ICT Standardization Policy andDigital Signage in Japan

Hideo FusedaDirector of Standardization Division

Ministry of Internal Affairs and Communications

Table of Contents

1. Current state of ICT in Japan2. Digital Signage Market3. ICT Standardization Policy4. Digital Signage’s Role in the Great

East Japan Earthquake (March 2011)

1. Current state of ICT in Japan

Japan’s ICT industry’s contribution to economic growth

The ICT industry accounts for approximately 10% of the market for all industries (¥87.7trillion)

Overall economic contribution of the Internet is approximately 4% of GDP ICT industry contributed to GDP growth in the past 10 years

Japan’s ICT industry’s share of nominal domesticproduction

ICTindustry

¥87.7 trillion10.0%

Electrical equipment (notincluding ICT devices)¥24.1 trillion 2.7%

Transport equipment¥42.9 trillion 4.9%

Construction (not includingconstruction of ICT facilities)¥55.3 trillion 6.3%

Wholesale¥49.3 trillion 5.6%

Retail¥32.9 trillion 3.7%

Transport¥35.7 trillion 4.1%

Iron and steel¥23.8 trillion 2.7%

Nominal marketsize of all

industries (2009)¥879.7 trillion

Other industries¥528.0 trillion60.0%

(Source: White paper on Information and Communication in Japan)

GDP contribution of Internet (%)

(Source：Mckinsey, “Internet matters: The net‘s sweepingimpact on growth, jobs, and prosperity” (2011, May))

Penetration of ICT equipment Household penetration of mobile phones and PCs are approx. 90%, 80%, respectively TVs with an internet connection have reached approx. 30%, and tablets 10%

Ownership rate of ICT Equipment (Households)

90.7

90.1

90.7 90.9 91.2

85.8

34.2

40.4 41.4

50.853.9 52.9

50.4 50.0

55.4 53.5 57.1

43.8(FAX)37.7

50.5

58.0

71.7

78.2

77.580.5 80.8

85.0 85.9 87.283.4

11.616.0 17.5

23.8

30.633.5 33.8 34.0

45.7 45.9

51.4

46.9(Car navigation)

10.3

4.1 3.3(PDA) 3.8(PDA)

4.9 2.7 2.6 2.9 3.02.3 3.0(TV) 3.2

5.4(TV) 7.5 8.8 11.715.2

23.2

26.8

10.2

17.322.9

33.136.2

49.547.6(ETC)

6.0

26.5

42.248.0

14.3

19.1 22.0

27.3

17.0

67.7

78.5 78.2

87.6

94.492.2

90.0

91.395.0 95.6 96.3

93.2

9.011.0 11.1 12.0

11.1 10.715.2

20.8

25.9

23.3

3.2) 4.54.1 3.4 4.3 5.5

7.6

3.5

9.77.2

0

10

20

30

40

50

60

70

80

90

100

平成11年末（ｎ＝3,657）

平成12年末（ｎ＝4,278）

平成13年末（ｎ＝3,845）

平成14年末（ｎ＝3,673）

平成15年末（ｎ＝3,354）

平成16年末（ｎ＝3,695）

平成17年末（ｎ＝3,982）

平成18年末（ｎ＝4,999）

平成19年末（ｎ＝3,640）

平成20年末（ｎ＝4,515）

平成21年末（ｎ＝4,547）

平成22年末（ｎ＝22,271）

Ow

ners

hip

rate

(%)

Fixed Phone

Mobile phone / PHS(*)

PC

Car navigation system

Mobile player capable ofautomatically recording

content from a PC

TV set capable ofconnecting to theinternet

ＰＤＡ

* Mobile Phone / PHS includes PDAs after YE 09

Home-use gameconsole capable ofconnecting to theinternet

Other intelligentappliances capable ofconnecting to theinternet

Smartphone

FAX

Car-mounted ETC

Mobile phone capableof receiving one-segment broadcast)

Tablet

YE10YE09YE08YE07YE06YE05YE04YE03YE02YE01YE00YE99

43.0(One-Seg mobile)

(Source :unofficial translation of ’ Communications Usage Trend Survey’ , MIC, 2010)

２．Digital Signage Market

Market forecast of Digital Signage (Japan)

(Source: Mitsubishi research Institute)

Japan’s market is expected to reach 980 billion Yen by 2015 Particularly, the contribution of advertising & related market is expected to

expand

Digital Signage Market ( JAPAN )

(Source:Mitsubishi Research Institute)

(Source:YANO Research Institute)

Digital Signage Market ( Global )

Market forecast of Digital Signage (Global)

2009 2014

Market Share(Global)

３．ICT Standardization Policy

Government of Japan

Ministry of Internal Affairs and Communications（MIC）

Study framework for ICT Standardization Strategies in Japan

Contribute toITU

ICT Standardizationpolicy

Information and Communications Council

The mechanism toconnect consumerelectronics and meters tonetworks, and to achievecontrol of each apparatusin order to conserveenergy within the home.

（１） Smart Grid

The mechanism to alloweach user to use thefunctionality of a largecomputer center anytime,anywhere, using a smallterminal.

（２） Cloud Computing

The mechanism for achieving thesame functionality as a personalcomputer with a home televisionin order to allow display ofimages and videos which areupon the Internet.

（５）Next Generation Browser

（４）Digital Signage

Large computer

Network

（３）3D

The mechanism to create digitalimages of flyers and advertisementsfor distribution via networks, accordingto the attributes of predicted passers,upon large screens at street cornersand train stations.

In emergencies, timely disasterinformation would also be distributed.

（Home network）

The mechanism fordisplaying verticalwriting in a network-type browser.

＜Web and TV＞

＜ Vertical writing ＞The mechanism to allow a

stereoscopic (3D) video to be able tobe viewed with a home televisionthrough broadcasts/communicationin addition to such package media asmotion pictures and Blu-ray media.

（Souce：METI）

Five main areas in Contents and Media Sector

4． Digital Signage’s Role in theGreat East Japan Earthquake

Natural Disasters

Japan frequently experiences natural disasters, such as earthquakes,typhoons, and heavy rains.

(Source: Japan Meteorological Agency)

Distribution of Earthquakes (1990-2000)

Tokyo

Sendai

Fukushima

The Great East Japan Earthquake(11 March, 2011)

(Source: Japan Meteorological Agency)

ICT in the Aftermath of the Great East Japan Earthquake

Telecommunications damage resulting from the Great East Japan Earthquake

With regards to telecommunications, up to one million landlines went out of service in theNTT East region, while up to 29,000 cellular / PHS base stations (operated by 5 carriers)stopped transmitting/receiving (number of base stations in the Tohoku and Kanto regions isapproximately 137,500)

Fixed-line telecommunications

Damage

A total of approx. 1.9 million lines were damaged.All carriers had restored service by April except forin certain areas.

(Max. number of damaged lines)(10,000 lines)

NTT East(landlinephones)

Softbank Telecom(landline phones) KDDI

KDDI(landlinephones)

NTT East(FTTH)

Mobile telecommunications

DamageUp to 29,000 base stations stoppedtransmitting/receivingAll carriers had restored service by April (except in someNTT DoCoMo, KDDI and Softbank Mobile service areas)

(Max. number of out-of-service base stations)(Base stations)

DoCoMo WillcomE-MobileSoftbankMobile

(Source: White paper on Information and Communication in Japan)

Telecommunications congestion resulting from the Great East Japan Earthquake

With regards to congestion, restrictions up to 70% - 95% in scope were imposed onmobile telephone calls. Packets faced much milder congestion, with only atemporary 30% restriction imposed by NTT DoCoMo and none by other carriers.

Fixed-line telecommunications

CongestionAll carriers imposed up to 80%-90% restrictions onlandlines.

(Max. transmission restrictions values)

NTT East SoftbankTelecom

Congestion

Mobile telecommunications

Restrictions up to 70% - 95% in scope were imposed onmobile telephone calls by all carriers (*).Packets faced much milder congestion, with no restrictionsor relatively minor restrictions.

(Max. transmission restrictions values)

DoCoMo(voice)

DoCoMo(packet)

au(voice)

Au(packet)

Softbank(voice)

Softbank(packet)

Congestion

ICT in the Aftermath of the Great East Japan Earthquake

(Source: White paper on Information and Communication in Japan)

Television was perceived as an important source of information on the disaster (inthe Kanto region).Television was perceived as an important source of information on the disaster (inthe Kanto region).

Media and information sources perceived as important providers of disaster information(Kanto) (multiple answers)

*Based on a survey of Internet users aged 20-59 residing in the Kanto region, conducted on March 19-20, 2011 by the Nomura Research Institute*The "Internet" category includes accessing of the Internet by mobile phone*"Internet portal sites" includes Yahoo!, Google, etc., but does not include the websites of newspapers, broadcasters, etc.*"Internet social media" includes Twitter, mixi, Facebook, etc.

TV (NHK)

TV (Commercial broadcasters)

Internet portal sites

NewspapersLocal or central government

information on the Net

Newspapers’ websites

Online social media

Commercial radio

NHK radio

NHK information on the NetInformation from commercial

broadcasters on the NetInformation from universities and

research institutions on the Net

None of the above

(Source: White paper on Information and Communication in Japan)

ICT in the Aftermath of the Great East Japan Earthquake

People gathering around thedigital signage

Digital Signage at the time of disaster

Digital Signage played an important role in providing informationon the Great East Japan Earthquake

(Source: Mitsubishi Estate)