Japan Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Publication Date: April 2024

Report Pages: 199

Analyst: Henry Lancaster

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Summary
Table Of Contents

Japan’s MNOs step up 5G deployments

Japan has one of the most modern telecom markets globally, with a particularly strong fibre broadband sector. Compared to many other countries in Europe and Asia, the country was slow to take advantage of LTE, relying for a greater length of time on legacy 3G networks and incremental technology upgrades. The government learned from this, and has been keen to promote 5G as a means to ensure that the country takes full advantage of its possibilities in terms of social inclusion and economic development. To this end, additional spectrum has been made available for 5G use, while MNOs have been offered subsidies to ensure that the platform is available in outlying areas which may otherwise be commercially unfavourable. Into 2023, the investment climate for MNOs has improved, while difficulties associated with the pandemic and supply constraints on related hardware have abated.

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). Rakuten Mobile also has a market presence, though the company continues to struggle with attracting subscribers, while its financial position remains precarious. 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. Rakuten Mobile may benefit from a streamlined mobile number portability process, which came into effect in May 2023.

Mobile broadband subscriber growth is expected to be relatively low over the next five years, partly due to the high existing penetration.

Key Developments

KDDI using Starlink’s satellite service to provide backhaul for its 5G network covering 1,200 locations in mountainous and remote island regions.
NTT contracts Fujitsu to provide its 1FINITY Ultra transport platform for NTT’s new core network to be built in 2024.
KDDI raises its stake in IIJ to 10.9%, with plans to develop additional services.
FttP continues to gain market share in fixed broadband segment as DSL is phased out.
Amended MNP process comes into effect.
Report update includes telcos operating and financial data to fiscal 2023, the regulator’s market updates for 2022, updated Telecom Maturity Index charts and analyses, and 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 Asia market comparison

Market characteristics
Market Leaders
Market Challengers
Market Emergents
TMI vs GDP
Mobile and mobile broadband penetration
Fixed versus mobile broadband penetration

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
Mobile Number Portability (MNP)
Licensing and spectrum auctions

Mobile market

Mobile statistics
Mobile infrastructure

6G
5G
4G (LTE)
3G
GSM
Other infrastructure developments
M-payment

Mobile broadband
Major mobile operators

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)
South East Asia-Japan 2 Cable (SJC2)
Japan-US Cable
Myanmar/Malaysia-India-Singapore Transit (MIST)
Apricot
Far North Fiber (FNF)

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 – 2023 (e)
Table 2 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Table 3 – Change in the number of LTE subscribers – 2014 – 2022
Table 4 – Development of mobile revenue and capex (¥ billion) – 2016 – 2018
Table 5 – Increase in the number of NTT’s 5G subscribers – 2020 – 2023
Table 6 – Increase in the number of Rakuten Mobile’s 5G base stations – 2020 – 2023
Table 7 – Increase in the number of Rakuten Mobile’s LTE base stations and population coverage – 2020 – 2023
Table 8 – Growth in the number of mobile broadband subscribers and penetration – 2012 – 2027
Table 9 – Change in the number of mobile broadband subscribers by platform– 2017 – 2021
Table 10 – Change in the number of mobile subscribers by operator (million) – 2010 – 2023
Table 11 – Change in the market share of mobile subscribers by operator – 2013 – 2023
Table 12 – Development of NTT DoCoMo’s financial data (¥ billion) – 2010 – 2023
Table 13 – Change in NTT DoCoMo’s ARPU by type (¥ / month) – 2017 – 2023
Table 14 – Change in the number of NTT DoCoMo’s mobile subscribers by type (million) – 2011 – 2023
Table 15 – Change in KDDI’s mobile ARPU and churn rate – 2019 – 2023
Table 16 – Change in KDDI’s mobile revenue – 2021 – 2023
Table 17 – Growth in the number of KDDI’s mobile subscribers – 2011 – 2023
Table 18 – Change in the number of SoftBank subscribers by segment (million) – 2011 – 2022
Table 19 – Development of SoftBank’s financial data (¥ million) – 2018 – 2023
Table 20 – Development of SoftBank’s EBITDA (¥ billion) – 2018 – 2023
Table 21 – Change in SoftBank’s service revenue by type (¥ billion) – 2018 – 2023
Table 22 – Change in SoftBank’s mobile ARPU and churn rate – 2014 – 2023
Table 23 – Development of Rakuten Mobile’s mobile financial data (¥ million) – 2018 – 2023
Table 24 – Development of Rakuten Mobile’s mobile ARPU (¥ / month) – 2020 – 2023
Table 25 – Development of Rakuten Mobile’s consumer business mobile ARPU by service (¥ / month) – 2020 – 2023
Table 26 – Increase in the number of Rakuten Mobile’s consumer business mobile subscribers by type (million) – 2020 – 2023
Table 27 – Development of IIJ’s financial data (¥ billion) – 2010 – 2023
Table 28 – Development of IIJ’s mobile revenue by segment (¥ billion) – 2020 – 2023
Table 29 – Growth in the number of IIJ’s mobile subscribers by type – 2019 – 2023
Table 30 – Change in the number of IIJ’s consumer and enterprise internet subscribers – 2009 – 2023
Table 31 – Development of JCI’s financial data (¥ billion) – 2010 – 2023
Table 32 – Development of Line Mobile’s financial data (¥ billion) – 2015 – 2020
Table 33 – Growth in the number of Line Mobile’s subscribers – 2014 – 2020
Table 34 – Growth in the number of fixed broadband subscribers and penetration – 2012 – 2027
Table 35 – Change in the number of fixed broadband subscribers by access type – 2011 – 2020
Table 36 – Increase in the number of KDDI’s cable broadband RGUs and connected households (million) – 2010 – 2023
Table 37 – Growth in the number of fibre broadband subscribers and penetration – 2011 – 2020
Table 38 – Change in the number of UQ Communications’ fixed wireless broadband subscribers – 2014 – 2023
Table 39 – Change in the number of NTT’s fixed broadband subscribers by segment (million) – 2015 – 2023
Table 40 – Increase in the number of KDDI’s FttP subscribers – 2011 – 2023
Table 41 – NTT Corp’s major shareholders – June 2023
Table 42 – Development of NTT Corp’s financial data (¥ billion) – 2011 – 2023
Table 43 – Development of NTT Corp’s revenue by business segment (¥ million) – 2022 - 2023
Table 44 – Development of NTT Corp’s capex by business segment (¥ million) – 2022 - 2023
Table 45 – Change in the number of NTT Corp’s fixed-line subscribers by service (million)– 2015 – 2023
Table 46 – Development of KDDI’s financial data (¥ billion) – 2011 – 2023
Table 47 – Change in KDDI’s fixed-line revenue – 2021 – 2023
Table 48 – Change in KDDI’s capex by sector (¥ billion) – 2011 – 2023
Table 49 – Decline in the number of fixed lines and teledensity – 2012 – 2027
Table 50 – Change in the number of fixed-line subscribers by type (thousand) – 2013 – 2022
Table 51 – Total international internet bandwidth – 2011 – 2017
Table 52 – International activated internet bandwidth – 2010 – 2022
Table 53 – Historic - Carrier share of mobile telephone and PHS market – 2004 – 2011
Table 54 – Historic - NTT DoCoMo ARPU and churn – 2004 – 2017
Table 55 – Historic - NTT DoCoMo revenue, net income, capex, and EBITDA (¥ billion) – 2005 – 2010
Table 56 – Historic - KDDI - ARPU and churn – 2001 – 2017
Table 57 – Historic - SoftBank financial data (¥ billion) – 1995 – 2010
Table 58 – Historic - SoftBank mobile ARPU and churn – 2004 – 2010
Table 59 – Historic - Fixed broadband subscribers by access type – 1998 – 2010
Table 60 – Historic - Fixed broadband subscriber annual change / market share by access type – 2001 – 2015
Table 61 – Historic - NTT Broadband subscribers (million) and market share by segment – 2004 – 2018
Table 62 – Historic - Japan FttH subscribers by operator and market share – 2017
Table 63 – Historic - Japan FttH subscribers and penetration – 2002 – 2010
Table 64 – Historic – KDDI’s DSL and FttP subscribers – 2005 – 2010
Table 65 – Historic - NTT financial data – 2000 – 2010
Table 66 – Historic - NTT video service subscribers – 2009 – 2017
Table 67 – Historic - KDDI financial data – 2001 – 2010
Table 68 – Historic - KDDI total capital expenditure on mobile and fixed line (¥ billion) – 2005 – 2010
Table 69 – Historic - IIJ revenue and net income (¥ million) – 2006 – 2010
Table 70 – Historic - Fixed line - Subscribers and penetration – 1993 – 2010
Table 71 – Historic - Growth in the number of mobile subscribers and penetration – 2007 – 2010
Table 72 – Historic - KDDI mobile subscribers – 2004 – 2010
Table 73 – Historic - SoftBank subscribers (millions) by segment – 2007 – 2010
Table 74 – Historic - Internet Users and Penetration – 2007 – 2010
Table 75 – Historic - Total international internet bandwidth – 2007 – 2010

List of Charts

Chart 1 – Asia Telecoms Maturity Index – Market Leaders
Chart 2 – Asia Telecoms Maturity Index – Market Challengers
Chart 3 – Asia Telecoms Maturity Index – Market Emergents
Chart 4 – Asia – Telecoms Maturity Index vs GDP per capita
Chart 5 – Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 6 – Northern Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 7 – Central Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 8 – South East Asia – Mobile subscriber penetration vs mobile broadband penetration
Chart 9 – Northern Asia – Fixed and mobile broadband penetration
Chart 10 – Central Asia – Fixed and mobile broadband penetration
Chart 11 – South East Asia – Fixed and mobile broadband penetration
Chart 12 – Growth in the number of mobile subscribers and penetration – 2012 – 2027
Chart 13 – Change in the number of LTE subscribers – 2014 – 2022
Chart 14 – Development of mobile revenue and capex – 2016 – 2018
Chart 15 – Increase in the number of NTT’s 5G subscribers – 2020 – 2023
Chart 16 – Increase in the number of Rakuten Mobile’s 5G base stations – 2020 – 2023
Chart 17 – Increase in the number of Rakuten Mobile’s LTE base stations and population coverage – 2020 – 2023
Chart 18 – Growth in the number of mobile broadband subscribers and penetration – 2012 – 2027
Chart 19 – Change in the number of mobile broadband subscribers by platform– 2017 – 2021
Chart 20 – Change in the number of mobile subscribers by operator (million) – 2010 – 2023
Chart 21 – Market share of mobile subscribers by operators – 2013 – 2023
Chart 22 – Development of NTT DoCoMo’s financial data – 2010 – 2023
Chart 23 – Change in NTT DoCoMo’s ARPU by type – 2017 – 2023
Chart 24 – Change in the number of NTT DoCoMo’s mobile subscribers by type – 2011 – 2023
Chart 25 – Growth in the number of KDDI’s mobile subscribers – 2011 – 2023
Chart 26 – Change in the number of SoftBank subscribers by segment – 2011 – 2022
Chart 27 – Development of SoftBank’s financial data – 2018 – 2023
Chart 28 – Development of SoftBank’s EBITDA (¥ billion) – 2018 – 2023
Chart 29 – Change in SoftBank’s service revenue by type – 2018 – 2023
Chart 30 – Development of Rakuten Mobile’s mobile ARPU – 2020 – 2023
Chart 31 – Development of Rakuten Mobile’s consumer business mobile ARPU by service – 2020 – 2023
Chart 32 – Increase in the number of Rakuten Mobile’s consumer business mobile subscribers by type (million) – 2020 – 2023
Chart 33 – Development of IIJ’s revenue and EBITDA – 2010 – 2023
Chart 34 – Development of IIJ’s mobile revenue by segment – 2020 – 2023
Chart 35 – Growth in the number of IIJ’s mobile subscribers by type – 2019 – 2023
Chart 36 – Change in the number of IIJ’s consumer and enterprise internet subscribers – 2009 – 2023
Chart 37 – Development of JCI’s financial data – 2010 – 2023
Chart 38 – Line mobile financial data – 2015 – 2020
Chart 39 – Growth in the number of Line Mobile’s subscribers – 2014 – 2020
Chart 40 – Growth in the number of fixed broadband subscribers and penetration – 2012 – 2027
Chart 41 – Fixed broadband subscribers by access type – 2013 – 2020
Chart 42 – Increase in the number of KDDI’s cable broadband RGUs and connected households– 2010 – 2023
Chart 43 – Growth in the number of fibre broadband subscribers and penetration – 2011 – 2020
Chart 44 – Change in the number of UQ Communications’ fixed wireless broadband subscribers – 2014 – 2023
Chart 45 – Change in the number of NTT’s fixed broadband subscribers by segment – 2015 – 2023
Chart 46 – Increase in the number of KDDI’s FttP subscribers – 2011 – 2023
Chart 47 – Development of NTT Corp’s financial data – 2011 – 2023
Chart 48 – Change in the number of NTT Corp’s fixed-line subscribers by service– 2015 – 2023
Chart 49 – Development of KDDI’s financial data – 2011 – 2023
Chart 50 – Change in KDDI’s capex by sector – 2011 – 2023
Chart 51 – Decline in the number of fixed lines and teledensity – 2012 – 2027
Chart 52 – Change in the number of fixed-line subscribers by type – 2013 – 2022

List of Exhibits

Exhibit 1 – Map of Telecom Maturity Index global ranking among countries in Asia
Exhibit 2 – Generalised Market Characteristics by Market Segment
Exhibit 3 – Asia – Market Leaders and market developments
Exhibit 4 – Asia – Market Challengers and market developments
Exhibit 5 – Asia – Market Emergents and market developments
Exhibit 6 – NTT Group’s restructure – March 2022
Exhibit 7 – SoftBank’s operations
Exhibit 8 – Major global/regional submarine cables with landing point in Japan

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Japan Telecoms Market Report

Telecoms, Mobile and Broadband - Statistics and Analyses

Purchase this Report

Japan’s MNOs step up 5G deployments

Key Developments

Key companies mentioned in this report:

Key statistics

Regional Asia market comparison

Telecommunications market

Regulatory environment

Mobile market

Fixed-line broadband market

Fixed network operators

Telecommunications infrastructure

Glossary of abbreviations

Related reports

Purchase this Report

Share this Report

TMT Intelligence

A platform to scale your intelligence tasks

Research Methodology

Hot Topics

News & Views