Telecommunications Services (As of end of June 2007)

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1 International Affairs Department, Telecommunications Bureau Vol. 8 No. 4 Biweekly Newsletter of the Ministry of Internal Affairs and Communications (MIC), Japan ISSN Please feel free to use the articles in this publication, with proper credits. STATISTICS Status of Numbers of Subscribers to Telecommunications Services (As of end of 27) As mandated by the Rules for Reporting on Telecommunications Business (MPT Ordinance No. 46 of 988), MIC has compiled the numbers of contracts for fixed-line telecommunications and mobile telecommunications that were reported by telecommunications carriers as of the end of 27. STATISTICS Status of Numbers of Subscribers to Telecommunications Services (As of end of 27) An overview of the result is provided in the following.. Subscription and The total number of subscription contracts as of the end of 27 for subscription and was million, a 5.6% year-on-year decrease, and this declining trend continues. 2. Number of IP phone users The number of IP phone users as of the end of 27 is million. This is a 26.3% increase from the same period of last year, and this increasing trend continues. The increase in the users of IP phones with the AB-J number structure ( digits, starting with a zero) is especially remarkable, a 45.% year-on-year increase. 3. Mobile phones and PHS The number of contracts for mobile phones and PHS as of the end of 27 totaled 3.78 million. This number represents a 5.6% year-on-year increase, and this steady increasing trend continues. International Policy Division, International Affairs Department, Telecommunications Bureau, Ministry of Internal Affairs and Communications (MIC) -2, Kasumigaseki 2-chome, Chiy odaku, Tokyo -8926, Japan Fax: Tel: We welcome your comments via: eng/contact.html is available at: eng/newsletter.html Presentation materials of MIC are available at: eng/presentation.html distribution of this newsletter is possible if desired.

2 27 26 Number changes (Change rate) Subscription telephone + Total AB-J number portion IP phone 5 number portion (In millions) Mobile phone + PHS (-5.6%) 37.9 (26.3%) 296. (45.%) 2.8 (2.2%) (5.6%) Subscription and The total number of subscription contracts as of the end of 27 for subscription and was million, a.7% decrease when compared to the end of 27. In addition, the decline was of 5.6% on a year-on-year basis. (, subscribers) 6, 5, Subscription 6,325 6,772 6,29 59,67 58,53,327 9,6 8,627 7,98 7,49 55,65 54,27 6,996 6,843 4, 3, 5,998 5,62 5,592 5,626 5,563 48,69 47,374 2,, Year 2 Year 22 Year 23 Year 24 Year 25 Year

3 Category Subscription Dry copper CATV (Breakdown) Year 2 Year 22 Year Year 24 5,998 5,62 5,592 5,626 (-2.4%) (.3%) (.8%) (.%) 383 (382%) 853 (48.6%),327 9,6 8,627 7,98 (6.5%) (-6.9%) (-.2%) (-7.5%) Year 25 (Unit:, subscribers) Year ,563 48,69 47,374 (-2.%) (-4.7%) (-5.4%) 2,599 3,638 3,84 (578.6%) (4.%) (25.3%) 989,32,6 (5.9%) (4.5%) (6.3%) 7,49 6,996 6,843 (-6.%) (-6.6%) (-6.9%) (Breakdown) Dry copper Total 23 6,325 6,772 6,29 59,67 (-.%) (-.9%) (-.9%) (-.%) 49 (547.8%) (35.6%) (7.%) 58,53 55,65 54,27 (-2.6%) (-5.%) (-5.6%) * The figures for the end of fiscal year 26 have been corrected as a result of the figures being checked. Note : Dry copper : NTT East and West telephone service using metal circuits Note 2: The subscription figures shown here do not include the number of subscribers to My Line. Note 3: Parentheses indicate rate of growth or decline year-on-year. Number of IP phone users The number of IP phone users as of the end of 27 is million, an increase of 5.5% over the figure at the end of 27. The increase over the same period last year was of 26.3%, and this upward trend continues. Specially notable in this set of figures was the rate of increase in the number of AB-J IP users, which was up 9.% over the end of 27, and 45% over the same period last year. Note: This reflects the total number of 5 and AB-J telephone numbers utilized by final users, and is not a rigorously accurate number of subscriptions. Note 2: Also, with regard to the portion for fiscal year 23, a survey was conducted based on the Detailed Items for Implementation of Competition Review in the Telecommunications Business Field FY24. Note 3: The figures for the end of fiscal year 26 have been corrected as a result of the figures being checked. 3

4 (, units),6,4,2, 8 AB-J IP 5 IP , , , , , , , ,3.3,5.4,3.,4.4,27., year 23 year 24 year 25 year 26 year 27 Unit:, Period Number of users ,6.4,45.7,29.7,3.,375.9,447.8,527.6 Rate of growth (compared to previouserm) 2.8% 6.% 8.5% 8.4% 8.6% 8.% 5.6% 7.5% 5.8% 5.2% 5.5% Rate of growth 57.4% 49.3% 39.% 35.4% 37.9% 34.2% 33.% 29.8% 26.4% 26.3% Mobile phones and PHS The number of contracts for mobile phones and PHS as of the end of 27 totaled 3.78 million. This number represents a 5.6% increase year on year, and a penetration rate of 8.7%* of the population. The subscription contract numbers per category were million for mobile phones and 5.22 million for PHS. In addition, of the subscription contracts for mobile phones, the proportion of contracts for 3rd generation mobile phones stood at million, accounting for 76.2% of the total. 4

5 (, subscribers), 8, Mobile phone 74,89 66,784 5,698 PHS 8,8 5,46 86,655 5,35 9,474 4,476 96,484 4,692,698 3,78 4,98 5,22 6, 5,842 4, 6,942 69,2 75,657 8,52 86,998 9,792 96,78 98,56 2, Year 2 Year 2 Year 22 Year 23 Year 24 Year 25 Year (Number of subscribers) Total Year 2 Year 2 Year 22 Year 23 Year 24 Year 25 Year ,784,374 74,89,58 8,8,324 86,654,962 9,473,94 96,483,732,698,65 3,78,277 (7.5%) (2.%) (8.4%) (6.8%) (5.6%) (5.5%) (5.4%) (5.6%) (Penetration rate in population) 52.6% 58.8% 63.7% 67.9% 7.6% 75.5% 79.6% 8.7% [Breakdown] Mobile phones 6,942,47 69,2,3 75,656,952 8,59,543 86,997,644 9,79,942 (9.2%) (3.4%) (9.5%) (7.7%) (6.7%) (5.5%) 96,77,92 (5.4%) 98,56,477 (5.6%) (Penetration rate in population) 48.% 54.3% 59.4% 63.9% 68.% 7.8% 75.7% 76.7% PHS 5,84,967 5,698,27 5,46,372 5,35,49 4,476,296 4,69,79 (2.4%) (-2.5%) (-4.%) (-6.%) (-2.8%) (4.8%) 4,98,245 (6.%) 5,2,8 (5.3%) * The population used to calculate the penetration rate in the population uses the figures for nationwide population count (complete tabulation: million) in the 25 Population Census announced by Statistics Bureau, MIC in October 25. (Reference) Number of subscribers for IP connection services from mobile terminals (end of 27) million contracts* (Proportion to total of mobile phone contracts: 87.3%) (* Total of imode, EZweb and Yahoo! mobile) Note: For past figures for the number of contracts for mobile communications, please refer to the MIC Information and Communications Statistics Database (Communications and number of contracts) at: 5