3. Trends of fusion/collaboration between communications and broadcasting

○ Communications and broadcasting industries, which had a market size of about 20 trillion yen in fiscal 2004, are expected to grow into leading industries that contribute to Japan’s economic growth, with new entrants coming in and business competition intensifying due to the acceleration of fusion and collaboration between communications and broadcasting. [Figure 11]
○ Acceleration of fusion and collaboration between communications and broadcasting will bring the merits of technological innovations, such as a shift to IP-based systems, to all sectors including the general public and industries. It will also contribute to strengthening Japan’s ability to send cultural and other information to the world (soft power).
○ Currently, diverse services (Triple Play, one-segment broadcasting, etc.) are provided through collaboration between communications and broadcasting. [Figure 12]
○ The Panel on Frameworks of Communications and Broadcasting (chair: Satoshi Matsubara, professor at Toyo University), established in January 2006, is holding comprehensive discussions on the establishment of a legal system for such fusion, review of communications-related regulations, broadcasting deregulation, and reform of the Japan Broadcasting Corporation (NHK), with the aim of making Japan a “broadband, mobile, and TV superpower.”

Figure 11: Transition in the Market Size (Sales) of Communications and Broadcasting Industries (trillion yen)

Produced from the “Basic Survey on the Communications Industry.”

Figure 12: Current State of Triple Play Services

Service Name	Telephone Service	Internet Access Service	Video Distribution Service	Basic Fee for the 3 Services Combined
Plala Hikari Triple Pack	Between Plala Phones for Flet's: freeDomestic call: 8.4 yen (3 min.)	Max. 100 Mbps	Multichannel broadcasting (50 ch. or more), video on demand (VOD) (4,000 to 5,000 titles)	9,849 yen (detached house) 7,065 yen (apartment)
* Plala Networks	* Provided by Plala Networks	* Provided by Plala Networks	* Provided by On-line TV (4th Media)
Flet's Hikari Premium (NTT West + OCN + On Demand TV) * NTT West	Between OCN. Phones: freeDomestic call: 8.4 yen (3 min.)	Max. 100 Mbps	Multichannel broadcasting (21 ch.; CS programs), VOD (about 3,000 titles)	8,683 yen (detached house) 7,024 yen (apartment)
* Provided by OCN	* Provided by OCN	* Multichannel broadcasting provided by 1-Cast; VOD provided by On-Demand TV
OCN Hikari with Flet's	Between OCN. Phones: freeDomestic call: 8.4 yen (3 min.)	Max. 100 Mbps	VOD (unlimited access to 100 titles)	8,694 yen (detached house) 6,174 yen (apartment)
* OCN (NTT Communications)	* Provided by OCN	* Provided by OCN	* Provided by OCN
KDDI Hikari Plus	Between Hikari Plus phones: freeDomestic call: 8.4 yen (3 min.)	Max. 1 Gbps	Multichannel broadcasting (30 ch.; CS programs), VOD (about 4,500 titles), online karaoke	9,555 yen (detached house) 7,245 yen (apartment) (when applying the KDDI set discount)
* KDDI	* Provided by KDDI	* Provided by KDDI (DION)	* Provided by KDDI
Cable Plus	In-prefecture call: 8.4 yen (3 min.) Out-of-prefecture call: 15.75 yen (3 min.)	Depends on the CATV broadcaster (e.g., max. 100 to 20 Mbps)	Depends on the CATV broadcaster (e.g., multichannel broadcasting [100 ch.; terrestrial, BS, CS programs])	Depends on the CATV broadcaster (e.g., JCN Chiba: 9,495 yen)
* KDDI + affiliate cable television (CATV) broadcasters	* Provided by KDDI	* Provided by affiliate CATV broadcasters	* Provided by affiliate CATV broadcasters
Yahoo! BB Hikari TV Package	Between BB phones: freeDomestic call: 8.4 yen (3 min.)	Max. 100 Mbps	Multichannel broadcasting (41 ch.; CS programs), VOD (about 5,000 titles)	7,234 yen (detached house) 4,189 yen (apartment)
* SoftBank Group	* Provided by Yahoo! BB	* Provided by Yahoo! BB	* Provided by BB Cable
J;COM	In-city call: 8.3 yen (3 min.) Between J;COM Phones: 5.3 yen (3 min.)	Max. 30 Mbps	CATV multichannel broadcasting (81 ch.; terrestrial, BS, CS programs), VOD (about 3,500 titles)	11,350 yen
* J;COM Tokyo	* Provided by J;COM Tokyo	* Provided by J;COM Tokyo	* Provided by J;COM Tokyo

Source: materials of the Panel on Frameworks of Communications and Broadcasting.