# Introduction

Today, Japan's broadband networks are the world's fastest and lowest cost, and the number of broadband subscribers is increasing. At the same time, the numbers of mobile phone and mobile phone Internet subscribers are increasing and mobile networks are expanding. In addition, terrestrial digital television broadcasting began in December of 2003 in Tokyo, Nagoya, and Osaka, and intelligent home appliances and RFID tags that can access networks are starting to be put to practical use.

These developments in the use of broadband, mobile phones and networks, digital broadcasting, and information terminals is giving rise to a virtuous cycle and is leading toward the realization of ubiquitous networks that enable anyone to access and exchange information of any kind freely at any time from anywhere, and from any appliance.

Looking at the status of network use, the Internet is pervading daily life with the Internet user population reaching approximately 77.3 million at the end of 2003, exceeding 60% of the total Japanese population. In addition, users are accessing the Internet not only from PCs but also from a variety of different types of terminals, and not only when at work or home, but even while in transit, approaching a situation where anyone can access the Internet from anywhere and at any time. The Internet gives a tremendous convenience and benefit to people and is becoming a necessity.

Moreover, various services that use mobile phones and contactless IC cards are evolving, coming into widespread use and enhancing the convenience of people's lives. Some of these network services that originated in Japan are also spreading throughout the world. In this way, the relationship between the public and information and communications networks is strengthening and expectations are high concerning future services using ubiquitous networks such as those relating to safety and security.

The use of broadband and mobile networks by businesses is also steadily advancing. Businesses are undertaking various tests and other activities concerning the application of RFID tags, contactless IC cards, and so on, generating the buds of new forms of network use. Both Japanese and American businesses have high expectations concerning ubiquitous networks and they are investigating services for a range of different terminal types.

Electronic commerce using broadband and mobile services is highly active and markets for high-performance information and communications devices that will form the foundations of future ubiquitous networks such as flat-panel televisions and DVD recorders are expanding and becoming a driving force behind the recovery of Japan's economy.

In the future, the realization of such ubiquitous networks is expected to produce a variety of benefits including increasing prosperity in people's lifestyles, stimulating economic activity, and alleviating social problems. Japan, which is in the position of a pioneer in these fields, is using forums such as the World Summit on the Information Society (WSIS) to explain concepts and results to people from countries around the world, and it is expected that the ubiquitous network will spread throughout the globe.

Throughout this process, Japan will cooperate with countries around the world in promoting the international standardization of ubiquitous network technologies and promoting network services that originated in Japan. At the same time, it is necessary for Japan to undertake active measures that will ensure information security and resolve various outstanding issues including bridging the digital divide.

With this awareness of current issues, this Information and Communications in Japan 2004 features the building a ubiquitous network society that spreads throughout the world, and analyzes the current status of evolving network infrastructure, the changes in lifestyles resulting from networks, the current conditions and expectations concerning the use of networks by businesses, and the issues concerning the realization of an optimal ubiquitous network society in the future and its economic impact.