Silviase/jgov_v1.4_full_ann huggingface dataset:
The continuing fall in broadband fees is one factor behind the rapid proliferation of broadband services. An international comparison of DSL and cable Internet fees converted to the cost per 100 kbps reveals that fees in Japan at the world's lowest levels (Figure 1-1-3).

An international comparison of broadband penetration in 2002 shows that Japan is third in terms of the number of subscribers behind the United States (19.88 million subscribers) and the Republic of Korea (10.13 million subscribers). The Republic of Korea has the highest broadband penetration rate at 21.3%. Japan is in ninth place (Figure 1-1-4).

## (2) Development of Mobile Internet

## (i) Increased use of the Internet from mobile phones

The number of mobile phone subscribers in Japan exceeded 80 million in January 2004, reaching 81.52 million at the end of fiscal 2003. Of those, 69.73 million were mobile phone Internet subscribers (i.e., subscribers to Internet service that use mobile phones) (Figure 1-15).

(ii) Increase in 3G mobile phones and advanced functions

Standardization and development of systems for the practical application of third-generation (3G) mobile phones is advancing rapidly in Japan. In October 2001 the NTT DoCoMo Group introduced the world's first W-CDMA format 3G mobile phone, and the KDDI Group began CDMA 2000 services in April 2002 while J-Phone (currently Vodafone) began W-CDMA services in December 2002. The number of 3G mobile phone subscribers reached 16.69 million at the end of fiscal 2003 and continues to increase steadily (Figure 1-1-6).

## (iii) International Comparison of Mobile Internet Use

An international comparison of the percentage of mobile phone Internet subscribers of all mobile phone subscribers of leading carriers in various countries and territories reveals that Japan's rate of 89.5% is the world's highest followed by the Republic of Korea and China. Thus, Asia is a driving force behind the increase in mobile Internet use (Figure 1-1-7).

Figure 1-1-3 International Comparison of Broadband Fees (cost per 100 kbps; July 2003)

$ ^{*} $ Comparison of fees per 100 kbps based on the service speeds and service fees of DSL and cable Internet in each country.

Produced from Birth of Broadband, ITU

Figure 1-1-4 International Comparison of Total Broadband Subscribers and Subscribers per 100 inhabitants (2002)

Produced by the MPHPT based on Birth of Broadband, ITU
Figure 1-1-5 Number of Mobile Phone Subscribers and Number of Mobile Phone Internet Subscribers

* The number of mobile phone Internet subscribers is the total of i-Mode, EZweb (including the former EZaccess), and Vodafone Live! (including the former J-Sky) subscribers.

Figure 1-1-6 Number of 3G Mobile Phone Subscribers

Produced from Telecommunications Carriers Association documents

Figure 1-1-7 Mobile Phone Penetration Rates in Major Countries and Territories (mobile Internet subscribers of all mobile phone subscribers) (end of September 2003)

* Figures are the percentages of mobile phone Internet subscribers of all mobile phone subscribers of leading carriers in each country and territory.
### 3. Evolving Towards Ubiquitous Networks

Japan has the world's lowest-cost and fastest broadband networks, and the number of broadband users is increasing steadily. The use of advanced services from Internet-compatible terminals and camera-equipped devices including mobile phones is increasing, and the creation of hot spots is leading the to development of an environment in which users can connect to the Internet at any time from anywhere. In this way, networks are shifting to broadband and mobile access.

With respect to terminals, with the start of terrestrial digital television broadcasts, it is expected that high-quality television image will spread throughout households and that televisions will become a means of accessing the Internet in forms such as broadcast program that is linked to the Internet and Internet access from a television screen. In addition, mobile terminals that can receive terrestrial digital television broadcasts are expected, and an environment under which such broadcasts can be received anywhere is being developed.

Moreover, the development of intelligent home appliances will make it possible for home appliances, which until now have all been used independently, to provide convenient network services such as links to the Internet and the ability to be operated from outside the home. At the same time, links between devices in the home such as home appliances, PCs, and mobile phones will lead to energy conservation and higher efficiency, safety, and improved operability. The practical application of RFID tags that can access networks will make possible integrated management that covers entire product lifecycles in areas such as increasing the efficiency of manufacturing, distribution, and inventory management, performing product adjustments, managing product histories, and preventing loss and theft as well as in such areas as distribution, sales, use, maintenance, and recycling.

In the future, we will see the development of seamless networks that can ensure the quality of communications and high security through the shift to IPv6 (Internet Protocol version 6) and other measures, and the connection of various types of devices to networks will allow the determination of the status of “people” and “things” that are linked to networks in real time and the provision of new and diverse services.

These networks, applications, and terminals will create a virtuous cycle that will lead towards the realization of ubiquitous networks that allow anyone to connect to networks at any time from anywhere to acquire and exchange information freely (Figure 1-1-14).

Figure 1-1-14 Image of Ubiquitous Networks

Source: Survey of the Current Status and Issues of Networks
# Changes in Lifestyles Resulting from Network Use

### 1. Status of Internet Usage

(1) Internet usage pervades various aspects of people's lives

The number of Internet users in Japan continues to grow. At the end of 2003, the population of Internet users was estimated to be 77.30 million (up 6.1 points from the previous year), an increase of 7.88 million in just one year. The penetration rate now exceeds 60% at 60.6% (Figure 1-2-1).

## (2) Status of Internet usage

The most common use of the Internet when accessed from home PCs is “e-mail” used as a means of communication (57.6%), followed by “searching for information on goods and services” (57.4%), “obtaining news and other information” (48.7%), and “purchasing goods and services” (36.8%) (Figure 1-2-2).

Concerning use of the Internet as an information-gathering tool, most Internet users rate highly the information-gathering speed of the Internet (98.4%) and use the Internet as their first means when searching for or gather information (93.5%). In addition, confidence in the information on the Internet is higher than in the past (88.4%) (Figure 1-2-3).

Figure 1-2-1 Transitions in the Internet User Population and Penetration Rate

Source: Communications Usage Trend Survey, MPHPT

Figure 1-2-2 Purposes of the Internet Use from Home PCs (multiple responses possible)

Source: Communications Usage Trend Survey in 2003, MPHPT
Figure 1-2-3 How Users Feel about the Internet as an Information-gathering Tool

Source: Survey of Personal Activities in a Ubiquitous Network Society

Figure 1-2-4 Average Time of Internet Use per Access from Home PCs

Source: Communications Usage Trend Survey, MPHPT

Figure 1-2-5 Purposes of Internet Use from Mobile Phones/PHS (multiple responses possible)

Source: Communications Usage Trend Survey in 2003, MPHPT
Of those users who access the Internet from home PCs, a review of the change in the average time of use per access from the end of 2002 to the end of 2003 shows that short-term users who access the Internet for “less than 10 minutes” decreased by 1.9 points to 18.1%. In addition, the percentages of long-term users increased, with those accessing the Internet for “1 to 2 hours” increasing to 9.4% (up 1.3 points from the previous year) and “more than 2 hours” increasing to 5.8% (up 0.5 points from the previous year) (Figure 1-2-4).

The most use of the Internet when accessed from mobile phones/PHS is “e-mail” at 74.3%, followed by “downloading and listening to online music” (50.1%), “downloading images,” (32.9%), and “obtaining news and other information” (26.4%) (Figure 1-2-5).

## (3) Changes in lifestyles resulting from Internet use

When Internet users were asked about changes in their lifestyles, many responded that the “frequency of contact with family and friends” increased, regardless of whether they used broadband. Many broadband users responded that there were decreases in “time spent sleeping,” “time spent watching television,” and “leisure time,” and the decrease in resting and leisure times was particularly prominent (Figure 1-2-6).

Internet usage is not limited to the home, and usage sites are diversifying. Among people who use the Internet “multiple times per day” while outside the home or office, the most common use location is “lodging facilities (hotels and inns)” at 59.5%, followed by “stations and airports” at 57.0% and “eating facilities (coffee shops, fast food and other restaurants)” at 50.3%. Use in

Figure 1-2-6 Changes in Lifestyles from Network Use (multiple responses possible)

Note: The percentage of respondents who answered “decreased” was subtracted from the percentage who answered “increased.”

Source: Survey of Personal Activities in a Ubiquitous Network Society

Figure 1-2-7 Internet Use Sites Outside the Home or Office (multiple responses possible)

Note: Connection to the Internet as used here excludes connections from mobile phones/PHSs.

Source: Survey of Personal Activities in a Ubiquitous Network Society
the “mass transit facilities used daily (trains and buses, etc.)” (42.2%) and “automobiles” (31.1%) were also relatively high, indicating that the frequency of Internet use while people are in transit is high (Figure 1-2-7).

## (4) Internet use pervades day-to-day activities (i) Internet use expands in all user segments

Internet use by individuals continues to increase and expands each year and is pervading a broad range of user segments. Looking at Internet use rates by age group at the end of 2003, Internet usage in the 60 years old and over group was 21.6%, substantially lower than the more than 90% rates in the 13 to 19 years old, 20 to 29 years old, and 30 to 39 years old groups. From the end of 2002 to the end of 2003, however, usage in the 60 years old and over group increased by 1.33 times, a faster rate of growth than in other age groups (Figure 1-2-8).

## (ii) Internet usage during personal activities

Opportunities for users to access the Internet while engaging in day-to-day personal activities including sending and receiving e-mail, searching for and transmitting various types of information, and using various services are increasing. This type of network usage takes place during day-to-day activities, and use of the Internet regardless of time and locations is increasing.

Of the all time spent engaged in various personal activities, the percentage of time accounted for by Internet use while “resting at home” is 35.0% and while “at work or school” is 21.1%, thus taking up more than 20% of personal time. In addition, the percentage of Internet use time while engaged in “getting ready for work, school, etc.” (18.2%), while “in transit (to and from work, school, etc.)” (13.2%), while doing “housework” (17.6%) and during “leisure, etc.” (19.3%) are almost all just under 20%. Thus, Internet use is increasing in all aspects of daily life (Figure 1-2-9).

### 2. Prospects for Network Use in the Future

## (1) Network usage intentions

Among persons who currently use the Internet, the most common intended future Internet uses were for personal purposes including “viewing Web sites” (69.9%) and “sending and receiving e-mail” (57.1%). There is also a high level of interests in “Access Internet services” (54.0%) including online shopping and making reservations. The level of interest in “Access Internet services” was the highest among non-Internet users (47.6%), indicating a high expectations concerning Internet services including greater convenience and greater enjoyment (Figure 1-2-10).

## (2) Examples of new network services in Japan and overseas

## (i) Recent developments concerning network services in Japan

a. Network use in Security

Testing was conducted at a kindergarten in Wakayama Prefecture of a system that allows guardians to check on their children while at home or at work using position data from RFID tags attached to the children and network cam-

Figure 1-2-8 Internet Usage Rates by Age Group

Source: Communications Usage Trend Survey, MPHPT
Figure 1-2-9 Internet Usage in Day-to-Day Activities (totals for all respondents)

Note: The percentages in the graph are the ratio of the Internet usage time in a certain lifestyle scene; “getting ready for work, school, etc.” “in transit (to and from work, school, etc),” “at work or school,” “housework,” “resting at home” or “leisure, etc.”

Internet Use Applications (all respondents) (percentages of applications mentioned up to the second rank)

Getting ready for work, school, etc.	In transit (to and from work, school)	At work or school	Housework	Resting at home	Leisure, etc.
1st	Send/ receive e-mail 67.3%	Send/ receive e-mail 75.0%	Send/ receive e-mail 63.2%	Send/ receive e-mail 62.5%	Send/ receive e-mail 54.6%	Send/ receive e-mail 59.8%
2nd	Weather forecasts 25.6%	Transportation, time table, maps 24.6%	Search engines 33.4%	News, etc. 17.4%	Prizes, contests, free item applications 20.5%	Transportation, time table, maps 20.4%
3rd	News, etc. 24.4%	News, etc. 21.1%	News, etc. 28.4%	Prizes, contests, free item applications 11.9%	Search engines 15.9%	Weather forecasts 19.3%

Source: Survey of Personal Activities in a Ubiquitous Network Society

Figure 1-2-10 Internet Use Objectives (multiple responses possible)

Source: Survey of Personal Activities in a Ubiquitous Network Society
Figure 1-2-12 Image of Ubiquitous Network Services (Examples)

Children at a nursery school can be monitored from home using a network camera.

## I mages of a patient at a clinic can be transmitted to a specialist at a hospital and emergency treatment instructions given

If an item is left on a train, a mobile terminal can be used to detect a signal from an RFID tag attached to the item and the item's location can be quickly determined.

When undergoing a medical exam, test results from another room are input into an electronic chart in real time and a diagnosis can be made based on that information.

If you go out with the air conditioner on, notice can be sent to a mobile terminal.
# Section 3 ___ Use of Networks in Business

### 1. Current Status of Network Use in Business

(1) In-house and Business-to-Business (B-to-B) Use of Networks

In recent years, new terminals, devices, and tools such as RFID tags, contactless IC cards, and new network-compatible devices (hereinafter referred to collectively as “ubiquitous tools”) have been put to practical application and demonstrative testing is also increasing.

A survey of the use of systems and services that employ ubiquitous tools by businesses that do business mainly with other companies (B-to-B commerce) shows that 7.9% of such businesses have installed “systems and services that use devices equipped with new communications functions”, while 3.9% have installed “systems and services that use contactless IC cards”. Although the rates of use are currently low, many businesses are interested in using such systems and services (Figure 1-3-1).

Advanced information and communications network environments are providing benefits to numerous businesses that use those networks. For example, more than 70% of businesses using broadband and mobile networks believe that there are benefits to such use. In addition, nearly 50% of businesses believe that there are benefits from using ubiquitous tools (Figure 1-3-2).

As to details of the benefits, increasing the pace of business is considered highly significant in all network environments. A high percentage of businesses believe that the benefits of using ubiquitous tools will be even

Figure 1-3-1 Introduction of Systems and Services that Use Ubiquitous Tools

$ ^{*} $ Devices newly equipped with communications functions refers to devices such as cars with GPS functions and remote-control cameras that in the past were not equipped with network functions but with advances in technologies have come to have such networks functions.

Figure 1-3-2 Existence of Benefits from the Use of Advanced Information and Communications Network Environments in In-house and B-to-B Operations $ ^{*} $

* Percentage of businesses engaged in B-to-B commerce that have installed network environments

Source: Survey of Ubiquitous Network Usage Trend by Businesses
more substantial than the benefits from broadband and mobile networks including lowering business costs and reducing employee labor as well as high added value benefits including enhancing business analysis and proposal of business strategies, improving customer satisfaction, and promoting collaboration with business partners (Figure 1-3-3).

## (2) Use of Networks in Business-to-Consumer (B-to-C) Commerce

Of businesses currently engaged in B-to-C e-commerce using the Internet, 27.9% of businesses are conducting e-commerce suitable for broadband such as the distribution of large-volume content or the creation of sites suitable for viewing with broadband. When businesses that are currently interested in or considering engaging in such commerce are included, this figure increases to 79.7% (Figure 1-3-4).

Benefits from the use of broadband engaged in B-to-C business are highly varied. More than 50% of businesses gave “increased service users,” “goods and services can be offered at all times,” and “expanded sales channels for goods and services” as benefits of using broadband in e-commerce (Figure 1-3-6).

Of businesses engaged in B-to-C e-commerce using the Internet, 46.0% engage in e-commerce that use mobile terminals such as Internet-compatible mobile phones; the percentage is higher than that of e-commerce suitable for broadband (Figure 1-3-5). More than 60% of businesses gave “expanded sales channels for goods and services,” “increased service users,” and “goods and services can be offered at all times” as benefits of engaging in B-to-C e-commerce suitable for mobile terminals (Figure 1-3-7).

Figure 1-3-3 Details of Benefits from the Use of Advanced Information and Communications Network Environments in In-house and B-to-B Operations (multiple responses possible) $ ^{*} $

* Percentage of businesses engaged in B-to-B commerce that have installed/are considering to install network environments

Source: Survey of Ubiquitous Network Usage Trend by Businesses

Figure 1-3-4 Status of E-Commerce Suitable for Broadband *

$ ^{*} $ Percentage of B-to-C businesses engaged in consumer-oriented e-commerce.

Figure 1-3-5 Status of E-Commerce Suitable for Mobile Terminals *
Figure 1-3-6 Benefits of E-Commerce and Sales Promotions Suitable for Broadband* (multiple responses possible)

Benefits of e-commerce suitable for broadband

Benefits of sales promotions suitable for broadband

* Percentages of responses by B-to-C businesses that are currently offering or considering e-commerce or sales promotions suitable for broadband.

Note: Broadband as used here for the purposes of comparison in Japan and the United States means an always-on connection with a fixed fee and a one-directional speed of at least 200 kbps. E-commerce means the sale of goods and the provision of services or contents for a fee using the Internet.

Figure 1-3-7 Benefits of E-Commerce and Sales Promotions Suitable for Mobile Terminals $ ^{*} $ (multiple responses possible)

Benefits of e-commerce suitable for mobile terminals

Benefits of sales promotion suitable for mobile termionals

* Percentages of responses by B-to-C businesses that are currently offering or considering e-commerce or sales promotions suitable for mobile terminals.

Source for Figures 1-3-6 and 1-3-7: Survey of Ubiquitous Network Usage Trend by Businesses
The provision of services to consumers using ubiquitous tools including RFID tags, contactless IC cards, intelligent home appliances, and network televisions has just started and there is only a small number of companies offering such services on a full scale. Consideration of practical applications is increasing, however, with 7.2% of companies considering the introduction of consumer services using contactless IC cards, and 6.2% considering the use of RFID tags.

Among companies that are using or are considering the use of ubiquitous tools, shopping (the sale of goods) is the most common application, accounting for more than 60% of such tools. In areas other than shopping, it is expected that mobile phones with embedded contactless IC cards will be used in entertainment and transportation, while RFID tags will be applied in foodstuff related areas (Figure 1-3-8).

The most common devices and terminals targeted by companies engaged in B-to-C commerce that currently conduct e-commerce using the Internet are PCs at 89.7% and Internet mobile phones at 43.9%. When asked what types of terminals they would target for e-commerce newly in the future, however, the most common responses were Internet mobile phones followed by network televisions at 11.1% and other intelligent home appliances at 6.3% (Figure 1-3-9).

## (3) Comparison of network use by businesses in Japan and the United States

Use of advanced information and communications networks environments by businesses in the United States is also progressing, and businesses are aware of a variety of benefits. Because of differences in network environments and in awareness concerning networks, there are some differences between Japan and the United States in the current network use and the perceived benefits of network use.

The percentage of B-to-C businesses that are cur-

Figure 1-3-8 Ubiquitous Tools Currently in Use or Being Considered for Use (multiple responses possible)

Figure 1-3-9 Devices and Terminals Targeted for E-Commerce Using the Internet $ ^{*} $ (currently in use and being considered for new use) (multiple responses possible)

$ ^{*} $ Percentages of B-to-C companies currently offering e-commerce using the Internet.

Source for Figures 1-3-8 and 1-3-9: Survey of Ubiquitous Network Usage Trend by Businesses