 257.2 103.2 83.2 316.6 135.7 571.3 201.6 44.29%

20135 776 2,293 21.9 64.7 347.8 1,027.8 300.3 286.4 114.5 85.5 423.3 161.3 633.9 231.6 44.82%

11 830 2,571 23.2 72.0 370.0 1,146.3 336.5 326.2 138.9 94.9 520.8 186.2 714.5 259.7 44.59%

20145 904 2,889 25.0 80.0 398.9 1,274.5 359.2 317.2 163.6 101.5 614.9 214.3 808.3 282.3 44.11%

11 932 3,560 25.5 97.6 407.6 1,557.0 496.1 426.1 192.3 104.6 765.1 246.5 924.6 340.6 43.73%

20155 1,054 4,448 28.4 119.9 457.0 1,928.9 525.6 440.2 198.9 117.5 955.6 287.5 941.5 308.1 43.37%

11 1,060 5,467 28.2 145.7 452.9 2,336.1 581.1 503.0 251.9 137.1 1,306.4 366.6 1,059.7 307.9 42.73%

20165 1,317 6,840 34.6 179.5 551.5 2,863.3 652.7 570.5 277.0 112.6 1,765.1 453.8 1,080.1 292.4 41.86%

11 1,460 8,232 37.8 212.9 602.5 3,396.6 1,246.0 653.6 311.0 113.6 1,989.2 518.2 1,221.9 353.8 41.26%

20175 1,814 9,636 46.6 247.7 743.7 3,950.6 1,304.0 690.9 427.4 146.5 2,809.3 625.9 1,248.5 308.7 41.00%

11 1,483 10,830 37.8 276.0 597.1 4,359.2 1,347.2 755.0 514.5 123.6 3,091.0 587.3 1,390.8 348.8 40.25%

(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

for 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”

72

Chap

ter 5

3. State of broadcasting service provision and usage⃝ Subscriptions to NHK terrestrial, NHK-BS, WOWOW and cable TV servic-

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

110° CS, 124/128° CS broadcasts, increased in FY 2016 (Figure 5-2-3-1).

*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 other 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 • public peering at overseas IXs.

(Source) Prepared from “Announcement Japan’s Internet Traffic Tabulations and Estimates for November 2017,” MIC

Domestic ISPsOverseas ISPs

ISP5

B1 Traffic exchanged with major domestic IXs

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

B3 Traffic exchanged with overseas ISPs

A2 Traffic by other subscribersA1 Traffic by broadband

service subscribers

B1In Out

In

Out

A1In

Out

A2

In

Out

B2

In

Out

C Traffic at major domestic IXs

A　Traffic by subscriber type

B Traffic exchanged between ISPs

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

BB BBOther subscribers

(leased lines, data centers, etc.)

Major Domestic

IXC

Internet Initiative Japan (IIJ)NTT CommunicationsK-OpticomKDDISoftBank

CDNcacheDC

BBEnterprises

Run by Internet Mul-tifeed, EquinixJapan, J a p a n I n t e r n e t Exchange, BBIX, and WIDE Project.

B3

Types of tabulated traffic

Figure 5-2-2-7 Transitions in the monthly average mobile communication traffic in JapanTabulated Month June 2016 September 2016 December 2016 March 2017 June 2017 September 2017 December 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

Average (Gbps) 196.7 1227.9 1424.6 217.5 1345.0 1562.5 225.0 1411.6 1636.6 249.0 1566.6 1815.6 266.9 1724.2 1991.1 289.3 1910.4 2199.7 315.3 1998.9 2314.2

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

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Chap

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4. Promoting informatization in government services(1) Promoting e-government⃝ State of promoting e-government based on the inventory of adminis-

trative procedures In order to improve the convenience of the whole admin-

istrative services, Cabinet Secretariat conducted a detailed survey on the administrative procedures (inventory sur-vey). The result shows that 1% (580 types) of the total types of procedures (46,385 types), which had more than 0.1 mil-lion filings in a year accounted for 99% (4.8 billion) of the number of procedure fillings. Especially, the online usage rate of 57 types of the improvement promotion proce-dures33, which are frequently used by citizens and enter-prises has steadily been rising (190,455,866 procedures

out of all 413,709,993 procedure fillings were filed online, online usage rate is 46.0%, an increase of 2.5 percentage points from the previous fiscal year) (Figure 5-2-4-1). Fac-tors influencing the online usage rate such as the presence or absence of attached documents or the method of identi-ty verification have also been clarified to a certain extent.

(2) Promoting informatization in local governments a. State of online usage ⃝ 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 administrative

procedures34 was 51.4 percent in FY 2016 (Figure 5-2-4-2).

33 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.

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

Figure 5-2-3-1 Subscribers to broadcasting services

(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.*110° East CS subscribers are the number of Sky PerfecTV contracts.*124/128° East CS subscribers are the number of Sky PerfecTV premium contracts.* Until FY 2010, 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. From FY 2011 on, it represents the number of subscribing households to registered business enterprises with wired telecommunication facilities providing independent broadcasting services. (Both exclude broadcasts using IP multicasts.)

(Source) Prepared using materials from Japan Electronics and Information Technology Industries Association, materials from Japan Cable Laboratories, materials from NHK, and “State of Satellite Broadcasting”

and “State of Cable Television” from MIC

6,7256,725 6,9716,971 7,1897,189 7,3087,308 7,4267,426 7,5367,536 7,6307,630 7,7317,731 7,8067,806

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000tens of thousands of subscribers）

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

NHK-BS

errestrial-based broadcasters(NHK)

WOWOW

124/128° East CS

110° East CS

Cable TV 2,885.0

209.3

114.4

282.3

4,315.4

2,066.7

2,852.0

219.5

120.3

280.5

4,258.2

1,993.3

2,817.0

212.0

125.4

275.6

4,200.1

1,911.3

2,767.0

205.6

157.1

264.8

4,141.2

1,823.2

2,707.0

196.3

176.2

263.1

4,082.9

1,737.4

2,655.6

173.7

196.3

254.8

4,027.4

1,649.6

2,601.6

140.4

221.1

251.2

3,975.1

1,567.2

2,470.6

112.6

245.6

249.0

3,893.2

1,475.2

2,300.7

83.0

273.7

247.6

3,820.2

1,399.9

Figure 5-2-4-1 Transitions in the online usage of improvement promotion procedures

fiscal year procedure filings Filings done online Online usage rate [%]2016 413,709,993 190,455,866 46.02015 401,460,093 174,595,944 43.5 2014 393,192,170 162,501,867 41.3

(Source) “Online of Inventory Results of Administrative Procedures” Cabinet Secretariat and MIC https://cio.go.jp/tetsuduki_tanaoroshi

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1. State of 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 2017 in-creased by 7.9 percent from a year earlier to 234.45 mil-lion, including 231.09 million mobile phones and other

land mobile stations, a jump of 7.7 percent increase. Mo-bile phones and other mobile land stations accounted for a huge 98.6 percent of all radio stations. The number of convenience stations climbed by 6.0 percent to 1.18 mil-lion (Figure 5-3-1-1).

Section 3　Radio Spectrum Usage Trends

(※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 5-3-1-1 Transitions in the number of radio stations

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017other 36 41 49 49 48 46 43 46 50 50 55 49 49Base stations 62 62 63 41 41 54 58 63 68 71 70 73 125Convenience stations※2 65 66 68 70 72 74 77 84 90 97 105 112 118Amateur stations 56 53 51 49 47 45 44 44 44 44 44 43 43Land mobile stations※1 10,212 10,059 10,573 10,993 11,448 11,879 13,266 14,388 15,472 17,493 19,711 21,457 23,109Percentage 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 98.6

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

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）

（%）

(%)

(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 2016,” MIChttp://www.e-gov.go.jp/doc/facilitate/announce.html

Figure 5-2-4-2 Transitions in the usage of local government procedures selected for online-usage promotion

40.0

42.6

45.247.1

49.151.451.4

30

35

40

45

50

55

2011 2012 2013 2014 2015 2016 (FY)

(%) 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

2016 397,823,000 204,525,754 51.4

75

Chap

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

⃝ There were 522 reports of interference with key radio communications in FY 2017, and 1,468 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 radiocommu-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 2017, there were 2,249 reports of radio interfer-ence or obstructions of all kinds, 165 fewer (down 6.8 percent) than the previous year. Among these, there were 522 reports of interference with key radio commu-nications, 81 fewer (down13.4 percent) than the previ-ous year. In response to these reports, 2,310 actions35 were taken in FY 2017 (Figure 5-3-2-1).

In FY 2017, 4,770 illegal radio stations were detected, 329 more (up 7.4 percent) than the previous year. In re-sponse, 1,468 actions35 were taken in FY 2017, an in-crease of 104 actions (up 7.6 percent) from the previous year. These actions included 168 indictments (11.4 per-cent of all actions) and 1,300 directives (88.6 percent of all actions).

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

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

（Fiscal Year）

(reports / actions)

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

592 674 684 512 532 513 689 501 532 605 771 676 6031,711 1,991 2,344 2,364 2,241 2,041 1,934 1,873 1,826 1,740 1,995 1,821 1,8112,303 2,665 3,028 2,876 2,773 2,554 2,623 2,374 2,358 2,345 2,766 2,497 2,414

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

5221,7272,249

2,310

Reports of interference with key radio communications

Other interference report Actions taken in responce to reports

Reports of interference withkey radio communicationsOther interference reportActions taken in responce to reports

Number of actions in response to reports

Figure 5-3-2-1 Transitions in the number of radio station interference / obstruction reports and the number of actions taken in response

76

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chapter 5...production value continued to slide even after 2010 until signs of recovery finally...

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