## (3) Increases in IP Telephone and Hot Spots

In conjunction with the increased use of broadband, use of IP telephone has also been increasing, and 7.3% of households were using IP telephone at the end of 2003. Also, 11.1% of businesses were using IP telephone at the end of 2003 and 42.7% planned to introduce it.

The number of high-speed wireless access points (hot spots) in public places increased from 1,624 at the end of fiscal 2002 to 5,350 at the end of fiscal 2003 (Figure 1-1-8). Use of hot spots by Internet users increased to 9.5% at the end of 2003, up 0.7 points from the end of 2002 (Figure 1-1-9).

## (4) Digitization of Broadcasting

Terrestrial digital television broadcasting began in three major metropolitan areas of Tokyo, Nagoya and Osaka on December 1, 2003 (figure 1-1-10). With this start, digital broadcasts are available in all broadcasting media including terrestrial, satellite, and cable television broadcasting. The shift to digital is equal to the change from black and white to color. With the advent of digital broadcasting, in addition to the existing passive viewing style, viewing styles that encourage more action by viewers may also be realized.

The shift from analog to digital broadcasting is scheduled from completion by 2011 with the exception of terrestrial radio broadcasting. The shift to digital is already essentially complete for communications satellite broadcasting. Analog high-definition broadcasting

Figure 1-1-8 Change in Number of Hot Spots

Source: Survey of the Current Status and Issues of Networks

Figure 1-1-10 The Launch of Terrestrial Digital Television Broadcasting in Tokyo

(The ceremony held at the launch of terrestrial digital television broadcasting)

satellite (BS) broadcasting is scheduled for termination in 2007 while other BS broadcasting (NHK-1, NHK-2, and Wowow) will end in 2011. A goal of converting virtually all cable television broadcasting to digital by 2010 has also been set (Figure 1-1-11).

Terrestrial digital television broadcasting in Japan offer tremendous benefits to users including high-definition broadcasting and the provision of stable services even while viewers are in transit or using mobile terminals, and have outstanding features compared to other countries (Figures 1-1-12 and 1-1-13). The expansion of terrestrial digital television broadcasting will make it possible for viewers to access high-definition, high-quality programming at any time from any location and is expected to enhance the competitiveness of Japanese businesses through the development of household appliances with advanced functions.

## (5) Development of e-Government and e-Local Government

With regard to performing administrative procedures online, the Law Concerning the Use of Information and Telecommunications Technology on Administrative Procedures came into force in February 2003, and the development of systems including a government public key infrastructure (GPKI) and a general-purpose reception system was completed by the end of fiscal 2003. The development of an environment for performing administrative functions online is basically complete including the Basic Resident Registers Network System

Figure 1-1-9 Use of Hot Spots

Source: Communications Usage Trend Survey, MPHPT

Figure 1-1-11 Goal for Penetration of Terrestrial Digital Television Broadcasting in Households

Source: Fourth Action Plan for Promotion of Digital Broadcasting, National Conference for Promotion of Terrestrial Digital Broadcasting