News

Using Japanese on the Internet

AIR, an Osaka-based applications software developer, will soon release for sale a Japanese-language communications software package that facilitates access to the Internet. The new software runs on the NEC PC-98 series, Windows, and UOSN PCs as well as the Fujitsu Oasys series of word processors. It facilitates sending Japanese-language (kanji) e-mail over the Internet, and it is designed to be readily used even by a computer novice. The price for a five-user package will be Y98,000 ($94).

New Internet service providers

KDD has announced that it will start an Internet connection service by March 1995. The company plans to construct a high-capacity dedicated global network focusing on Japan-US connections, and will manage and operate it in an integrated manner. KDD'S service will provide international VAN operators and universities with access points for the Internet, which will eliminate the need for them to lease dedicated lines from KDD. This is expected to reduce end-user Internet Usage fees by 20 to 30% Japanese subscribers currently pay from 200,000 to 300,000 yen ($1,900 to $2,850) per month for full leased line commercial Internet services.

Meanwhile, Network Information Service (NIS), an international VAN operator, has announced that it will begin offering a commercial Internet service in August. NIS, a joint venture between Marubeni and BT, will offer the new service in cooperation with MCI of the US.

Fujitsu was scheduled to begin offering a new commercial Internet service, called InfoWeeb, in June. InfoWeb will provide a large volume, high-speed network linking both academic and commercial networks in Japan and overseas. The new service will support access through leased line, ISDN (integrated services digital network), and regular telephone circuits. Fujitsu will provide access points in Tokyo, Osaka, and six other cities by July, and a network of 52 access points around Japan within three years.

Nagoya information highway

Chubu Telecommunications (CTC) will launch a project in fiscal 1994 to develop an "information highway" in Nagoya. The network will link about 20 city locations (such as exhibition halls) via a fiber-optic cable and will enable local broadcasting firms, including cable TV stations, to exchange video data. CTC will utilize part of the 6,000-km optical-fiber network that it uses for its corporate communications service in the Chubu region. The Nagova information highway network is scheduled to be completed in two years at a cost of 200 million ($1.9 million).

MITI reports on basic telecom policies

In mid-May, the Ministry of International Trade and Industry completed a report that sets out the basic policy concepts for a national computerization and data communications infrastructure program similar to the US National Information Infrastructure (NII) concept and Europe's Trans European Network (TEN) program. Like the NII, the ministry's program calls for private sector leadership in creating such an infrastructure; the government's role would be to computerize the public sector and provide support to the private sector.

The report advocates a mixed media communications infrastructure, one based on actual application needs. and declares that a competitive, convergent business environment is desirable. This is seen by many as an implicit criticism of recent Ministry of Construction plans that call for the building of a massive fiber-optic-based infrastructure.

AT&T Jens to shift business focus

AT&T Jens reportedly plans to retreat from Japan's packet-switching and frame-relay service markets. AT8iT Jens, which is a joint venture of AT&T, KDD, Fujitsu, Hitachi, and other firms, is said to have concluded that packet-switching and frame-relay services will not be a source of profit in the foreseeable future; the company has not had a single year in the black over the past decade. AT&T Jens will hereafter focus on international facsimile and Internet services, and Inay transfer its packet-switching and frame-relay business to either Fujitsu or Hitachi.

NTT packet lines pass half-million mark

The number of packet lines being serviced by NTT has passed the half-million mark. The company instituted its packet communications service in July 1990. The number of lines in service reached 100,000 by January 1992 and grew to over 500,000 as of April 3994. Lines currently in service include nearly 40,000 DDX-P (digital leased packet), 93,000 INS-P integrated services digital network packet), and 378,000 DTX-TP (telephone packet) lines.

New telecom association

On May 19, the Special Type-II Telecommunication's Carriers' Association, a group of about 40 VAN operators including NEC, Fujitsu, and AT&T Jens, changed its name to Telecom Services Association. Two other associations of PC communications companies and voice mail service operators were expected to disband in June and join the new association in July.

The new Telecom Services Association, actively promoted by the Ministry of Posts and Telecommunications, will thus bring together members of the Special Type II Telecommunications Carriers' Association, the Type II Telecommunications Carriers' Association, and the Japan Audio VAN Association.

More competition for NTT

Nine regional common carriers affiliated with their respective regional electric power companies have agreed to commercialize a personal handy phone system (PHS) business that does not rise NTT's network. The Ministry of Posts and Telecommunncattions is expected to decide on a PHS commercialization schedule late this year or early next year, and the regional carriers are likely to start nationwide PHS services in 1996. Since the PI-IS telephone service does not rely on the NTT network, the regional common carriers would be in a position to compete with NTT nationwide. Mobile phone sales skyrocket

In the first month following the deregulation of sales of mobile phones in Japan, more than 100,000 units were sold. Sales for April were about 250% of the total sales for the month of March and are the largest monthly sales total recorded so far in Japan (and almost one-quarter of the sales for all of fiscal 1993). A breakdown of April sales figures shows that the nine NTT DoCoMo group firms accounted for over 50% of the total, while the eight DDI-affiliated Cellular Phone companies had an 18% share, and IDO 8%.

Satellite broadcasting market narrows

Once touted as bellwether of the multimedia age, the satellite communications business has been facing slow demand. Interest recently has turned from satellite broadcasting to the construction of a fiber-optic communications network. The two industry coleaders, Japan Satellite Systems, Inc., and Space Communications Corp., are reported to have accumulated huge losses. SCC, established five years ago by the Mitsubishi group, is said to have suffered losses in the range of Y50 billion.

Multimedia creates new jobs

IBM Japan has announced that it will double its hiring of university graduates next spring. While many companies are continuing to limit their hiring due to the sluggish domestic economy, IBM Japan plans to hire 300 April university graduates (the end of the Japanese school year). This is the first increase for the company in six years and will be more than double the 140 graduates IBM Japan hired this spring.

Fujitsu also plans to increase university hires next spring to 400, a 33% increase over the 300 graduates the company hired this spring. Both companies are taking the action in anticipation of a more robust market fueled by the multimedia field. The expected increase in new-graduate hiring in the information and telecommunications industries contrasts sharply with other mainstay fields, such as the automotive industry.

Inventory reductions, increased shipments

Both NEC and IBM Japan plan to sharply reduce their PC inventories. IBM Japan aims to cut its PC inventory by the end of 1994 to about one quarter the level of two years ago, while NEC intends to halve its inventory of PCs, cellular phones, and other consumer goods by the end of 1995. The moves are aimed at reducing inventory costs, since tough price competition in the PC: industry has reduced manufacturers' profits. The reduction in inventories of finished goods will also enable the short-term reduction of production.

Meanwhile, NEC expects to increase PC shipments this fiscal year by 11%, to 1.5 million units. The company thinks that, propelled by the growing use of Windows, demand for PCs for use in multimedia and network systems will expand.

PowerPC chips from Nippon Motorola

Nippon Motorola has started shipping samples of the PowerPC 603, a low power model of the PowerPC RISC (reduced instruction-set computer) microprocessor series. It comes in 66and 80-MHz versions. Designed to operate from a 3.3-volt supply, the PowerPC603 consumes less than 3watts in active mode. It features three power-saving modes, making it ideal for use in battery-powered notebook and subnotebook computers. The 66and 5O-MHz versions are priced at 16,900 yen ($160) and Y20,900 ($200) apiece, respectively, in lots of 20,000. Volume shipments will begin in the third quarter of 1994.

Chip makers to cooperate

Ten leading Japanese chip makers Fujitsu, Hitachi, Matsushita Electronics, Mitsubishi Electric, NEC, Oki Electric, Sanyo Electric, Sharp, Sony, and Toshiba -- have established a think tank for the semiconductor industry. Established under the auspices of the Ministry of International Trade and Industry, which hopes to help Japanese chip makers rebound in the world market, the Semiconductor Industry Research Institute of Japan (SIRIJ) will develop and propose mid to long-range visions for the industry. SIRIJ will accept foreign chip makers as members if they meet all relevant qualifications.

Offshore fax production

Tokyo Electric will completely shift its facsimile production operations to Southeast Asia by the end of fiscal 1995 in order to reduce costs and raise competitiveness. The company currently produces thermal fares in Malaysia, and overseas production accounts for about 50% of its total fax output. Tokyo Electric does its own fax development, production, and marketing, and sales are expected to reach Y33 billion ($314 million) in fiscal 1994

Japan-US PC competition moves to China

NEC will start manufacturing IBM compatible PCs in Shanghai as early as this year. The company expects to sign a formal agreement with a leading Shanghai-based electronics manufacturer, with which it has already agreed to manufacture and sell workstations and POS (point of sale) systems. As well as manufacturing and selling IBM-compatible PCs in China through its Shanghai partner, NEC intends to develop the new facility into a base for producing PCs for export to Southeast Asia, Australia, and Europe. Japan-US competition in China seems likely to intensify, as IBM has already established a joint venture firm in China, and Compaq is planning a move into the market.

Core changes at Apple

Apple Japan is instituting broad improvements in its personal computer and peripherals maintenance support systems. In April, the company established a new Partner Assistance Center, with a staff of 20, that provides telephone and facsimile technical support to retail outlets. By September, a similar service will be available to users as well. Further down the road, Apple plans to start offering onsite service to companies in September 1995. These service improvements are part of Apple Japan's efforts to boost sales to 500,000 units (an 80% increase) in fiscal 1994.

IBM Japan's home office coordinators

IBM Japan will from this month establish a team of female "home of ice coordinator" consultants. Members of this team will provide average consumers of home-use PCs, such as housewives and students, with computer selection, installation, and operating advice. The move is designed to aggressively target the general-use market, whose development lags that of the corporate market. The new team of female consultants, a first for the industry, will go into action in conjunction with the startup of IBM Japan's proprietary People PC communications service, also aimed primarily at women and the youth market.

Fujilsu strengthens corporate consulting expertise

Fujitsu is expanding its data processing expert certification system to include 30,0001 systems engineers at affiliated software developers and sales firms. Courses for the first group of trainees under the expanded effort were slated to begin in June. The move is a response to the growing popularity of business process re-engineering and the resulting growth in demand from small and mid-sized corporations wanting to overhaul their data processing systems. Fujitsu hopes to strengthen its consulting capabilities by creating more certified data processing experts.

Open Systems Software from Creo

Software developer Creo will step up development and sales of open systems package software designed for core business applications at mid-sized corporations. The company has established an "open business" unit within its systems integration division as well as a separate open systems division. Creo will focus its efforts on sales of its Business Manager Series (EMS) System products, and it plans to nurture the new business into a new mainstay product line.

Expansion at NIS

Marubeni and BT will strengthen the management of their joint venture Network Information Service (NIS), an international VAN operator. The two companies will double NIS's paid in capital to Y4.9 billion ($46.9 million) and clear about Y3 billion ($28.6 million) of cumulative losses. The increase in NIS's capital is aimed at improving its financial situation after it recovered to the black last fiscal year, and also at making NIS a core company in the multimedia field. Marubeni and BT are considering strengthening their leadership roles in the venture.

NIS plans to begin offering a frame relay service to Korea, Taiwan, and Malaysia by year end. It began offering a frame relay service two years ago using the networks of BT. The new areas will be in addition to five areas in the Asia-Pacific region already covered (including Japan, Hong Kong, and Singapore). BT, which plans to have frame relay centers in 40 countries in two years, will set up new centers in Seoul, Taipei, and Kuala Lumpur -- installing Stratacom switches.

Oracle Japan to become multimedia systems integrator

Oracle Japan will enter the multimedia systems integration business this summer. The company will receive proprietary data from Japanese customers and enable them to incorporate the information in Japanese into multimedia software products developed by Oracle of the US, such as Oracle's MediaServer, MediaObject, and MediaNet. Oracle Japan intends to select several cooperating firms, and it will offer a complete multimedia service by spring 1995. The service will reach PC users in both corporations and households.

Network support

Mitsui 8e Co. plans to offer corporate communications network consulting, construction, and support services using a software package imported from California-based software developer Make Systems. The software supports the selection of optimum network configuration, such as the number of leased lines required and the cheapest carrier. It also helps improve security by checking what backup routing exists in case of an emergency, such as lines being cut by an earthquake. Mitsui will target the software and related services at major corporations, financial institutions, and information service companies. Software prices range from 5-30 million yen ($48,ooo-$2ss,ooo).

New Fujitsu office servers

Fujitsu is strengthening its office server business by introducing new models based on SPARC RISC (reduced instruction-set computer) processors. It intends to ship 28,000 in fiscal 1994, and 37,000 units in 1995. Fujitsu's Client-Server Support Team currently has a staff of 50. The company plans to expand the team and boost the number of office server dealers from the current 380 to 450.