All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 Trends of Internet Use in Japan 26 June, 2007 Shigeyuki Suzuki FUJITSU LIMITED For Educational

All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007

Trends of Internet Use in JapanTrends of Internet Use in Japan

26 June, 2007

Shigeyuki Suzuki

FUJITSU LIMITED

For Educational Use Only

2All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007

Network of Networks

Access

Network

SprintC&WUUNET

BT AOL T-Online

BIGLOBE

IIJ

WIDE

@nifty

SINET

So-net OCN

The Internet


Features of the Internet

• Global Network

• Open Technologies

• Multimedia-oriented

• Common Resources for Everyone


Basic Internet Applications

• Electronic Mail

• Worldwide Web(WWW)

• Network News

• File Transfer(FTP)

• Remote Login(TELNET)


Internet Service Provider

Information Services

Other ISPs

Database Services

LAN

Internet Service Provider

LAN LAN

Servers(E-mail, WWW, etc.)

Routers…

IX

Internet Exchange


Low-speed, Character-basedCentralized ControlMaster-slave Communications

Internet vs. Legacy Online Info. Services

A B C

PC PC PC

BBS FilesMailbox for A

Online Info. Services Center

Access Network


Internet vs. Legacy Online Info. Services

Internet

News File AA

B C

WS

Mailbox

News File News FileWS WS

High-speed, Multimedia-orientedDistributed ControlPeer-to-Peer Communications


IP Address

• A unique number to identify a computer connected to the Internet

• An IP address consists of 32 bits under the IPv4 architecture

• An IP address is divided into four 8-bit sections and is written in four decimal numbers separated by periods. e.g. 204.248.24.16

• The address space will be expanded to 128 bits in the future IPv6


Domain Name

• A unique name to identify an organization connected to the Internet

e.g. fujitsu.com fujitsu.co.jp

icl.co.uk• With a host name attached before a domain name, it ide

ntifies a computer connected to the Internet.

e.g. www.fujitsu.com• DNS(Domain Name System) is a database system

to map a domain name(host name) to an IP address.


Internet Host Counts

0

50

100

150

200

250

300

350

400

450

500

Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07

(Millions)

Source : Network Wizard

433,193,199(Jan. 2007)


Worldwide Internet Users

133.5193.3

286.2

575.8667.8

739.2

858.1

1,000.6

1,168.1

0

200

400

600

800

1000

1200

1400

No.

of

Use

rs(i

n m

illi

ons)

1998 1999 2000 2001 2002 2003 2004 2005 2006Source : Internet White Paper 2006 (c) Access Media International,2006


Internet Users by Region

North America22.4%

Europe28.7%

Africa1.9%

Middle East2.4%

Asia Pacific36.7%

Latin America7.9%

North America

Europe

Asia Pacific

Latin America

Africa

Middle East

World Total : 1,000.6million (December, 2005)

Source : Internet White Paper 2006 (c) Access Media International,2006


Internet Users by Country

1. U.S. 203.1 million

2. China 110.13. Japan 72.94. India 51.55. Germany 48.6 6. U.K. 37.57. Korea 33.28. Italy 28.39. France 26.710.Russia 24.5



Internet User Population & Penetration Rate in Japan

77.3 79.4885.29 87.54

69.42

55.93

47.08

27.06

16.9411.55

9.213.4

21.4

37.1

44.0

54.560.6

62.366.8 68.5

0

10

20

30

40

50

60

70

80

90

100

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Year

0

10

20

30

40

50

60

70

80

90

User Population

Penetration Rate

(million) (%)

(as of December)

Source : Ministry of Internal Affairs and Communications


Internet User Population in Asia Pacific

1 China 110,100,000

2 Japan 72,879,000

3 India 51,500,000

4 Korea 33,200,000

5 Indonesia 18,500,000

6 Australia 13,980,000

7 Taiwan 13,900,000

8 Malaysia 9,978,000

9 Thai 8,396,000

10 Philippine 7,760,000

11 Pakistan 7,390,000

12 Vietnam 5,910,000

13 Hong Kong 4,840,000

14 New Zealand 3,170,000

15 Singapore 2,880,000

16 Sri Lanka 360,000

17 Bangladesh 345,000

18 Macao 240,000

19 Mongolia 227,000

20 Papua New Guinea 225,000Source : Internet White Paper 2006 (c) Access Media International,2006

Asia Pacific Total : 366.7million (December, 2005)


Spread of Internet by Country

7.0%7.6%8.1%8.1%8.4%8.7%8.9%9.2%10.6%

12.9%22.7%

41.3%53.2%

57.4%60.5%

64.4%68.4%69.2%70.1%

77.9%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

Internet Users/Populataion(%)

New Zealand

Hong Kong

Australia

Korea

Singapore

Taiwan

Japan

Macao

Malaysia

Brunei

Thai

Micronesia

Nauru

Maldives

Philippine

China

Mongolia

Fiji

Indonesia

Vietnam



Market Trends(1)

Slowdown of Internet User Growth• Until 2000 the growth rate had been explosive.

• Major driving forces were:Spread of all-in-one PCs

(Windows 98SE/Me/XP, WWW browser, 56Kbps modem,

Ethernet interface)Reduction of Internet access chargesInternet access with mobile phone


Spread of IT Appliances into Home

85.382.085.183.378.6

68.364.665.7

57.250.1

38.6

63.3

29.525.2

22.117.3

15.613.911.5 12.2 11.9

0

10

20

30

40

50

60

70

80

90

100

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Per

cent

age

(%)

Mobile Phone

Personal Computer



Comparison of Internet Access Charges

Japan(@nifty) USA(AOL)Dial-up \2,000/mo.(=$18*) $25.90/mo.(Unlimited Access)

USA(AT&T)ADSL \3,000/mo.(=$27*) $14.95/mo. (Upstream:1Mbps 　　　　 (Upstream:128Kbps Downstream:8 - 40Mbps) Downstream:768Mbps) $24.99/mo. (Upstream:512Kbps Downstream:3Mbps)

FTTH \6,170/mo.(=$56*) (100Mbps)

(*) $=\110


Shift to Broadband Access• Broadband access networks such as CATV, ADSL, and

FTTH

Diversified Access Networks• Wired : PSTN, ISDN, CATV, ADSL, FTTH

• Wireless : Cellular mobile, satellite, 3rd generation mobile (IMT 2000), wireless LAN(IEEE 802.11.b/g/a)

Market Trends(2)


Transition of Internet Access From Home

18.7

50.7

26.6

50.7

41.2

38.3

45.8

39.5

56.9

30.7

0

20

40

60

80

100

No.

of

Use

rs(i

n m

illi

ons)

2002 2003 2004 2005 2006

NarrowbandBroadband



Broadband Households in Japan

0

2

4

6

8

10

12

14

16

18

Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06

DSL Internet UsersCATV Internet UsersFTTH Internet Users


14.2 mil. (Dec. '06)

3.6 mil. (Dec. '06)

7.9mil. (Dec. '06)

(million)


Variety of Internet Access Networks

Transmission speed(bps)10K 100K 1M 10M 100M

Leased lineLeased line

Tel/ISDNTel/ISDN

ADSLADSL

CATVCATV

PDCPDC

PHS64 - 128K

PHS64 - 128K

cdmaOne64K

cdmaOne64K

IMT-2000IMT-2000

WLLWLL

SatelliteSatellite

WLL:Wireless Local Loop

IMT-2000 : International Mobile Telecommunications 2000

PDC:Personal Digital Cellular

ADSL:Asymmetric Digital Subscriber Line

Wireless

Wired

FTTHFTTHFTTH:Fiber To The Home


Mobile Internet Services in Japan

Mobile Telephone Users (May, 2007) 97.6M

DoCoMo 52.8M

au 28.6M

SoftBank Mobile 16.2M

Mobile Internet users (May, 2007) 85.2M

DoCoMo (i-mode) 47.7M

au (EZweb) 23.9M

SoftBank Mobile 13.6M

Source: TCA (Telecommunications Carriers Association)


Internet Access via CATV Network

Router

HeadEnd

CableMODEM

InternetCable

Network

CATV Center

Home

～30Mbps

Transmission speed： Upstream : max. 10Mbps, Downstream : max. 30Mbps Monthly charge： \4,000～ \5,000


Internet Access via Satellite

ProxyServer

ISP(Terrestrial Network)

InformationServer

The Internet

PSTN/ISDN

Uplink Center

Down-stream ： 30Mbps(shared)

Individual User

Corporate User

Request for Information

Up-stream is via ISP Network


ADSL

NTT Central OfficeHome/Office

Metallic lines(1 pair)

Router

CO Switch

Up ：～ 1MbpsDown: ～ 40Mbps

DSLAMADSL

MODEM Splitter

DSLAM : Digital Subscriber Line Access Multiplexer

Internet connection via an existing telephone line Transmission speed : Upstream : max.1Mbps, Downstream : max.40Mbps Monthly charge : \3,000 (ISP charge included)

(ADSL:Asymmetric Digital Subscriber Line)


FTTH

NTT Central OfficeHome/Office

Fiber Optic Cable

Router

Up ：～ 100Mbps(max.)Down: ～100Mbps(max.)

LAN SWMedia

Converter…

CO SwitchMetallic lines(1 pair)

Internet access via fiber optic cable User Interface is either 10Mbps or 100Mbps. 100Mbps(home use) : \6,170*/mo. *)ISP charge is not included.

(FTTH:Fiber To The Home)


IMT-2000(3rd Generation Mobile)

IMT-2000(International Mobile Telecommunication 2000)

- 3rd generation mobile communications systems using international standard

- Transmission speed:

In moving cars/trains : ～ 144kbps, Walking : ～ 384kbps, Still : ～ 2Mbps

- NTT DoCoMo : Launched commercial services October, 2001.

Currently about 37.1 million subscribers.

- au(KDDI Group) : Started commercial services April 2002.


- Vodafone : Started commercial services December 2002.



Wireless LAN

AccessPoint

Home/OfficePublic Place(e.g. railway station, airport)

ISPBroadband Connection

(ADSL, FTTH)

11/54Mbps(max.)

Radio frequency band : 2.4GHz(IEEE 802.11.b/g), 5GHz(802.11.a)

Transmission Speed : ～ 11Mbps(b), ～ 54Mbps(a/g)


Market Trends(3)

Diversified Internet Access Devices• PDA, Game machine, Mobile telephone, (Word processor, Int

ernet TV)

Multimedia-oriented Applications• Java : animations, realtime data transfer

• Windows Media Player/Real Player : Video/audio on demand

• Internet Phone : IP Telephony (VoIP)

VoIP : Voice over IP


Variety of Internet Access Devices

Mobile Phone only19.2 million

PC only15.8 million

Mobile Phone & PC48.6 million

Game Machine1.6 million

PC Users66.0 million

Mobile Phone Users69.2 million Source : Ministry of Internal Affairs and Communications


Subscribers of the Internet

66.064.2

61.657.2

48.9

37.2

69.2

58.3

44.8

27.925.024.4

1.4 1.61.33.43.63.1

0

10

20

30

40

50

60

70

80

2000 2001 2002 2003 2004 2005

PCMobile PhoneGame Machine


No.

of

Su

bsc

rib

ers

(in

m

illio

ns)


Mobile Phone/Internet Users

26.9

48.559.5

67.8 73.6 78.2 82.6

0

10

20

30

40

50

60

70

80

90

100

Subs

crib

ers

(in

mill

ions

)

2000 2001 2002 2003 2004 2005 2006

Year (as of December)

Mobile Phone Subscribers, non Internet

Mobile Internet Subcribers

Source: TCA (Telecommunications Carriers Association)


Spread of IP Telephony

4.35.3

6.07.0

7.8 8.39.0

9.810.6

11.512.1

13.013.8 14.3

0

2

4

6

8

10

12

14

16

Dec-03

Mar-04

Jun-04

Sep-04

Dec-04

Mar-05

Jun-05

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

No.

of

Su

bsc

rib

ers

(in

m

illio

ns)



New Services/Businesses• WWW Search Engine : Yahoo!, Google, Infoseek, Excite, etc.

• Electronic Commerce : Online shopping, EDI

• Blog (Weblog)

• SNS (Social Network Service)

Intranet/Extranet Applications• Use of Internet technologies in corporate information network

systems

Market Trends(4)

EDI : Electronic Data Interchange


Use of the Internet from PCs

54.4 55.4

50.2

21.7

39.7

19.115.1 16.3

7.1 10 8.8

2.4 2.54.0

0

10

20

30

40

50

60

70E-mail

Information retrieval

News, weather forecast

Info. of central/local gov.

Net shopping/transaction

Download ofmovie/pictureQuestionnaire

Download of music

Recruiting

Online games

Online banking

e-learning

e-government

others

(%)

Multiple answers

Source: Ministry of Internal Affairs and Communications


Use of the Internet from Mobile Phone

69.5

13.3

25.1

1.5

8.611.2

6.8

26.2

1.5 3.1 1.9 0.2 0.01.2

0

10

20

30

40

50

60

70E-mail

Information retrieval

News, weather forecast

Info. of central/local gov.

Net shopping/transaction

Download ofmovie/pictureQuestionnaire

Download of music

Recruiting

Online games

Online banking

e-learning

e-government

others

(%)

Multiple answers

Source: Ministry of Internal Affairs and Communications


Web 2.0

The Internet is “SOCIAL MEDIA”

Source: Dion Hinchcliffe’s Web2.0 Blog


Blog (Weblog)

A weblog, which is usually shortened to blog, is a website where regular entries are made (such as in a journal or diary) and presented in reverse chronological order. Blogs often offer commentary or news on a particular subject, such as food, politics, or local news; some function as more personal online diaries. A typical blog combines text, images, and links to other blogs, web pages, and other media related to its topic. Most blogs are primarily textual although many focus on photographs, videos or audio.

Source: Wikipedia


Blog Posts by Language

Source: “The State of the Live Web, April 2007” Technorati

Japanese 37%

English 36%

Chinese 8%

Italian 3%

Spanish 3%


SNS (Social Networking Service)

Social networking is a category of Internet applications to help connect friends, business partners, or other individuals together using a variety of tools. These applications, known as online social networks are becoming increasingly popular.

Most social network services are primarily web based and provide a collection of various ways for users to interact, such as chat, messaging, email, video, voice chat, file sharing, blogging, discussion groups, and so on.

Source: Wikipedia


Second Life

Second Life is an Internet-based virtual world developed by Linden Research, Inc. A downloadable client program enables its users, called "Residents", to interact with each other through motional avatars, providing an advanced level of a social network service combined with 3D virtual spaces. Residents can explore, meet other Residents, socialize, participate in individual and group activities, create and trade items (virtual property) and services from one another.

Source: Wikipedia


Electronic Commerce (B2B)

8.612.3

21.6

34.0

46.3

77.4

102.7

0

20

40

60

80

100

120

1998 1999 2000 2001 2002 2003 2004

(trillion yen)

Source:2006 White Paper Information & Communications in Japan


Electronic Commerce (B2C)

824

1,484

2,685

4,424

5,643

0

1,000

2,000

3,000

4,000

5,000

6,000

2000 2001 2002 2003 2004

(billion yen)



The Long Tail

Traditional Market80% of Sales comes 20% of products

TOP 20%of products

Other products (80%)

The Long TailAddress wide variety demand

Amazon.com, Inc. earns1/3 of its sales from

“The Long Tail” area.

Amazon.com, Inc. earns1/3 of its sales from

“The Long Tail” area.

Sales


Goods Purchased via Net Shopping

40.438.1

33.7

26.3 25.321.9 21.5

14.911.4

0

5

10

15

20

25

30

35

40

45 Books/CDs

Hobby goods

Accessories

Tickets

PC related items

Foods

Tour applications

Financial dealings

Others

(%)



Goods Bought/Sold via Net Auction

24.922.5

24.522.5 22.8

27.7

20.219.8

15.3 15.8

12.3

7.410.1

17.0

0

10

20

30

40

Furniture/homeappliances

PC related goods Books CDs/DVDs Game Software Cosmetics Tickets

Buy

Sell

(%)

Answers from experienced usersMultiple answers



Impediments to Net Shopping

33.2

25.9

19.818.5

14.7

9.5

6.0

0

5

10

15

20

25

30

35

Want to buy goods by actuallylooking at them

Not necessary/not interested

Not Cheap

Fear about Security

Complicated purchassungprocess

Delivery delay

Others

(%)

Answers from inexperienced usersMultiple answers

Source : Internet White Paper 2006 (c) Access Media /impress R&D,2006


Issues about Network Security

• Unauthorized access using a stolen password• Stealing and crashing data files by invalid access to I

SP’s servers• Wiretapping of data transmitted on the Internet• Software/data files infected with computer virus• Attack to ISP’s servers by E-mail/packet flood• Phishing• Pharming


Phishing (Fishing)

In computing, phishing is a criminal activity using social engineering techniques. Phishers attempt to fraudulently acquire sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. Phishing is typically carried out by email or instant messaging, and often directs users to give details at a website, although phone contact has been used as well. Attempts to deal with the growing number of reported phishing incidents include legislation, user training, and technical measures.

Source : Wikipedia


Technique of Phishing

E-mail sender’s server

E-mail sender

Real web site of bank, credit card company, etc.

E-mail serverof recipient

×

Account no., etc.

E-mail urging toenter account no., etc.

Personal information such as account no.

• Falsely claiming to be a real bank and so on, send an e-mail asking for entering personal information such as account no. due to renewal of the system.• Show a web link to direct the recipient to a false web site that is set up to steal the personal information.


Damage of Phishing

• Approximately 5.7 million people received phishing mails.

• 19% of the phishing mail recipients (about 1.1 million) actually accessed false web sites. 3% (about 1.8 million) of the recipients entered personal information.

• Financial damage of banks and credit companies amounted to 1.2 billion dollars.

Estimation by the Gartner Group based on the hearing from 5,000 Internet users in the U.S.A. between the second half of 2003 and the first half of 2004.


Pharming (Farming)

Similar in nature to e-mail phishing, pharming seeks to obtain personal or private (usually financial related) information through domain spoofing. Rather than being spammed with malicious and mischievous e-mail requests for you to visit spoof Web sites which appear legitimate, pharming 'poisons' a DNS server by infusing false information into the DNS server, resulting in a user's request being redirected elsewhere. Your browser, however will show you are at the correct Web site, which makes pharming a bit more serious and more difficult to detect. Phishing attempts to scam people one at a time with an e-mail while pharming allows the scammers to target large groups of people at one time through domain spoofing.

Source : Webopedia Computer Dictionary


Reporting of Computer Virus Infection

43,384

74,97868,624

121,404

85,700

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2001 2002 2003 2004 2005



Internet vs. Intranet

WWW Browser

Inhouse WWWServer

Corporate Applications Servers

IntranetIntranet

(LAN-WAN-LAN)

Firewall

Internet

・ Public Server・ Proxy Server・Mail Server・ News Server・ DNS Server etc.


Firewall

A system designed to prevent unauthorized access to or from a private network. Firewalls can be implemented in both hardware and software, or a combination of both. Firewalls are frequently used to prevent unauthorized Internet users from accessing private networks connected to the Internet, especially intranets. All messages entering or leaving the intranet pass through the firewall, which examines each message and blocks those that do not meet the specified security criteria.


Remote Access to Corporate Network

Customer’s Data CenterCustomer’s Data Center

Router

Servers

Intranet

FENICSRemote LAN

Access Network

ACE Server

TunnelingGW

Cellular Phone

PHS

123456Secure ID

AP

PSTN

ISDN

Dial-upRouter

Modem

TA

－　 Caller’s number Check－　 Onetime Password

Network Monitoring Center

24 hours/365 days

AdministrationServer

Authentication

Administrator

PSTN ／ ISDNModem/TA

(RADIUS)


Security Technologies

• Encryption• to protect from loss of privacy

• Digital Signature• to protect from loss of integrity

• Authentication• to protect from spoofing


Encryption Methods

• Secret- key(Symmetrical) cryptography• The same key is used to encrypt and decrypt

e.g. DES(Data Encryption Standard)

• Public-key cryptography• A pair of keys, public and private keys, are used.

• A sender encrypts a message with the receiver’s public key and that message can only be decrypted with the receiver’s private key.

e.g. RSA


Privacy-Enhanced Mail(PEM)

DES DES

RSA RSA

1. Encrypt a message with a data encryption key(DES)

2. “A” encrypts the data encryption key with “B”’s public key. (RSA)

3. “B” decrypts the data encryption key with “B”’s private key.(RSA)

4. “B” decrypts the message with the decrypted data encryption key(DES)

Hello!

?!*&#

B’s public key B’s private key

Data Encryption Key

A B

Hello!

Data Encryption Key


Digital Signature

RSA RSA

1. “A” creates a message digest(MD).2. “A” encrypts the MD with “A”’s private key(RSA). Digital Signature3. “B” decrypts the MD with “A”’s public key(RSA) and restore the MD.4. “B” creates a message digest using the message that “B” received separately.5. Compare the restored MD and the MD that “B” created.

?!*&#

A’s public keyA’s private key

A B

CreateMessage Digest Compare

Hello!

Hello!A

Message Digest(MD) Message Digest(MD)

HelloA

CreateMessageDigest

Hello!


Spoofing

Purchase Order

I am A.

AA

BB

Invalid signature

Invoice

To: A

This is A’s public key.

???

A

B

1. Person “B” pretends to be Person “A” using B’s private and public keys.2. “B” places an order with a forged signature.3. Seller’s authentication system understands “A” placed the order and sends an invoice to “A”.

AuthenticationSystem


W

Certificate Authority

RSA

RSAA

W

A AA

W

WCertificate

A

B

CA(Certificate Authority)

W

CA’s private key

CA’s public key

Digital Signature

Registration

1. Sender “A” registers his public key to the CA.2. The CA creates a digital signature with its private key and issues a certificate.3. If Receiver “B” can decrypt the certificate with the CA’s public key, it is authentic.


Troubles Related to Internet Use

• Posting harmful messages to BBS• Damage someone’s reputation or credibility

• Spam mail(unsolicited bulk mail)

• Problems related to home page content• Pornography• Infringement of third party’s copyright, trademark• Invasion of privacy• Unlawful business


Domain Name Disputes

• Collision of domain name• Shortage of name space

• Troubles related to trademarks• mcdonald.com

• matsuzakaya.co.jp

• Need for creating new gTLDs*• Conventional gTLDs : .com, .org, .net, .gov, .edu, .mil, .int

• New gTLDs : .aero, .biz, .info, .coop, .museum, .name,

.pro

(*)gTLDs : generic Top Level Domains


Internet Use in Business

• Strengthen the company's core business• Communications with clients/suppliers

• Publish information outside

• Increase efficiency of white-collars• Intra-company communications

• Information gathering from the outside

• Information sharing among employees

• Explore new business opportunities• Online shopping, online publishing, etc.


Examples of Internet Use in Business(1/4)

Public RelationsAdvertisement

-Publication of corporate info.-Notification of events

-Globalization-Reduced cost-Quickness

Personnel-Recruitment

-Reduced cost-Two-way communication

Sales-Electronic catalog-Online shopping

-Reduced cost-Globalization

Department Applications Effect

-- Strengthen Core Business --



Purchasing-Globalization

-Reduced cost-2-way communication

CustomerSupport

-Frequently asked questions(FAQ)

-Procurement of components and software


-- Strengthen Core Business --



Personnel -Notice of organizational changes-Notice of personnel shift

-Paperless-Quickness

GeneralAffairs

-Electronic telephone directory-Directions to offices

Sales-Various notices-New products information-Communications with customers

-Quickness


-Paperless-Quickness

-- Increase Efficiency --



Development-Quickness

Research -Propagation of research results

-Sharing of technical info.-Sharing of design info.


-Quickness

-- Increase Efficiency --


Telecommuting

0.8

2.0

7.78.4

9.4

8.5

7.1

0

1

2

3

4

5

6

7

8

9

10

1999 2000 2001 2002 2003 2004 2005Source:2006 White Paper Information & Communications in Japan

(%)

408

674

0

100

200

300

400

500

600

700

2002 2005

(million)


Internet Use for Product Development

Quick supportQuick support Expansion of marketExpansion of market

Results

Shorter development timeShorter development time

ProductManagement

Subcontractors

University of Illinois

WAIS Inc.

Instructions, Review

Source code

Q&A

<Fujitsu> <USA>

Sales

CustomerOnline shopping

FNET Internet

NCSA Mosaic

WAIS

Software Licensing Business


In-house Information Sharing

WWWBrowser

WWWWWW

SGML

IntranetHTML

manuals

FIND2

Information Sharing among System Engineers


Intranet SNS


Shift to Network Based MarketplaceShift to Network Based Marketplace

Changes of Business Models by Internet

Alliance between different industry segments Creation of new sales channels New business relationship Internet based marketing Business expansion


@nifty

“New BusinessOpportunities”

Business Partners

- Finance- Insurance- Credit Card- Retail- Education- Mobile Service- CATV 　　 etc.

Creation ofNew Business

Creation ofNew Business

ExpandingSubscribersExpanding

Subscribers

Keepingup

momentum

Keepingup

momentum

Subscribers Management,Security,Community Management,Payment System,etc.

Collaboration with active companies toward new business on the Internet

New Business Opportunities


Channel Services @nifty (portals)

Automobile

Real Estate/Living

Finance

Music

Women

Travel

Fortune Telling


Finance@nifty

Finance Center(Gateway to the service below)

- Bank - Insurance - Trading - Credit Card

Investment Gate - Stock market - Mutual Funds - Exchange rate


＠ｎｉｆｔｙ

BANK

@nifty subscribers

@niftyVirtual Shop

•Transfer•Balance check•Deal check , etc

ATMDeposit / Payment

ShoppingOpen an account

InternetInternetBanking

Deposit/Payment

transfer

Call Center

inquiry

FUJITSUＢｔｏＣ

◆Virtual Bank<Service for Subscribers>◆open accounts

Internet Virtual Bank


Broadband Internet

On demandOn demandConnection

SlowSlowTransmission speed

Connect time basedConnect time basedPricing

Home/OfficeHome/OfficeAccess from

Always onAlways on

FastFast

Flat rateFlat rate

Various placesVarious places

New technologies enabling broadband access

CATV, ADSL, FTTH, IMT-2000

New technologies enabling broadband access

CATV, ADSL, FTTH, IMT-2000


Broadband Subscribers

14.932.0

72.0119.0

249.9

362.4

463.0

0

100

200

300

400

500

600

700

2000 2001 2002 2003 2004 2005 2006Source : Internet White Paper 2006 (c) Access Media International,2006

(million)


Comparison of Broadband Rates

0.07 0.08

0.18 0.20.25

0.49 0.52

0.73

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Japan Korea Taiwan Iceland Sweden USA Germany Finland

(US$)Costs per 100Kbps of data trancemission

Source: “ITU Internet Reports 2005: The Internet of Things”


e-Japan Strategy (2001)

e-Japan Priority Policy Program• Foundation of the world's most advanced information &

telecommunications networks• Promotion of education and development of human resources• Facilitation of e-commerce• Digitization of administration and application of IT in other

public areas• Ensuring of security and reliability on advanced information &

telecommunications networks

Realize the world's most advanced IT nation within 5 years.


u-Japan Strategy (2006)

User-oriented From the user’s point of view

UniqueBe something special

○Create individual energy

　・ A new society where your dreams come true

○Re-Vitalize the society 　・ Create new social systems and business

services 　・ Get out from the norm and realize local

revitalization by creative means

Ubiquitous Connects everyone and everything

○ An easy-to-use network anytime, anywhere, with anything and for anyone. ・ ICT will be part & parcel of daily life to create a user-friendly society

○ Person2Person plus Person2Goods, and Goods2Goods ・ Communications will play a more important role in society from every and all aspects

u-Japan 　（ Ubiquitous Japan ）

Universal User-friendly

○Easy to use 　・ Can be used by anyone

regardless of equipment or network complexity

　・ The aged and disabled will be able to participate in society by means of ICT

○Interaction 　・ A heart to heart interaction

overcoming barriers between generations and localities to create togetherness

4U = For You

○Close to the user 　・ For a society that is user-orientated

rather than a society where products are only provided by the supplier

　・ Developing technologies and services that are connected to our needs

○Users become suppliers　・ Creating a total of 100 million

consumers with network dynamics


u-Japan Strategyu

-Ja

pan

Po

licy

Pac

kag

e

Network collaboration infrastructure

Promotion of content production, distribution and usage

Social systems reform for advanced ICT use

ICT human resources

Nationwide broadband infrastructure

International strategyTechnological strategy

Selecting priority issues to be addressed and developing associated

strategies(ICT Safety and Security 21 strategy)

Seamless wired/wireless access environments

Real-objects networking Promoting universal design

Identifying the negative aspects

Responding to important emerging issues for the future

Ubiquitous networks development

Advanced ICT use Improvement ofICT use environment

By FY2010:

　　　 Eliminate zero-broadband areas　　　　（ During the process eliminate zero-broadband cities and towns by 2008)

　　　 Ensure over 90% household access to ultra high-speed broadband networks

By FY2010:

　　　 Eliminate zero-broadband areas　　　　（ During the process eliminate zero-broadband cities and towns by 2008)

　　　 Ensure over 90% household access to ultra high-speed broadband networks


User Evaluation of Broadband Services

71.7

71.5

45.2

35.6

25.4

11.3

9.7

7

5.6

0 10 20 30 40 50 60 70 80

Flat rate charge

Always-on connection

Connection speed

Inexpensive charge

Use of existing telephone line

Low initial cost

Simultaneous use of voice and data

Connectivity to multiple PCs

Short lead time for using the service

Percentage of Respondents (%) (MA N=2398)Source : InfoCom Research, Inc.


Content/Applications of Broadband Network

91.2

72.8

43.5

43.4

14.4

6.4

8

1.4

94.1

84.7

61.2

63.6

37.6

31

24.7

9.7

0 10 20 30 40 50 60 70 80 90 100

E-mail

Net Surfine

Shopping

Software Download

Music/Video Download

Streaming

Online Game

Video on Demand

Percentage of Respondents (%) (MA N=2398)

AfterBefore

Source : InfoCom Research, Inc.


Broadband Network & Enterprises

◆ Reduced time for design/manufacturing/procurement by sharing information ◆ Speedy decision making by sharing information and network based conference

◆ Direct communication between enterprises and cutomers

◆ Reduced time for design/manufacturing/procurement by sharing information ◆ Speedy decision making by sharing information and network based conference

◆ Direct communication between enterprises and cutomers

<Enterprise>

<Manufacturer>

<Home>

Work-from-home

ProcurementVideo Chat

<Business Partners><Customers>

Two way communicationwith rich content

-Extensive Collaboration-

BroadbandNetwork

<Overseas Companies>


Broadband Network & Local Government

◆ Administrative Reform - Outsourcing, merger of cities and villages

◆ Improve regional services by making use of services from private sectors

◆ Reform services for citizens - Network based services accessible from home

◆ Administrative Reform - Outsourcing, merger of cities and villages

◆ Improve regional services by making use of services from private sectors

◆ Reform services for citizens - Network based services accessible from home

<Local Government><Hospital>

＜ Healthcare Center＞

<Local Enterprises> <Library>

<Home>

RegionalInformation DB

<L. Government Office>

-Local Government Becoming an Information Center-

Broadband Network


e-Government

38%

4%

79%

20%

0%

100%

2004 2005

PrefectureCity

Application systems through the Internet



- PoD (Program on Demand) Service -

'Keiko(Practice)' and 'Manabu(Learn)'


Transition of Internet Use

Research

E-mailCommunication

Information lifeline

Personalization

Push type information delivery

Applications based onlife style/local community

Always-onconnectivity

PCs Diversified Access DevicesBroadband

UNIX machines

Browser

Search Engine

Banner Ads.


CommunicationHome

FactoriesRemote HealthcareRemote Healthcare

BtoBBtoB

EDI/CRMEDI/CRM

Online Library Online Library

SCM/CRMSCM/CRM

EnterprisesPublic Services

Online SchoolOnline School

E-GovernmentE-Government

BtoC/CtoB/PtoPBtoC/CtoB/PtoPOnline ContentOnline Content

（（ NewspaperNewspaper ・・ MagazineMagazine ・・ MusicMusic ・・ MovieMovie ））

Online FinanceOnline FinanceElectronic MoneyElectronic Money

Digital BroadcastingDigital Broadcasting

E-mail, Web, Motion pictureE-mail, Web, Motion picture

BroadbandBroadband

Always-onAlways-on

Internet access will be available whenever you want, wherever you are, and for whatever you like.

Emerging Broadband Era

Documents

All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 Trends of Internet Use in Japan 26 June, 2007 Shigeyuki Suzuki FUJITSU LIMITED For Educational