New Comprehensive Report Examines the Market for Telecoms, Mobile and Broadband in Japan

Business Wire,  April 11, 2008  

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DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c88406) has announced the addition of 2008 Asia - Telecoms, Mobile and Broadband in Japan to their offering.

Japan is a country leading in technology use. The report covers trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP and IPTV developments. Subjects include:

- Market and industry analyses, trends and developments

- Facts, figures and statistics

- Industry and regulatory issues

- Infrastructure

- Major Players, Revenues, Subscribers, ARPU

- Internet, VoIP, IPTV

- Mobile Voice and Data Markets

- Broadband (FttH, DSL, cable TV, wireless)

- Convergence and Digital Media

Japan's telecommunications sector is one of the most active markets in the world. The telecommunications regulatory authorities in Japan have been instrumental in shaping the industry and as a result, Japan has assumed a dynamic leadership role in many aspects of global and regional telecommunications. The control that the incumbent operator, NTT Corp, has continued to exert over virtually all local customers remains a particular challenge for the regulator. In addition, a growing concern has been the development (and lack) of cyber law in a society that is increasingly spending its time online.

Japan has been an early adopter of triple play models which provide TV, broadband Internet and voice telephony as packaged services from a single provider. This has been enabled through Japan being a world leader in broadband Internet. Though there is little hope of surpassing the US and China in terms of numbers; the market in Japan remains as eager as ever for broadband connection to the Internet. Japanese broadband subscribers comprised around 8.5% of the world subscriber base going into 2008.

Coming into 2008, the country was witnessing the continued growth of VoIP and triple-play services in particular. Strong competition was also apparent among the mobile operators in the 3G segment of the market. Especially noteworthy has been the uptake of FttH services (with a corresponding move away from DSL) and the big strides taken in developing digital and mobile broadcasting.

Japan is one of the world's leading mobile telephone markets, not only in terms of size but also in terms of innovation and its ability to be early with the introduction of advanced technologies. Japan is one of the world's top 3G markets, with over 80 million (80%) 3G subscribers by the end of 2007, as well as plans for 4G.

Key Highlights:

- The number of broadband lines in Japan has posted dramatic growth, more than tripling in size over the four years to March 2007. In terms of quality and affordability, Japan's telecommunications infrastructure is significantly ahead of those in the US and Europe. Going into 2008, DSL subscribers were declining from the peak in 2006, as customers continued to shift to FttH. The DSL and FttH platforms support the bulk of the country's broadband market, with other technologies such as cable modem and wireless making up less than 10% of the total market. For more information, see chapter 7, page 66.

- During 2007, the number of fixed subscribers declined below 50 million (less than 40% penetration), and that of mobile subscribers surpassed 100 million (just less than 80% penetration). This trend highlights the severe pressure that NTT is experiencing, faced with declining fixed-line subscribers, and high levels of competition and low price plans eating away at the mobile market dominance. For more information, see chapter 4, page 26.

- The local market's other significant growth area coming into 2008 was in IP based telephony, taking up more than 10% of all telephony subscriptions. Here Softbank is a major player, with 30% of the total VoIP subscriber base by September 2007, although NTT showed considerable increases during 2007 to obtain over 50% market share. For more information, see chapter 6.9.3, page 65.

- 3G accounts for almost 80% of the mobile market in Japan, providing a strong base for the development of richer content. DoCoMo has introduced HSDPA and plans to offer HSUPA in 2008. The company is also one of the strongest drivers of the Long-Term Evolution standard, and is expected to launch around 2009/10 before the standard is complete.

- NTT DoCoMo became the first mobile operator, in December 2007, to adopt an MIC panel recommendation, to stop subsidising mobile phone prices through rebates. Other operators showed reluctance due to concerns that handset sales could decline, resulting in the possible closure of retail outlets.

- EMobile launched its 3G service in October 2007 and by end January 2008 the operator had 238,500 subscribers. The plan to offer voice telephony services were, however, put in jeopardy as a result of difficult and protracted negotiations with DoCoMo on a roaming deal.

- IPMobile was awarded a licence restricted to 2.0GHz bandwidth in November 2005. After investing over US$426 million, in 2007 IPMobile abandoned its plans to enter the mobile market due to financial difficulties. The company returned its 3G mobile licence and filed for bankruptcy with the Tokyo District Court. For more information, see chapter 9.1.4, page 111.