DevelopmentoftheJapanesetelecomIndustry-WorldBank.pptVIP

Development of the Japanese Telecom Industry — some lessons for Thailand Risaburo Nezu Senior Managing Director Fujitsu Research Institute May 19, 2006 World Bank Seminar Bangkok, Thailand Phase 1—Pre-market Stage Phase 1—Pre-market Stage (2) Phase 2 — Domestic Competition Phase 2 — Domestic Competition(2) Phase 3 From Fixed to Mobile Communication Phase 4 Competition among Different Technologies Phase 5 Oligopoly among Three Large Players ? 1. Three groups, NTT, KDDI and Softbank, seem to be emerging as winners in the telecom industry in the 21st century. 2. Ultimately, NTT still maintains an overwhelming position. Debate is underway in the government as to the future industrial structure. 3. As of now, they are competing for greater market share in both fixed and mobile fields. Prices are dropping and new services are brought in one after another. Consumers are reaping the benefits. Japanese Telecom Operators at Present(from Nikkei) NTT’s Share in DSL and FTTH Broadband Expansion in Japan Japanese Mobile Telephone Subscribers Telecommunications in Asia Lessons for Thailand Lessons for Thailand 4. Entrepreneurship may play a crucial role in creating competition. They never compete on the same market or the same technology. Critical resources such as frequencies must be distributed not only for existing players, but to newcomers as well. 5. Telecommunications is becoming more and more embedded into lifestyle and culture. Dynamic expansion of the telecom industry (both infrastructure and service) depends on other institutional reforms (e.g. copyright, privacy protection, IPR) . 6. Governments tend to worry about foreign participation in telecom operators. So far, however, there has been no single case of a threat to national interest/security. * * * * Phase 1—Pre-market stage 1. Privatization of state-owned telephone operator and opening up of telecommunications sector to competition — Inauguration of NTT ( 1985) — Three new entries of New Common Car