Japan Telecommunications

1
Japan Telecommunications

• Jennifer Brown
• Eric Chevaleyre
• Jennifer Crabb

2
Quick Overview
3
Social Features

• Population 126 millions
• Very well educated
• Literacy rate 93
• Religions observed Shinto, Budhism
• Two main concerns
• aging of the population
• crowding of habitable land area

4
Economic Environment

• Mastery of high technology
• Characteristics of the Japanese economy
• the working together of suppliers, manufacturers
  and distributors keiretsu
• 1997-1998 recession
• financial difficulties in banking system and the
  real estate market
• 1999 beginning of economic recovery

5
Background

• Prior to 1952 communications were controlled by
  the Ministry of Communications.
• In 1952, public NTT was developed for domestic
  communications.
• Private company KDD was established for
  international communications.
• Ministries
• Ministry of Posts and Telecommunications (MPT)
• Ministry of International Trade and Industry
  (MITI)

6
Carrier Types

• Type I
• Own their own transmission networks, provide
  services and need a license from the MPT. (221 in
  1999)
• Type II
• Lease transmission capacity from the Type I
  carriers to provide value-added and other
  specialized services. (7200 in 1999)

7
Telecommunications

• Local Phone Service
• Over 60 million subscribers
• Subscribers decreasing due to cell phones
• Cell Phones
• Provided by NTT DoCoMo, DDI/IDO and 21 NCCs
• 36 Million Subscribers
• Cell Phone Restricted Areas

Source Ministry of Posts and Telecommunications
8
Telecommunications

• ISDN
• Two types of service 64 Kbps 1.5 Mbps
• 3.2 million subscribers
• Increasing due to Internet falling prices
• Internet
• Only 11 of people using the Internet.
• 70 who shop online are worried about protection
  of personal information.

Source Ministry of Posts and Telecommunications
9
Telecommunications

• Satellites
• Geostationary Inmarsat N-STAR satellites
• Orbiting Nippon Iridium Corp
• International Phone Service
• KDD is the largest provider
• Originating calls outnumber incoming calls.
• U.S. receives most Japan international calls.

10
Main Service Providers
NTT has 93 of local telephone market
NTT DoCoMo has 59 of the cellular market
KDD has 64 of the international telephone market
DDI/IDO has 27 of the cellular market
Source Ministry of Posts and Telecommunications
11
Governmental Regulation

• The Ministry of Posts and Telecommunications
  (MPT)
• Brief summary on the private-public approach
• Deregulation

12
Transition to a Deregulated Market

• Recent developments
• Separation of NTT in 1996
• Abolishment of KDD law
• restrictions on foreign investment lifted

13
Japans Telecom Market

• 10 of the worlds internet users
• Japan Telecom Co. Ltd., 2nd largest carrier
• The first direct Internet link between China and
  Japan

14
Future Role of Telecommunications

• Potential for growth
• Move towards globalization
• Create and ensure security, sufficient network
  maintenance, and education