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July 2005 -- Wired and wireless technologies are converging to form a society in which anyone can be connected anytime, anywhere. Radio frequency identification (RFID) technologies are widely used to increase efficiency in production and logistics through wireless sensory networks. Intelligent transport system (ITS) technologies are reducing traffic congestion and increasing the safety of driving conditions. Digital consumer electronics that can monitor and control conditions at home are now controlled by mobile phone applications.  These technology sectors on their own present strong opportunities for business. Collectively, the opportunities for business are significant in what has come to be known as the “ubiquitous network."

Japan is leading the world in practical applications to achieve ubiquity. Beginning next January, rail travelers can charge their fares automatically through RFID chips in their mobile phones. Local governments are now testing large-scale ubiquitous networks to manage urban transportation systems. In addition, digital broadcasting has been launched in Japan’s major cities, providing highly improved picture quality, mobile broadcasting capabilities, and an array of other features to end-users.

Japan’s early adoption of a ubiquitous network provides strong market potential for U.S. technology companies interested in expanding their business with Japanese firms. For 2005, the market size for ubiquitous technologies is estimated to be $557 billion USD as new business applications surface in related sectors such as electronics, services, content, and components. As the market for ubiquity in Japan continues to grow, American firms that establish and strengthen ties in Japan will be well positioned for near- and long-term growth.

BROADBAND x MOBILE DEVICES = UBIQUITOUS NETWORK
Japan’s ubiquitous network is made possible primarily by two developments, namely the introduction of a broadband infrastructure and increasing innovation in the mobile technology sector. In the late 1990’s, the Japanese government began implementing policies to encourage competition in the communications sector and to provide easier access to communication networks, both centered on the seamless introduction of a broadband infrastructure (ADSL, CATV, FTTH).