Status Report of Internet in Japan

February 22, 2009

Ryoichi Hosoya

INTERNET MULTIFEED CO.www.jpnap.net/english

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Trends in Japan’s Telecom Market

Data: White Paper on Information and Communications in Japan, Ministry of Internal Affairs and Communications, Telecommunications Carriers Association, etc.

1995 2000 2005 ▲Present0

20

40

60

80

100

120

(millions)

Fixed-line phones

Cellular and PHS phones

All Internet services

Broadband Internetservices

Mobile subscriptions: 109,420,000Mobile phones: 104,830,000PHS phones: 4,590,000 (Sept. 30, 2008)

Internet subscriptions:Fixed: Approx. 40 million Mobile: Approx. 89 million

(June 30, 2008)

Fixed-line subscriptions: 50,260,000 (June 30, 2008)

Broadband subscription:29,340,000 (June 30, 2008)DSL 12,290,000 FTTH 13,080,000 Cable 3,960,000

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Growth of Broadband Subscribers

Source: Press release of the Ministry Internal Affairs and Communications (MIC) on 17 December 2008http://www.soumu.go.jp/s-news/2008/081217_3.html(only Japanese)

Nu

mb

er

of

su

bscri

bers

:

10 t

hou

san

d

【 2004 】 【 2005 】【 2003】

【 2006 】 【 2007 】

FTTHFTTH

DSLDSL

CATVCATV

as of the end of September 2008

Nearly30 millions!

Nearly30 millions!

【 2008 】

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NTT-E/NTT-W 79% 10.2 millions

NTT-E/NTT-W 79% 10.2 millions

Others 21% 2.8millions

Others 21% 2.8millions

Others 61% 7.5 millions

Others 61% 7.5 millions

NTT-E/NTT-W 39% 4.7 millions

NTT-E/NTT-W 39% 4.7 millions

FTTHFTTH DSLDSL

NTT-East/NTT-West dominate broadband access line market

13 millions13 millions 12.2 millions12.2 millions

FYI: Market share of broadband access line

Source: 　 Information　and　Communications　Statistics　Database　of　the Ministry Internal Affairs and Communications http://www.johotsusintokei.soumu.go.jp/field/tsuushin03.html(Only　Japanese)

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Is the Internet traffic growing in Japan?

Yes!

The total traffic in 2008 reaches 1.2times the number in 2007.

Source: Press release of the Ministry Internal Affairs and Communications (MIC) on 29 August 2008 http://www.soumu.go.jp/s-news/2008/080829_9.html (only Japanese)2004 2005 2006 2007 2008

879.6

303.3

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Traffic in major IXPs in JapanTraffic in major IXPs in Japan

Data: Ministry of Internal Affairs and Communications

tripled1999 2000 2001 2002 2003 2004 2005 2006

214.9Gbps(Nov 2006)

158.4Gbps(Nov 2005)

132.0Gbps(May 2005)

238.7Gbps(May 2007)

2007

doubled

x 1.4

x 1.5

x 1.3

193.2Gbps(May 2006)

2008

294.2Gbps(Nov 2007)

303.3Gbps(May 2008)

x 1.3

Combined traffic at major domestic Internet exchange pointsCombined traffic at major domestic Internet exchange points

traffictraffic

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Major IXPs in JapanMajor IXPs in Japan

• Major players (commercial) JPNAP JPIX BBIX

Equinix

• Major players (academic)

Dix-ie　(by　WIDE　Project)

MEX

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Structure of Japan’s InternetStructure of Japan’s Internet

Closed NW for broadband

access line(FLETS)

ISP 1ISP 1

Provided by NTT-East/NTT-West

…The

Internet

◎

Provided by ISPs

Representative ISP’s

DSL

FTTH

ISP 2ISP 2

ISP 3ISP 3

ISP XISP X

Prohibited to enter the ISP marketProhibited to enter the ISP market

Unbundled access line NWUnbundled access line NW

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Internet Service Provider in JapanInternet Service Provider in Japan

20.0

17.0

7.67.57.2

40.7

Share of Broadband users

OCN

Yahoo!BB

au one net

plala

BIGLOBE

others

%

Source:　Nikkei　Sangyo　Shinbun,　July　24,　2008

(Total　number　of　broadband　Internet　users　in　2007:　28.3　million)

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Application for Consumer in JapanApplication for Consumer in Japan

Data based on Consumer Media Survey (April 2, 2008), Web Advertising Bureau

(million users)

CGM　users:Approx.　40　

mil

Low growth High growth

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Next-generation NetworksNext-generation Networks

◆

NG

N service

areas

March 2008

NGN commercial services launched

NGN commercial services launched

Current service areas

NGN will cover all existing FLET’S Hikari service areas

NGN will cover all existing FLET’S Hikari service areas

End of FY2008

End of FY2010

◆

◆

23 wards of Tokyo, Osaka (06 area code), and parts of the following areas:Tokyo (outside the 23 wards), Kanagawa, Chiba, Saitama, Miyagi and Niigata

23 wards of Tokyo, Osaka (06 area code), and parts of the following areas:Tokyo (outside the 23 wards), Kanagawa, Chiba, Saitama, Miyagi and Niigata

NGN will be available to approx. 60% of households/businesses in existing FLET’S Hikari service areas

NGN will be available to approx. 60% of households/businesses in existing FLET’S Hikari service areas

NGN will be available in all optical-fiber areas by the end of March 2011

1212(c) INTERNET MULTIFEED CO., 2009. All rights reserved.

http://www.mfeed.co.jp/english/

info@mfeed.co.jp

Thank you for your attention!Thank you for your attention!