5. An analysis on Information Technology (IT) Application

The methods determined by a country's information technology and application status on IT revolution have been decisive factors for the country's future economic prosperity. The United States, European and Asian countries all base themselves on future development through actively constructing IT infrastructure as the sate strategy. As compared with other countries, Japan has always been making slow progress in pushing IT revolution. Its Internet popularization ratio was always in low level in main developed countries in the past, and even in the Asia-Pacific region, Japan does not belong to advanced countries in this regard. In the case of IT applications in business and administration, the progress made in Japan is relatively slow. One of the important reasons is that to a great extent there is actual monopoly in regional communication market, high communication tariffs and operation rule that influence the industry development. The Internet in Japan was established on the basis of telephone net with low-speed, extremely low-efficiency, while the system of quantity-based expenses was used for communication, thus made the data communication expenses high. On the other hand, the original numerous laws and regulations and redundant procedures greatly influenced the fair and active competitions between communicators.
In order to speed up the process of information construction in Japan, shorten gaps with the advanced information countries, and stimulate economic recovery, the Japanese government convened a strategic conference in July, 2000 and established the strategic headquarters, taking it as the governmental central research organization. On 29 November 2000, IT Basic Law which calls for the formation of a high-level ICT network society were published. In January, 2001, IT Strategy Headquarters (Strategic Headquarter for pushing high-level ICT network society) designated by the government and non-government was founded with the premier as the general minister and all congressmen and non-governmental people with breadth of vision as members, and also announced e-Japan strategy targeted with "onstructing Japan as the most advanced IT country throughout the world within 5 years" The key "e-Plan" as the specific action plan was worked out in March, thus made the Japanese government step forward in the path of pushing IT revolution.

5.1 Network Construction and Popularization
By the end of 2000, the Internet users in Japan totaled about 47 million, up 74% over the preceding year, hitting a record high of increment. The popularization ratio increased from 21% in 1999 to 37%, especially for the city high-speed Internet. By the end of March, 2001, the CATV Internet and DSL users had reached 850 thousand, 5 times as many as that of the last year. Furthermore, all kinds of services such as optic fiber web surfing and wireless net surfing have been formally carried out.

General status of world internet users
Areas Date Users (10 thousand) Sources
Asia-Pacific region August, 2001 14399 NuaLtd
Worldwide total numbers August, 2001 51341 NuaLtd

A profile of Internet users in Japan
Date Number of users Population proportion (%) Sources
Sep.2000 47.08 million 37.2 ITU
Nov.2000 38.63 million 305 Nielsen etratings
May.2000 27.06 million 21.38 Ministry of Posts andTelecommunications
Mar.2000 21.21 million 16.81 Nielsen Net Rations
Dec.1999 19.50 million 15.5 Asia Biz Tech
Apr.1999 18.00 million 14.4 Asia Biz Tech
Mar.1999 15.00 million 12 Access Media International
Oct.1998 14.00 million 11.1 Nikkei Market Acess Survey
Mar.1998 12.10 million 9.6 Nikkeibp
Jan.1998 8.84 million 6.40 Access Media International
Oct.1997 10 million 8 IDC Japan
Sep.1997 8.60 million 6.8 Nikkei Market Access
Sep.1997 8.00 million 6.32 Dataquest

While the government supports the network construction by non-governmental enterprises, it also establishes the high-speed Internet network in areas with adverse circumstances and constructs wide area public network by local public organization. The government also makes national networked communications through establishing information box in passages, while opening the administering optic fiber circuit for roads, rivers and ports.

5.2 Education Informatization
Currently, Internet for all public elementary and middle schools is being built, it is scheduled that high-speed Internet environment for all public schools will have been established by 2005. In 2002, Internet can be available in on-the-spot teaching.

5.3 Enterprise Informatization
In 2000, the scale for e-Commerce transaction market was rapidly enlarged in Japan, the e-Commerce volume between enterprises was about Yen 22 trillion, about 3.5 times as much as that in 1998. The e-Commerce volume (B to C) between enterprises and consumers was about Yen 8200 trillion, 3.5 times as much as that in 1999. Although the e-Commerce in Japan developed rapidly, its popularization was still far below that in the United States. The proportion of volume of transaction for B to B in Japan is only 3.85 in commerce transaction volume (4.9% in USA). B to C volume of market transaction is about 0.21% (1.37% in the USA). Furthermore, for information communication network construction, Japan was lagged behind, and its laws and regulations as well as the protective methods for intellectual property and consumers were not competed.
In 2002, while Japan regulates and standardizes the e-Commerce environment, it will also protect intellectual property in order to upgrade substantially the information content provide through Internet, to make sure the preparation and circulation of excellent information.

The Japan government predicts the volume of B to B market will reach Yen 70 trillion in 2003 (10 times as much as that in 1998). The volumes of B to C will over Yen 3 trillion (50 times as much as that in 1998). The high-speed, boundless network market mainly dominated by the non-governmental organizations will be formed within the whole country, and the electronic-transaction market, auction market will be established on the net, while carrying out paperless trade. Moreover, the following five targets will be realized in 2005; enterprises can make high volume transaction on the net safely; make full use of information technology to improve the efficiency of business activities; full protect the intellectual property and provide all kinds of information through the new; a consumer can practice e-Commerce freely, while all individual information will be protected legally, and most medium and small-scale enterprises can participate e-Commerce by network.

From 2001, the Japanese government will push e-Commerce from the following aspects:
¡ñRelax numerous restrictions of the current laws and regulations, reform commercial law and laws of prohibiting monopoly and criminal laws, creating a relaxed environment in which the non-governmental enterprises can undertake economic activities through net freely.
¡ñFormulate and perfect the related laws and regulations: formulate the laws and regulations concerning electronic contract, information contract, and responsibilities of Internet services to guarantee the net security and normal operation of e-Commerce.
¡ñProtect the intellectual property and further compete laws and regulations concerning patent rights, copyrights and the right of using domain names. Take necessary measures to guarantee the correct use and spread of information.
¡ñSet the e-Commerce Arbitration of Dispute Resolution (ADR) to avoid net crime. Formulate regulations concerning consumer's interests and personal information protection in order to protect the consumer's benefits and interests better.
¡ñStrengthen the construction of infrastructure so that the medium and small-scale enterprises can fully make use of the information technology and participate into the e-Commerce before the year of 2003.

5.4 E-Government
Push the electronic application in administrative organs. In 2003, the electronic information and information in paper can be thought to treat identically. Administrative information net surfing is being carried out now. Japan is now formulating the related completed regulations and improves electronic application in internal affairs. Make use of the information and communication technology in public sectors such as the transportation and intelligence information system. In 2002, in all governmental halls, Japan will establish a basic mail system that enables the electronic availability in application and submitting procedures and improve actively the electronic application government procurement.