Silviase/jgov_v1.4_full_ann huggingface dataset:
Exhibit 6. Charges for Constant-Connection Internet Service in Japan and Other Countries

Notes: • Some carriers require separate line charges.

• The charge for the FTTH (Fiber to the Home) fiber-optic service from July 2001 assumes the planned charge as of April 2000 of ¥5,000. Also, because the Internet access charge of the provider of Internet access service concerned was undecided at that time, the figure here assumes the same amount as for the DSL service shown in the diagram.

• The yen figures for other countries' charges are calculated from the following May 8 selling exchange rates: ¥122.35/US$1, ¥178.57/£1, ¥16.70/FFr1.

Source: MPHPT

## I P v6 activities

Internet Protocol (IP) v6, the successor to IP v4, currently in effect, will result in a geometric expansion of Internet address space and enhanced functionality, including “Internet homes” and the use of the Internet for such appliances as air conditioners and microwave ovens.

## Diversification of Internet connection terminals

Users can connect to the Internet in various ways, including cell phones. The huge year-over-year increase in Internet users in Japan as of the end of 2000 was due in part to ongoing growth in PC use but primarily to the 23.64 million user who were accessing the Internet via cell phone at that time (Exhibit 7). It is also interesting to note that Internet users who cannot handle a keyboard account for more than 75% of cell phone Internet usage; cell phones are evidently encouraging people who do not use PCs to log on to the Internet anyway.

## Diversification of content; rising volume

The total accessible volume of information available on Internet from Japan (i.e., the total accessible data volume on sites with the .jp domain) amounted to 3,212 GB as of August 2000, up 1.7-fold year over year. Total graphics data and other large-volume files surged considerably (Exhibit 8).

A mail-in survey indicates that e-mailing and seeking information from websites account for most (about 80%) of PC-mediated Internet use in Japan, but that such uses as
music and movie downloads and online shopping now account for as much 30% of usage, indicating that these latter uses are by now well established. A three-country comparison of the top-30 sites in terms of number of hits indicates that 80% of the top 30 in Japan are information search and information retrieval sites, such as general portal sites and ISP portal sites, whereas the ratios in the U.S. and Republic of Korea are only about 25% and 33%, respectively, with entertainment-type content sites, such as software-download sites, accounting for greater demand in these countries (Exhibit 9). We estimate that Internet usage will diversify along these lines in Japan as well, once broadband functionality becomes more common.

## Convergence of telecommunications and broadcasting

Telecommunications and broadcasting have begun to converge as a result of the rapid popularization of the Internet and advances in

Note: Individual figures are rounded and so may not add to the totals shown.

Source: Survey of Info-communications Usage in Daily Life

Exhibit 8. Information Volume by File Type

Source: Surveys 1–6 of WWW Content, Institute for Posts and Telecommunications Policy, MPT (now the MPHPT)
Exhibit 9. Classification of the 30 Most-viewed Internet Sites in Japan, Republic of Korea, and the U.S.A.

Source: Nielsen//NetRatings

information and communications. In February 2000, the Discussion Group on Information and Communications Policy in the Era of Convergence of Telecommunications and Broadcasting (chaired by Professor Masao Horibe of Chuo University) of the Ministry of Posts and Telecommunications (MPT; now the MPHPT), recommended in its report entitled Toward the Healthy Development of Converged Telecommunications and Broadcasting Services that the government should work quickly and systematically on this issue. In response, the MPHPT has been working on the necessary systemic development, including the presentation of two pieces of draft legislation to the 151st session of the Diet (held in January to June, 2001): a Bill on Broadcasting Used for Telecommunications Services and a Bill on Promoting the Convergence of Telecommunications and Broadcasting (the latter passed on June 1, 2001).

## 9 Digital broadcasting

The first digital broadcasting in Japan occurred in 1996 when broadcasting via communications satellite was inaugurated. Since then, digital cable TV and digital broadcasting via broadcasting satellite have come into being, in 1998 and 2000, respectively. The future holds great promise for the full-scale popularization of such multifunctional digital broadcasting modalities as data broadcasting. Additionally, research in and systemic preparation for the introduction of digitized terrestrial broadcasting, a medium already familiar to the population, and 110 degrees east longitude communications satellite digital broadcasting are currently being undertaken.

## 10 Activities in other countries

Several other countries show fairly extensive penetration of broadband-access Internet services into ordinary households. For example, there are about 2.24 million contracts outstanding for cable Internet service in the U.S. and more than 2.54 million DSL subscrip-
tions in Republic of Korea, as well as somewhat fewer than 1.32 million cable Internet users in that country. On the other hand, in Europe, with about 100,000 cable Internet contracts in force in France, 300,000 DSL contracts in Germany, and 33,000 DSL contracts in the U.K.

## 11 Network users in the Broadband Era

We conducted a survey of Internet users in an effort to get a composite picture of Internet users in the Broadband Era. One key finding was that users want faster access; about 70% of users with access speeds of at least 1 Mbps want a speed of at least 10 Mbps, and about 40% want a speed of at least 25 Mbps (Exhibit 10). Relatively high proportions of broadband users (vs. non-broadband users) both currently used the Internet to access entertainment content (such as Internet broadcasting, music downloads, and network games) and wished to do more of the same in the future (Exhibit 11). This response would indicate that experience with broadband connections generates the desire for a higher-speed access and will likely encourage the creation of faster, higher-capacity content services. Non-broadband users also indicated a strong desire to access entertainment content in the future, which would indicate that advances in broadband are bringing to the surface potential needs for content.

Between 80% and 90% of users accessing the Internet via high-speed (1–10 Mbps) circuits want constant-connection charges (including telecommunications and connection charges) to be at most ¥6,000/month. A high proportion of broadband users expressed a desire to access the Internet via portable notebook PCs and to be able to access the Internet indoors and out.

Exhibit 10. Desired Circuit Speeds, by Users' Existing Circuit Speed

Source: Survey of Broadband Usage Trends
Exhibit 11. Current Usage of Internet and Future Intentions (multiple answer)

Source: Survey of Broadband Usage Trends
## I T-driven Economic Revitalization

## The impact of IT on the macroeconomy

Corporate IT investment in Japan surged in the 1980s with the installation of general-use computers, electronic data interchange systems, point-of-sale systems, and the like; slowed in the first half of the 1990s when companies curbed capital investment after the collapse of the economic bubble; and began expanding again in the latter half of the 1990s. To determine the extent to which corporate investment in IT has contributed to Japan's economic growth, we analyzed factors associated with IT investment, general investment (excluding IT), and labor since 1985 and estimated the contribution ratios of each (the contribution ratio for IT investment is the ratio of the economic growth rate attributable to IT capital accumulation over the period of time in question to the overall economic growth rate; the other contribution ratios are defined analogously) (Exhibit 12). The contribution ratio in 1995–99 amounted to 100.8%, double that of 1985–95, indicating the IT investment played a leading role in economic growth during the latter period.

## 2 Internet businesses

“Internet businesses” are broadly defined as such Internet-mediated business activities as e-commerce and industries related to individual and corporate Internet usage such as the manufacture and selling of PCs and other

Exhibit 12. Contribution Ratios of Various Factors to Economic Growth

Source: Survey of IT Economic Analyses, conducted by DO Research Institute Inc.
terminal equipment. Our survey and analysis of this market in 2000 indicated a scope of ¥47,803.1 billion, 2.26 times in value from the previous year (Exhibit 13).

## E-commerce in the final consumption goods market

In 2000 the e-commerce market for final consumption goods amounted to ¥623.3 billion, up 78.1% year over year. We estimate a market worth ¥8 trillion in 2005 (Exhibit 14). The mobile commerce market amounted to ¥54.1 billion in fiscal 2000, an increase of more than 10-fold year over year, thanks to an explosion in Internet accesses via cell phone.

## E-commerce in the intermediate goods market

The e-commerce market for intermediate goods amounted to ¥38.1 trillion in 2000, a 2.5-fold increase year over year. We estimate a market worth ¥98.9 trillion in 2005 (Exhibit 15). The new Internet-based “e-marketplace,” where multiple selling and buying companies meet to do business, generated only ¥80 billion in business in 2000 but is expected to be worth about ¥16 trillion in 2005.

Electrical machinery and automobiles together accounted for a large proportion of e-commerce market for intermediate goods in 1999 and about 80% of the market in 2000, but the proportion is expected to drop to

Exhibit 13. Breakdown of the Internet and Mobile Telecommunications Markets
Exhibit 14. E-commerce Final Consumption Goods Market

Source: Survey of IT’s Impact of on Industry

Exhibit 15. E-commerce Intermediate-goods Market

Source: Survey of IT's Impact of on Industry

about 60% by 2005 as other industries expand their use of e-commerce (Exhibit 16).

## 5 Internet-related businesses

This market was worth ¥9,079.8 billion in 2000, up 42.0% year over year and is expected to be valued at ¥26,028.5 billion in 2005 (Exhibit 17). Within this large category, the mobile-related business market grew 10-fold in 2000, to ¥1,823.3 billion, thanks to the explosion in Internet usage via cell phone; a value of ¥4,599.7 billion is projected for 2005.

The market for terminal equipment used
Exhibit 16. Breakdown of Use of E-commerce in the Intermediate-goods Market by Sector

Source: Survey of IT's Impact of on Industry

Exhibit 17. Internet-related Business Market

Source: Survey of IT’s Impact of on Industry

to connect to the Internet (computers, etc.) accounted for 31.3% of the total Internet-related market, the largest subcategory, while the Internet construction-related market (management services needed for network construction and such hardware as servers and routers) was next, at 23.8% (Exhibit 18). Thus, the two categories together accounted for about 50% of the market.

The application service provider (ASP) market, in which general-use applications are provided via the Internet as a low-cost means of encouraging small businesses to add IT functionality to their operations, was worth only ¥2 billion in 2000, but is expected to grow to ¥97.5 billion by 2005. (This represents a subcategory within “Internet/intranet-related software” in Exhibit 18).

## I T-generated changes in the structure of business activity

About 90% of Japanese companies had constructed LANs by 2000, and about 40% had
constructed intranets, indicating steady IT progress in the business world (Exhibit 19). Additionally, the use of advanced networks within companies, such as by installing customer relationship management (CRM) systems to improve client management and knowledge management systems to create more services, is an important factor in bolstering a company's competitiveness.

A survey of businesses on the costs vs. benefits of installing a LAN or intranet indicates that the larger the number of employees per terminal, the less likely that a benefit has appeared, with 73.1% of companies with five or more employees per terminal responding that no positive benefit has been achieved yet. One conclusion from this data would seem to be that a certain density of information intensification, in the form of a greater number of installed terminals, for example, would have to be achieved before any positive benefit of IT investment, such as an internal network, would become evident.

Exhibit 18. Breakdown of the Internet-related Business Market

Size of market (¥ billion)	Share of total (%)	Year-over-year change (%)
Internet connection business	810.8	8.9	0.5
Internet terminals	2,838.9	31.3	6.1
Internet construction-related	2,161.0	23.8	23.3
Internet/intranet construction services	142.6	1.6	-
Internet/intranet-related software	144.4	1.6	-
Servers, routers, etc.	1,874.0	20.6	-
Internet peripheral businesses	1,446.8	15.9	45.6
Internet advertising	59.0	0.6	-
Internet funds settlement services	11.8	0.1	-
Telecommunications services	1,359.2	15.0	-
Distribution services	16.8	0.2	-
Mobile commerce-related businesses	1,822.3	20.1	980.2
Total	9,079.8	100.0	42.0

Sources: Survey of IT's Impact of on Industry; Advertising Expenditures in Japan for 2000, Dentsu

Exhibit 19. LAN Usage

Source: Communications Usage Trend Survey (Business Section)
## Electronic Government

## I nformation intensification in the national government

Surveys indicate that there was one PC per employee in each of the central ministries and agencies of the national-government bureaucracy in fiscal 1999 and that one PC was available to each 1.4 employees in all national-government entities (other than national universities) in fiscal 2000, an increase from one per 2.8 employees in fiscal 1996 (Exhibit 20). This PCs are being networked to an increasing extent, with about three-fourths of them connected to a LAN as of fiscal 2000 (Exhibit 21).

## I nformation intensification in local governments

As of fiscal 2000 there was one PC available to every 1.3 staff of prefectural governments, with the year-to-year trend line steadily approaching one PC per employee. Although the ratio of employees to PCs was still greater

Exhibit 20. PCs Installed in National-Government Offices and Employees per PC

Fiscal 1996	1997	1998	1999	2000
Numbers of PCs installed in all national-government offices	167,075	185,814	230,066	275,755	313,711
Of which central ministries and agencies	39,167	42,457	43,702	45,432	50,204
Employees per PC, all national-government offices	2.8	2.4	2.0	1.6	1.4
Employees per PC, central ministries and agencies	1.5	1.3	1.2	1.0	0.9
Exhibit 21. Rates of LAN Connection

Source: Survey of Research in Science Technology, Management and Coordination Agency (now the MPHPT)

Exhibit 22. Employees per PC in Local-Government Offices

Fiscal 1998	1999	2000
Prefectures	2.0	1.5	1.3
Government-designated cities	3.9	3.2	2.4
Cities with populations of 100,000 or more	5.9	4.1	2.8
Cities with populations of 50,000-99,999	4.4	3.2	2.4
Cities with populations of less than 50,000	4.7	3.3	2.4
Towns and villages	4.0	2.9	2.2

Source: Survey of Administrative Information Intensification in Local Government, Management and Coordination Agency (now the MPHPT)

than two at the municipal-government level, it had halved from about four in fiscal 1998 (Exhibit 22). The proportion of local-government PCs that are connected to a network is
steadily rising, reaching more than 60% in fiscal 2000 (Exhibit 23).

## I nformation intensification in the national government’s relationships with individuals and businesses

The Cabinet Office and all 12 national-government ministries and agencies now have websites. The total number of websites sponsored by entities in the national bureaucracy, including local facilities and branches, amounted to 1,215 in fiscal 2000, up 39.0% year over year. In line with Framework for Electronic Delivery of the Administrative Information (approved in March 2001 by the Inter-Ministerial Council for Promoting the Digitization of Public Administration), more administrative information is to be made available on these sites.

In April 2001 the MPHPT began operating its e-Government Coordination System, a website links to various ministries' and agencies' websites. The system provides information from websites, lists of text files available from ministries and agencies, and information on administrative procedures. It also allows users to search for regulatory data over the Internet.

The bureaucracies of the national government have a total of about 10,000 different application and notification forms. The goal is for users to be able to fill out and submit all of them online by 2003. The MPHPT will be mapping out an action plan in early fiscal 2001 that calls for even earlier online availability of these procedures.

The government has also embarked upon a program in which the bidding process for national public-works projects can be conducted online. In April 2001 a bidding information service was inaugurated that gathers, stores, and allows for the search of existing and scheduled solicitations to bid and bid results. Some electronic bidding is set to become available in October.

## I nformation intensification in local governments' relationships with homes and businesses

The governments of all 47 prefectures and all government-designated cities had websites as of fiscal 1998. The number of municipal governments having websites has grown sharply: 83.6% of cities and wards as of fiscal 2000,

Exhibit 23. Rates of PC Network Connection
up from 57.7% in fiscal 1998, and 61.1% of towns and villages, up from 34.9%. Local-government websites tend to focus items of particular interest to the local community, such as notices special events and information about public facilities.

Some local governments are doing some pioneering work in electronic government. For example, the processes of online applications to bid for public-works projects and applications to amend items on one's registration to qualify for bidding have been inaugurated on a test basis in some areas, with full-scale operation scheduled to begin in fiscal 2001. To encourage the further development of online services, the MPHPT has provided support to local governments for creating electronic organizational and individual authentication systems. Additionally, in December 2000 the national government's Inter-Ministerial Council for Promoting the Digitization of Public Administration approved a National-Government Action Plan for Promoting Online Application and Notification Procedures in Local Government.

## People's views of electronic government

An web survey indicates that only about one-third of respondents are aware that bureaucratic procedures can be taken care of online. Additionally, more than 50% of respondents believed that the national government should provide more information over the Internet that would enable people to understand the workings of the government (for example, by providing detailed databases of laws and systems) and that would enhance people's participation in government (for example, by providing a means of voting in referendums online). On the local-government level, a large majority of respondents believe that electronic government functionality, especially online availability of common applications and notifications, is important (Exhibit 24), so further work is needed in this area.

Only about 5% of respondents view national- and local-government websites “daily or regularly,” and more respondents expressed dissatisfaction rather than satisfaction with bureaucratic websites, implying the need for website developers to consider the user in their website designs.

## Electronic government trends overseas

Like Japan, other countries are developing electronic government functionality to enhance administrative efficiency and improve services to local populations. A key feature in many countries is the development of government portal sites. For example, in December 2000 the U.K. began test operations of its “ukonline” portal site. Users specify a password and are provided with information on their potential service needs based on address information that they have entered. Ukonline allows for comprehensive searches information made available by all national- and local-government agencies. Using an authentication system, users may access the system to receive all possible administrative services, making ukonline a true electronic government system, not merely an information access portal.
Exhibit 24. Perceived Need for Electronic Government Services

1. At the National Government

2. At the Local Governments

Source: Survey of Electronic Government
## I T: Permeating People's Lives

## The information and communications equipment that people own

A larger number of households owned PCs, cell phones, and personal digital assistants (PDAs) in 2000 than a year earlier. A survey indicates that the more recently a household has bought a PC, the more likely the reason for the purchase is to connect to the Internet—62% of PC purchasers over the past year acquired the equipment for this purpose. The proportion of PC- or cell phone-owning houses that are connected to the Internet has increased year over year, indicating that the desire to use the Internet has supported the increase in the penetration rates of PCs and other information and communications equipment.

## How people use the Internet in their daily lives

An online survey asked respondents to state which medium (the Internet, print media, TV/radio) they used most frequently to obtain various categories of information (Exhibit 25). The most commons means of accessing information on travel and leisure, products, and entertainment was the Internet, probably because of the wealth of easily searchable information available. Respondents were also asked what areas of

Exhibit 25. Media Used for Obtaining Daily-Life Information