2010 - Subtel

ICT Infrastructure Development
in Japan
May 2015
Yuji SASAKI,
Director, International Policy Affairs Division
MIC Japan
Broadband Service Subscribers in Japan
1
(million)
100
90
Population: approx. 128 million
Households: approx. 56 million (Jan. 1, 2014)
80
70
60
50
40
30
20
10
0
2000.3 2001.3 2002.3 2003.3 2004.3 2005.3 2006.3 2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3
DSL
CableInternet
FTTH
FWA
BWA
LTE
Source: MIC
Current Status of Broadband Spread in Japan
2
（As of end Mar. 2014）
Area Coverage
Ultra High-Speed
Broadband *1
Broadband *2
Fixed
Ultra-High-Speed
Broadband *4
*1
*2
*3
*4
*5
（ 98.7%）
100.0％
（ 99.9%）
Inside ( ) : only fixed broadband
Rate of Subscription
Fixed
Broadband *3
99.9％
65.2%
48.5%
Mobile
Ultra High-Speed
Broadband *5
FTTH, CATV Internet, FWA, BWA (only services whose download speeds are over 30Mbps, other than FTTH)
FTTH, DSL, CATV Internet , FWA, Satellite Broadband, BWA, 3.5G Mobile Broadband
FTTH, DSL, CATV Internet, FWA, BWA (only Local WiMAX)
FTTH, CATV Internet (only services whose download speeds are over 30Mbps)
3.9G Mobile Broadband, BWA (other than Local WiMAX)
42.6%
Source: MIC
Policy targets on broadband deployment
～2005
2001
Basic Law on the Formation of
an Advanced Information and
Telecommunications Network
Society （January 2001）
～2010
3
2015
Securing the world’s most advanced IT
infrastructure environments
Target: Elimination of areas
where broadband remains
unavailable by FY 2010
Develop and secure high-speed broadband
environments in unprofitable areas such as
isolated islands based on area characteristics
2013.6
e-Japan Strategy
(January 2001)
e-Japan Strategy II
IT New Reform Strategy
(January 2006)
(July 2003)
Target: Connect 30 million
households to high-speed
Internet and 10 million
households to Ultra high-speed
Internet in 5 years
Strategy for bridging
digital divide
(June 2008)
Target:
(a)Ensure that all households have access to broadband by the end of FY 2010
(ｂ)Ensure that 90% households have access to Ultra high-speed broadband by
the end of FY2010
Declaration of the
Creation of the
Most Advanced IT
Nation in the World
(New IT Strategy)
New Broadband
Super Highway
(Hikari no Michi)
Target:
All households use broadband
services by around 2015
Interconnection regulations (1997)
4
■ In 1997, MIC amended Telecommunications Business
Act, and established the interconnection regulations.
・NTT had relatively strong position because of :
 The largest networks (deployed in the state-owned monopoly era)
・MIC introduced interconnection regulations in 1997 in order to:
 Foster fair competition between NTT and other new carriers, from the
viewpoints of not only network scales but also other factors such as
quality of services, consumer prices.
 In this new regulation, NTT could not refuse other carriers’ reasonable
requests for interconnection.
Asymmetric regulations (1997,2001)
■ MIC introduced in 1997 and enhanced in 2001 “asymmetric
regulations”, which was applied to some dominant carriers.
・Along with establishing interconnection regulations, it became
necessary to promote further competition through preventing
dominant carriers from anti-competitive activities such as:
 Abuse of information obtained through interconnection
 Unfairly advantageous/disadvantageous treatments to specific
carriers
etc.
・For this reason, NTT East & West (fixed) and NTT DoCoMo
(Mobile) submitted to such regulations as :
 Prohibiting anti-competitive activities stipulated and enumerated in
the provisions
 Regulations regarding carriers with special relations
5
Policy targets on broadband deployment
～2005
2001
Basic Law on the Formation of
an Advanced Information and
Telecommunications Network
Society （January 2001）
～2010
Target: Elimination of areas
where broadband remains
unavailable by FY 2010
6
2015
Securing the world’s most advanced IT
infrastructure environments
Develop and secure high-speed broadband
environments in unprofitable areas such as
isolated islands based on area characteristics
2013.6
e-Japan Strategy
(January 2001)
e-Japan Strategy II
IT New Reform Strategy
(January 2006)
(July 2003)
Target: Connect 30 million households
to high-speed Internet and 10 million
households to Ultra high-speed
Internet in 5 years
Strategy for bridging
digital divide
(June 2008)
Target:
(a)Ensure that all households have access to broadband by the end of FY 2010
(ｂ)Ensure that 90% households have access to Ultra high-speed broadband by
the end of FY2010
Declaration of the
Creation of the
Most Advanced IT
Nation in the World
(New IT Strategy)
New Broadband
Super Highway
(Hikari no Michi)
Target:
All households use
broadband services by
around 2015
Broadband service area in Kansai region(2006)
Kyoto
Hyougo Pref.
Pref.
Shiga
Pref.
Osaka
Pref.
Mie Pref.
Wakayam
a Pref.
FTTH 提供市町村
DSL提供市町村
CableInternet
・ケーブルインターネット
DSL and CableInternet
7
Past Government Supports for broadband deployment
Measures for Telecommunications operators
Tax Breaks
8
Measures for Local Governments
Grants/Subsidies
１.Accelerated Tax Depreciation
(National Tax)
・Accelerated tax depreciation is allowed
foｒ telecommunications operators
building broadband facilities, such as
optical fiber and DSL.
・1991～2009.
1. Local Information and communications
Infrastructure Development Grants
(ICT Grant)
• Grants equivalent to one third of total
project cost is provided to local
governments that builds broadband
facilities to address the digital divide.
• 2006～2009.
2. Reduction of Tax Bases for Fixed Asset
Taxes (Local Tax)
・Partial reduction of the tax base for fixed
asset taxes is allowed for
telecommunications operators building
broadband facilities, such as optical fiber
and DSL.
・1992～2009.
2. Local Intranet Infrastructure Facility
Development Promotion Grants
• Grants equivalent to one third of total project
cost is provided to local governments that
builds ultra-high-speed local public networks
connecting public facilities such as schools,
libraries, and municipal offices.
• 1998～2009.
Broadband deployment method by supporting local government
9
Example of public-build and private operation method by “Subsidy of info-communication
utilization environment improvement and construction”.
IRU contract
MIC
Support for cost
of network
laying.
Usage charge
Local
Government
Public
Applications
Telecom
Carrier
Network leasing
Installing network
line
Public Facilities
Fee
Internet
Internet Access
service
Citizens
IRU（Indefeasible Right of User）：
Longtime stability rights established by the contract(including other types of agreements)
to prevent termination of said contract without agreement by both parties.
IRU contractor who allowed others to use optical fiber networks is recognized as
governing/managing said optical fiber networks in a legal capacity.
National budgets in constructing optical fiber networks to date
For Local government
 Project for the improvement and construction of intranet basic facilities.
(FY 1998 ~ FY 2009)
・・・・・・About 91bil yen（Adopted 934 regions）
465 bil clp
 Project for the improvement and construction of subscriber optical line.
(FY 2002 ~ FY 2005)
・・・・・・About 3 bil yen（Adopted 18 regions）
15 bil clp
 Subsidy of regional info-communication base improvement and construction.
(FY 2006 ~ FY 2009)
・・・・・・About 98 bil yen（Adopted 664 regions）
500 bil clp
 Subsidy of info-communication utilization environment improvement and
construction.(FY 2011 ~ FY 2014) ・・・・・・About 4 bil yen（Adopted 24 regions）
20 bil clp
Total about 200 Billion Yen
1000 Billion CLP
10
Policy targets on broadband deployment
～2005
2001
Basic Law on the Formation of
an Advanced Information and
Telecommunications Network
Society （January 2001）
～2010
Target: Elimination of areas
where broadband remains
unavailable by FY 2010
11
2015
Securing the world’s most advanced IT
infrastructure environments
Develop and secure high-speed broadband
environments in unprofitable areas such as
isolated islands based on area characteristics
2013.6
e-Japan Strategy
(January 2001)
e-Japan Strategy II
IT New Reform Strategy
(January 2006)
(July 2003)
Target: Connect 30 million
households to high-speed
Internet and 10 million
households to Ultra high-speed
Internet in 5 years
Strategy for bridging
digital divide
(June 2008)
Target:
(a)Ensure that all households have access to broadband by the end of FY 2010
(ｂ)Ensure that 90% households have access to Ultra high-speed broadband by
the end of FY2010
Declaration of the
Creation of the
Most Advanced IT
Nation in the World
(New IT Strategy)
New Broadband
Super Highway
(Hikari no Michi)
Target:
All households use broadband
services by around 2015
Ultra high speed broadband infrastructure development project
■ Project of info-communication utilization environment improvement and construction
Budget in 2013: 0.8 bil yen (4 bil clp)
Budget in 2014: 0.5 bil yen (3 bil clp)
• Promotion of Ultra high speed Broadband infrastructure dedicate to install public applications such as medical/health and
welfare/education. The central government also gives subsidies toward project costs to local governments remote island or
sparsely-populated areas.
12
【Summary
 Subsidizing
1/3 of the installation cost of optical fiber lines and accessories in areas under disadvantageous
】
conditions, such as sparsely populated areas and remote islands, (2/3 of the installation cost in the case of remote
islands) if such optical fiber lines are installed by local governments.
 The local governments usually loan the installed optical fiber lines and accessories to telecommunications carriers
that will use the optical fiber lines and accessories and provide local residents with Internet services.
 The local governments utilize the loaned optical fiber lines and accessories and provide local residents with public
application services (e.g., the provision of disaster information and elderly watching over and care).
【Image】
Ultra high speed Broadband
（Utilize optical fiber and Radio system）
Services provided by
public applications
Public facilities
（Educational/Medical facilities）
Switching station of telecom carriers
Houses
Ministry of Internal Affairs and Communications (“MIC”), Japan
Thank you.

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