Transcript Trends of Internet Use in Japan

For Educational Use Only
Trends of Internet Use in Japan
26 June, 2007
Shigeyuki Suzuki
FUJITSU LIMITED
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007
Network of Networks
UUNET
Sprint
C&W
AOL
BT
T-Online
Access
Network
The Internet
BIGLOBE
WIDE
SINET
IIJ
@nifty
So-net
OCN
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1
Features of the Internet
• Global Network
• Open Technologies
• Multimedia-oriented
• Common Resources for Everyone
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2
Basic Internet Applications
• Electronic Mail
• Worldwide Web(WWW)
• Network News
• File Transfer(FTP)
• Remote Login(TELNET)
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3
Internet Service Provider
Information Services
Internet Service Provider
Servers(E-mail, WWW, etc.)
Database Services
Routers
…
IX
Other ISPs
Internet Exchange
LAN
LAN
LAN
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4
Internet vs. Legacy Online Info. Services
Online Info. Services Center
Mailbox for A
BBS Files
Access Network
A
B
C
PC
PC
PC
Low-speed, Character-based
Centralized Control
Master-slave Communications
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5
Internet vs. Legacy Online Info. Services
News File
A
Mailbox
WS
Internet
B
News File
C
WS
WS
News File
High-speed, Multimedia-oriented
Distributed Control
Peer-to-Peer Communications
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6
IP Address
• A unique number to identify a computer connected to
the Internet
• An IP address consists of 32 bits under the IPv4
architecture
• An IP address is divided into four 8-bit sections and is
written in four decimal numbers separated by periods.
e.g. 204.248.24.16
• The address space will be expanded to 128 bits in the
future
IPv6
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7
Domain Name
• A unique name to identify an organization connected to
the Internet
e.g. fujitsu.com
fujitsu.co.jp
icl.co.uk
• With a host name attached before a domain name, it
identifies a computer connected to the Internet.
e.g. www.fujitsu.com
• DNS(Domain Name System) is a database system
to map a domain name(host name) to an IP address.
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8
Internet Host Counts
(Millions)
500
433,193,199(Jan. 2007)
450
400
350
300
250
200
150
100
50
0
Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07
Source : Network Wizard
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9
Worldwide Internet Users
No. of Users(in millions)
1400
1,168.1
1200
1,000.6
1000
858.1
739.2
800
667.8
575.8
600
400
286.2
200 133.5
0
1998
193.3
1999
2000
2001
2002
2003
2004
2005
2006
Source : Internet White Paper 2006 (c) Access Media International,2006
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Internet Users by Region
World Total : 1,000.6million (December, 2005)
Latin America
7.9%
Africa
1.9%
North America
North America
22.4%
Europe
Asia Pacific
Latin America
Middle East
2.4%
Asia Pacific
36.7%
Europe
28.7%
Africa
Middle East
Source : Internet White Paper 2006 (c) Access Media International,2006
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Internet Users by Country
1. U.S.
2. China
3. Japan
4. India
5. Germany
6. U.K.
7. Korea
8. Italy
9. France
10.Russia
203.1 million
110.1
72.9
51.5
48.6
37.5
33.2
28.3
26.7
24.5
Source : Internet White Paper 2006 (c) Access Media International,2006
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Internet User Population & Penetration Rate in Japan
(%)
(million)
100
90
90
85.29
User Population
80
77.3
55.93
60
60.6
70
62.3
66.8
68.5
60
54.5
50
47.08
50
44.0
40
10
40
37.1
30
27.06
30
20
80
79.48
69.42
Penetration Rate
70
87.54
16.94
11.55
9.2
20
21.4
10
13.4
0
0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Year(as of December)
Source : Ministry of Internal Affairs and Communications
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Internet User Population in Asia Pacific
Asia Pacific Total : 366.7million (December, 2005)
1 China
2 Japan
3 India
110,100,000
72,879,000
51,500,000
4 Korea
5 Indonesia
6 Australia
33,200,000
18,500,000
13,980,000
7 Taiwan
8 Malaysia
9 Thai
13,900,000
9,978,000
8,396,000
10 Philippine
7,760,000
11 Pakistan
12 Vietnam
7,390,000
5,910,000
13 Hong Kong
14 New Zealand
15 Singapore
4,840,000
3,170,000
2,880,000
16 Sri Lanka
360,000
17 Bangladesh
18 Macao
345,000
240,000
19 Mongolia
20 Papua New Guinea
227,000
225,000
Source : Internet White Paper 2006 (c) Access Media International,2006
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Spread of Internet by Country
New Zealand
12.9%
10.6%
9.2%
8.9%
8.7%
8.4%
8.1%
8.1%
7.6%
7.0%
22.7%
41.3%
77.9%
70.1%
69.2%
68.4%
64.4%
60.5%
57.4%
53.2%
Hong Kong
Australia
Korea
Singapore
Taiwan
Japan
Macao
Malaysia
Brunei
Thai
Micronesia
Nauru
Maldives
Philippine
China
Mongolia
0.0%
20.0%
40.0%
60.0%
80.0%
Internet Users/Populataion(%)
Source : Internet White Paper 2006 (c) Access Media International,2006
100.0%
Fiji
Indonesia
Vietnam
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Market Trends(1)
 Slowdown of Internet User Growth
• Until 2000 the growth rate had been explosive.
• Major driving forces were:
Spread of all-in-one PCs
(Windows 98SE/Me/XP, WWW browser, 56Kbps modem,
Ethernet interface)
Reduction of Internet access charges
Internet access with mobile phone
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Spread of IT Appliances into Home
100
90
83.3 85.1 82.0 85.3
78.6
Mobile Phone
80
Percentage (%)
70
Personal Computer
64.6
63.3 65.7
57.2
60
50.1
50
38.6
40
30
20
68.3
11.5 12.2 11.9 13.9 15.6
17.3
22.1
25.2
29.5
10
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Source : Ministry of Internal Affairs and Communications
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Comparison of Internet Access Charges
Japan(@nifty)
Dial-up
\2,000/mo.(=$18*)
USA(AOL)
$25.90/mo.
(Unlimited Access)
USA(AT&T)
ADSL
FTTH
\3,000/mo.(=$27*)
(Upstream:1Mbps
Downstream:8 - 40Mbps)
$14.95/mo.
(Upstream:128Kbps
Downstream:768Mbps)
$24.99/mo.
(Upstream:512Kbps
Downstream:3Mbps)
\6,170/mo.(=$56*)
(100Mbps)
(*) $=\110
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Market Trends(2)
 Shift to Broadband Access
• Broadband access networks such as CATV, ADSL, and FTTH
 Diversified Access Networks
• Wired : PSTN, ISDN, CATV, ADSL, FTTH
• Wireless : Cellular mobile, satellite, 3rd generation mobile
(IMT 2000), wireless LAN(IEEE 802.11.b/g/a)
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Transition of Internet Access From Home
Narrowband
Broadband
No. of Users(in millions)
100
80
30.7
38.3
60
39.5
50.7
40
50.7
20
41.2
45.8
2004
2005
56.9
26.6
18.7
0
2002
2003
2006
Source : Ministry of Internal Affairs and Communications
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Broadband Households in Japan
(million)
18
DSL Internet Users
CATV Internet Users
FTTH Internet Users
16
14.2 mil. (Dec. '06)
14
12
10
7.9mil. (Dec. '06)
8
6
3.6 mil. (Dec. '06)
4
2
0
Jun-04
Sep-04
Dec-04
Mar-05
Jun-05
Sep-05
Dec-05
Mar-06
Jun-06
Sep-06
Dec-06
Source : Ministry of Internal Affairs and Communications
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Variety of Internet Access Networks
cdmaOne
64K
WLL
PHS
64 - 128K
Wireless
IMT-2000
PDC
WLL:Wireless Local Loop
IMT-2000 : International Mobile
Telecommunications 2000
Satellite
PDC:Personal Digital Cellular
CATV
Wired
ADSL
ADSL:Asymmetric Digital Subscriber Line
Tel/ISDN
FTTH
FTTH:Fiber To The Home
Leased line
10K
100K
1M
10M
100M
Transmission speed(bps)
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Mobile Internet Services in Japan
 Mobile Telephone Users (May, 2007)
DoCoMo
au
SoftBank Mobile
 Mobile Internet users (May, 2007)
DoCoMo (i-mode)
au (EZweb)
SoftBank Mobile
97.6M
52.8M
28.6M
16.2M
85.2M
47.7M
23.9M
13.6M
Source: TCA (Telecommunications Carriers Association)
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Internet Access via CATV Network
 Transmission speed：Upstream : max. 10Mbps, Downstream : max. 30Mbps
 Monthly charge：\4,000～\5,000
CATV Center
Internet
Router
Head
End
Cable
Network
～30Mbps
Home
Cable
MODEM
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Internet Access via Satellite
Down-stream：30Mbps(shared)
Individual User
Up-stream is via ISP Network
PSTN/ISDN
ISP
(Terrestrial Network)
Information
Server
Corporate User
Proxy
Server
Request for Information
Uplink Center
The Internet
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ADSL
(ADSL:Asymmetric Digital Subscriber Line)
 Internet connection via an existing telephone line
 Transmission speed : Upstream : max.1Mbps, Downstream : max.40Mbps
 Monthly charge : \3,000 (ISP charge included)
NTT Central Office
Home/Office
ADSL
MODEM Splitter Metallic lines(1 pair)
Router
DSLAM
Up：～1Mbps
Down: ～40Mbps
CO Switch
DSLAM : Digital Subscriber Line Access Multiplexer
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FTTH
(FTTH:Fiber To The Home)
 Internet access via fiber optic cable
 User Interface is either 10Mbps or 100Mbps.
100Mbps(home use) : \6,170*/mo.
*)ISP charge is not included.
NTT Central Office
Home/Office
Router
Media
Converter
Fiber Optic Cable
Up：～100Mbps(max.)
Down: ～100Mbps(max.)
LAN SW
CO Switch
Metallic lines(1 pair)
…
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IMT-2000(3rd Generation Mobile)
IMT-2000(International Mobile Telecommunication 2000)
- 3rd generation mobile communications systems using international standard
- Transmission speed:
In moving cars/trains : ～144kbps, Walking : ～384kbps, Still : ～2Mbps
- NTT DoCoMo : Launched commercial services October, 2001.
Currently about 37.1 million subscribers.
- au(KDDI Group) : Started commercial services April 2002.
Currently about 27.9 million subscribers.
- Vodafone : Started commercial services December 2002.
Currently about 8.7 million subscribers.
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Wireless LAN
Radio frequency band : 2.4GHz(IEEE 802.11.b/g), 5GHz(802.11.a)
Transmission Speed : ～11Mbps(b), ～54Mbps(a/g)
Home/Office
Public Place(e.g. railway station, airport)
Access
Point
Broadband Connection
(ADSL, FTTH)
ISP
11/54Mbps(max.)
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Market Trends(3)
 Diversified Internet Access Devices
• PDA, Game machine, Mobile telephone, (Word processor,
Internet TV)
 Multimedia-oriented Applications
• Java : animations, realtime data transfer
• Windows Media Player/Real Player : Video/audio on demand
• Internet Phone : IP Telephony (VoIP)
VoIP : Voice over IP
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Variety of Internet Access Devices
PC Users
66.0 million
PC only
15.8 million
Mobile Phone & PC
48.6 million
Mobile Phone only
19.2 million
Mobile Phone Users
69.2 million
Game Machine
1.6 million
Source : Ministry of Internal Affairs and Communications
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Subscribers of the Internet
No. of Subscribers (in millions)
80
69.2
70
57.2
60
37.2
10
66.0
44.8
PC
Mobile Phone
Game Machine
30
20
64.2
58.3
48.9
50
40
61.6
24.4
25.0
27.9
1.4
3.1
3.6
3.4
1.3
1.6
2000
2001
2002
2003
2004
2005
0
Source : Ministry of Internal Affairs and Communications
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Mobile Phone/Internet Users
Mobile Phone Subscribers, non Internet
100
Mobile Internet Subcribers
90
Subscribers
(in millions)
80
70
60
50
40
30
48.5
20
10
0
59.5
67.8
73.6
78.2
82.6
2004
2005
2006
26.9
2000
2001
2002
2003
Year (as of December)
Source: TCA (Telecommunications Carriers Association)
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Spread of IP Telephony
No. of Subscribers (in millions)
16
13.8 14.3
14
13.0
12
10
7.8 8.3
8
6
5.3
6.0
9.0
9.8
10.6
11.5
12.1
7.0
4.3
4
2
0
Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec- Mar03
04
04
04
04
05
05
05
05
06
06
06
06
07
Source : Ministry of Internal Affairs and Communications
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Market Trends(4)
 New Services/Businesses
•
•
•
•
WWW Search Engine : Yahoo!, Google, Infoseek, Excite, etc.
Electronic Commerce : Online shopping, EDI
Blog (Weblog)
SNS (Social Network Service)
EDI : Electronic Data Interchange
 Intranet/Extranet Applications
• Use of Internet technologies in corporate information network
systems
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Use of the Internet from PCs
(%)
E-mail
70
Multiple answers
60
Information retrieval
News, weather forecast
54.4 55.4
Info. of central/local gov.
50.2
50
Net shopping/transaction
Download of
movie/picture
Questionnaire
39.7
40
Download of music
30
Recruiting
21.7
19.1
20
Online games
15.1 16.3
Online banking
7.1 10
10
8.8
4.0
2.4 2.5
0
e-learning
e-government
others
Source: Ministry of Internal Affairs and Communications
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Use of the Internet from Mobile Phone
(%)
70
E-mail
69.5
Multiple answers
Information retrieval
News, weather forecast
60
Info. of central/local gov.
50
Net shopping/transaction
Download of
movie/picture
Questionnaire
40
Download of music
30
26.2
25.1
Recruiting
Online games
20
13.3
8.6
10
1.5
Online banking
11.2
6.8
e-learning
1.5 3.1
0
1.2
1.9 0.2
0.0
e-government
others
Source: Ministry of Internal Affairs and Communications
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Web 2.0
The Internet is “SOCIAL MEDIA”
Source: Dion Hinchcliffe’s Web2.0 Blog
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Blog (Weblog)
A weblog, which is usually shortened to blog, is a website
where regular entries are made (such as in a journal or
diary) and presented in reverse chronological order.
Blogs often offer commentary or news on a particular
subject, such as food, politics, or local news; some
function as more personal online diaries. A typical blog
combines text, images, and links to other blogs, web
pages, and other media related to its topic. Most blogs
are primarily textual although many focus on
photographs, videos or audio.
Source: Wikipedia
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Blog Posts by Language
Japanese
English
Chinese
Italian
37%
36%
8%
3%
Spanish
3%
Source: “The State of the Live Web, April 2007” Technorati
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SNS (Social Networking Service)
Social networking is a category of Internet applications to
help connect friends, business partners, or other individuals
together using a variety of tools. These applications, known
as online social networks are becoming increasingly popular.
Most social network services are primarily web based and
provide a collection of various ways for users to interact,
such as chat, messaging, email, video, voice chat, file sharing,
blogging, discussion groups, and so on.
Source: Wikipedia
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Second Life
Second Life is an Internet-based virtual world developed by
Linden Research, Inc. A downloadable client program
enables its users, called "Residents", to interact with each
other through motional avatars, providing an advanced
level of a social network service combined with 3D virtual
spaces. Residents can explore, meet other Residents,
socialize, participate in individual and group activities,
create and trade items (virtual property) and services from
one another.
Source: Wikipedia
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Electronic Commerce (B2B)
(trillion yen)
120
102.7
100
77.4
80
60
46.3
34.0
40
21.6
20
0
8.6
1998
12.3
1999
2000
2001
2002
2003
2004
Source:2006 White Paper Information & Communications in Japan
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Electronic Commerce (B2C)
(billion yen)
6,000
5,643
5,000
4,424
4,000
2,685
3,000
2,000
1,000
0
1,484
824
2000
2001
2002
2003
2004
Source:2006 White Paper Information & Communications in Japan
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The Long Tail
Sales
Traditional Market
80% of Sales comes 20% of products
Amazon.com, Inc. earns
1/3 of its sales from
“The Long Tail” area.
The Long Tail
Address wide variety demand
TOP 20%
of products
Other products (80%)
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Goods Purchased via Net Shopping
(%)
45
Books/CDs
40
Hobby goods
35
Accessories
30
25
20
15
10
Tickets
40.4
38.1
PC related items
33.7
Foods
26.3 25.3 21.9
21.5
Tour applications
14.9
5
11.4
Financial dealings
Others
0
Source:2006 White Paper Information & Communications in Japan
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Goods Bought/Sold via Net Auction
(%)
40
Answers from experienced users
Multiple answers
27.7
30
24.9
24.5
22.5
22.5 22.8
Buy
Sell
20.2 19.8
20
17.0
15.3 15.8
12.3
10
0
10.1
7.4
Furniture/home PC related goods
appliances
Books
CDs/DVDs
Game Software
Cosmetics
Tickets
Source:2006 White Paper Information & Communications in Japan
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Impediments to Net Shopping
(%)
35
30
33.2
Answers from inexperienced users
Multiple answers
25.9
Want to buy goods by actually
looking at them
Not necessary/not interested
25
19.8
20
Not Cheap
18.5
Fear about Security
14.7
15
Complicated purchassung
process
9.5
10
5
6.0
Delivery delay
Others
0
Source : Internet White Paper 2006 (c) Access Media /impress R&D,2006
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 48
Issues about Network Security
• Unauthorized access using a stolen password
• Stealing and crashing data files by invalid access to
ISP’s servers
• Wiretapping of data transmitted on the Internet
• Software/data files infected with computer virus
• Attack to ISP’s servers by E-mail/packet flood
• Phishing
• Pharming
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Phishing (Fishing)
In computing, phishing is a criminal activity using social
engineering techniques. Phishers attempt to fraudulently
acquire sensitive information, such as usernames,
passwords and credit card details, by masquerading as a
trustworthy entity in an electronic communication.
Phishing is typically carried out by email or instant
messaging, and often directs users to give details at a
website, although phone contact has been used as well.
Attempts to deal with the growing number of reported
phishing incidents include legislation, user training, and
technical measures.
Source : Wikipedia
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Technique of Phishing
×
E-mail sender
Real web site of bank,
credit card company, etc.
E-mail server
of recipient
Personal information such as account no.
Account no., etc.
E-mail sender’s server
E-mail urging to
enter account no., etc.
• Falsely claiming to be a real bank and so on, send an e-mail
asking for entering personal information such as account no.
due to renewal of the system.
• Show a web link to direct the recipient to a false web site
that is set up to steal the personal information.
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Damage of Phishing
Estimation by the Gartner Group based on the hearing from 5,000
Internet users in the U.S.A. between the second half of 2003 and the
first half of 2004.
• Approximately 5.7 million people received phishing mails.
• 19% of the phishing mail recipients (about 1.1 million) actually
accessed false web sites. 3% (about 1.8 million) of the recipients
entered personal information.
• Financial damage of banks and credit companies amounted to
1.2 billion dollars.
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Pharming (Farming)
Similar in nature to e-mail phishing, pharming seeks to obtain personal
or private (usually financial related) information through domain
spoofing. Rather than being spammed with malicious and mischievous
e-mail requests for you to visit spoof Web sites which appear legitimate,
pharming 'poisons' a DNS server by infusing false information into the
DNS server, resulting in a user's request being redirected elsewhere.
Your browser, however will show you are at the correct Web site, which
makes pharming a bit more serious and more difficult to detect.
Phishing attempts to scam people one at a time with an e-mail while
pharming allows the scammers to target large groups of people at one
time through domain spoofing.
Source : Webopedia Computer Dictionary
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Reporting of Computer Virus Infection
140,000
121,404
120,000
100,000
85,700
74,978
68,624
80,000
60,000
43,384
40,000
20,000
0
2001
2002
2003
2004
2005
Source:2006 White Paper Information & Communications in Japan
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Internet vs. Intranet
WWW Browser
Inhouse WWW
Server
Firewall
Intranet
Corporate
Applications Servers
(LAN-WAN-LAN)
Internet
・Public Server
・Proxy Server
・Mail Server
・News Server
・DNS Server
etc.
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Firewall
A system designed to prevent unauthorized access to or from a
private network. Firewalls can be implemented in both
hardware and software, or a combination of both.
Firewalls are frequently used to prevent unauthorized Internet
users from accessing private networks connected to the Internet,
especially intranets.
All messages entering or leaving the intranet pass through the
firewall, which examines each message and blocks those that do
not meet the specified security criteria.
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 56
Remote Access to Corporate Network
Customer’s Data Center
Intranet
PSTN
FENICS
Remote LAN
Access Network
Router
GW
Modem
ISDN
Tunneling
TA
AP
Authentication
Dial-up
Router
(RADIUS)
Servers
ACE Server
Administrator
PSTN／ISDN
Modem/TA
Cellular
Phone
Administration
Server
123456
Secure ID
PHS
Network Monitoring
Center
24 hours/365 days
－ Caller’s number Check
－ Onetime Password
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 57
Security Technologies
• Encryption
• to protect from loss of privacy
• Digital Signature
• to protect from loss of integrity
• Authentication
• to protect from spoofing
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 58
Encryption Methods
• Secret- key(Symmetrical) cryptography
• The same key is used to encrypt and decrypt
e.g. DES(Data Encryption Standard)
• Public-key cryptography
• A pair of keys, public and private keys, are used.
• A sender encrypts a message with the receiver’s public key
and that message can only be decrypted with the receiver’s
private key.
e.g. RSA
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 59
Privacy-Enhanced Mail(PEM)
B’s public key
B’s private key
RSA
RSA
Data Encryption
Key
Data Encryption
Key
?!*&#
Hello!
DES
DES
Hello!
1. Encrypt a message with a data encryption key(DES)
2. “A” encrypts the data encryption key with “B”’s public key. (RSA)
3. “B” decrypts the data encryption key with “B”’s private key.(RSA)
A
4. “B” decrypts the message with the decrypted data encryption key(DES)
B
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 60
Digital Signature
A’s public key
A’s private key
?!*&#
Message Digest(MD)
A
Hello!
RSA
Create
Message Digest
Hello!
A
Message Digest(MD)
RSA
Hello
A
Compare
1. “A” creates a message digest(MD).
2. “A” encrypts the MD with “A”’s private key(RSA).
Digital Signature
3. “B” decrypts the MD with “A”’s public key(RSA) and restore
the MD.
4. “B” creates a message digest using the message that “B”
received separately.
5. Compare the restored MD and the MD that “B” created.
Create
Message
Digest
Hello!
B
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 61
Spoofing
B
This is A’s public
key.
B
B
Authentication
System
Invalid signature
Purchase Order
I am A.
A
???
A
A
To: A
Invoice
1. Person “B” pretends to be Person “A” using B’s private and public keys.
2. “B” places an order with a forged signature.
3. Seller’s authentication system understands “A” placed the order and sends an
invoice to “A”.
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 62
Certificate Authority
CA(Certificate Authority)
W
CA’s
public key
CA’s private
key
Registration
W W
RSA
W
B
Digital
Signature
A
A
Certificate
W
RSA
A
A
A
1. Sender “A” registers his public key to the CA.
2. The CA creates a digital signature with its private key and issues a certificate.
3. If Receiver “B” can decrypt the certificate with the CA’s public key, it is authentic.
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 63
Troubles Related to Internet Use
• Posting harmful messages to BBS
• Damage someone’s reputation or credibility
• Spam mail(unsolicited bulk mail)
• Problems related to home page content
•
•
•
•
Pornography
Infringement of third party’s copyright, trademark
Invasion of privacy
Unlawful business
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 64
Domain Name Disputes
• Collision of domain name
• Shortage of name space
• Troubles related to trademarks
• mcdonald.com
• matsuzakaya.co.jp
• Need for creating new gTLDs*
• Conventional gTLDs : .com, .org, .net, .gov, .edu, .mil, .int
• New gTLDs : .aero, .biz, .info, .coop, .museum, .name,
.pro
(*)gTLDs : generic Top Level Domains
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 65
Internet Use in Business
• Strengthen the company's core business
• Communications with clients/suppliers
• Publish information outside
• Increase efficiency of white-collars
• Intra-company communications
• Information gathering from the outside
• Information sharing among employees
• Explore new business opportunities
• Online shopping, online publishing, etc.
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 66
Examples of Internet Use in Business(1/4)
-- Strengthen Core Business -Department
Applications
Public Relations
Advertisement
-Publication of corporate info.
-Notification of events
Personnel
Sales
-Recruitment
-Electronic catalog
-Online shopping
Effect
-Globalization
-Reduced cost
-Quickness
-Reduced cost
-Two-way communication
-Reduced cost
-Globalization
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 67
Examples of Internet Use in Business(2/4)
-- Strengthen Core Business -Department
Purchasing
Customer
Support
Applications
-Procurement of components
and software
-Frequently asked questions(FAQ)
Effect
-Globalization
-Reduced cost
-2-way communication
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 68
Examples of Internet Use in Business(3/4)
-- Increase Efficiency -Department
Applications
Personnel
-Notice of organizational
changes
-Notice of personnel shift
General
Affairs
-Electronic telephone
directory
-Directions to offices
Sales
-Various notices
-New products information
-Communications with customers
Effect
-Paperless
-Quickness
-Paperless
-Quickness
-Quickness
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 69
Examples of Internet Use in Business(4/4)
-- Increase Efficiency -Department
Applications
Development
-Sharing of technical info.
-Sharing of design info.
-Quickness
Research
-Propagation of research
results
-Quickness
Effect
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 70
Telecommuting
(%)
10
(million)
9.4
9
8.4
700
8.5
7.7
8
600
7.1
7
500
6
400
5
674
300
4
3
200
2.0
408
2
1
0
0.8
100
1999 2000 2001 2002 2003 2004 2005
0
2002
2005
Source:2006 White Paper Information & Communications in Japan
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 71
Internet Use for Product Development
<Fujitsu>
Software Licensing Business
<USA>
Product
Management
Instructions,
Review
Source code
FNET
Subcontractors
University
of Illinois
NCSA
Mosaic
WAIS Inc.
WAIS
Internet
Q&A
Sales
Results
Shorter development time
Online shopping
Quick support
Customer
Expansion of market
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 72
In-house Information Sharing
Information Sharing among System Engineers
WWW
Browser
HTML
SGML
F
I
N
D
2
Intranet
WWW
manuals
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 73
Intranet SNS
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 74
Changes of Business Models by Internet
Shift to Network Based Marketplace
 Alliance between different industry segments
 Creation of new sales channels
 New business relationship
 Internet based marketing
 Business expansion
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 75
New Business Opportunities
Subscribers Management,Security,
Community Management,Payment System,etc.
Expanding
Subscribers
@nifty
“New Business
Opportunities”
Collaboration with active companies
toward new business on the Internet
Keeping
up
momentum
Business
Partners
- Finance
- Insurance
- Credit Card
- Retail
- Education
- Mobile Service
- CATV etc.
Creation of
New Business
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 76
Channel Services @nifty (portals)
Automobile
Real Estate/Living
Finance
Music
Women
Travel
Fortune Telling
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 77
Finance@nifty
Investment Gate
- Stock market
- Mutual Funds
- Exchange rate
Finance Center
(Gateway to the service below)
- Bank
- Insurance
- Trading
- Credit Card
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 78
Internet Virtual Bank
FUJITSU
＠ｎｉｆｔｙ
ＢｔｏＣ
<Service for Subscribers>
◆Virtual Bank
◆open accounts
Internet
Open an
account
@nifty
Virtual Shop
•Transfer
•Balance check
•Deal check , etc
BANK
transfer
Call Center
Deposit/
Payment
Internet
Banking
Shopping
@nifty subscribers
inquiry
Deposit /
Payment
ATM
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 79
Broadband Internet
Transmission speed
Slow
Fast
Connect time based
Flat rate
Pricing
Connection
On demand
Always on
Access from
Home/Office
Various places
New technologies enabling broadband access
CATV, ADSL, FTTH, IMT-2000
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 80
Broadband Subscribers
(million)
700
600
463.0
500
362.4
400
300
249.9
200
72.0
100
14.9
0
2000
119.0
32.0
2001
2002
2003
2004
2005
2006
Source : Internet White Paper 2006 (c) Access Media International,2006
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 81
Comparison of Broadband Rates
Costs per 100Kbps of data trancemission
(US$)
0.8
0.73
0.7
0.6
0.49
0.52
0.5
0.4
0.25
0.3
0.18
0.2
0.1
0
0.07
Japan
0.2
0.08
Korea
Taiwan
Iceland
Sweden
USA
Source: “ITU Internet Reports 2005: The Internet of Things”
Germany
Finland
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 82
e-Japan Strategy (2001)
Realize the world's most advanced IT nation within 5 years.
e-Japan Priority Policy Program
• Foundation of the world's most advanced information &
telecommunications networks
• Promotion of education and development of human resources
• Facilitation of e-commerce
• Digitization of administration and application of IT in other
public areas
• Ensuring of security and reliability on advanced information &
telecommunications networks
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 83
u-Japan Strategy (2006)
u-Japan （Ubiquitous Japan）
Ubiquitous
Connects everyone and everything
○ An easy-to-use network anytime, anywhere, with
anything and for anyone.
・ICT will be part & parcel of daily life to create a user-friendly society
○ Person2Person plus Person2Goods, and
Goods2Goods
Universal
・ Communications will play a more important role in society from
every and all aspects
User-friendly
○Easy to use
・ Can be used by anyone regardless of
equipment or network complexity
・ The aged and disabled will be able to
participate in society by means of ICT
○Interaction
・ A heart to heart interaction overcoming
barriers between generations and localities to
create togetherness
User-oriented
From the user’s point of view
○Close to the user
・For a society that is user-orientated rather
than a society where products are only
provided by the supplier
・ Developing technologies and services that
are connected to our needs
Unique
Be something special
○Create individual energy
・A new society where your dreams come true
○Re-Vitalize the society
・Create new social systems and business
services
・Get out from the norm and realize local
revitalization by creative means
○Users become suppliers
・Creating a total of 100 million consumers
with network dynamics
4U = For You
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 84
u-Japan Strategy
By FY2010:
 Eliminate zero-broadband areas
（During the process eliminate zero-broadband cities and towns by 2008)
u-Japan Policy Package
 Ensure over 90% household access to ultra high-speed broadband networks
Ubiquitous networks
development
Advanced ICT use
Improvement of
ICT use environment
Nationwide broadband
infrastructure
Social systems reform for
advanced ICT use
Identifying the negative aspects
Seamless wired/wireless
access environments
Promotion of content
production, distribution and
usage
Real-objects networking
Promoting universal design
Network collaboration
infrastructure
ICT human resources
Technological strategy
Selecting priority issues to be
addressed and developing
associated strategies
(ICT Safety and Security 21 strategy)
Responding to important emerging
issues for the future
International strategy
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 85
User Evaluation of Broadband Services
Short lead time for using the service
5.6
Connectivity to multiple PCs
7
Simultaneous use of voice and data
9.7
Low initial cost
11.3
Use of existing telephone line
25.4
Inexpensive charge
35.6
Connection speed
45.2
Always-on connection
71.5
Flat rate charge
71.7
0
Source : InfoCom Research, Inc.
10
20
30
40
50
60
70
80
Percentage of Respondents (%) (MA N=2398)
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 86
Content/Applications of Broadband Network
Video on Demand
1.4
9.7
Online Game
8
Streaming
6.4
Music/Video Download
After
Before
24.7
31
37.6
14.4
Software Download
43.4
Shopping
43.5
63.6
61.2
Net Surfine
72.8
84.7
94.1
91.2
E-mail
0
Source : InfoCom Research, Inc.
10
20
30
40
50
60
70
80
90
100
Percentage of Respondents (%) (MA N=2398)
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 87
Broadband Network & Enterprises
<Enterprise>
-Extensive Collaboration-
<Home>
Work-from-home
Broadband
Network
<Customers>
Two way communication
with rich content
<Manufacturer>
<Business Partners>
Procurement
Video Chat
<Overseas Companies>
◆ Reduced time for design/manufacturing/procurement by sharing information
◆ Speedy decision making by sharing information and network based conference
◆ Direct communication between enterprises and cutomers
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 88
Broadband Network & Local Government
-Local Government Becoming an Information Center<Local Government>
<Hospital>
Regional
Information DB
Broadband Network
＜Healthcare Center＞
<Home>
<L. Government Office>
<Local Enterprises> <Library>
◆ Administrative Reform - Outsourcing, merger of cities and villages
◆ Improve regional services by making use of services from private sectors
◆ Reform services for citizens - Network based services accessible from home
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 89
e-Government
100%
Application systems through the Internet
79%
Prefecture
City
38%
20%
4%
0%
2004
2005
Source:2006 White Paper Information & Communications in Japan
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 90
'Keiko(Practice)' and 'Manabu(Learn)'
- PoD (Program on Demand) Service -
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 91
Transition of Internet Use
Information lifeline
Personalization
Push type
information delivery
Browser
Search Engine
Research
E-mail
Communication
UNIX machines
Applications based on
life style/local community
Banner Ads.
Always-on
connectivity
PCs
Diversified Access Devices
Broadband
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 92
Emerging Broadband Era
Internet access will be available whenever you want,
wherever you are, and for whatever you like.
BtoC/CtoB/PtoP
Online Content
（Newspaper・Magazine・Music・Movie）
Home
Communication
Online Finance
Electronic Money
E-mail, Web, Motion picture
Digital Broadcasting
Broadband
Always-on
Online Library
Public Services
Enterprises
BtoB
E-Government
EDI/CRM
Remote Healthcare
Factories
SCM/CRM
Online School
All Rights Reserved, Copyright (C) FUJITSU LIMITED 2007 93