Reduction of the Internet-based information distribution costs, with a target of \10 per 3 minutes for Internet access from anywhere within Japan.
Ministry of International Trade and Industry (MITI)
What will be MITI's focus in 1998?
Since FY1995, the ministry has been working to establish a framework for launching electronic commerce (EC) in Japan [and has ] so far organized 45 projects. These have served to narrow down the tasks to be accomplished and the fields in which international cooperation is required for interoperability and standardization of EC systems.
In 1998, Japanese corporations will be taking business-level action, such as for security, authentication, and transaction rules, and MITI will help pave the way for full-scale launch of EC by formulating measures for small- and medium-sized companies, facilitating education/training, and supporting technological development and trials. MITI also will take part in more international EC activities and seek greater cooperation among other concerned ministries and agencies.
What issues drew the ministry's attention in 1997?
The difference between Japan and the US in the use of information and communications technology. It is highly probable that the delay in deployment of information and communications technology in Japan will lead to delays in restructuring the Japanese economy and developing new industry fields.
In contrast, the US economy has been steadily growing [by] recovering its industrial competitiveness through the aggressive use of information technology (IT), which encourages further expansion of information and communications facilities, equipment investment, and market expansion.
What is necessary for the Japanese IT industry to grow in 1998?
For promotion of electronic commerce, not only efforts by MITI but also involvement by the Ministry of Finance and Ministry of Justice is necessary. In the US, such cooperation led to the announcement of a Framework for Global Electronic Commerce by the Clinton administration. Japan must also adopt an "All Japan" attitude to avoid being left behind.
Nippon Telegraph and Telephone Co. (NTT)
What will be NTT's focus in 1998?
With completion of the digitalization of our telecommunications network, we are entering a new phase of the "digital revolution." We are shifting our attention from preparation of network infrastructure to a stage in which full-scale multimedia deployment including diversified services will emerge.
In 1998, we will allocate more management resources to multimedia and international businesses for the global distribution of voice, text, and image data through a digital information infrastructure.
What issues drew your attention in 1997?
The active move towards reorganization of the communications industry, both in and out of Japan, through business tie-ups, mergers, and alliances between telecommunications carriers.
What is necessary for the Japanese IT industry to grow in 1998?
For further activation of the telecommunications market, it is now important to introduce diversified subscriber services and to lower the service charges through free competition among multiple carriers. Therefore, we believe that further acceleration of deregulation is required to deal with today's competitive business environment and changing market situation (due to the rapid advance of technology). This will lead to a rapid and flexible resurgence of the entire Japanese economy.
Kokusai Denshin Denwa (KDD)
What will be KDD's focus in 1998?
With the scheduled revision of the KDD Law in 1998 (the bill to revise the KDD Law will be introduced at the next ordinary session of the Diet), we will have opportunities to develop the management style of the company without interference, and to promote our businesses in a flexible and timely manner. It also will enable us to deal with equity finance swiftly and flexibly.
As Japan's leading international communications carrier, we will continue to make our best efforts in 1988 to provide satisfactory services, including universal service and secure emergency communications. In expectation of revision of the KDD Law, we started (in July 1997) preliminary activities in the domestic communications market, including organizing a corporate phone service through Route KDD, leased circuit services, public pay phone services through 001-IC Global Phone, frame relay services, and INMARSAT services. We will offer as soon as possible long-distance domestic phone service through our 001 prefix.
What issues drew your attention in 1997?
The proposed revision of the KDD Law (which will enable us to enter the domestic communications business), revision of the NTT Law (which allows NTT to enter into the international communications business through its subsidiaries), and deregulation of International Internet telephony. We are starting our own International Internet telephony service (in December 1997) through our KDD Communications subsidiary.
What is necessary for the Japanese IT industry to grow in 1998?
Further deregulation is required, particularly abolition of the tariff authorization system by the Ministry of Posts and Telecommunications; this is to be discussed at the next ordinary Diet session. Abolition of tariff authorization would permit us to respond quickly to diversified customer needs and to flexibly introduce new service charges, in a timely manner. Ultimately, this will help the entire Japanese economy by encouraging greater investment in facilities and equipment for information and communications systems.
Regarding NTT's reorganization, it is necessary to secure conditions for fair competition in the Japanese telecommunications business. Appropriate measures should be taken so that other telecommunications carriers can compete with the reorganized NTT on a fair and equal basis. NTT's long-distance and international telecommunications companies, which are to be established after the reorganization, should be fully independent from the NTT holding company.
What current events overseas are drawing your attention?
As a member of WorldPartners, we have been working with other members, such as AT&T, Singapore Telecom, and AT&T-Unisource [to provide] new services for multinational firms, such as a worldwide toll-free service. We are watching carefully for the next move of British Telecom, which withdrew its plan to buy MCI. We are also keeping our eyes on the future strategy of AT&T in the US, since the American telecommunication market has been changing quickly and drastically.
In September, we filed a petition with the US Count of Appeals requesting review of the international settlement rate benchmarks announced by the Federal Communications Commission (FCC). We believe the FCC order arbitrarily forces settlement rate benchmarks upon other countries' carriers, although the FCC has no jurisdiction to do so. We think that the FCC order is intended to make the US the hub of global telephone businesses, so in this regard we must continuously pay attention to US government's activities.
NTT Mobile Communications Network
(NTT DoCoMo)
What will be NTT DoCoMo's focus in 1998?
We recently have been focusing on R&D for the next-generation mobile communications system. Known as IMT-2000, it uses a wideband code division multiple access (W-CDMA) method. In 1998, we will commence full-scale indoor and outdoor trials of our W-CDMA system.
For these trials, we will open up the system specifications to operators and manufacturers in other countries so as to contribute to global standardization of IMT-2000. We will invite more foreign telecommunications operators and system manufacturers to participate in our system trials.
Microsoft Co., Ltd.
(reply by Susumu Furukawa, chairman and CEO)
What will be Microsoft Japan's focus in 1998?
Our major activities in 1998 will include the release of Windows 98 and Windows NT 5.0, market development for Windows CE applications, establishment of common market awareness towards digital TV business among developers, and establishment of closer relationships with the broadcast industry. I personally will spend a fair amount of time for promotion of the WebTV in Japan.
What is necessary for the Japanese IT industry to grow in 1998?
It is necessary to establish a closer relationship among the computer industry, telecommunications industry, and broadcast industry. In addition, appropriate communications costs should be introduced.
What current events overseas are drawing your attention?
Some companies have been too bent on "catchy" issues, and hoping to win advantage through lawsuits or to attract security analysts' attention, rather than seriously trying to develop higher quality products or improve their customer satisfaction.
Fujitsu Limited
What will be Fujistu's focus in 1998?
We will promote new network business for corporate users, and for enhancement of social infrastructure. We will also expand our solutions business on a global scale.
What were the major events of 1997?
Reorganization of the telecommunications industries in the US and Europe, and the aggressive corporate buy-up strategies of American companies like Microsoft and Cisco.
What is necessary for the Japanese IT industry to grow in 1998?
Successful reform of the administrative and financial structure of the Japanese government, along with further deregulation in each industry - particularly the information/communications industry. Also, technical renovation in such Internet-related fields as electronic commerce is needed.
What current events overseas are drawing your attention?
We are concerned about the collapse of the "bubble economy" in some Asian countries, which has impacted their stock markets and made the foreign exchange market unstable. We are also keeping our eyes on fluctuations of the US stock market, and are interested in how the Antimonopoly Act in the US will be applied to such companies as Microsoft and Intel.
Japan Information Service Industry Association
(reply by Akira Ogata, general manager, research and planning dept.)
What drew your attention in 1997?
Despite repeated calls for awareness of the Year 2000 Problem, users have been very slow to acknowledge the danger. This tendency was especially notable in small and medium-sized companies and government offices. Time should have been allocated to discuss measures for tackling the problem. The impact of the Year 2000 Problem on the economy and on society is a big concern.
What is necessary for the Japanese IT industry to grow in 1998?
BPR (Business Process Reengineering) will again be necessary. IT systems cannot be successfully incorporated into a business unless the corporate structure and business work flow are revised. Simply introducing the popular concept of downsizing won't work.
Japanese companies are at the saturation stage, like soil full of moisture. To escape from the depressing mood of recession, and activate the industry as a whole, corporate executives must seriously consider implementing BPR. Otherwise, the utilization of information and communications systems will just end up creating temporary profits for the IT industry, and will not bring ultimate success to either users or IT firms.
BPR must also be introduced in government. The administrative reform of government will not be successful unless there is a clear vision of how information and communications systems should be used for improvement.
What issues overseas have drawn your attention?
The impact of the increase in SOHO (Small Office/Home Offices) workers on employment in the IT and other industries in the US.
NIFTY Corporation
What will be your focus in 1998?
We are lowering our service charges for NIFTY-Serve in December 1997, by up to 75%; the new charge will be equal for all access speeds. We also plan to enhance our Internet service by March 1998 by expanding our NIFTY-Serve Interway service, introducing a homepage creation service with support forums... and enabling NIFTY e-mail to be used by Internet software (by adopting POP3 and SMTP).
What issues drew your attention in 1997?
There were many cases of illegal ID use and fraud on the networks. These things prevent the development of healthy network society.
What will be necessary for the Japanese IT industry to develop in 1998?
Acceleration of deregulation, not only in the information and communications business sectors, but in all other areas of businesses.
Digital Garage
(reply by Joichi Ito, president and founder)
What is necessary for the Japanese IT industry to grow in 1998?
