Silviase/jgov_v1.4_full_ann huggingface dataset:
The sharp rise of broadband penetration rate has already led to the emergence of high-volume content distribution businesses; for example, some image and music content is now being distributed on a paid basis.

## Users' Needs for Network Content

A look at users' needs regarding the services available via broadband reveals that these users intend to use all of these services to a greater extent in the future than they do now. Desire for entertainment-oriented services involving high-quality content is particularly strong; over 70% of users say they intend to use "services for downloading music, videos, etc., to be enjoyed at the user's convenience" and "services allowing users to enjoy, at their convenience, valuable content available only over the Internet." Intent to use paid video and music content is also strong; the majority say they would like to use such content if the price is equal to or less than the cost of renting videos or CDs (Exhibit 1-30). This attitude seems to reflect a perception of Internet content as something to be rented rather than purchased and saved.

To pay for content over the Internet, users say they prefer either the transaction means currently most often used in the e-commerce, such as postal or bank money transfers and credit cards, or methods such as Net Bank and proxy billing services provided by telecommunications carriers, which make it relatively simple to conduct small transactions. The main sources of anxiety or dissatisfaction surrounding the use of content are first, the speed of access lines, followed by “concerns that personal information might be leaked out” and “concerns that payment procedures might not be correct.” About half of all users cited the latter two concerns, which suggests that the security of personal information is a user concern that-along with feelings of dissatisfaction about the time and effort required to make purchases and about the shortage of attractive content-merits attention. To promote further distribution of content over networks and make the network society more appealing, it is necessary not only to increase the amount of appealing content but also to establish systems and rules for content distribution that create a favorable environment for Internet use.

Exhibit 1-30 User Inclination to Pay for Image and Music Content Distributed over the Internet

Source: Survey of Attitudes About Security and Illegal Activity on PCs and the Internet, Institute for Posts and Telecommunications Policy, MPHPT
clearance system for the smooth handling of the necessary copyrights associated with online distribution of broadband content. In December 2001, the ministry published the findings of this investigation and solicited opinions on this issue. In light with these trends, rights holders and rights users has begun discussions pertaining to the desirable shape of a system for the clearance of rights between rights holders and rights users for on-line distribution of broadcast content. The ministry plans to use the conclusions reached in these discussions to develop a system that will smooth the process of managing rights for broadband content distribution on the network. The ministry plans to implement this rights clearance system on a trial basis starting in fiscal 2002.

To promote more distribution of network content, it will be necessary not only to ensure the reliability of billing and other systems, but also to make the process of obtaining content more convenient. Platforms for distributing high-quality content over the Internet—known as Content Delivery Networks (CDN)—not only distribute content but also provide for payment and user authentication and for copyright protection. More providers of these solution services are emerging in Japan as well as other countries, and are expected to promote further growth in the content distribution business.
## The Importance of Guaranteeing Information Security

The Internet has become an essential piece of infrastructure permeating every aspect of society. The presence of e-commerce, e-government and electronic local government is an example of ways in which the Internet has made life more convenient for citizens, boosted their efficiency, and supported their creative endeavors. However, the availability of more and more information in digital form also increases the danger of this information's being used inappropriately. The recent rise of the Internet as social infrastructure has increased the likelihood of serious problems across the corporate, government, and private realms. Awareness and appropriate attitudes on the part of each and every Internet user will be instrumental in minimizing the potential for such damage-in-keeping the network society operating safely.

## Current State of Information Security Infringement

The sharp growth of the Internet and its increased use by private citizens has directly exposed all Internet users to an array of problems, including computer viruses, nuisance email (spam), e-commerce fraud, and pornographic images and other undesirable content.

Computer viruses are a major security issue; about 60% of companies listed in the first and second sections of the Tokyo Stock Exchange reported having experienced infringements on their information security last year alone, with infection by computer viruses cited as the culprit in 96% of the cases (Exhibit 1-31). In 2001, a computer virus caused major damage by using e-mail attachments to replicate itself, and other viruses made use of security holes in e-mail software and Web browsers. In 2001, a computer virus targeting Web servers disrupted Internet operations worldwide. The virus known as Code Red caused problems all over the world, infecting nearly 300,000 servers throughout the United States alone in the space of 10 days.

Another security problem is unauthorized access, of which 1,253 known instances occurred in 2001. This was about 12 times the previous year's figure. Most of this unauthorized access was in the form of unauthorized overwriting of Web sites, of which 813 instances occurred. The second-largest source of unauthorized access was by means of self-replicating programs (computer viruses) of which 94 instances occurred. The administrators controlling access to the computers affected by unauthorized access were companies other than Internet service providers in 429 cases;

Exhibit 1-31 Data Security Infringements at Private Companies

Source: Survey On the Current State of Information Security Measures, MPHPT
companies surveyed report having imple\-mented, or being in the process of implement\-ing, such policies, only 7.3% of local governments report that they have done or are doing so.

## Tasks and Issues Related to Guaranteeing a Sound Network Environment

To foster a sound network environment that offers the guarantee of information security, it is urgent that technologies and services be developed to address the aforementioned problems. A look at the current state of development of such technologies reveals that two main kinds of technologies are currently being implemented: Technologies for foiling unauthorized access; and technologies for guaranteeing a sound network environment.

In the first category, technologies for preventing unauthorized access, one tool is firewalls, which control access to private networks. In addition to gateway firewalls, the most common type of firewall currently in use, a new kind of firewall known as a host-base firewall, which is integrated into the server, is now catching on. Some network operators are combining these two types of firewalls to boost effectiveness. Another means of preventing unauthorized access is tools for detecting and destroying computer viruses; services and technologies for integrated management of this task are currently being developed. Research concerning tools for the detection of unknown viruses is also in progress. Yet another tool for preventing unauthorized access is Intrusion Detection System (IDS), which monitor host access and network communication and issue warnings when they detect unauthorized access. Stealth connections protect a system by assigning it an IP address that is hidden from intruders; researchers are currently working on bringing stealth connections into practical use and devising standards to evaluate their performance. R&D into IP address pack technology, which makes it possible to trace the origin of unauthorized access by allowing designation of inter-packet transmission origins, is now under way.

The second category of technologies for addressing Internet users' concerns is tech-

nologies for guaranteeing a sound network envi-

ronment. Biometrics, a means of identifying

individuals via biological data such as finger-

prints, the brightness of the pupil of the eye,

voiceprints, and handwriting, is coming into

practical use as a means of controlling access

to rooms and of authenticating network logins.

Another technology for promoting a sound net-

work environment is content filtering, which

involves creating a list of sites and other content

unsuitable for children and limiting access when

appropriate, based on the nature and extremity

of the content. In this area, technologies for

automatically analyzing text and images and

omitting unsuitable content are sparking high

hopes.

Although a variety of technologies and services are being developed to provide a sound network environment, what is ultimately most

Exhibit 1-32 Computer Virus Countermeasures Currently Implemented (individual users)

Source: Survey Concerning Safety and Future Technologies in the Field of Information and Communications
important is that users recognize their role in this process and heighten their awareness accordingly. When information systems operators at companies were asked what they considered to be their task for the future, two out of three cited “catching up with increasingly advanced and complex security technologies.” When asked if they considered e-mail-based advertising a nuisance, 36.0% of companies surveyed said that they consider it either “an extreme nuisance” or “somewhat of a nuisance.” However, the proportion of the general Internet user population that feels this way is three out of four. This finding highlights a perceptual gap between the senders and the receivers of e-mail ads. Tasks for building a sound network society include not only developing the appropriate technologies and services, but also cultivating network technicians to operate this network society effectively and devising rules to remedy the sources of user anxiety and dissatisfaction.

## Establishing the Systems for a Sound Network Society

To guarantee information security, it has become necessary not only to implement technological measures but also to establish new systems and rules for the network society. Following are some of the main steps now being taken to put these systems in place.

To give electronic signatures the same legal authority as handwritten signatures or the impressions created by name seals, the government passed the Bill on Electronic Signature and Electronic Certification Operation in April 2001.

Another new law establishes standards under which users whose rights have been infringed by the electronic distribution of material can petition for the disclosure of information that designated telecommunication providers have about the originators of that material. The law also sets limits on the responsibilities of telecommunication providers to compensate wronged parties for damages in such situations. This law concerning the limitation on liability for damages by the designated telecommunications services providers and the disclosure of sender information went into effect in May 2002.

To protect personal information in the possession of public organizations and private companies, provision of a certain law comes up for discussion at the Diet. Telecommunication carries are taking various steps to address the problem of nuisance e-mail. However, no fundamental solution to the problem of spam has yet been reached. The 154 $ ^{th} $ ordinary session of the Diet passed a proposal for a law on topics of the appropriateness of sending certain designated e-mail.

To take a step toward the presence of elec-tronic government by 2003, in October 2001 the Information Security Countermeasures Promotion Council within IT Strategic Headquarters devised an action plan for guar-anteeing information security of electronic gov-ernment, which sets forth detailed seven concrete measures and schedule for imple-menting extensive measures to guarantee the security of such information; the plan also pro-vides for international cooperation and for coop-eration with local governments in this effort.
Information and Communications in Japan

White Paper 2002

Chapter 2

CURRENT STATUS OF

INFORMATION AND COMMUNICATIONS
## Market Size

The market size for Japan’s information and communications industry in 2000 was an estimated ¥113.8 trillion [a 6.5% increase over the previous year]. It has been consistently increasing since 1995 and continues to grow steadily amid the sluggish economic activity that continues to prevail in Japan (Exhibit 2-1). In addition, a comparison with the other major industries has shown that in 1996 the information and communications industry surpassed the construction industry in terms of size to become the largest industry, accounting for 11.6% of the total market size for all industries (a 0.5 point increase over the previous year).

## V alue Added

The real gross domestic product (GDP) of Japan's information and communications industry has continued to show growth, reaching ¥58.644 trillion in 2000, a 6.9% increase over the previous year. In addition, while Japan's real GDP has grown annually at an average rate of 1.43% over the period 1995 to 2000, the information and communications industry has achieved remarkably high growth in its real GDP with an average annual growth rate of 9.17% over the same period.

## Economic Analysis of Information and Communications

An estimation of the contribution made by the information and communications industry, which measures how much of an impact the growth of the information and communications industry has had on the overall rate of economic growth indicates that in 2000 the information and communications industry contributed 0.7% to an overall rate of economic growth that was 2.36%. A further look at this figure reveals that as far as the percentage of the contribution made by the information and communications industry to the overall rate of economic growth is concerned the information and communications industry contributed 30% to overall economic growth, which clearly indicates that the industry has become the backbone of Japan's economic growth (Exhibit 2-2).

## Employment

The number of people employed in Japan's

Exhibit 2-1. Market Size for the Information and Communications Industry in Comparison with All Industries

Source: Survey of IT Economic Analyses
information and communications industry in 2000 was 3,820,000 people, which accounted for 7.1% of the total employment in all industries. In addition, when individual industries are examined the information and communications industry is shown to be the third largest employer behind the 6,300,000 employees working in the retail industry and the 5,300,000 employees working in the construction industry.

## Productivity

The annual rate of increase in total factor productivity for the information and communications industry over the period 1995 to 2000 was 3.45%, which is the highest rate among all industries. In addition, the average annual rate of increase in labor productivity for the information and communications industry over the period 1995 to 2000 was 8.34%, which is the second largest rate after the electrical machinery industry (not including the information and communications equipment sector).

## Capital Investment

The amount of capital investment spent in fiscal 2000 in the telecommunications and broadcasting industry increased over the previous year, rising to ¥4,264.9 billion, a 4.3% increase over the previous year. In addition, despite the general expectation that capital investment will decline for all industries, the telecommunications and broadcasting industry is anticipating an increase in planned capital investment in fiscal 2001 to ¥4,337.8 billion (a 1.7% increase over the previous year), spurred on by an aggressive investment of capital by the mobile telecommunications carriers in response to the rising demand which followed a growth in cell phone subscribers and the start of the IMT-2000 service.

## Sector Reorganization

With regard to sector reorganization in the fixed-line telecommunications market in Japan, in May 2001 KDDI, Japan Telecom, and NTT Communications made a foray into the local telecommunications market. In addition, the Tokyo Electric Power Company commenced its FTTH business in March 2002 after obtaining a Type I telecommunications business permission at the parent level in February 2002.

On the other hand, as far as sector reorganization on a global scale is concerned, in the international telecommunications market Concert, a joint venture between AT&T (U.S.A.) and British Telecommunications (BT, Britain), was dissolved in April 2002. In addition, the recent activities of telecommunications carriers in different countries include the spinning-off into separate companies of the cell phone businesses of both AT&T, in July 2001, and subsequently BT in November 2001.

Exhibit 2-2. Contribution to the Overall Rate of Economic Growth (2000)

Source: Survey of IT Economic Analyses
## Telecommunications Carrier

At the end of fiscal 2001 the number of telecommunications carriers in Japan surpassed the 10,000 mark, reaching 10,520 companies (Exhibit 2-3). In addition, among all the telecommunications carriers the number of carriers offering Internet connection services continued to rise to 6,741 companies.

A breakdown of the total operating revenues of the telecommunications carriers in fiscal 2000 indicates that the Type I telecommunications carriers earned ¥16,982.6 billion, a 9.0% increase over the previous fiscal year while the Type II telecommunications carriers earned ¥1,375.1 billion, a 49.7% increase over the previous fiscal year.

## Telecommunications Services

Telecommunications services in Japan have become more and more diversified in terms of services offered, a fact which can be witnessed in the rapidly growing popularity in recent years of those telecommunications services that are able to accommodate high-speed, large capacity data communications. These services consist primarily of DSL, cable Internet, IMT-2000. An overview of the number of contracts for the main telecommunications services at the end of fiscal 2001 is as follows:

The number of fixed-line telephone contracts was 50,740,000 (an 2.6% decline over the previous fiscal year) in fiscal 2001, marking the fifth consecutive decline. The current status of the telephone company advanced registration system (MYLINE), which was launched in May 2001, is such that as of March 31, 2002 around 70% of all domestic telephone users had already registered for MYLINE, and the total market share of NTT had surpassed that of new common carriers (NCCs) in each of the following areas: local communications, long-distance communications (within the same prefecture), and long-distance communications (outside of prefecture) (Exhibit

Exhibit 2-3. Trends in the Number of Telecommunications Carriers

Fiscal Year End	1995	1996	1997	1998	1999	2000	2001	Year-over-year change
Type I telecommunications carriers	126	138	153	178	249	344	383	+39
NTT	1	1	1	1	3	3	3	±0
NTT DoCoMo and others	9	9	9	9	9	9	9	±0
NCCs	116	128	143	168	237	332	371	+39
Long distance/International carriers	6	6	7	13	22	32	35	+3
Local carriers	16	28	47	77	159	275	318	+43
Satellite carriers	4	4	5	6	5	5	5	±0
Mobile carriers	90	90	84	72	51	20	13	-7
Type II telecommunications carriers	3,134	4,588	5,871	6,602	7,651	9,006	10,137	+1,131
General	3,084	4,510	5,776	6,514	7,550	8,893	10,025	+1,132
Special (of which special Type II international)	50 (37)	78 (56)	95 (67)	88 (84)	101 (96)	113 (108)	112 (106)	-1 (-2)
Total	3,260	4,726	6,024	6,780	7,900	9,350	10,520	+1,170

Note: Figures at the end of fiscal 2000 have been revised following the release of the preliminary figures in the Information and Communications in Japan White Paper 2001.
2-4). The number of subscribers to ISDN in fiscal 2001 exceeded the 10 million mark for the first time and reached 10,330,000 (an 6.5% increase over the previous fiscal year) thanks to the rapid penetration of the Internet. In addition, the rate of increase in the number of subscription contracts for cell phones, which was 69,120,000 (an 13.4% increase over the previous fiscal year), slowed down slightly in fiscal 2001.

## Telecommunications Charges

With respect to Japan’s telecommunications charges in 2001, the Corporate Service Price Index (using 1995 as the base year), which was released by the Bank of Japan, indicates that in the area of fixed communications the charges for domestic telephone calls and ISDN showed a substantial decline, which is a reflection of an intensified competition driven largely by the launch of the telephone company advanced registration system (MYLINE). A substantial decline can also be seen in the charges for international leased circuits, which is a result of the lower pricing of the charges for international leased circuits to the United States. This lower pricing was driven by the increased number of companies that have entered the market following the rush in recent years in the industry to install undersea cable networks across the Pacific Ocean. Meanwhile, there has been a similar consistent downward trend in the charges prevailing in the area of mobile communications as well. As compared with the rates charged in March 1993 when the 800-MHz digital cell phone service was launched, basic rates and charges for calls as of April 1, 2002 had fallen by up to 75% and 73%, respectively (Exhibit 2-5).

In addition, a comparison of the communications charges prevailing among the major cities in different countries reveals that Japan has shown either a substantial or an average decline in the level of rates charged for each of domestic calls, domestic leased circuits, and cell phones over the period fiscal 1996 through fiscal 2000.

## Status of the Usage of Telecommunications Media

A breakdown of the volume of calls in fiscal 2000 shows that the percentage of the volume of calls made between mobile communications

Exhibit 2-4. Market Share of MYLINE in Domestic Calls (as of March 31, 2002)

Note: Figures include both MYLINE and MYLINE PLUS registrations. The NTT total is comprised of NTT East, NTT West, and NTT Communications, Long-distance calls (outside of prefecture) excludes NTT East and NTT West.

Source: MYLINE Carriers Association
Exhibit 2-5. Downward Trend in Cell Phone Charges

* Between cell phone and fixed-line telephone for a 3 minute call within the same prefecture during a weekday

terminals rose to 22.4% [a 4.2 point increase over the previous fiscal year], while the volume of calls which was accounted for by communications between fixed communications terminals declined to 59.5% [a 4.4 point decline over the previous fiscal year], which is a reflection of the shift from fixed communications to mobile communications. The total volume of calls in fiscal 2000 was 144.75 billion calls [a 7.7% increase over the previous fiscal year], and the total calling time was 7.03 billion hours [a 14.3% increase over the previous fiscal year]. A further breakdown of these figures according to the type of communications terminal making the outgoing call shows that the rate of increase in the total calling time originating from fixed communications terminals and PHS was substantially higher than the rate of change in the frequency of calls made from these terminals, so that the calling time per single call has been on the rise. All of this suggests that a shift in the demand for communications is occurring rapidly from voice communications via the telephone to data communications via the Internet and other such media.