ICT Standardization Policy and Digital Signage in Japan Hideo Fuseda Director of Standardization Division Ministry of Internal Affairs and Communications Table of Contents 1. 2. 3. 4. Current state of ICT in Japan Digital Signage Market ICT Standardization Policy Digital Signage’s Role in the Great East Japan Earthquake (March 2011) 1. Current state of ICT in Japan Japan’s ICT industry’s contribution to economic growth The ICT industry accounts for approximately 10% of the market for all industries (¥87.7 trillion) Overall economic contribution of the Internet is approximately 4% of GDP ICT industry contributed to GDP growth in the past 10 years Japan’s ICT industry’s share of nominal domestic production ICT industry ¥87.7 trillion 10.0% Other industries ¥528.0 trillion 60.0% Nominal market size of all industries (2009) ¥879.7 trillion GDP contribution of Internet (%) Electrical equipment (not including ICT devices) ¥24.1 trillion 2.7% Transport equipment ¥42.9 trillion 4.9% Construction (not including construction of ICT facilities) ¥55.3 trillion 6.3% Wholesale ¥49.3 trillion 5.6% Retail ¥32.9 trillion 3.7% Transport ¥35.7 trillion 4.1% Iron and steel ¥23.8 trillion 2.7% (Source: White paper on Information and Communication in Japan) (Source:Mckinsey, “Internet matters: The net‘s sweeping impact on growth, jobs, and prosperity” (2011, May)) Penetration of ICT equipment Household penetration of mobile phones and PCs are approx. 90%, 80%, respectively TVs with an internet connection have reached approx. 30%, and tablets 10% Ownership rate of ICT Equipment (Households) Ownership rate (%) 100 94.4 92.2 87.6 90 78.5 78.2 78.2 71.7 77.5 67.7 50.8 50.5 53.9 52.9 50 40 41.4 30.6 30 34.2 20 16.0 10.3 10 FAX 50.4 85.9 9.0 55.4 53.5 YE00 平成12年末 (n=4,278) 2.3 YE01 平成13年末 (n=3,845) 33.8 11.1 3.3(PDA) 3.0(TV)3.2) 3.8(PDA) YE02 平成14年末 (n=3,673) * Mobile Phone / PHS includes PDAs after YE 09 57.1 47.6(ETC) 46.9(Car navigation) 43.8(FAX) Mobile phone capable 43.0(One-Seg mobile) 49.5 48.0 45.9 42.2 33.1 3.2 YE03 平成15年末 (n=3,354) 10.2 5.4(TV) 4.5 4.9 YE04 平成16年末 (n=3,695) 14.3 11.1 7.5 4.1 2.7 YE05 平成17年末 (n=3,982) 10.7 8.8 6.0 3.4 2.6 YE06 平成18年末 (n=4,999) Fixed Phone 51.4 34.0 17.3 11.0 Mobile phone / PHS(*) 83.4 PC 50.0 22.9 12.0 93.2 87.2 26.5 19.1 15.2 11.7 segment broadcast) 27.3 25.9 22.0 20.8 23.2 5.5 2.9 3.0 26.8 Home-use game 23.3 17.0 15.2 4.3 YE07 平成19年末 (n=3,640) TV set capable of connecting to the internet 36.2 of receiving one- Car-mounted ETC 17.5 4.1 YE99 平成11年末 (n=3,657) 33.5 23.8 11.6 0 85.0 Car navigation system 37.7 90.9 91.2 85.8 45.7 40.4 96.3 80.8 80.5 58.0 60 95.6 90.1 90.0 80 70 91.3 90.7 95.0 90.7 7.6 PDA YE08 平成20年末 (n=4,515) YE09 平成21年末 (n=4,547) console capable of connecting to the internet Mobile player capable of automatically recording content from a PC 9.7 Smartphone 7.2 Tablet Other intelligent appliances capable of connecting to the YE10 平成22年末 internet (n=22,271) 3.5 (Source :unofficial translation of ’ Communications Usage Trend Survey’ , MIC, 2010) 2.Digital Signage Market Digital Signage Market ( JAPAN ) Japan’s market is expected to reach 980 billion Yen by 2015 Particularly, the contribution of advertising & related market is expected to expand Market forecast of Digital Signage (Japan) (Source: Mitsubishi research Institute) Digital Signage Market ( Global ) Market forecast of Digital Signage (Global) (Source:Mitsubishi Research Institute) Market Share(Global) 2009 2014 (Source:YANO Research Institute) 3.ICT Standardization Policy Study framework for ICT Standardization Strategies in Japan Government of Japan Ministry of Internal Affairs and Communications (MIC) Information and Communications Council ICT Standardization policy Contribute to ITU Five main areas in Contents and Media Sector (4)Digital Signage (1) Smart Grid (Home network) The mechanism to connect consumer electronics and meters to networks, and to achieve control of each apparatus in order to conserve energy within the home. (2) Cloud Computing The mechanism to allow each user to use the functionality of a large computer center anytime, anywhere, using a small terminal. (3)3D (Souce:METI) Large computer Network The mechanism to allow a stereoscopic (3D) video to be able to be viewed with a home television through broadcasts/communication in addition to such package media as motion pictures and Blu-ray media. The mechanism to create digital images of flyers and advertisements for distribution via networks, according to the attributes of predicted passers, upon large screens at street corners and train stations. In emergencies, timely disaster information would also be distributed. (5)Next Generation Browser <Web and TV> The mechanism for achieving the same functionality as a personal computer with a home television in order to allow display of images and videos which are upon the Internet. < Vertical writing > The mechanism for displaying vertical writing in a networktype browser. 4. Digital Signage’s Role in the Great East Japan Earthquake Natural Disasters Japan frequently experiences natural disasters, such as earthquakes, typhoons, and heavy rains. Distribution of Earthquakes (1990-2000) (Source: Japan Meteorological Agency) The Great East Japan Earthquake (11 March, 2011) Sendai Fukushima Tokyo (Source: Japan Meteorological Agency) ICT in the Aftermath of the Great East Japan Earthquake With regards to telecommunications, up to one million landlines went out of service in the NTT East region, while up to 29,000 cellular / PHS base stations (operated by 5 carriers) stopped transmitting/receiving (number of base stations in the Tohoku and Kanto regions is approximately 137,500) Telecommunications damage resulting from the Great East Japan Earthquake Fixed-line telecommunications Mobile telecommunications Damage Damage A total of approx. 1.9 million lines were damaged. All carriers had restored service by April except for in certain areas. (Max. number of damaged lines) (10,000 lines) NTT East (landline phones) Up to 29,000 base stations stopped transmitting/receiving All carriers had restored service by April (except in some NTT DoCoMo, KDDI and Softbank Mobile service areas) (Max. number of out-of-service base stations) (Base stations) NTT East KDDI (FTTH) (landline phones) Softbank Telecom (landline phones) DoCoMo KDDI Softbank E-Mobile Willcom Mobile (Source: White paper on Information and Communication in Japan) ICT in the Aftermath of the Great East Japan Earthquake With regards to congestion, restrictions up to 70% - 95% in scope were imposed on mobile telephone calls. Packets faced much milder congestion, with only a temporary 30% restriction imposed by NTT DoCoMo and none by other carriers. Telecommunications congestion resulting from the Great East Japan Earthquake Fixed-line telecommunications Mobile telecommunications Congestion Congestion Congestion All carriers imposed up to 80%-90% restrictions on landlines. Restrictions up to 70% - 95% in scope were imposed on mobile telephone calls by all carriers (*). Packets faced much milder congestion, with no restrictions or relatively minor restrictions. (Max. transmission restrictions values) NTT East Softbank Telecom DoCoMo (voice) (Max. transmission restrictions values) DoCoMo (packet) au (voice) Softbank Softbank Au (packet) (voice) (packet) (Source: White paper on Information and Communication in Japan) ICT in the Aftermath of the Great East Japan Earthquake Television was perceived as an important source of information on the disaster (in the Kanto region). Media and information sources perceived as important providers of disaster information (Kanto) (multiple answers) TV (NHK) TV (Commercial broadcasters) Internet portal sites Newspapers Local or central government information on the Net Newspapers’ websites Online social media Commercial radio NHK radio NHK information on the Net Information from commercial broadcasters on the Net Information from universities and research institutions on the Net None of the above *Based on a survey of Internet users aged 20-59 residing in the Kanto region, conducted on March 19-20, 2011 by the Nomura Research Institute *The "Internet" category includes accessing of the Internet by mobile phone *"Internet portal sites" includes Yahoo!, Google, etc., but does not include the websites of newspapers, broadcasters, etc. *"Internet social media" includes Twitter, mixi, Facebook, etc. (Source: White paper on Information and Communication in Japan) Digital Signage at the time of disaster Digital Signage played an important role in providing information on the Great East Japan Earthquake People gathering around the digital signage (Source: Mitsubishi Estate)