Key Points of the 2019 White Paper on Information and ... · This also applies to ICT, and...

9
Key Points of the 2019 White Paper on Information and Communications in Japan

Transcript of Key Points of the 2019 White Paper on Information and ... · This also applies to ICT, and...

Page 1: Key Points of the 2019 White Paper on Information and ... · This also applies to ICT, and complementary reforms will be essential to realize “Society 5.0”, the society ahead

Key Points of the 2019 White Paper on Information and Communications in Japan

Page 2: Key Points of the 2019 White Paper on Information and ... · This also applies to ICT, and complementary reforms will be essential to realize “Society 5.0”, the society ahead

0

5

10

15

20

25

1980

1984

1988

1992

1996

2000

2004

2008

2012

2016

(Trillion yen)

Software

Hardware

Fig. 1 Changes in ICT investment values in Japan

(Source) Created based on the “Na-tional Accounts of Japan” (Cabinet Of-�ce)

Fig. 2 Comparison of changes in ICT investment values

Japan

USUK

France

0

50

100

150

200

250

300

350

1980

1985

1990

1995

2000

2005

2010

2015

(year 1995=100)

(Source) Created based on the OECD Stats

Fig. 3 Breakdown of software introduction

Japan

Contracted development88.3%

Packaged software11.7%

Packaged software

US(reference)

Packaged software29.0%

Customized (corresponding to

contracted development)33.8%

Self-developed37.2%

(Source) United States Department of Commerce

* Household electronics, industrial electronics, and electronic parts and devices

Fig. 4 Changes in production, import and export, etc. of ICT-related equipment*

(Source) “Machinery Statistics” (Ministry of Economy, Trade and Industry), “Trade Statis-tics of Japan” (Ministry of Finance)

Fig. 5 Changes in the production, imports and exports of communications equipment

0

1

2

3

4

5

1976

1980

1984

1988

1992

1996

2000

2004

2008

2012

2016

(Trillion yen)

Export

Import

Production

(Source) “Machinery Statistics” (Ministry of Econo-my, Trade and Industry), “Trade Statistics of Japan” (Ministry of Finance)

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oint

sPart 1

Special Theme: Evolving Digital Economy towards “Society 5.0”

Chapter 1How ICT and the Digital Economy Have Evolved (1/2)

(1) Evolving ICT Services and Changes in Companies’ Use of ICT○�Mobile phones and the Internet widely spread during the Heisei era. The spread was facilitated by regulatory

reforms such as allowing mobile operators to sell mobile devices instead to rent them (1994).○�In the Showa era, some Japanese companies became pioneers of the development of online systems in the global

market, but ICT investment remained sluggish during the Heisei era (Fig. 1 below). Growth in ICT investment in Japan was much slower than that in US and major European countries (Fig. 2 below).○�As a background factor, Japanese companies came to outsource online system development, which they considered

to be outside of their core business, from the end of the 1980s until the 1990s. As a result, a unique structure under which ICT companies called System Integrators (SIers) developed information systems mainly on a contract basis, was formed in Japan (Fig. 3 below). Accordingly, in non-manufacturing industries, in particular, companies failed to introduce ICT that accompanies business reforms in a sufficiently effective manner, and this may have made companies less positive about ICT investment.

(2) Changes in the ICT Industry○�The telecommunications business has developed signi�cantly through active competition among diverse business

entities since the telecommunications liberalization in 1985. The ICT manufacturing industry has also developed in such a manner as communications equipment manufacturers’ businesses expanded into making computers.○�The monetary values of production and exports of ICT-related equipment had continuously increased and Japan

used to be called an “Electronics-based Nation” until around 1985. However, growth in exports slowed down from 1985, and production and exports both shifted to a downward trend in the 2000s. In 2013, the import monetary value finally surpassed the export monetary value (Fig. 4 below). Looking at communications equipment, production peaked in 1997 and decreased thereafter, while imports increased sharply due to the spread of smartphones in the late 2000s (Fig. 5 below).○�As factors bringing about these changes, the following are pointed out: (i) production sites have been transferred

overseas as countermeasures against the strong yen; (ii) Japanese-made switchboards were replaced by foreign-made routers due to the spread of the Internet; (iii) the existence of stable domestic customers (telecommunications carriers) has exerted a negative e�ect on motivation to market communications equipment overseas; (iv) closed business strategies of companies have failed to achieve the bene�ts of international specialization.○�At the same time, there are not any Japanese ICT companies that have established a presence in the global market

like American digital platformers (platform companies).

Page 3: Key Points of the 2019 White Paper on Information and ... · This also applies to ICT, and complementary reforms will be essential to realize “Society 5.0”, the society ahead

Fig. 1 Changes in sales and operating pro�ts of US and Chinese digital platformers

Changes in operating profitsChanges in sales

0.0

50.0

100.0

150.0

200.0

250.0

300.0

2014 2015 2016 2017 2018

Billion dollars Billion dollars

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2014 2015 2016 2017 2018

Apple

Amazon

Google

FacebookAlibabaTencent

Baidu

Apple

Amazon

GoogleFacebook

Alibaba

Tencent

Baidu

(Source) Accounting data from respective each company

Fig. 2 Provision of tools by digital platformers that serve as a foundation for developing and

utilizing AI

PlatformsComputing capacity and a framework, etc.are provided as a set. Google, Microsoft, IBM, Amazon, etc.

ProcessorsA processor is hardware for calculations in line with a program and provides computing capacity. GPU, TPU (Google), etc.

FrameworksFunctions and algorithms for machine learning. TensorFlow(Google), Caffe(UC Berkeley), Caffe2 (Facebook)Microsoft Cognitive Toolkit(Microsoft), MXnet(Amazon), Pytorch(Facebook), etc.

ApplicationsImage recognition, voice recognition, machine translation, chatbot, etc.

Provision on open-source platforms

Provision through cloudservices or APIs

Users

Users can develop an application by using a framework or a platform.

An application enables a user to use trained models or create a trained model without creating a program.

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sChapter 1How ICT and the Digital Economy Have Evolved (2/2)

(3) New Trends in ICT○�Digital platformers, such as GAFA (Google, Apple, Facebook, and Amazon) in the US and BAT (Baidu, Alibaba, and

Tencent) in China, enable individuals and companies to engage in activities free from constraints in terms of time, location or business size, and provide platforms to have the digital economy function on a global scale. Additionally, digital platformers have achieved growth through the snowball e�ect of increased collection and use of data over the Internet, and through the network e�ect (Fig. 1 below).○�Digital platformers have been providing various tools serving as foundations for developing and utilizing AI on

open-source platforms or through cloud services, etc. and the development and utilization of AI are becoming easier. At the same time, an ecosystem heavily dependent on these digital platformers is being formed with regard to AI (Fig. 2 below).○�Digital platformers have also been expanding their businesses in the real world and their moves in the real world

should be noted.○�Furthermore, cyber incidents may exert in�uence on the real world due to the spread of IoT, and cybersecurity will

continue to be important in this regard.

Page 4: Key Points of the 2019 White Paper on Information and ... · This also applies to ICT, and complementary reforms will be essential to realize “Society 5.0”, the society ahead

Fig. Digital transformation for responding to changes

Industries

ICTICT

Industries

Conventional informatizationand ICT use Digital transformation

ICT is a tool that assists theimprovement of efficiency andenhances the value of theestablished industries.

ICT will be the business core totransform business models by

being integrated with industries.

The cost structure of economic activities is transformed. Data becomes a source of value.

Fig. 2 Contribution to SDGs through digitalization (examples)

(Source) Materials for the “Commission on ICT Global Strategy in the Era of Digital Transformation” (Ministry of Internal A�airs and Commu-nications; 2019)

Field ICT solutions (examples) SDGs

Infrastructure

LocalinfrastructureDaily living

Medicalservices

Nursing care

Education

AgricultureFood

Urban citiesRural areas

Financialservices

• Development of IC Tinfrastructure• Promotion of development of disaster-resilient social infrastructure

• Provision of opportunities for telemedicine• Monitoringanddiagnosis,preventivecareandpredictivedetectionby utilizing sensors, etc.

• Securing of educational opportunities through remote education systems• Provision of higher-definition videos and interactive high-quality educational content

• Provision of mobility opportunities through the sophistication of self-drivingsystems and air traffic systems• Daily living support such as shopping assistance through ICT

TourismHuman

exchange

AccessibilityGender

Disaster prevention

Environment

• Provision of public services based on authentication infrastructure by utilizingbiological information• Employment matching via use of ICT

• Efficient farming by utilizing smart agricultural systems• Demand-supply management via the use of ICT

• Information collection and delivery of disaster information by utilizing satellites, drones, and sensors• Monitoring and prediction of disasters by utilizing AI and IoT, etc.

• Access to diverse types of information and multilingual translation systems byutilizing AI

• Mission-critical task systems for financial services• Micropayment and cashless infrastructure using blockchain technology

• Provision of telework employment opportunities• Labor substitution and assistance for the disabled by utilizing robots and AI

Fig. 1 Changes in labor share worldwide (1991-2014)

(Source) “Why Is Labor Receiving a Smaller Share of Global Income?” (Dao, M.C., et al.; 2017)

Technology Global value chain participation

High skill Middle skill Low skill

Financial integration Skill supply and other composition shiftsActual change

Middle-skill AEs

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s Chapter 2Requirements for Achieving the Full Bene�ts of “Society 5.0” (1/2)

(1) Characteristics of the Digital Economy and Digital Transformation○�In the digital economy, data are sources that create value, and ICT transforms the cost structure, which is the basis

for economic activities.○�Markets are expanding to enable activities which are free from time and location constraints, and at the same

time, markets are being divided more finely with the emergence of niche markets that overcome business size constraints.○�New cost structures being developed by ICT requires a transformation of companies.○�Traditional players in all industries now need to position ICT as their business core, and transform their business

models through integration with ICT (digital transformation) so that they can properly respond to these changes.

(2) The Society to be Created through Evolution of the Digital Economy○�Since the �nancial crisis of 2007-2008, developed countries have all been facing sluggish GDP growth, and some

came to express techno-pessimism, which are doubts about the e�ects of ICT on economic growth.○�In addition, as free services and the sharing economy expanded, the e�ectiveness of GDP as an economic indicator

and techniques to better capture economic activities have come under discussion.○�There is also a view that ICT particularly affects the employment and labor share of middle-skilled workers in

advanced economies (Fig. 1 below), and leads to the creation of domestic social inequality.○�However, in the case of signi�cant technologies developed in the past (such as electricity), complementary reforms

were required for generating e�ects, and there were time lags.○�This also applies to ICT, and complementary reforms will be essential to realize “Society 5.0”, the society ahead the

evolution of the digital economy. Moreover, such reforms will enable ICT to contribute toward overcoming social issues further than economic development, such as contribution toward SDGs in fields of medicine, education, agriculture, etc. (Fig. 2 below).

Page 5: Key Points of the 2019 White Paper on Information and ... · This also applies to ICT, and complementary reforms will be essential to realize “Society 5.0”, the society ahead

Fig. 2 Status of telework

(Source) “2018 Communications Usage Trend Survey” (Ministry of Internal A�airs and Communications; 2019)

Introduction by companies

Teleworking by individuals

Introduced19.1%Plan to introduce7.2%

Did teleworking 8.5%Want to try5.2%Slightly want to try 10.8%

Fig. 2 Expansion of human abilities by ICT

Expansionof existence

Expansionof cognition

ICT-controlled machines thatenhance physical functions

Enable on-site work fromdistant locations

Strengthen visual and hearingsenses by using ICT

Strengthen comprehensionand learning processesthrough cooperation betweenAl and humans

Expansionof senses

Expansionof the body

Fig. 1 Problem solution in local regions using 5G technology

EducationDisaster responses

Agriculture, forestry and fisheries,and construction industries

Plants

Daily living

Shopping assistance by utilizingdrones and self-driving systems

Medical services

Remote diagnosis and surgerysupport

Smart agriculture andconstruction work utilizing data

Remote classesEfficient plant control

based on dataRescue and relief activities through

prompt damage evaluation

Fig. 1 Change of the positioning of ICTConventional positioning of

ICT in Japan

Enhance business efficiencyDefensive ICT

Create new valueOffensive ICT

Back-office tasksProvide value within the organization

Front-office tasksProvide value to customers

Cost centerDo not directly generate profits

Profit centerDirectly generate profits

CDOCIO

New positioning of ICT in the data,IoT, AI, and 5G-oriented era

ICT company +User company (information

system department)

User company(business department) +

User company (information system department) +

ICT company

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sChapter 2Requirements for Achieving the Full Bene�ts of “Society 5.0” (2/2)

(3) Required Reforms in Japan○�In order to proceed with digital transformation, companies must place importance on ICT, which they have

traditionally outsourced as matters outside of their core businesses, and position it at the very center of their businesses. Companies’ business departments, in addition to information system departments, are required to play more signi�cant roles (Fig. 1 below). ICT-related human resources need to be developed and secured, not only by ICT companies, but also by user companies.○�Upon changing business models, companies should get rid of their conventional closed business strategies and work

on open innovation in cooperation with start-up ventures, etc.○�It is necessary to promote work-style reforms, such as the introduction of telework, which is better suited to a

digital economy that is free from time and location constraints (Fig. 2 below).

(4) Opportunities for Local Regions/New Relationships between Humans and ICT

○�In the digital economy, the use of ICT has the potential to diversify business partners, expand trade areas, enable people to receive orders from distant locations, and make up for labor shortages using machines, etc. This will provide opportunities for local regions.○�In order to take advantage of these opportunities, developing ICT infrastructure and making e�orts to better utilize

data are important. In particular, if 5G technology, which will be the infrastructure of IoT, is utilized in all �elds, such as those relating to people’s daily lives, industries, medical services, and disaster response measures, it is expected to contribute to the solution of various problems faced by respective local regions (Fig. 1 below).○�In recent years, unique and niche appeals, strengths, and brands of local regions are being rediscovered by foreign

countries and have created new markets by attracting people. Local regions may be able to ful�l their potential by exploring new business partners while further brushing up their strengths.○�New ICT, such as AI, should be accepted as a tool that increases what humans can do by expanding various human

abilities (enhancing functions of limbs, visual and hearing senses, comprehension and learning abilities, etc.), not as a substitute for humans that deprives them of employment opportunities.

Page 6: Key Points of the 2019 White Paper on Information and ... · This also applies to ICT, and complementary reforms will be essential to realize “Society 5.0”, the society ahead

Figure: Domestic production values of major industries (based on nominal domestic production) (2017)

Nominal domesticproduction value of

all industries(2017)

1,003.7 trillion yen

Nominal domesticproduction value of

all industries(2017)

1,003.7 trillion yen

Nominal domesticproduction value of

all industries(2017)

1,003.7 trillion yen

Construction68.36.8%

Construction68.36.8%

Businessservices

62.56.2%

Businessservices

62.56.2%

Businessservices

62.56.2%

Transportationequipment

57.95.8%

Transportationequipment

57.95.8%

Transportationequipment

57.95.8%

Personalservices

52.05.2%

Personalservices

52.05.2%

Personalservices

52.05.2%

ICTindustry

97.59.7%

ICTindustry

97.59.7%

ICTindustry

97.59.7%

Commerce97.19.7%

Commerce97.19.7%

Commerce97.19.7%

Real estate74.57.4%

Real estate74.57.4%

Real estate74.57.4%

Otherindustries

423.142.2%

Otherindustries

423.142.2%

Otherindustries

423.142.2% Medical,

healthand welfare

70.97.1%

Medical,health

and welfare70.97.1%

(Unit: trillion yen)

Figure: ICT industry sales

Telecommunications(372)

17.526135.2%

Telecommunications(372)

17.526135.2%

Software (2,878)15.487031.1%

Software (2,878)15.487031.1%

Internet-relatedservices (667)

3.31896.7%

Private broadcasting (373)2.34434.7%

Newspaperpublishers (127)

1.37202.8%

Publishers, exceptnewspapers (353)

1.03612.1%

Video picture informationproduction and

distribution (438)0.87941.8%

Cablecasting (216)0.50021.0%

Commercial art andgraphic design (171)

0.36670.7%

Audio programproducers (101)

0.15080.3%

Services incidential to videoinformation, sound information,

character information productionand distribution (170)

0.13330.3%

Miscellaneous ICTbusinesses

0.19810.4%

Data processingand informationservices (1,794)

6.436612.9%

Data processingand informationservices (1,794)

6.436612.9%

Sales in the ICTindustriesFY 2017

49.7496 trillion yen

(Unit: trillion yen)

Figure: Real GDP of major industries (2017)

Real GDP ofall industries

(2017)488.2 trillion yen

ICTindustry

46.39.5%

ICTindustry

46.39.5%

ICTindustry

46.39.5%

Commerce60.0

12.3%

Commerce60.0

12.3%

Commerce60.0

12.3%

Real estate60.1

12.3%

Real estate60.1

12.3%

Real estate60.1

12.3%

Medical,health

and welfare39.28.0%

Medical,health

and welfare39.28.0%

Medical,health

and welfare39.28.0%

Construction29.76.1%

Construction29.76.1%

Construction29.76.1%

Businessservices

38.77.9%

Businessservices

38.77.9%

Businessservices

38.77.9%

Transportationequipment

10.52.2%

Transportationequipment

10.52.2%

Transportationequipment

10.52.2%

Personalservices

26.95.5%

Personalservices

26.95.5%

Personalservices

26.95.5%

Otherindustries

176.836.2%

Otherindustries

176.836.2%

Otherindustries

176.836.2%

(Unit: trillion yen)

(Notes) *1 Figures in parentheses are the number of companies.*2 “Miscellaneous ICT businesses“ refers to enterprises that selected “other“ as the primary business in the breakdown of sales attributable to

ICT business operations.

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sPart 2

Basic Data and Policy Directions

Chapter 3Basic Data on the ICT Field

■ICT industry trends○�The ICT industry’s nominal domestic production value in 2017 was 97.5 trillion yen, accounting for 9.7 percent of all

industries and making it the largest industry in the country.○�With regard to the real GDP of Japan’s major industries in 2017, the real GDP of the ICT industry accounted for 9.5%

of that for all industries, following the commerce and real estate industries.

■Research and development of the ICT industry○�The ICT industry spent 3.7117 trillion yen on research in FY2017, accounting for 26.9% of all corporate research

spending. The ICT industry employed 171,235 researchers, or 34.3% of all corporate researchers in Japan.

■State of ICT business operations○�The number of companies engaged in ICT business stood at 5,467, and their sales amount for FY2017 was 49.7496

trillion yen.

Page 7: Key Points of the 2019 White Paper on Information and ... · This also applies to ICT, and complementary reforms will be essential to realize “Society 5.0”, the society ahead

0

20

40

60

80

100(%)

72.6 73.0 75.378.0 78.2 79.1 79.5

82.8 82.8 83.0 83.5 80.9 79.8

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018(year)

Figure: Changes in the internet penetration rate among the population

Fixed-line telephones 90.9 91.2 85.8 83.8 79.3 79.1 75.7 75.6 72.2 70.6FAX 53.5 57.1 43.8 45.0 41.5 46.4 41.8 42.0 38.1 35.3Mobile devices (overall) 95.6 96.3 93.2 94.5 94.5 94.8 94.6 95.8 94.7 94.8Smartphones 9.7 29.3 49.5 62.6 64.2 72.0 71.8 75.1Computers 85.9 87.2 83.4 77.4 75.8 81.7 78.0 76.8 73.0 72.5Tablets 7.2-

- -

--- - - - -

8.5 15.3 21.9 26.3 33.3 34.4 36.4Wearable devices 0.5 0.9 1.1 1.9

20.8 25.9 23.3 24.5 29.5 38.3 33.0 33.7 31.4 31.4

22.0 27.3 17.0 20.1 21.4 23.8 18.4 17.3 15.3 13.8

5.5 7.6 3.5 6.2 12.7 8.8 7.6 8.1 9.0 2.1

64.534.095.779.274.040.12.5

30.9

14.2

6.9

0

10

20

30

40

50

60

70

80

90

100(%)

2008(n=4,515)

2009(n=4,547)

2010(n=22,271)

2011(n=16,530)

2012(n=20,418)

2013(n=15,599)

2014(n=16,529)

2015(n=14,765)

2016(n=17,040)

2017(n=16,117)

2018(n=16,255)

Other Internet enabled appliances(smart appliances)

Internet-enabled portable music players

Internet-enabled home game consoles

Ow

ners

hip

rate

Figure: Changes in ownership rates for ICT devices (households)

0

5

10

15

20

25

30

35

40

45(million) (million)

FWACATVDSLFTTH BWA LTE

0.81 2.30 5.31 7.4619.47

35.1447.89

58.23

0.03 2.30

20.37

46.41

67.78

87.47

102.94

120.73

66.24

136.64

0

20

40

60

80

100

120

140

2010 2011 2012 2013 2014 2015 2016 2017 2018

20.22 22.30 23.86 25.34 26.68 27.97 29.46 30.60

8.20 6.70 5.42 4.47 3.75 3.20 2.51 2.155.67 5.91 6.01 6.22 6.43 6.73 6.85 6.880.01 0.01 0.01 0.01 0.01 0.01 0.01 0.0034.10 34.93 35.31 36.04 36.86 37.91 38.82 39.64

31.66

1.73

6.860.00

40.25

2010 2011 2012 2013 2014 2015 2016 2017 2018(end of FY) (end of FY)

【Fixed-line broadband services】 【Mobile ultra-high-speed broadband services】Figure: Changes in broadband service subscriptions

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■Internet usage trends○�The internet usage rate in 2018 was 79.8%. As for the

state of ownership of ICT devices among households, the ownership rate for smartphones reached 79.2%, exceeding that for computers (74.0%).

10.2

9.0

12.9

23.9

43.2

73.8

0 20 40 60 80

Other

New business/management

Business continuity

For the optimization of projects

To improve customer services

To raise job performance andimproving business

2018 (n=256)

(%)

Figure: Purpose behind collecting and analyzing digital data

Introduced12.1%

Not introduced63.2%

I don't know16.2%

2018 (n=2,095)

Introduced of planning to in the future

20.6%

Not introduced, but planning to

in the future8.5%

Figure: Current state of the introduc-tion of IoT/AI systems and services

○�12.1% of enterprises introduced IoT/AI systems, and it reaches 20% by including enterprises which are planning to introduce.

■�Introduction and usage of IoT/AI systems and services by enterprises

■Telecommunication services○�The number of subscriptions to fixed-line broadband services at the end of FY2018 stood at 40.25 million.

Subscriptions to mobile ultra-high-speed broadband services broke down into 136.64 million for 3.9G and 4G (LTE) services and 66.24 million for BWA services.

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Figure: Changes in and breakdown of the market size (aggregate sales) of Japan’s broadcasting industry

Satellite-based broadcasters NHKTerrestrial-based broadcasters Cable TV broadcasters

38,356 39,698 40,152 40,422 41,17839,689

38,254 39,089 39,115 38,915 39,307 38,759 39,152 39,312 39,337

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017(FY)

(100 million yen)

Figure: Breakdown of Japan’s content market (2017)

Video contentsegment

6.7766 trillion yen57.4%Audio-based

content segment0.7503 trillion yen

6.4%

Text basedcontent segment4.2830 trillion yen

36.3%

Movies766.66.5% Videos

433.03.7%

Terrestrial TVprograms2,812.423.8%

Satellite and cable TVbroadcast programs903.57.7%

Game software1,579.513.4%

OriginalInternetvideos281.52.4%

Music541.44.6%

Radio programs200.71.7%

Original Internetaudio-based content

8.2 0.1%

Newspaper articles1,541.1

13.0%

Comics426.73.6%

Magazines926.27.8%

Books835.37.1%

Database information247.22.1%

Original Internetcontent306.6 2.6%

total contentmarket

11.8099 trillion yen

(Unit: billion yen)

Figure: Export value of Japanese broadcast content

10.4313.78

18.25

28.85

39.3544.45

2012 2013 2014 2015 2016 20170

10

20

30

40

50(billion yen)

(FY)

Figure: Changes in the number of radio stations

(Notes) *1 “Land mobile station” refers to a radio station that is operated either while in motion on land or while stationary in an unspeci�ed location (such as mobile phones).

*2 “Convenience station” refers to a radio station used for simple radio communications.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20182017other

Base stations

Convenience stations *2Amateur stations

Land mobile stations *1

Percentage of land mobile stations

0

(million stations)

0

20

40

60

80

100

(End of FY)

(%)

(%)

97.9 97.9 97.9 98.1 98.2 98.2 98.3 98.4 98.4 98.5 98.6 98.7 98.6 98.6

50.00

100.00

150.00

200.00

250.00

300.00

0.41

0.62

0.66

0.53

100.59

97.9

0.49

1.25

1.18

0.43

231.09

98.6

0.55

1.32

1.25

0.41

247.48

98.6

0.49

0.73

1.12

0.43

214.57

98.7

0.55

0.70

1.05

0.44

197.11

98.6

0.50

0.71

0.97

0.44

174.93

98.5

0.50

0.68

0.90

0.44

154.72

98.4

0.46

0.63

0.84

0.44

143.88

98.4

0.43

0.58

0.77

0.44

132.66

98.3

0.46

0.54

0.74

0.45

118.79

98.2

0.48

0.41

0.72

0.47

114.48

98.2

0.49

0.41

0.70

0.49

109.93

98.1

0.49

0.63

0.68

0.51

105.73

97.9

0.36

0.62

0.65

0.56

102.12

97.9

(Notes) *1 Export value of broadcast content: program broadcast rights, Internet distribution rights, video and DVD rights, format and restaging rights, merchandising rights, and similar rights.

*2 Calculated based on questionnaire responses by NHK, main commercial broadcast stations, producers, sub-main com-mercial broadcast stations in Osaka, local stations and satel-lite broadcasting stations.

*3 Calculations for FY 2016 and later include digital gaming rights.

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■Broadcasting services and content market○�The sales amount of Japanese broadcasters in FY2017 was 3.9337 trillion yen.○�Japan’s content market was valued at 11.8099 trillion yen, nearly 60% of which was attributable to video content,

about 36% to text-based content, and 6% to audio-based content.○�The export value of Japanese broadcast content was 44.45 billion yen in FY2017.

■Radio spectrum usage○�The number of radio stations in Japan has been on an increasing trend, and the number of radio stations at the end

of FY2018 was 251.01 million (a 7.1% increase over the previous year), including 247.48 million mobile phones and other land mobile stations (a 7.1% increase over the previous year) which accounted for a high 98.6% of all radio stations.

Page 9: Key Points of the 2019 White Paper on Information and ... · This also applies to ICT, and complementary reforms will be essential to realize “Society 5.0”, the society ahead

■Promotion of Comprehensive Strategies○ In June 2019, the government enacted the Growth Strategy Action Plan, by Cabinet decision. MIC has held the

Roundtable Meeting on ICT Global Strategy for the Digital Transformation Age since December 2018 and announced the ICT Global Strategy in May 2019.

■Developments in Telecommunication Policy○ MIC conducted a comprehensive review of competition rules and related topics in the telecommunications �eld,

which included approaches to maintaining communication infrastructure, approaches to network neutrality, approaches to addressing issues with IT platform services, and approaches to ensuring competitive environments and consumer protection rules in the mobile market. MIC also took measures for ensuring the safety and reliability of telecommunications infrastructure and enhancing online safety and security.

■Developments in Radio Policy○ MIC took measures for 5G implementation; promotion of effective radio spectrum use; realization of Public

Safety LTE (PS-LTE) networks; approaches to the build-out of base stations; and establishment of radio usage environments.

■Developments in Broadcasting Policy○ MIC promoted exports of broadcasting content; promoted 4K and 8K broadcasting; promoted development of

broadcast services; and took measures to strengthen the disaster resilience of broadcast networks.

■Promoting Cybersecurity Policy○ MIC conducted examinations of action plans for cybersecurity and developed cybersecurity policy.

■Promoting ICT Use and Application○ MIC took measures for the realization of a symbiotic society; promoted telework; promoted ICT application in

education, medicine, and other �elds; developed policies for local development using ICT infrastructure; and took measures to create environments where everyone can enjoy convenience through ICT.

■Promoting ICT Research and Development○ MIC developed R&D strategies; enhanced R&D to realize cutting-edge ICT in all aspects of society; took measures for

the deployment of the results of research into multilingual voice-based translation technologies; and conducted R&D into next-generation AI technologies.

■Promoting International Strategies for ICT○ MIC worked to spread the Japanese standard for terrestrial digital TV (ISDB-T) worldwide; deploy ICT systems (such

as disaster-prevention systems) in Asia and Central and South American countries; and promote various forms of contributions and cooperation at multilateral and bilateral venues. Furthermore, MIC co-hosted the G20 Ibaraki-Tsukuba Ministerial Meeting on Trade and Digital Economy with MOFA and METI in June 2019.

■Promoting Public Administration and Disaster Prevention through ICT○ MIC promotes e-government and informatization in the �eld of government disaster-resilience.

■Developments in Postal Service Administration○ MIC focuses on assisting the deployment of postal systems mainly in developing countries using Japan’s outstanding

knowledge of postal operations.

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sChapter 4ICT Policy Directions