Value of Broadband Coverage

Value of Broadband Coverage
Toshiya Jitsuzumi, D.Sc., MBA
Professor, Chuo University
T. JITSUZUMI@ITU Capacity Building Tokyo, 2022/5/17)
（

Toshiya Jitsuzumi, D.Sc., MBA
Graduated from the University of Tokyo in 1986, obtained an MBA
from NYU in 1991, and earned a doctorate from Waseda University
in 2003.
Assumed the current position in 2017, after working at the Ministry
of Posts and Telecommunications [MPT] (then renamed Ministry of
Internal Affairs and Communications [MIC]), Nagasaki University,
Japan Post, and Kyushu University.
Current subjects of research: net neutrality, AI, OTT businesses,
platform regulation.
T. JITSUZUMI@ITU CapacityBuilding Tokyo,2022/5/17)
（

Broadband in Japan
（
Source: http://kouwa-cc.co.jp/images/06.jpg

Economic impacts of broadband penetration (ITU 2020)
The findings based on cross-country data:
1. Developed countries with high penetration of fixed broadband enjoy a “return to scale” effect.
2. The impact of mobile broadband is driven by a “saturation” or “diminishing returns” effect.
（
Source: ITU (2020) “How broadband,
digitization and ICT regulation impact the
global economy: Global econometric
modelling November 2020,”
https://www.itu.int/dms_pub/itu-d/opb/pref/D-
PREF-EF.BDR-2020-PDF-E.pdf

Economic impacts of fixed broadband penetration
“return to scale” effect
（
Source: ITU (2020) “How broadband, digitization and ICT regulation impact the global economy: Global econometric modelling November 2020,” https://www.itu.int/dms_pub/itu-d/opb/pref/D-PREF-EF.BDR-2020-PDF-E.pdf

Economic impacts of fixed broadband penetration
Globally, the economic contribution of mobile broadband is higher than that of fixed broadband, but its
impact decreases with economic development.
（

Economic impacts of broadband speed (ITU 2020, pp.23-24)
Research on the contribution of
broadband speed to economic growth
generally concludes that faster Internet
access has a positive impact on GDP
growth.
◦ Faster broadband contributes to an
improvement of productivity resulting
from the adoption of more efficient
business processes.
◦ Faster connectivity yields an
acceleration of the rate of
introduction of new products,
services, and the launch of
innovative business models.
（
While all studies conclude that
broadband speed has an impact on
GDP, the range of contribution varies.

Broadband availability in Japan
（
Prefectural variation of FTTH coverage
Source: Created using the data of MIC (https://www.soumu.go.jp/main_content/000801102.pdf) Source: MIC (https://www.soumu.go.jp/main_content/000801102.pdf)
Prefectures

Broadband penetration in Japan
（
FTTH 33.1M
DSL 1.4M
cable 6.7M
ISDN 2.5M
Source: Created using the data from MIC’s White Paper 2021 (https://www.soumu.go.jp/johotsusintokei/whitepaper/r03.html) and MIC’s press releases on Jun. 18, 2021 and on Mar. 18, 2022.
3G 20.7M
LTE 142.9M
BWA 78.2M
5G 36.4M

Policies that have contributed to Japan becoming a broadband society
Stages Policies
1st stage: Development of ICT infrastructure • e-Japan Strategy (2001)
2nd stage: Promotion of ICT utilization • e-Japan Strategy II (2003)
• New IT Reform Strategy (2006)
• i-Japan Strategy 2015 (2009)
• New Strategy in ICT (2010)
3rd stage: Utilization of digital data • Declaration to be the World’s Most Advanced IT Nation (2013)
• Basic Act on the Advancement of Public and Private Sector
Data Utilization (2016)
• Declaration to be the World’s Most Advanced IT Nation (2017)
• Digital Government Strategy (2017)
• Digital Government Strategy (2017)
4th stage: Formation of a digital society • Declaration to be the World’s Most Advanced Digital Nation -
Basic Plan for the Advancement of Public and Private Sector
Data Utilization (2018)
• Vision for a Digital Garden City Nation (2021)
（
Because development of ICT infrastructure
progressed ahead of the schedule, not only
infrastructure development but also many
measures for ICT utilization were implemented.
The focus was on the development of ICT
infrastructure.
Utilization of various digital data was
promoted and measures were taken toward
creation of a “society that utilizes public and
private sector data.”
Until the 3rd stage, the goal was to become
the world’s most advanced “IT nation,” but in
2018, the goal was set to become the world’s
most advanced “digital nation.”
Source: Created based on MIC’s White Paper 2021 (https://www.soumu.go.jp/johotsusintokei/whitepaper/r03.html)

Vision for a Digital Garden City Nation (2021)
I. Building digital infrastructure
◦ The first is the building of digital infrastructure that stretches to every corner
of the country, comprising the following four goals:
1. The completion, in roughly three years, of a digital superhighway using
submarine cables surrounding the islands of Japan;
2. The building of more than a dozen regional data centers in about five years;
3. Making optical fiber a universal service by 2030, with 99.9% coverage of
households, and;
4. Achieving 5G coverage for 90% of the Japanese population by the end of
fiscal 2023 (March 31, 2024).
◦ With those objectives completed, it will be possible to use high-speed, large-
capacity digital services anywhere in Japan.
II. Developing and securing human resources with digital skills
III. Implementing digital services to solve rural issues
IV. Initiatives to leave no one behind
（
Source: https://www.japan.go.jp/kizuna/2022/01/vision_for_a_digital_garden_city_nation.html

Comparison among OECD nations
Since the Basic Act on the Formation of an Advanced Information and Telecommunications Network
Society was established in 2000, Japan has tackled digitalization under various national strategies,
including the e-Japan Strategy, and has made great progress in developing fiber-optic and other
broadband networks.
According to the OECD, Japan is at the world’s top level in terms of the proportion of optical fibers in fixed
broadband and diffusion rate of mobile broadband.
（
Source: MIC’s White Paper 2021 (https://www.soumu.go.jp/johotsusintokei/whitepaper/eng/WP2021/2021-index.html)

Broadband usage in Japan
（
+
distance-learning
teleworking
Source: MIC’s
White Paper 2021
(https://www.soum
u.go.jp/johotsusint
okei/whitepaper/e
ng/WP2021/2021-
index.html)

Impact of COVID-19
（
Source: MIC’s White
Paper 2021
(https://www.soumu.go.jp/
johotsusintokei/whitepape
r/eng/WP2021/2021-
index.html)

Impact of COVID-19
（
Source: Adapted from “A Research for Information and Media Society 2021” by Dentsu Media Innovation Research Department (Ed.)

Dramatic increase in broadband usage
（
Source: MIC’s White
Paper 2021
(https://www.soumu.go.jp/
johotsusintokei/whitepape
r/eng/WP2021/2021-
index.html)

Increasing stress on Japan’s broadband infrastructure
（
29.2%
27.2%
24.1%
32.7%
28.9%
30.8%
27.4%
22.3%
20.7%
19.2%
0.0%
10.0%
20.0%
30.0%
40.0%
0
30
60
90
120
Actual/Advertised
Actual speed
（Mbps）
Download Upload Download actual/advertised
Source: Author

Hidden issue: Competition through over-advertising
Actual speeds provided by Japanese operators have increased over the years, but not as fast as
advertised speeds, when various factors are taken into account.
◦ Possibility of inappropriate marketing to take advantage of consumers' insufficient literacy on broadband
（
Source: Author

MIC’s proposals for “universal broadband service”
As for broadband services, the volume of usage is growing year by year, and “maintenance of
existing infrastructure” is becoming increasingly important in addition to “expanding/upgrading
broadband network.”
Designate a certain broadband services as “universal service” and establish a subsidy system
or a universal service fund to ensure the stable provision of broadband services in
unprofitable areas.
（
◦ According to the MIC’s study group:
◦ Based on the concept of beneficiary-pays, it is appropriate that
the subsidy should be borne by broadband service providers.
◦ OTT service providers are also beneficiaries. However, it is
appropriate to continue to consider whether or not to collect
contributions from OTT service providers, referring to overseas
examples.

Possible “overseas example”?: zero-price rule vs. paid peering
The Case Against ISP Tolls (Netflix, Apr. 24, 2014
）
（
Source: https://www.theverge.com/2021/10/1/22704313/sk-broadband-netflix-suing-for-payment-squid-game

Wi-Fi and disaster response
（

Two targets of muni Wi-Fi projects in Japan
（
Source: Photos by author Source: https://www.jnto.go.jp/mobiletips/

Muni Wi-Fi in Japan
（
Source:
http://www.soumu.go.jp/main_sosi
ki/joho_tsusin/top/local_support/ic
t/musenlan.html
408 systems out of 1,718 municipalities as of May 2015

Case of my town
（
Source: https://translation2.j-
server.com/LUCHOJC/ns/tl.cgi/https://ww
w.city.hachioji.tokyo.jp/kurashi/sangyo/00
3/004/p018282.html?SLANG=ja&TLANG
=en&XMODE=0&XCHARSET=utf-
8&XJSID=0

Expected externality and “dual” use
（
All the benefits are
captured by the
operator.
Benefits are enjoyed by third parties
but can be partially captured
through tax.
Benefits are enjoyed
by third parties and
are difficult to be
captured.
No externality Small externality Large externality
Ordinary times
Emergency
Targeted users
Municipal gov. Local utility providers Local residents/business Tourists
Office
use
Facility
monitoring
Urban
development
Community
service Service
for
tourists
Backup office
network in an
emergency
Backup
internet
access
Disaster
information
service
Mainly for the pure
Internet access
Used as an integrated part
of a system or applications
Source: Created based on APPLIC (2015) https://www.applic.or.jp/infra/2015/2015_wifigb_ver1.1.zip

00000JAPAN: Disaster response of carrier’s Wi-Fi
（
In a normal time, a
subscriber of carrier A can
connect to the carrier A’s
Wi-Fi AP.
In an emergency, anyone
can connect to the carrier
A’s Wi-Fi AP via a common
SSID “00000JAPAN”.
Source: Created from information in http://www.wlan-business.org/customer/introduction/feature/00000japan
00000JAPAN

Case of the “2016 Kumamoto Earthquakes”
（
Foreshock
◦ A magnitude 6.2 at 21:26
JST (12:26 UTC) on April
14, 2016, at a depth of
about 11 km (6.8 mi)
Mainshock
◦ A magnitude 7.0 at 01:25
JST on April 16, 2016
(16:25 UTC on April 15)
beneath Kumamoto City
of Kumamoto Prefecture
in Kyushu Region, Japan,
at a depth of about 10 km
(6.2 mi)
Source: Photos by author

Means Used for Information Collection (in time series)
（
SNS
Gov. HP
AM radio
Terrestrial
TV
Search
engine
Mobile
SMS
Mobile
Phones
Facebook Word-of-mouth

Information Collection Means Used by Municipalities
The Kumamoto
Earthquake is
characterized by the fact
that information was
collected from dispersed
places using multiple ICT
tools.
Local government officials
themselves independently
collected information and
used tablet terminals for
information integration
and sharing. Additionally,
SNS information sent by
disaster victims was also
used for ascertaining their
needs.
（

Disaster response of muni Wi-Fi
（
Source: Created based on the data from Wi-Biz (2016) https://www.wlan-business.org/wp-content/uploads/2016/09/67dd0e3629b5df36969a4e6c51bd2565.pdf
No authentication
is required due to
a severe natural
disaster
Earthquake
Earthquake
free open
free open
Over 15,000 access points were opened free of charge throughout Kyushu.
◦ kumamoto-free-wifi
◦ Onsen_Oita_Wi-Fi_City
◦ Miyazaki_Free_Wi-Fi
◦ Kagoshima_Free_Wi-Fi, etc.

Disaster response of 00000JAPAN
Major mobile operators (MNOs) opened a total of about 55,000 access points (APs) throughout Kyushu.
（
Carriers In Kumamoto Pre. In Kyushu area
NTT DoCoMo approx. 800 approx. 9,000
KDDI approx. 1,000 approx. 10,000
Softbank approx. 3,000 approx. 36,000
TOTAL approx. 4,800 approx. 55,000
Source: Wi-Biz (2016, https://www.wlan-business.org/wp-
content/uploads/2016/09/67dd0e3629b5df36969a4e6c51bd2
565.pdf), Google Map, and National Disaster Institute for
Earth Science and Disaster Resilience
NTT DoCoMo
KDDI
Softbank
Earthquake (Apr. 14, 21:26)
Kumamoto Pre.
Kumamoto P.
Kumamoto P.
Kyushu
Kyushu
Kyushu
Kyushu
Kumamoto P.
72 hours after the earthquake
12:00

Usage of 00000JAPAN
（
It is estimated that 27% of all Wi-Fi traffic
in all of Kyushu from Apr. 15 to Apr. 30
comes from the use of 00000JAPAN.
Source: Created based on the data from Wi-Biz (2016) https://www.wlan-business.org/wp-content/uploads/2016/09/67dd0e3629b5df36969a4e6c51bd2565.pdf
A) Traffic on 00000JAPAN increased after the
opening of evacuation centers.
B) The scope of service was limited to
Kumamoto Prefecture and evacuation
centers on April 28 following the complete
restoration of the cell phone network. Free
service in other Kyushu areas was
terminated.
C) Free service in Kumamoto Prefecture
ended on May 31, 2016.
4/25-27 Restoration of the cell phone network
4/14 Earthquake
4/25-28 Free service in other
Kyushu areas was terminated.

Performances
In order to play a YouTube video at 480-
720p quality on a small screen such as a
smartphone, a download speed of
1.1Mbps to 2.5Mbps is considered
acceptable.
For LINE and twitter, effective speed
under 200 kbps is still no problem at all.
（
00000JAPAN
LTE of Softbank
Kumamoto Free
Wi-Fi
Source: Author

Public Wireless LAN Environment Improvement Support Project
From the viewpoint of disaster prevention, the Government will subsidize a part of the cost for local
governments that develop public Wi-Fi environments at disaster prevention sites (evacuation centers,
shelters, public offices) and public sites (museums, cultural assets, natural parks, etc.).
（
Source: https://www.soumu.go.jp/main_content/000719695.pdf

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