This report provides a comprehensive overview of trends and developments in Japan’s telecommunications market. The report analyses the Telecoms Infrastructure, mobile, fixed broadband, Digital Media and Digital Economy sectors.
- Market and industry analyses, trends and developments
- Regional market comparisons
- Telecoms Maturity Index
- Data centres and Smart Infrastructure
- Major players, revenues, subscribers, ARPU
- Broadband (FTTH, DSL)
- Internet of Things, 5G developments
- Mobile, broadband and mobile broadband forecasts to 2023-4
Japan’s telecommunications sector is one of the most developed markets in the world.
Fixed line growth in Japan has been stagnant over the past five years. This trend is predicted to continue over the next five years to 2024.
The fixed broadband market is supported largely by two technology platforms: cable TV (CATV) and FttH, with the latter more prominent.
Japan’s mobile market is dominated by three major operators - NTT DoCoMo, KDDI and Softbank Mobile. However, the Japanese government is looking to open its mobile market up to new players for 5G services. Japan’s largest e-commerce company is working on plans to build its own nationwide 4G mobile network with an intended launch by 2020.
Japan has a strong presence as a regional Asian data centre provider and is a global financial and corporate hub and one of the fastest evolving digital markets in the world. Data centre locations have easy access to high-speed international connectivity, with landing points for several submarine cables that connect with the western United States. Japan’s digital economy is highly mature and difficult to serve from overseas or alternative locations. Japan has now evolved into more of an international data centre market driven by the global hyperscale cloud providers expanding in the Tokyo and Osaka markets.
Japan possesses a large and vibrant television industry due to its unique culture and market size. Legislation enacted to restrict ownership has led to a plethora of broadcasters. Japan’s vertically integrated broadcasting industry means broadcasters create as well as distribute content.
Japan possesses one of the most advanced and largest broadband markets in the world. Japan has also been an early adopter of triple-play models which provide TV, broadband internet and voice telephony as packaged services from a single provider. Fixed-line broadband market penetration has grown slowly over the past five years in a highly mature market.
Moving towards 2020, FttH will continue to increase its share of total fixed broadband subscriptions at the expense of DSL. This is expected to accelerate as the few remaining DSL users are encouraged to migrate off the remaining DSL. Over the next five years to 2024 fixed broadband growth is expected to continue to increase slowly.
Recognising the potential of applying ICT to improve both social and economic development, Japan has taken steps to develop a digital economy. Businesses, governments and private citizens have been instrumental in creating the online content and services that make up the digital economy.
Mobile subscriber growth is expected to be relatively low over the next five years to 2024 due to a highly mature and highly competitive market. The market will be driven by the uptake of both 4G LTE and 5G services.
Japan’s mobile market is dominated by three major operators - NTT DoCoMo, KDDI and Softbank Mobile. However, the Japanese government was looking to open its mobile market up to new players for 5G services. This could result in the entry of new players, even those from outside the traditional telecoms space, and potential foreign players, including those looking to target the Internet of Things, virtual reality and automotive applications.
Mobile broadband subscriber growth is expected to be relatively low over the next five years to 2024 due to a highly mature mobile subscriber market, with the vast majority of subscribers already having wireless broadband access.
The three carriers plan on launching 5G services commercially in 2020, with DOCOMO targeting nationwide coverage by 2023. The anticipated surge in interest for IoT and related technologies such as driverless cars is expected to help fuel a boom in spending.
The Ministry of Internal Affairs and Communications (MIC) is preparing to embark on R&D work in Japan to explore a new telecoms standard that will eventually succeed in 5G technology.
NTT DOCOMO has launched a global Internet of Things solution designed to aid customers in the development of IoT services and has claimed a world first in a 5G test using a 28GHz band antenna on a 5G connected car.
- The three carriers plan on launching 5G services commercially in 2020
- DOCOMO is targeting nationwide 5G coverage by 2023
- FttH will continue to increase its share of total fixed broadband subscriptions as DSL is phased out
- Over the next five years to 2024 fixed broadband growth is expected to continue to increase slowly
- Stagnant growth in the fixed line market is predicted to continue over the next five years to 2024
- Japan's first Cellular Vehicle-to-Everything (C-V2X) trials are commencing
1 Key statistics
2 Telecommunications market
2.1 Market overview and analysis
2.2 Regional Asian Market Comparison
3 Regulatory environment
3.1 Historic overview
3.2 Regulatory authority
3.3 Government Policies
3.5 Carrier PreSelection (CPS)
4 Fixed network operators
4.1 NTT Corporation
4.2 KDDI Corporation
4.3 Softbank Corporation
4.4 Internet Initiative Japan (IIJ)
5 Telecommunications infrastructure
5.1 Overview of the national telecom network
5.2 NTT NGN
5.3 Submarine cables
5.5 Data centres
5.6 Smart infrastructure
6 Broadband market
6.1 Market overview and analysis
6.2 Fixed broadband statistics and forecasts
6.3 Fixed broadband technologies
6.4 Fixed broadband providers
7 Digital media
7.2 Pay TV
7.3 Satellite TV
7.4 Internet Protocol TV (IPTV)
7.5 Video streaming
8 Mobile communications
8.1 Market overview and analysis
8.2 Mobile statistics and forecast
8.3 Mobile broadband statistics and forecast
8.4 Regulatory issues
8.5 Mobile infrastructure
8.6 Major mobile operators
8.7 Mobile Virtual Network Operators (MVNO)
List of Tables
Table 1 Top Level Country Statistics and Telco Authorities 2019 (e)
Table 2 Percentage of Population Covered by Type of Mobile Network
Table 3 Key Metrics - Compound Annual Growth Rate (CAGR) - 2019 2024
Table 4 NTT major shareholders
Table 5 NTT financial data 2000 2018
Table 6 NTT subscribers by service 2015 2018
Table 7 Historic - NTT video service subscribers 2009 2017
Table 8 KDDI financial data 2001 2018
Table 9 KDDI total capital expenditure on mobile and fixed line 2005 2018
Table 10 Historic - IIJ revenue and net income 2006 - 2016
Table 11 Fixed Line Subscriptions and Penetration 2007 - 2019
Table 12 Historic - Fixed line - Subscribers and penetration 1993 2006
Table 13 Fixed Broadband Subscribers and Penetration (with Forecast) 2007 2024
Table 14 Historic - Fixed broadband subscribers by access type 1998 -2015
Table 15 Historic - Fixed broadband subscriber annual change/market share by access type 2001 2015
Table 16 NTT Broadband subscribers and market share by segment 2004 2018
Table 17 Internet Users and Penetration 2007 2019
Table 18 Historic - Total international internet bandwidth 2003 2017
Table 19 Historic - Japan FttH subscribers by operator and market share 2017
Table 20 Historic - Japan FttH subscribers and penetration 2002 2017
Table 21 Historic - KDDI - ADSL and FttH subscribers 2005 2017
Table 22 Historic - Cable TV operators market share 2009 2016
Table 23 Historic - NTT video service subscribers 2009 2017
Table 24 Mobile Subscribers and Penetration (with Forecast) 2007 2024
Table 25 Mobile Broadband Subscribers and Penetration (with Forecast) 2009 2024
Table 26 Mobile subscribers in Japan by operator and market share 2019
Table 27 Historic - Carrier share of mobile telephone and PHS market 2004 2011
Table 28 NTT DoCoMo major shareholders
Table 29 NTT DoCoMo revenue, net income, CAPEX and EBITDA 2005 - 2019
Table 30 Historic - NTT DoCoMo ARPU and churn 2004 2019
Table 31 NTT DoCoMo ARPU (¥) 2017 2019
Table 32 NTT DoCoMo subscribers (thousands) 2011 - 2019
Table 33 Historic - KDDI - ARPU and churn 2001 2017
Table 34 KDDI ARPU and Churn Rate (¥) 2018 2019
Table 35 KDDI mobile subscribers 2011 2019
Table 36 Softbank subscribers (millions) by segment 2007 2019
Table 37 Softbank financial data 2009 2019
Table 38 Historic - Softbank financial data 1995 2011
Table 39 Softbank mobile ARPU and churn 2004 2019
List of Charts
Chart 1 Mobile, Mobile Broadband & Fixed Broadband Penetration 2019; 2024
Chart 2 Asian Telecoms Maturity Index by Market Category
Chart 3 Asian Telecoms Maturity Index vs GDP per Capita
Chart 4 Telecoms Maturity Index Northern Asia
Chart 5 Fixed Line Subscriptions and Penetration 2007 2019
Chart 6 Fixed Broadband Subscribers and Penetration (with Forecast) 2009 - 2024
Chart 7 Mobile Subscribers and Penetration (with Forecast) 2009 2024
Chart 8 Mobile Broadband Subscribers and Penetration (with Forecast) 2010 2024
List of Exhibits
Exhibit 1 Key Market Characteristics by Market Segment
Exhibit 2 Northern Asia - Key Characteristics of Telecoms Markets by Country
Exhibit 3 NTT Group structure
Exhibit 4 Softbank operations
Exhibit 5 Major global/regional submarine cables with landing point in Japan
Exhibit 6 NTT DoCoMo investment in international operators