Wh

it

e P

ap e r 2 0 1 3

Key Points of 2013 White Paper

on Information and Communications in Japan

○ Utilizing the latest ICT trend of Smart ICT, including mobile, cloud, Big Data, social media and 4K/8K, is indispensable for realizing vigor and growth in Japan.○ Japan lags behind other developed countries in utilizing smartphones, social media and cloud computing and

should accelerate their utilization.

○ ICT service and telecommunications equipment markets are expected to grow in North America and the Asia-Pacific region○ Broadcast content export measures have been diversified, including from program sales to international joint

program production and channel acquisitions

○ Big Data distribution posted a high growth rate of 5.2-fold over seven years. Big Data distribution volume and labor productivity have positive correlations.○�Big Data can be utilized to produce high effects including greater operational efficiency and added value

improvements.

Fig. Utilizing the latest ICT trend of Smart ICT to ac-celerate growth (image)

Growth of ICT-utilizing industries X Growth of ICT industries

Social problems resolution X global expansion

Inducing innovations and enhancinginternational competitiveness

ICT investment expansion and creation ofnew industries

Mobile(smartphones, M2M)

Cloud

Big Data Social media

4K/8Kmultiscreen

Powerful tools

Growth engine

Real

izin

g vi

gor a

nd g

row

th in

Japa

n

Growth of allindustries or sectors

Realizing a secure, comfortable society

Upgrading Japan’sinternationalposition

Latest ICT trend of Smart ICT

Progress in cooperation between ICT and other industries→ Vaguer borders between industries

Enhancing the demand-driven innovation approach*

Fig. International comparison of smartphone user shares (International Internet survey)

0 10 20 30 40 50 60 70 80 9038.2

47.656.3

44.467.8

76.8

JapanU.S.U.K.

FranceSouth Korea

Singapore

Fig. Areas for which local governments hope to expand GIS utilization (Questionnaire survey of local governments)

（％）

（n＝895）

0 10 20 30 40 50 60 70 80 90

78.1

52.6

52.6

49.7

48.6

35.6

34.0

29.4

28.9

26.8

18.1

7.7

2.7

Disaster reduction area

Healthcare, nursing care andwelfare area

Tourism area

Urban infrastructure area

Crime prevention area

Transportation area

Education area

Various information onenvironment and energy areas

Industry area

Administrative service area

Local community area

Employment area

Others

*Demand-driven innovation approach: An approach in which developing solutions to global social challenges is designed to result in economic growth and improved international competitiveness.

Fig. Region-by-region ICT service market sizes and growth rates

Fig. Potential of global ICT industry expansion Fig. Broadcasting industry's global expansion

Fig. Trend of Big Data Distribution （TB: terabytes）

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

424,306

1,033,904

1,536,450

2,217,195

2012201120082005

A 5.2-fold increasein seven years

Fig. Relations between growth rates for data dis-tribution per employee and labor productivity

0 5 10 15 20 25 30 35 40

-5

-4

-3

-2

-1

0

1

2

3

4

Manufacturing

Information andcommunications Construction

ServicesTransportation

Real estate

Finance and insuranceCommerce

Electronic, gas andwater supply Av

erag

e an

nual

labo

r pro

duct

ivity

gro

wth

(200

5-20

11)

Average annual growth rate of Big Data distribution per employee (2005-2011)

vi

Key Points

Part 1Special Theme: How Can We Make Strategic Use of “Smart ICT” to Bring Vigor and Growth to Japan?

Chapter 1 Utilizing “Smart ICT” Advancement to Create New Values

○�An international comparison of e-government and e-local government services indicates Japan’s far lag behind other major countries. In Japan, e-local government services are limited to the provision of information.○�Local governments are highly interested in the social security and tax system (number system) and open data and

are expected to accelerate their utilization if their advantages are specified.

○�ICT is expected to be utilized for securing life resources stably and efficiently in the future. ICT is also expected to drive a paradigm shift to the super-aging society.

○�Local governments have placed growing expectations on ICT-utilizing town-development efforts mainly for the safety, security, healthcare and nursing care areas.

　Meanwhile, some have pointed out that visions and effects of ICT use are uncertain.

Fig. Breakdown of Internet users by age group Fig. Present social media utilization and past experiences by age group

Has utilized Has not utilized

Fig. Use of E-Government and E-Local Government Services (International Internet surveys, comparison with electronic commerce)

78.316.2

58.234.4

67.835.7

72.951.7

75.041.5

50.254.5

0 20 40 60 80 100 (%)

Fig. Stage-by-Stage E-Local Government Service Ratios

*Uses of e-government and e-local government services mean electronic applications, declarations and reports

*1: Stage 3=YES, Stage 2=NO *2: Stage 4=YES, Stage3=NO

*1: Stage 3=YES, Stage 2=NO *2: Stage 4=YES, Stage3=NO

Half of the local governments have yet to implement online procedures

Key Points

vii

Chapter 2Utilizing ICT to Solve Social Challenges

Fig. Local governments’ awareness of challenges for expanding number system use in future

0 10 20 30 40 50 60

53.0

51.7

47.8

39.7

33.9

32.6

29.9

29.5

1.8

（％）

（n＝895）Others

Human resources shortages

Citizens’ understanding

Effects or advantages are not clear

Institutional and legal constraints are great

Specific measures (including arrangements) for the implementation are uncertain

It would be difficult to build systems common to all sections andregions

Specific visions of use or usages are not clear

Financially difficult

Fig. Open Data Areas of Concern To Local Governments (Questionnaire survey of local governments)

0 10 20 30 40 50 60 70

61.9

49.5

45.9

45.3

43.8

42.0

42.0

41.1

36.6

28.8

27.9

27.3

21.9

20.7

17.1

18.9

1.2

（％）

（n＝333）Others

Information on locations and changes of various private sector facilities(informationon openings/closings through report/approval, construction, etc.)

Various information on the employment area

Various information on the environment and energy area

Various information on the industrial area

Information on the local community area

Various information on the transportation area

Various information on the education area

Various information on healthcare, nursing care and welfare areas

Various information on land uses and infrastructure

Information on various public facilities (locations, user guides, etc.)

Various information on the crime prevention area

Various survey and statistics data

Various information on the tourism area

Various information on the administrative an civil services area

Map, geography and geology information

Various information on the disaster reduction area

Fig. Expected Areas for ICT Town Development

Latest annual survey （n＝895）

Previous annual survey （n＝848）

（％）0 10 20 30 40 50 60

Hoping to implement ICT Town Development commonly forall areas without sticking to any individual areas

Others

Transportation area

Infrastructure area including energy and roads

Industrial area (agriculture/forestry/fisheries, tourism,local industries) and employment area

Healthcare, nursing care, education,welfare and other life-related areas

Safety/security area (crime prevention,disaster resistance enhancement) 49.8

40.8

29.3

23.0

12.0

1.3

34.5

40.9

34.2

29.8

27.0

19.2

3.2

Fig. Challenges of and Obstacles to ICT Town Development

（n＝895）

（％）0 10 20 30 40 50 60 70 80

68.9

57.1

55.4

45.9

44.8

38.1

35.2

13.5

8.9

8.2

1.1Others

The administration sector has difficulties in engaging in ICT Town Developmentthat is led by the private sector

Great institutional/legal constraints

Technological development is insufficient (service completion degree, user-friendliness, etc.)

Understanding and capabilities of local government officials, citizens and other users have notmade sufficient progress

Specific means (arrangements) are unknown

Systems for common uses in a division or region have yet to be developedHuman resources are short

Effects or advantages are not clear

Specific use images or usages are not clear

Financially difficult

CW6_A9357D00_C.indd 7 2013/11/08 15:37:39

○�Japanese ICT users tend to request their personal data be handled more prudently during social media use than others.○�ICT users in major countries commonly tend to tolerate their personal data being used in a manner to contribute to

safety and security.

○�Japanese ICT users have experienced less damage but are concerned more about information security.○�Japanese ICT users have taken information security measures but believe that they have yet to acquire sufficient

information.○�People in Japan are more aware of the “Three Articles on Smart Phone Information Security" than in other

countries.

○ ICT research and development investment is feared to slacken. The creation of disruptive innovations originating from Japan is required.○ ICT research and development has many challenges for

creating innovations, including slack efforts to create new industries, delayed responses to changes in needs, and personnel shortages.

Fig. Personal Data Treatment (when social media are used)

（％）

Tolerable Conditionally tolerable Intolerable in any case

0 10 20 30 40 50 60 70 80 90 100

57.3

26.2

28.4

19.5

29.5

27.5

38.7

45.3

46.1

52.4

60.4

50.1

4.0

28.5

25.5

28.1

10.0

22.4Singapore（n＝973）

South Korea（n＝907）

France（n＝846）

U.K.（n＝863）

U.S.（n＝916）

Japan（n＝759）

Is it tolerable for you to see your real name openedto third parties through social media?

Fig. Personal data treatment (Big Data-related services)

（％）

Tolerable Conditionally tolerable Intolerable in any case

0 10 20 30 40 50 60 70 80 90 100

Collecting data from running vehicles for figuring out traffic conditions and dangerous locations

Singapore

South Korea

France

U.K.

U.S.

Japan

Tolerable Conditionally tolerable Intolerable in any case

0 10 20 30 40 50 60 70 80 90

Installing many surveillance cameras for crime prevention purposes

Singapore

South Korea

France

U.K.

U.S.

Japan24.8

37.2

36.9

25.4

22.6

30.8

58.6

44.1

48.3

49.0

58.8

54.7

16.6

18.7

14.8

25.6

18.6

14.5

22.0

20.1

16.9

24.9

21.8

19.8

54.1

43.4

41.8

47.2

56.0

54.1

23.9

36.5

41.3

27.9

22.2

26.1

（％）n100

1,000

1,000

1,000

1,000

1,000

1,000

n

1,000

1,000

1,000

1,000

1,000

1,000

Fig. Experiences of Information Security Damage and Insecurity During Internet Use

Having received damage (beingsure of damage, having evidenceof damage) Having never receiveddamage

Having received damage(seeing the possibility ofhaving received damage)

Having never received damage I don’t know

[Experiences of information security damage]

1,000

ｎ

1,000

1,000

1,000

1,000

1,000

Feeling no insecurity Feeling less insecurityFeeling some insecurity Feeling insecurity

[Insecurity during Internet use]

1,000

ｎ

1,000

1,000

1,000

1,000

1,000

0 20 40 60 80 100（％） （％）

14.4

18.2

20.0

15.0

19.7

19.6

61.6

47.7

55.2

36.3

48.0

49.4

15.4

17.0

14.3

34.0

24.4

21.8

8.6

17.1

10.5

14.7

7.9

9.2Singapore

South Korea

France

U.K.

U.S.

Japan

Singapore

South Korea

France

U.K.

U.S.

Japan

0 20 40 60 80 100

8.3

3.1

1.4

5.2

8.8

1.9

50.7

24.0

22.8

37.3

53.4

18.7

37.5

33.1

34.6

39.9

30.8

38.7

3.5

39.8

41.2

17.6

7.0

40.7

Fig. Implementation of Information Security Measures

Having taken sufficient securitymeasures

Feeling some insecurity evenwhile taking security measures

Having taken no particular securitymeasures

0 20 40 60 80 100（％）

16.5

10.0

8.5

9.6

55.3

18.7

69.8

58.4

51.6

63.0

41.6

63.1

13.7

31.6

39.9

27.4

3.1

18.2 1,000

1,000

1,000

1,000

1,000

1,000

ｎ

Japan

U.S.

U.K.

France

Singapore

South Korea

Fig. Awareness of Information Security Measures for Smartphonesn

[Updating OS and applications]

768

678

444

563

476

382

n[Introducing anti-virus software]

768

678

444

563

476

382

n[Confirming application safety]

768

678

444

563

476

382

0 20 40 60 80 100

67.8

64.9

58.4

60.6

57.7

65.1

0 20 40 60 80 100

67.0

55.7

55.2

37.8

60.0

55.7

0 20 40 60 80 100

58.6

48.9

40.5

36.7

49.9

43.2

Japan

U.S.

Singapore

U.K.

France

South Korea

Japan

U.S.

Singapore

U.K.

France

South Korea

Japan

U.S.

Singapore

U.K.

France

South Korea

Fig. Acquiring Information about Information Security Measures

1,000

1,000

1,000

1,000

1,000

1,000

ｎ

Acquiring sufficient information Acquiring information rather than notAcquiring not so much information Acquiring no information

0 20 40 60 80 100（％）

8.5

25.2

24.8

13.0

27.2

21.1

52.3

16.6

20.2

31.6

46.7

25.5

37.0

36.5

35.9

44.2

23.3

38.7

2.2

21.7

19.1

11.2

2.8

14.7

Japan

U.S.

Singapore

U.K.

France

South Korea

viii

Key Points

Chapter 3Attaining Safe, Secure ICT Utilization Environment and R&D Strategy

Fig. Science and technology budget trends(100 million yen)

Original budget Science and technology promotion expenditure Supplementary budget Local government budget

0FY2012FY2011FY2010FY2009FY2008FY2007FY2006FY2005FY2004FY2003FY2002FY2001

10,000

20,000

30,000

40,00040,490 40,841 40,404 41,401 40,447

42,405

50,46350,000

42,444

46,959

51,521

Science and technology promotion expenditure

2nd period 3rd period 4th period

45,84143,581

35,11334,685 35,444 35,974 36,084 35,779 35,743 35,708 35,639

4,297

2,400

10,970

35,890

3,853

4,576

36,647

1,978

36,926

5,832

4,480

4,404

6,081

4,899

3,238 4,47541

4,453305

4,250375

4,2061,451

4,1601,175

10,1915,076

（11,124）（11,832）（12,298） （13,135）（13,352）（13,334）（13,777）（13,628）（13,477）（13,312）（13,170）（12,841）

1st period (FY1996-2000)Investment under the basic plan: 17 trillion yenActual investment: 17.6 trillion yen

2nd period (FY2001-2005)Investment under the basic plan: 24 trillion yenActual investment: 21.1 trillion yen

3rd period (FY2006-2010)Investment under the basic plan: 25 trillion yenActual investment: 21.7 trillion yen

4th period (FY2011-2015)Investment under the basic plan: 25 trillion yen

Total science and technology expenditure

(Notes)1. The science and technology promotion expenditure is on an original budget basis.2. The local government expenditure for FY2012 is a preliminary figure given in February 2013.

■ICT industry trends○ The ICT industry’s market size stood at 82.7 trillion yen accounting for about 9.0% of all industries. ICT industry

employment totaled 3.897 million in 2011 accounting for 6.9% of total employment in Japan.○ Economic spillover effects of each industry’s production operations indicate that the ICT industry induced 87.6

trillion yen in added value in 2011. The ICT industry thus has the highest economic spillover effects among industries in Japan.

■ICT industry operations○ The ICT industry had 5,592 enterprises with 42.2784 trillion yen in sales in FY2011.

Fig. Nominal market sizes of major industries (based on nominal domestic production) (breakdown) (2011)

Fig. Transitions in economic spillover effects of major industries’ production operations

Fig. ICT industry sales

ICT industry sales

Key Points

ix

Chapter 4Current State of ICT

Part 2Current State of ICT and Policy Trends

( ) : number of companies,unit: one hundred million yen

■Internet usage trends○�The number of Internet users at the end of 2012 reached 96.52 million, an increase of 0.4% from a year earlier. The

Internet population penetration rate was 79.5% (up 0.4 percentage points from the previous year). The household penetration rate for smartphones rose by a sharp 20.2 percentage points to 49.5%.

■Cloud service utilization trends○�Cloud service users’ share of enterprises at the end of 2012 rose from 21.6% at the end of 2011 to 28.2%. The most

frequently used cloud service is “file storage and data sharing.”

■Telecommunications sector○ Sales in the telecommunications sector in FY 2011 totaled 13.2731 trillion yen of which mobile communications

accounted for a majority. Among services, data transmission services expanded its share of the sector’s total sales year by year. ○�Broadband development and utilization in Japan have made progress year by year. Ultra-high-speed broadband

services were available for 97.3% of households in Japan at the end of March 2012.

Fig. Transitions in household penetration rates for ICT terminalsFig. Transitions in the number of Internet users and the population penetration rate

Fig. Cloud service usage breakdownFig. Status of cloud service utilization in Japan

（％）

Ultra-high-speed broadband Broadband(including 3.5G)

75

80

85

90

95

10099.7 99.9 100.0 100.0

86.5

90.191.6

92.7

97.3

March-end 2012March-end 2011March-end 2010March-end 2009March-end 2008

Fig. Broadband infrastructure development

Voice transmission Data transmission Special services Others

Fig. Transitions in sales breakdown by service category

Fixedcommunications

Mobilecommunications others

communications

Fig. Transitions in sales shares of telecommunications carriers for fixed communications and mobile communications

Chapter 4Current State of ICT

x

Key Points

■Broadcasting sector / Content market○ Broadcasters’ sales in FY2011 totaled 3.9115 trillion yen. Satellite-based broadcasters’ share has expanded over

recent years.○ The Japanese content market’s size was 11.16 trillion yen of which video software accounted for 49.3%, text

software for 43.1% and voice software for 7.6%○�The market size for communications content for personal computers and mobile phones totaled 1.8341 trillion yen,

up 7.1% from the previous year, accounting for 16.4% of Japan’s total content market.○Japan’s terrestrial TV program exports leveled off in 2011 after a downward trend.

■Radio utilization○ The number of radio stations in Japan has continued an upward trend, standing at 146.23 million at the end of

FY2012 (up 8.4% from a year earlier). The number of mobile phones and other land mobile stations increased by 8.5% to 143.88 million capturing a high share of 98.4% of total radio stations.

■ICT industry research and development○ The ICT industry’s research spending in FY2011 totaled 3.9875 trillion yen, accounting for 32.5% of corporate

spending in Japan. The ICT industry accounted for 195,117 persons or 39.8% of corporate researchers in Japan.

Fig. Breakdown of Japan’s content market (2011)Fig. Transitions in the broadcasting sector’s market size (total sales) and a breakdown

Fig. Japan’s terrestrial TV program exports in value (estimated)

Fig. Transitions in the number of radio stations

Key Points

xi

Chapter 4Current State of ICT

■Comprehensive Strategy○�Since setting up the “Strategic Headquar ters for the Promotion of an Advanced Information and

Telecommunications Network Society” in January 2011, the Government has been implementing various measures. In June 2012, a cabinet decision was made on a new IT strategy ("Declaration on the Creation of the World's Most Advanced IT Nation).

■Development of Information and Communications Policy○Focusing on the following fields.　・�Telecommunications business policy: promotion of dissemination of broadband; promotion of IPv6; and

development of a fair competition environment, etc.　・Broadcasting policy: promotion of distribution of broadcast content and advancement of broadcast service, etc. 　・�Radio policy: study on the fourth generation mobile communications system; advancement of wide band

mobile wireless access system; promotion of Intelligent Transport Systems; and development of a radio usage environment, etc.

■Consumer administration in relation to telecommunications services○ Held meetings of the “Study Group on Examining Issues around ICT Services from the User Perspective” starting in

April 2009 and conducted a study on the development of a safe and secure usage environment in relation to the dissemination of smartphones.

■ Improving the Quality of Citizen’s Lives and the Natural Environment through ICT utilization

○�Implementing measures to promote the use of ICT in various fields, including education, medicine, regional revitalization and global environmental problems.

■Promotion of Computerization of Government Services ○�Promoting e-local government through the introduction of local government clouds in addition to promoting

e-government.

■Promotion of Research and Development○�Promoting pioneering next-generation research and development programs based on the “4th Science and

Technology Basic Plan” (August 2011 Cabinet decision), which is Japan’s basic policy for science and technology.

■Promotion of International Strategy○�Promoting international deployment of ICT, including international dissemination of the Japanese format of

terrestrial digital TV broadcasting and making contributions and promoting cooperation through various activities, including cooperation with foreign countries to conduct research and development on technology to counter cyber attacks.

■Development of Postal Service Administration ○�Working to support international deployment of postal infrastructure systems based on Japan’s superior postal

service knowhow. At the 25th UPU Congress held in Doha, Qatar, in September and October 2012, Japan was elected as the chair of the Postal Operations Council.

xii

Key Points

Chapter 5Outlook for Information and Communications Policies