Japan - Telecoms, Mobile and Broadband - Statistics and Analyses

Although Japan has one of the best developed telecom markets globally, the fixed-line segment remains stagnant and the focus for growth is in the mobile sector During the last few years, the MNOs have shifted their investment from LTE to 5G, and growth in 5G showed early promise although there have been recent setbacks. These have partly been attributed to the economic difficulties, the impact of restrictions imposed during the pandemic, and unfavourable investment climate (not helped by the delay of the Tokyo Olympics from 2020 to 2021), and to restrictions in the supply of 5G-enabled devices.

The fixed broadband market is dominated by fibre, with a strong cable platform also evident. Fibre will continue to increase its share of the fixed broadband market, largely at the expense of DSL.

The mobile market is dominated by three MNOs (NTT DoCoMo, KDDI, and SoftBank Mobile), while Rakuten Mobile also has a presence. The company is building out its network, and while it is focussed of providing 5G services in the major metro areas it relies on roaming agreements to offer services elsewhere.

Mobile broadband subscriber growth is expected to be relatively low over the next five years, partly due to the high existing penetration though growth has been stimulated by measures which have encouraged people to school and work from home. There has also been a boost in accessing entertainment via mobile devices since 2020.

BuddeComm notes that the outbreak of the Coronavirus continues to have a significant impact on production and supply chains globally. The telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure.

Overall progress towards 5G may be postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.

The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.

Key Developments

Tax reform aimed at funding rural 5G networks;

NTT DoCoMo becomes wholly owned by NTT Corp, plans to provide 55% population coverage with 5G by March 2022 and nationwide 5G coverage by 2023;

FttP continues to gain market share in fixed broadband segment as DSL is phased out;

Report update includes telecom Maturity Index charts and analyses, telcos operating and financial data to Q1 2021, assessment of the global impact of Covid-19 on the telecoms sector, recent market developments.

Key companies mentioned in this report:

NTT; KDDI; SoftBank Mobile, Internet Initiative Japan, eAccess, eMobile, Rakuten, IIJ; JCI; Line Mobile.

Key statistics

Regional Asian Market Comparison

Covid-19 and its impact on the telecom sector

Economic considerations and responses
Subscribers
Infrastructure

Telecommunications market

Market overview and analysis

Regulatory environment

Regulatory authority
- MPHPT/MIC
- Radio Regulatory Council
- Telecommunications Council
- Telecommunications Carriers Association
- Japan Internet Providers' Association (JAIPA)
- Legislation
Fixed-line developments
- Government investment in infrastructure
- Skill building, education and demand programs
- Competition policy
- Network non-discrimination
- Spectrum policy
- Broadband policy
- Wholesale / Pricing
- Access
- Carrier PreSelection (CPS)
- MYLINE calling categories
Mobile network developments
- Fees for mobile services
- Licensing and spectrum auctions

Mobile market

Mobile statistics
Mobile infrastructure
- 6G
- 5G
- 4G (LTE)
- 3G
- 2G
- Mobile broadband
- Other infrastructure developments
- M-payment
Major mobile operators
- Entry of new mobile providers
- NTT DoCoMo
- KDDI
- SoftBank Mobile
- Ratuken Mobile
- Mobile Virtual Network Operators (MVNO)

Fixed-line broadband market

Market overview and analysis
Fixed broadband statistics
Fixed broadband technologies
- Hybrid Fibre Coax (HFC) networks
- Digital Subscriber Line (DSL) networks
- Fibre-to-the-Premises (FttP) networks
- Fixed wireless
- Other fixed broadband services
Fixed broadband providers
- NTT East and West
- KDDI
- G.fast
- Other providers

Fixed network operators

NTT Corporation
KDDI Corporation
SoftBank Corporation
Internet Initiative Japan (IIJ)

Telecommunications infrastructure

Overview of the national telecom network
NTT NGN
Submarine cables
- Hokkaido-Sakhalin Cable System (HSCS)
- Russia-Japan Cable Network (RJCN)
- Trans-Pacific Express Cable Network (TPE)
- Pacific Crossing (PC-1)
- Google investments
- Asia Submarine Express (ASE)
- Asia Pacific Gateway (APG)
- South-East Asia Japan Cable (SJC)
- Japan-US Cable
Satellite
Data centres
Smart infrastructure
- Driverless cars
- Smart grids
- Smart cities
- Kawasaki

Glossary of abbreviations

Related reports

List of Tables

Table 1 - Top Level Country Statistics and Telco Authorities - 2021 (e)
Table 2 - Growth in the number of mobile subscribers and penetration - 2011 - 2026
Table 3 - Growth in the number of LTE subscribers - 2014 - 2020
Table 4 - Development of mobile revenue and capex (¥ billion) - 2016 - 2018
Table 5 - Development of Rakuten Mobile's financial data (¥ million) - 2018 - 2021
Table 6 - Growth in the number of mobile broadband subscribers and penetration - 2011 - 2026
Table 7 - Mobile subscribers in Japan by operator (million) - 2010 - 2021
Table 8 - Market share of mobile subscribers by operators - 2013 - 2020
Table 9 - Development of NTT DoCoMo's financial data (¥ billion) - 2010 - 2021
Table 10 - Change in NTT DoCoMo's ARPU by type (¥) - 2017 - 2021
Table 11 - Change in the number of NTT DoCoMo's mobile subscribers by type (million) - 2011 - 2021
Table 12 - Change in KDDI's mobile ARPU and churn rate - 2019 - 2021
Table 13 - Growth in the number of KDDI's mobile subscribers - 2011 - 2021
Table 14 - Change in the number of SoftBank subscriber by segment (million) - 2011 - 2021
Table 15 - Development of SoftBank's financial data (¥ billion) - 2011 - 2021
Table 16 - Change in SoftBank's mobile ARPU and churn - 2010 - 2020
Table 17 - IIJ financial data (¥ billion) - 2010 - 2021
Table 18 - Growth in the number of IIJ MVNO's subscribers - 2014 - 2021
Table 19 - Change in the number of IIJ's consumer and enterprise internet subscribers - 2009 - 2021
Table 20 - Development of JCI's financial data (¥ billion) - 2010 - 2021
Table 21 - Development of Line Mobile's financial data (¥ billion) - 2015 - 2020
Table 22 - Growth in the number of Line Mobile's subscribers - 2014 - 2020
Table 23 - Growth in the number of fixed broadband subscribers and penetration - 2011 - 2026
Table 24 - Fixed broadband subscribers by access type - 2011 - 2020
Table 25 - Growth in the number of internet users and penetration - 2011 - 2019
Table 26 - Growth in the number of fibre broadband subscribers and penetration - 2011 - 2020
Table 27 - NTT's fixed broadband subscribers by segment (million) - 2015 - 2021
Table 28 - KDDI's DSL and FttP subscribers - 2011 - 2021
Table 29 - NTT Corp's major shareholders
Table 30 - Development of NTT Corp's financial data (¥ billion) - 2011 - 2021
Table 31 - Change in the number of NTT Corp's fixed-line subscribers by service (million)- 2015 - 2021
Table 32 - Development of KDDI's financial data (¥ billion) - 2011 - 2021
Table 33 - Change in KDDI's capex by sector (¥ billion) - 2011 - 2021
Table 34 - Decline in the number of fixed lines and teledensity - 2011 - 2026
Table 35 - Fixed-line subscribers by type (thousand) - 2013 - 2020
Table 36 - Total international internet bandwidth - 2011 - 2017
Table 37 - Historic - Carrier share of mobile telephone and PHS market - 2004 - 2011
Table 38 - Historic - NTT DoCoMo ARPU and churn - 2004 - 2017
Table 39 - Historic - NTT DoCoMo revenue, net income, capex and EBITDA - 2005 - 2010
Table 40 - Historic - KDDI - ARPU and churn - 2001 - 2017
Table 41 - Historic - SoftBank financial data - 1995 - 2010
Table 42 - Historic - SoftBank mobile ARPU and churn - 2004 - 2010
Table 43 - Historic - Fixed broadband subscribers by access type - 1998 - 2010
Table 44 - Historic - Fixed broadband subscriber annual change / market share by access type - 2001 - 2015
Table 45 - Historic - NTT Broadband subscribers and market share by segment - 2004 - 2018
Table 46 - Historic - Japan FttH subscribers by operator and market share - 2017
Table 47 - Historic - Japan FttH subscribers and penetration - 2002 - 2010
Table 48 - Historic - KDDI's DSL and FttP subscribers - 2005 - 2010
Table 49 - Historic - NTT financial data - 2000 - 2010
Table 50 - Historic - NTT video service subscribers - 2009 - 2017
Table 51 - Historic - KDDI financial data - 2001 - 2010
Table 52 - Historic - KDDI total capital expenditure on mobile and fixed line (¥ billion) - 2005 - 2010
Table 53 - Historic - IIJ revenue and net income (¥ million) - 2006 - 2010
Table 54 - Historic - Fixed line - Subscribers and penetration - 1993 - 2010
Table 55 - Historic - Growth in the number of mobile subscribers and penetration - 2007 - 2010
Table 56 - Historic - KDDI mobile subscribers - 2004 - 2010
Table 57 - Historic - SoftBank subscribers (millions) by segment - 2007 - 2010
Table 58 - Historic - Internet Users and Penetration - 2007 - 2010
Table 59 - Historic - Total international internet bandwidth - 2007 - 2010

List of Charts

Chart 1 - Asian Telecoms Maturity Index by Market Category
Chart 2 - Asian Telecoms Maturity Index vs GDP per Capita
Chart 3 - Telecoms Maturity Index - Northern Asia
Chart 4 - North Asia - fixed and mobile broadband penetration rates
Chart 5 - Growth in the number of mobile subscribers and penetration - 2011 - 2026
Chart 6 - Growth in the number of LTE subscribers - 2014 - 2020
Chart 7 - Development of mobile revenue and capex - 2016 - 2018
Chart 8 - Growth in the number of mobile broadband subscribers and penetration - 2011 - 2026
Chart 9 - Mobile subscribers in Japan by operator - 2010 - 2021
Chart 10 - Market share of mobile subscribers by operators - 2013 - 2020
Chart 11 - Development of NTT DoCoMo's financial data - 2010 - 2021
Chart 12 - Change in NTT DoCoMo's ARPU by type (¥) - 2017 - 2021
Chart 13 - Change in the number of NTT DoCoMo's mobile subscribers by type - 2011 - 2021
Chart 14 - Growth in the number of KDDI's mobile subscribers - 2011 - 2021
Chart 15 - Change in the number of SoftBank subscriber by segment (million) - 2011 - 2021
Chart 16 - Development of SoftBank's financial data - 2011 - 2021
Chart 17 - IIJ financial data - 2010 - 2021
Chart 18 - Growth in the number of IIJ MVNO's subscribers - 2014 - 2021
Chart 19 - Change in the number of IIJ's consumer and enterprise internet subscribers - 2009 - 2021
Chart 20 - Development of JCI's financial data - 2010 - 2021
Chart 21 - Line mobile financial data - 2015 - 2020
Chart 22 - Growth in the number of Line Mobile's subscribers - 2014 - 2020
Chart 23 - Growth in the number of fixed broadband subscribers and penetration - 2011 - 2026
Chart 24 - Fixed broadband subscribers by access type - 2013 - 2020
Chart 25 - Growth in the number of fibre broadband subscribers and penetration - 2011 - 2020
Chart 26 - NTT's fixed broadband subscribers by segment - 2015 - 2021
Chart 27 - KDDI's DSL and FttP subscribers - 2011 - 2021
Chart 28 - Development of NTT Corp's financial data (¥ billion) - 2011 - 2021
Chart 29 - Change in the number of NTT Corp's fixed-line subscribers by service (million)- 2015 - 2021
Chart 30 - Development of KDDI's financial data - 2011 - 2021
Chart 31 - Change in KDDI's capex by sector (¥ billion) - 2011 - 2021
Chart 32 - Decline in the number of fixed lines and teledensity - 2011 - 2026
Chart 33 - Fixed-line subscribers by type - 2013 - 2020

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 DoCoMo's investment in international operators
Exhibit 4 - NTT Group structure
Exhibit 5 - SoftBank operations
Exhibit 6 - Major global/regional submarine cables with landing point in Japan

Japan - Telecoms, Mobile and Broadband - Statistics and Analyses

Description

Table of Contents

List of Tables

Japan's 2021 tax reform aimed at encouraging digital transformation

Key Developments

Key companies mentioned in this report:

Table of Contents

Key statistics

Regional Asian Market Comparison

Covid-19 and its impact on the telecom sector

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Fixed network operators

Telecommunications infrastructure

Glossary of abbreviations

Related reports

List of Tables

List of Charts

List of Exhibits