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Japan: Technology Penetration
On this page:
- Internet penetration
- Reasons why non-users do not use the Internet
- Reasons why non-users do not use the Internet
- Broadband penetration
- Mobile penetration
- Mobile contents industry structure
- Market size of mobile contents industry
- Mobile content market
- Mobile commerce market
- Mobile contents industry structure
| Internet Penetration |
| According to the Ministry of Internal Affairs and Communications, the number of Internet users has reached 90.91 million as of end 2008, an increase by 2.3 million people from 2007. This translates to a internet penetration rate of 75.3%, up 2.3% from the previous year. The continued growth in Internet penetration indicates that sooner than later, the entire nation will be wired, and be able to access the growing reach of the world wide web. This presents a golden opportunity for businesses to venture online and establish an early relationship with these users. Source: Ministry of internal affairs & communications, Japan | Changes in the number of Internet users and penetration rates  |
| Reasons why non-users do not use the Internet Even though figures are promising based on the high penetration rates, there is still a significant number of untapped internet users. Therefore, it is important to understand some of the reasons these non-users avoid the internet as shown. Source: MIC Communication News, Vol 20 No. 4, 5 June 2009 |  |
| Broadband Penetration | |
| Broadband development to date Cable was the leading source of broadband access early in Japan, but it was eclipsed by the rapid growth of DSL. DSL took off after the establishment of local loop unbundling, interconnection, and “dark fiber” backbone leasing rules for dominant firms were established in 2000 and 2001. As DSL proved successful, others entered the market and NTT followed suit, triggering a period of aggressive price competition. By this time, NTT’s fiber network had begun to reach most urban households, and the company planned to charge a premium for a proprietary non-IP service. However, it quickly faced facilities-based IP competition from utility company subsidiaries like K-Opticom and TEPCO. This pushed NTT to abandon their proprietary plans and compete on open Internet service. Source: Berkman Center for internet and society. "Next Generation Connectivity: A review of broadband Internet transitions and policy from around the world" Of the 90.91 million internet users, about 33.1% (30.094 million) were accessing the internet via broadband services. Breakdown:
*FTTH: Fiber-to-the-home |   |
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| Mobile Penetration |
| Interestingly, internet access in Japan is not simply restricted to PCs. In fact, mobile phones have become just as essential, if not more so. A study of the penetration of internet ready devices in Japanese households found more equipped with mobiles (85.3%) than personal computers (68.3%). The number of people accessing internet via mobile devices has surpassed those that access it via PC; About 57% use both mobile devices and PC. Note: This trend often leads to mis-reporting of internet usage statistics in Japan since worldwide comparative reports often neglect access through mobile devices and instead focus on ‘traditional’ internet access through PCs. |  |
| Mobile contents industry structure Japan's mobile contents industry consists of the mobile contents market and the mobile commerce market. The general overview of each market is shown below:  Source: MIC communication news. Vol 20 No.11, 11 September 2009 Market Size of mobile contents industry In 2008, the market size of Japan’s mobile contents industry registered 1.3524 trillion yen (year-on-year increase of 16.6%). By market, the size of the mobile contents market was 483.5 billion yen (year-on-year increase of 13.2%) and that of the mobile commerce market 868.9 billion yen (year-on-year increase of 16.6%), showing a drastic increase, similar to in 2007. Playing the numbers game, the figures for both markets paint relatively positive outlooks in the mobile content industry. Source: MIC, update on ICT and Policy outlook (Part 2, Chapter 4, 2009) Mobile content market In addition to the market for electronic books, the market for avatars, and item sales (SNS etc) is growing rapidly. On the other hand, growth in the market for ringtone songs has slowed, and the market for ringtone melodies is shrinking.  Mobile commerce market Sales of goods, services and transactions continue to increase through the years.  Source: MIC communication news. Vol 20 No.11, 11 September 2009 |
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, Nov 18 2009, 8:55 PM EST
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