e-Commerce

September 2001

The government will deregulate bandwidth use for the wireless net service. The Telecommunications Ministry plans to allow wireless Internet service providers to use part of the 25-gigahertz bandwidth without seeking ministry approval by next spring. The bandwidth will be seven times larger than what is currently dedicated to cell phone services and is expected to enable transmission of large-volume data, including high-resolution images, at a speed comparable to that of a Net service using a fiber-optic network. The measure aims to ease the entry of wireless service firms, which do not require the telecom infrastructure of Nippon Telegraph and Telephone Corp., into the Internet business. It is also beneficial for foreign companies and smaller/start-up firms, resulting in lower service fees and an increase in the variety of services for consumers. (September 24, the Nihon Keizai Shimbun)

Japan's manufacturers of electric machinery and information communications equipment are slashing jobs at a record pace in the face of a worsening global recession in the information technology industry. Major IT industries alone will cut a total of almost 80,000 jobs in Japan and abroad, as the simultaneous economic slowdown in Japan, the U.S., Europe and the rest of Asia forces them to step up their restructuring measures, such as shutting down or selling overseas plants. Almost half of the 80,000 job reductions are slated to take place in Japan. (September 1, the Nihon Keizai Shimbun)