Satellite-based mobile communication
The Ministry of Posts and Telecommunications (MPT) plans to adopt several mobile communications systems based on low-orbit earth satellites. The project forms the centerpiece of the ministry's medium-term plan for communications infrastructure development; the ultimate goal is to support international calls at the same rates as current domestic cellular services. The MPT is considering six US-proposed schemes that employ low-orbit satellites: the Motorola-led Iridium Project, Teledesic, ICOP, Global Star, Odyssey, and Orbcom. It plans to give top priority to Orbcom, which is scheduled to come into service earliest, with the aim of enabling subscribers in Japan to use the service sometime in 1997.MITI to install video conferencing system
In April, the Ministry of International Trade and Industry will begin to set up a videoconferencing system linking its central offices in Tokyo with eight satellite bureaus around Japan. The system is designed to support regional promotion activities and cut down on staff travel requirements. It will use three 50-inch TVs in the Tokyo offices, together with fixed and roving cameras; the sites will be linked by ISDN lines. This is the first such move by a government ministry. MITI has obtained a ¥260 million budget dispensation for fiscal year 1996 to build the system.Japan will develop GPS satellite network
Japan's Science and Technology Agency (STA) will this year begin work on creating an independent Global Positioning System (GPS) network. Japanese GPS terminals currently take their bearings from US military satellites. American security considerations affect their availability and accuracy, however, and the STA has determined that an independent system is needed. The system is scheduled to be developed in collaboration with several European firms; it will be the first completely private-sector GPS network. The US has pledged that its military satellites will be available free of charge until 2000, but the Japanese plan envisages launching a service based on four new satellites well before that time.MPT to support communications technology development
By May, the MPT will finalize a five-year plan to promote research and development of new communications technologies. The medium-term plan will encompass 11 development projects, including commercialization of a next-generation Internet system and a variety of industrial and medical applications, as well as provide for developing research infrastructure and training staff. The ministry has decided on the initiative as a means to narrow Japan's technology gap with the US, which has invested military funds in creating communications applications such as the Internet, GPS, and low-orbit satellites. The MPT has obtained a ¥31.5 billion first-year R&D budget to support the projects, and it expects to boost the funding five-fold by 2000.Fighting that hollow feeling
The Japan Electronic Industry Development Association (JEIDA) is working to create a CALS (continuous acquisition and lifecycle support) system for the nation's computer industry. A nine-member working group, which includes NEC, Fujitsu, Toshiba, and IBM Japan, has been formed. JEIDA has pegged an industry-wide CALS system as a way to fight the "hollowing out" of Japan's computer industry and strengthen the competitiveness of domestic producers.Making multimedia while the sun shines
NTT plans to use the solar energy as a source of power to drive multimedia equipment. The company has initially set up a solar power generator on the roof of its Central Training Center in Tokyo. Able to generate 300 kW, it is currently Japan's most powerful solar power generator and can supply power for up to 1,100 multimedia devices, including the 650 PCs used at the center. NTT plans to gradually install solar power generators on other company buildings, telephone exchanges, and public phone booths across Japan.NEC takes a RISC
NEC will produce SPARC RISC (reduced instruction set computer) microprocessors for Sun Microsystems. Long member of a group that has been promoting MIPS Technologies RISC processors, NEC will be provided with SPARC design data and manufacturing expertise by Sun's semiconductor division, SPARC Technology Business. NEC is expected to start making 64-bit SPARC chips at its Kumamoto plant later this year, and output is likely to quickly reach several thousand per month. Sun, which plans to double SPARC shipments to 1 million units per month, already commissions production to Fujitsu and Texas Instruments.Over 8 million cellular phones
The number of cellular phone subscribers surpassed 8,050,000 at the end of 1995. There were 4.6 million new subscribers during the year, a more than threefold increase over 1994. NTT DoCoMo had the most subscribers (3.9 million), followed by the Cellular Phone Group (1.6 million), IDO (990,000), the Digital Phone Group (790,000), and the Tuka Group (720,000). The Digital Phone and Tuka Groups enjoyed the greatest growth, a nearly four-fold year-on-year increase.PCMCIA to give way to Miniature Card
Thirteen firms from the US, Europe, and Japan (including Fujitsu, Sharp, Intel, Hewlett Packard, Compaq, Microsoft, General Magic, Nokia, and Philips) have reached agreement on a next-generation IC memory card standard. The Miniature Card measures 38x33x3.5 mm, about one-quarter the size of conventional PC cards. It weighs only about 10 grams and can store up to 64MB of data. The companies in February established the Miniature Card Implementers Forum as a means to promote use of the new card.Dell pulls back from retail sales
In February, Dell Computer stopped selling its computers through retailers and distributors, such as Laox, Catena, and Softbank. The company has decided to focus solely on the more profitable direct sales to corporate customers. Dell has established a new Major Account Team to handle everything from sales to technical support; it will also step up direct mail order sales to corporate customers. When Dell launched its business in Japan three years ago, it began by selling PCs by mail directly to individual buyers. Corporate clients now account for 80% of sales, however.Electronic commerce trial planned
More than 100 companies are backing the Electronic Commerce Verification Promotion Council, established in January. The council, which is also backed by the Ministry of International Trade and Industry, will work toward field trials of systems that enable electronic commerce over open computing networks. The trials will cover applications in the financial, distribution, manufacturing, transport, and information sectors, and will include over 350 companies and 400,000 individuals. The trials will address such specific issues as creating virtual malls, offering "electronic utility" services, code processing, and IC card development.New Java-based search engine
NTT Data Communications has built a Japanese information-search system based on Java, the new Internet programming language developed by Sun Microsystems of the US. The new InterInfo search system enables users to input a key word, then follow instructions to modify or narrow the search in either text or graphical formats. A compact Java search "applet" is downloaded directly to the user's PC, eliminating certain server processing functions and thus speeding up the search. NTT Data started testing the system at the end of January and plans to begin an in-house service for its employees in April. When an efficient method of charging users has been developed, the system will be opened to outside users.Super sales for supercomputers
Orders for supercomputers were strong in fiscal 1995, heading for a more than 50% year-on-year sales increase. Fujitsu and NEC enjoyed especially strong sales because they introduced low-priced models. Corporate research divisions, as well as research institutions and universities, have turned to supercomputers for their increased data processing needs. Fujitsu's supercomputer sales for FY95 were up by 63% over FY94, while NEC enjoyed a tremendous 240% growth in shipments.CESA surveys the computer game market
The Computer Entertainment Software Association (CESA), an organization of game software makers formed in November 1995 to facilitate the exchange of information and address concerns of common interest, is conducting a statistical survey of Japan's home-use game software market. The survey, to be completed by summer, is the first study of its kind to address the overall home-use game software market, according to the CESA. With the introduction of next-generation game-playing units in the fall of 1995, competition in both the hardware and software segments of the market has increased drastically, but individual manufacturers have had a difficult time getting an accurate overall picture of the market.An open systems standard for kanji
The Open Software Foundation (OSF) Japan Vendors Association, a group of 13 domestic firms aimed at promoting the use of open systems, has created a standard for the use of Japanese in mixed networks that include both UNIX workstations and PCs. Differences in coding formats have so far blocked the implementation of totally open Japanese-language networks, but the developers of the new standard hope to have it widely accepted by distributing it through the Internet. (You can access the OSF's home page at www.osf.or.jp/.) Two of the association's working groups have been developing the standard for over a year.Makers to focus on GSM-format cellular phones
With nearly 100 countries having decided to adopt the GSM format, Japanese cellular phone makers (including Matsushita, Kyocera, and Toshiba) plan to focus on the GSM market and increase their efforts to beef up GSM cellular phone production and sales strategies. Emphasis will be placed on the Asian market, where all major countries except Japan and Korea have already adopted the GSM format.Fujitsu to build Hong Kong interactive multimedia service
Fujitsu, in cooperation with Iwatani & Co., has received an order for an interactive multimedia communication system from Hong Kong Telecom. The estimated ¥13 billion system consists of a 622-Mbps ATM (asynchronous transfer mode) switch and an optical communications system for use in a broadband ISDN (integrated services digital network). The system, to be delivered during the next two years, will be used for the world's first commercial interactive multimedia service, which a Hong Kong Telecom subsidiary is set to start within the year. The service will cover about 80% of the households in Hong Kong by 2000.PDA initiatives by Sharp and Mitsubishi
Sharp is developing a global sales strategy to make its Zaurus PDA (personal digital assistant) an effective global standard. The company, which released an English-language version of the Zaurus in March 1995, has developed German and Italian versions and is currently considering whether to produce a Chinese version. By enhancing its visibility outside Japan, Sharp hopes to sell over 200,000 of non-Japanese Zaurus units by the end of fiscal year 1995.Mitsubishi Electric, meanwhile, will enter the multimedia PDA (personal digital assistant) market this year. The company plans to release a PDA model in the US this spring -- one that will incorporate a cellular phone, LCD, and microcontroller. The same model will be marketed in Japan by July. Mitsubishi will offer packages that enable its PDA to be used with a notebook computer, and is targeting users in the insurance and financial industries. The company intends to eventually release a new PDA that will have PC functionality and run General Magic's operating system.
KDD adds German store-and-fax node
KDD has added a German node to the three existing overseas bases (Hong Kong, US, and UK) that support its store-and-forward facsimile VAN (value-added network) service. The nodes store customers' fax messages for later transmission, thereby avoiding many of the regulations governing real-time faxing. KDD sees a German base as essential in expanding its service worldwide, and plans to develop other VAN services from the German center when it becomes operational in March.Faster transistors from Hitachi
Hitachi has developed the world's fastest silicon transistor. The bipolar transistor uses low-resistance tungsten for its base electrode, which controls current; this reduces inter-electrode capacitance and achieves a signal delay time of just 14.3 picoseconds, about half that of existing bipolar transistors. Hitachi's transistor achieves a maximum clock speed of 70 GHz, compared to 20 to 30 GHz for conventional silicon-based bipolar transistors. The company expects the new transistor to partially replace compound semiconductor-based high-speed devices.New head increases disk storage capacity
NEC has developed an MR (magneto-resistive) head that reportedly can increase magnetic disk data storage capacity by more than 10 times. The new head is expected to pave the way for development of a 3.5-inch hard disk drive that has a storage capacity of 10GB. The new "spin valve element" head, which can detect signals at high precision, has a multilayer structure that sandwiches a non-magnetic layer between two magnetic films; conventional heads use a single-layer magnetic film. NEC is working on technical details for commercialization of the new MR head.A practical IC card telephone handset
NTT Teleca, an NTT subsidiary specializing in prepaid telephone card sales, has developed a prototype IC card telephone handset in collaboration with Kanda Tsushin Kogyo and Hitachi Maxell. The IC card can contain subscriber directories, present billing information, and support such activities as theater and airline ticket reservations via its large LCD screen when applied to a public telephone. Japan Telecom developed a similar prototype last year, but has not moved ahead with commercialization. NTT Teleca plans to introduce its new model for use with NTT's ISDN public telephones.Stronger LCD panels
Fujitsu Laboratories has developed a robust ferroelectric LCD panel said to be at least 10 times stronger than conventional prototypes. Although quick to respond and possessing a memory function, conventional ferroelectric LCD panels can break under moderate mechanical pressure. By adding larger heat-hardening epoxy resin balls as spacers between the glass substrates that sandwich liquid crystal molecules, Fujitsu has fabricated a 190x90-mm test panel that can withstand a pressure of 2 kg per square centimeter. The company plans to use the new panel for pen-based portable computers.Easier-to-use computers
NEC is developing, and plans to release within the year, navigation software that will make computers even easier to use. The company believes that boosting user-friendliness is essential to encouraging widespread use of the PC. NEC claims that its new navigation software eliminates the complexities of interacting with an operating system. It will also develop navigation software designed to assist corporate Internet users who utilize ISDN networks.KDD enters Internet connectivity race
KDD will substantially broaden its Internet connectivity service offerings by adding ISDN connectivity and enabling frame relay connections and dial-up (IP) access, possibly as early as April. KDD has so far provided only dedicated lines, or gateway services, primarily to corporate users, but plans to expand its service menu due to unexpectedly strong demand. The company hopes to become a hub provider for much of Asia in the future.JustSystem/Oracle Internet partnership
JustSystem and Oracle Japan have formed a comprehensive Internet partnership, one that covers everything from technological cooperation and development to sales. The new partners have developed, and will sell through their respective channels, the Just Office server (a Japanese-language World Wide Web server equipped with the Oracle 7 work group server relational database management system software). JustSystem will provide the partnership with application software development, client/server, and Japanese-language data processing technologies; Oracle Japan will bring its industry-leading relational database management expertise. The two firms will supply each other with complementary technology and expertise to develop new products for Japan's rapidly expanding Internet market.Wireless packet transmission standard being studied
Five of Japan's cellular phone service providers (the NTT DoCoMo, IDO, Digital Phone, Cellular Phone, and Tuka groups) have formed a study group that will work toward the creation of a unified standard for wireless packet transmission from digital cellular phones. Increased demand for data transmission from PDAs (personal digital assistants) connected to cellular handsets has prompted the companies to seek a more efficient transmission protocol -- 18.8K bps rather than the current 9.6K bps. The group will present its findings to the Association of Radio Industries and Businesses (ARIB) for formal adoption. The aim is to launch commercial services based on the new standard by 2000.Nationwide dial-up Internet access
Japan's long-distance new common carriers (NCCs) have begun offering dial-up Internet access at a flat rate of ¥10 per minute throughout the country. Japan Telecom has set up seven centers in major cities linked by its frame relay network, and is reportedly negotiating with 56 access providers. Teleway Japan, meanwhile, is reportedly negotiating with Tokyo Internet to offer a similar service, while DDI began offering links in January to Network Information Systems. The tie-ups are mutually beneficial since Internet providers tend to be Type 2 carriers that need the facilities Type 1 operators such as the NCCs can offer.Callback market competition intensifies
Network Information Services, a joint venture of Marubeni and British Telecom, has entered the international callback service arena. NIS has signed a Japan dealership agreement with US callback service MTC, which has been offering callback services in Japan. Under the agreement, MTC will use NIS's packet switching network to send its telephone number data to the US, where the calls can be originated at lower cost than in Japan. This is the first time in Japan for a large value-added network service provider to move into the callback service sector.Online shopping appeals to Japanese Internet users
One of every seven Japanese Internet users has shopped online, and nearly two-thirds of users say they intend to try online shopping in the future. According to a survey conducted on the World Wide Web in December by Nikkei Multimedia Magazine, 64% of online shoppers have spent less than ¥10,000 on goods that were subsequently mailed to them. Nearly 30% of those with online shopping experience have spent ¥10,000 to ¥50,000, and while less than 6% have spent more than ¥50,000. Significantly, 44% of those responding to the survey said they have been using the Internet for less than 9 months.Book a room via the Web
Two Osaka-based companies, Hitachi Zosen Computer and Preco, a hotel reservation service, have unveiled a World Wide Web site on which travelers can make reservations at any of 86 hotels in Japan. The two partners hope to have 300 hotels registered on the site by April of next year. The service enables Web users to make both reservations and cancellations; no deposits are required, and discounts of up to 50% off published rates are offered. Hitachi Zosen reportedly expects reservation income of ¥300 million from the new service in the first year.PHS services for small offices
In February, Kyocera released a business PHS package intended for small offices. The Kyocera PHS Business Phone System KIS5300 S Type can work with handsets designed for public PHS services, allowing offices to build a PHS system cheaply. The system consists of a main unit, connection units, and handsets. In a move to expand its distribution channels, Kyocera is expanding its number of dealers from the previous 50 to about 200 by late March.Matsushita Communication Industrial also introduces a business-use PHS system in February. Designed for use in offices with up to 20 staff members, the P2000 consists of a six-line PBX, connectors, cordless phones, and digital multifunction phones. Matsushita also plans to release a PHS for mid-size offices in the future.
Overseas PHS promotion
NTT has established a project team to carry out overseas PHS promotion operations. The company's first project team assigned with overseas tasks, the 20-person personal communications business development team will coordinate its effort with other group firms, including NTT Personal Communications Network, NTT DoCoMo, and NTT International. The main objective of the effort is to seek opportunities to establish Japan's PHS as a de facto standard in Asia.PHS initiatives from DDI Pocket
DDI Tokyo Pocket will establish twenty dedicated PHS maintenance centers throughout its service area by year-end. The centers will provide consulting as well as maintenance services, aiming to support the development of PHS equipment as multimedia tools and further boost sales. This is the first such move by a PHS service provider; the centers will be operated on a franchise basis and will collaborate with service centers operated by equipment manufacturers. With the expected arrival of 42K-bps data transmission services within the next two years, DDI Tokyo Pocket sees a growth in potential multimedia applications.The nine DDI Pocket group PHS operators, meanwhile, will start full-scale installation of 500-mW base stations this spring. The move is expected to reduce the cost of base station installation by one-third and increase the service coverage area. The new integrated units are cheaper because they use lower cost materials and simplify installation work. The DDI Pocket group was expected to invest ¥100 billion in capital projects in fiscal year 1995, but aims to have substantial savings this year.
PHS as foreign aid
The Japanese government intends to provide a PHS system to Cambodia under its overseas aid program. The move follows a proposal made by the Ministry of Posts and Telecommunications (MPT) during a recent visit to Japan by a senior Cambodian official. Japan will dispatch a study team this year, and plans to have the system operational within two years. The aim is to create 5,000 lines in Phnom Penh in a project valued at ¥1.5 to ¥2.0 billion. The initiative marks the first time that PHS technology has been included in an aid program and could mark a new pattern of overseas assistance by Japan.PHS price cuts eyed
The NTT Personal Group has applied to the MPT for approval of new subscriber and usage charges. The requested change would see usage rates fall by an average of 20%, with the longest distance zones being discounted most heavily. NTT Personal claims that the move is aimed at strengthening its position vis a vis other PHS carriers, but it also seems designed to bolster the competitiveness of PHS versus cellular phones. Some observers worry that, unless PHS attracts numerous new subscribers, rate-cutting by carriers now could bankrupt them in the future.