their use is expanding to a variety of fields, and diverse services using broadband and mobile networks, which have grown rapidly in the past several years are being developed. At the same time, new terminals, devices, and tools (ubiquitous tools) such as RFID tags, contactless IC cards, and intelligent home appliances are being put into practical application. Amidst these developments, examples of new network businesses can be seen.

For example, the application of RFID tags is for the most part limited to use within individual companies, but in the future, comprehensive application including use among multiple companies and services that provide information to consumers are expected. Demonstration tests of such applications are currently being conducted in Japan and other countries (Figure 1-3-13).

## (2) Expectations of businesses concerning ubiquitous networks

When asked about the features of ubiquitous networks that have an impact on their business, both Japanese and American businesses listed a wide range of features created by ubiquitous networks. Japanese businesses have a strong awareness that ubiquitous networks will offer “ability to use networks regardless of location,” and make it possible “historical tracing and management using RFID tags,” while American businesses have high expectations of “improved network stability.”

In addition, many American businesses have high expectations concerning features that will enhance existing network function such as “ability to exchange large volumes of data at low cost” and engage in “communications with high security levels,” while many Japanese businesses mentioned features that make use of the properties of ubiquitous networks including “historical tracing and management using RFID tags” and “provision of services from all terminals and networks” (Figure 1-3-14). Japanese businesses see ubiquitous networks as information and communications technologies with new functions, while American businesses tend to see them as an extension of existing networks.

## (3) The direction of network use by businesses

As a result of the broader bandwidths and lower cost of Internet lines and the higher performance and lower cost of information and communications terminals including PCs and mobile terminals in the past several years, information and communications networks are making significant qualitative and quantitative strides. For example, initially the main mode of use of the Internet was a PC connected to a narrow-band dial-up telephone line, but owing to the adoption of broadband, the proliferation of mobile Internet, the use of large-volume data and Internet access from outside the home have become expected as a matter of course by consumers. As a result, the number of companies providing services to consumers using broadband and mobile networks is increasing and markets are expanding.

In conjunction with these developments in broadband and mobile network use, new applications for information and communications networks are also starting to appear in Japan. For example, RFID tags and contactless IC cards are tools that can increase operational efficiency and make possible the provision of high value added services, and some companies are already starting

Figure 1-3-14 Comparison of the Effects of the Features of Ubiquitous Networks on the Business and Operations of Japanese and U.S. Companies $ ^{*} $

$ ^{*} $ Percentages of B-to-B companies.

Source: Survey of Ubiquitous Network Usage Trend by Businesses