Figure 1. Domestic Communication Trends (Fiscal 1984 year end=100)
Telephone services. Growth in telephone subscriptions at NTT was slow, with 59.6 million subscriptions as of the end of September 1994, up 2.0% year-on-year. In contrast, competition in the telecommunications market allowed the new domestic carriers to show steady growth, with an aggregate of 5.2 billion calls made via these companies during fiscal 1993, up 15.8%, and an increase in their share of interprefectural calls of 2.3 points, to 29.1% (Figure 2). NTT offered new telephone services during the year, thus helping diversify this field.
Figure 2. Share of Calls Handled by NTT and New Carriers (Fiscal 1993)
Mobile telecommunications. As a result of the introduction of a user-ownership system for mobile terminals in April 1994, the number of cellular phone subscriptions stood at 2,891,293 as of the end of September 1994, up 56.6% year-on-year. New carriers increased their share of the cellular phone subscription market by 3.2 points, to 43.1% (Figure 3). The rapid expansion of the cellular phone market in fiscal 1994 was the result of several factors attributable to the enhanced competition that followed the introduction of the user-ownership system: a drop in prices and greater variety of cellular phones, lower rates, and the establishment of rate schedules tailored to user needs. Additionally, new carriers entered the marketplace, and digital services were strengthened and expanded.
Figure 3. Number and Share of Cellular Phone Subscriptions Held by NTT and New Carriers
The number of subscribers to radio paging services as of the end of September 1994 stood at 8,829,018, up 20.9%. New carriers increased their share of the radio paging market by 2.7 points, to 40.8% (Figure 4). A user ownership system for pocket pagers was instituted in March 1995.
Figure 4. Number and Share of Radio Paging Subscriptions Held by NTT and New Carriers
Leased circuits. As of the end of September 1994, 30,800 high-speed digital transmission circuits were leased, up 34.7% over the previous year. New carriers accounted for 25.6% of circuits leased.Digital data transmission services. During the year, three carriers instituted frame relay services: NTT and Japan Telecom Corporation in November 1994 and Daini Denden Inc. in March 1995. Frame relay service is a digital data transmission service that uses a simpler exchange method than the currently used packet exchange system and allows for speedy, high-capacity data transmission. ISDN services. The ISDN showed significant growth during the year, with 306,102 INS Net 64 circuits as of the end of December 1994, up 44.8%, and 5,943 INS Net 1500 circuits, up 43.7%.
Rates. Telephone and other telecommunications rates have dropped and rate schedules have diversified in recent years as a result of the introduction of competition into the telecommunications marketplace in 1985 and the subsequent strategic and technological innovation of various carriers. During fiscal 1994, mobile communications and leased circuit rates were lowered, and a charge-select system for telephone, mobile communications, and leased circuit services was made available. In February 1995, the basic rate for telephone service and directory assistance charges were revised. Corporate Services Price Index reports that whereas the July-September 1994 average price index for the service sector as a whole rose to 116.5 from the base value of 100 in 1985, the index for domestic telecommunications dropped to 84.1. The declines in the indexes for radio paging, automobile phone, and leased circuit services have been particularly marked (Figure 5).
Figure 5. Price Indexes of Domestic Communications Services Provided to Corporations
Cable TV. The number of urban cable TV subscriptions as of fiscal 1993 year-end stood at 1,629,388, up a substantial 51.5% year-on-year, and by the end of December 1994 the value had reached 2,010,416. There were 158 urban cable TV facilities as of fiscal 1993 year-end, up 6.0%; there were already 170 facilities at the end of February 1995. Cable TV in general also showed growth, with the number of subscribers as of fiscal 1993 year-end at 9,228,095, up 10.6%, and the number of facilities at 58,950, up 4.5% (Figure 7).
Figure 7. Trends in Urban Cable TV Facilities and Subscriptions
Figure 8. Domestic Mail Handled (Fiscal 1984=100)
Figure 9. Trends in International Communications Services (Fiscal 1984 year-end = 100)
Telephone Services. A total of 2,392.4 million minutes of international telephone calls was made during fiscal 1993, up 10.0% year-on-year; this year-on-year rate itself was higher than that of the previous year, in contrast to the decreasing trend of previous years. The country to and from which the greatest proportion of calls was made was the United States (28.0% of the total); countries/areas of the Asian NIEs (Newly Industrializing Economies), China, and several ASEAN countries accounted from seven of the top 10 calling destinations. During fiscal 1994, rates were lowered, and a special discount service for calls made to predesignated parties was introduced by international carriers.Leased circuits. The number of leased circuits for medium- and high-speed code transmission circuits increased 15.9% during fiscal 1993, to 1,093, reflecting a significant trend away from voice and telegraph grade circuits. The country where the greatest proportion of circuits has been established is the United States, although there was a significant increase in circuits between Japan and the Asian NIEs. Usage rates for leased circuits were lowered during fiscal 1994, as were the rates charged to subscribers based on the number of countries to which they are connected.
International ISDN services. Rates for international ISDN services were lowered during fiscal 1994, and the number of countries to which services are offered increased.
Maritime satellite communications services. During fiscal 1994, communications rates of INMARSAT A, B, and M systems were lowered, and the number of hours designated off-peak, during which rates are discounted, expanded.
Network improvement. The R-J-K optical fiber submarine cable connecting Japan, Russia, and South Korea went into operation on January 1995. During the year, telecommunications carriers in general continued to upgrade their facilities, with a view toward enhancing safety and reliability.
Rates. International telecommunications rates have declined since 1979, when KDD first lowered its rates; rates were lowered in fiscal 1994 as well. According to Corporate Service Price Index, the international telecommunications index dropped from the base value of 100 in 1985 to an average of 51.8 in July-September 1994; this compares with an increase to 116.5 for all services and is a significantly greater decrease than that reflected in the domestic telecommunications index of 84.1 (Figure 10).
Figure 10. Trends of Corporate Service Price Indexes of Telecommunications Services (1985 average = 100)
Figure 11. International Mail Handled
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