Government & policy

Universities to be linked by satellite

The Ministry of Education plans, by the end of the decade, to link public universities across Japan via a satellite communications system. Each university will acquire an earth station to support such applications as joint courses and remote participation in lectures. The Ministry, which hopes to eventually extend the system to vocational colleges, feels the Super Collaboration System (SCS) is necessary because colleges are increasingly coming to depend on interactive multimedia. Five universities are already networked, and the Ministry plans to install relay equipment at a further 36 universities by the end of the current fiscal year.

New consortium for promotion of backup technologies

The Japan Users Association of Information Systems (JUAS) is launching a consortium of some 20 private companies dedicated to developing and verifying data backup technology for client/server systems. The new consortium, with support from the Ministry of International Trade and Industry (MITI), will experiment with backup technologies designed to protect data during natural disasters, such as earthquakes. The experiments and evaluation efforts are to be conducted over a two-year period, after which the results will be publicized and promoted as standards for the Japanese industry.

Software promotion organizations merge

Two leading software organizations are merging in an attempt to better develop the contents industry. The Multimedia Software Development Association (MMA) and the Japan Computer Graphics Association (CGA) were to merge on October 1 to establish a new foundation of over 200 corporate and 100 individual members. The merger was prompted by a similar move within the Ministry of International Trade and Industry, which in July integrated its New Video Industry Office (with which the MMA was affiliated) into its Data Processing System Development Department (with which the CGA was affiliated).

AIST labs to compete for funds

MITI is to introduce competition to the budget allocation process for the 15 research facilities operated by its Agency of Industrial Science and Technology. In the first move of its kind, the ministry will allocate budgets according to the level of project innovation (rather than automatically, as at present). This will lead to redeployment of staff and the reduction or removal of funding from some areas. The new system, to be applied from FY1997, will be closely monitored by experts not affiliated with the ministry.

Sixfold increase in CATV and satellite broadcasts foreseen

According to Ministry of Posts and Telecommunications projections,the CATV and satellite broadcasting services markets will increase by as much as 7 times from 1996 to 2010. An MPT-affiliated group predicts that about 60% of Japan's households will have CATV services by 2010, and over 80% of households will be watching satellite broadcasts. The forecast is that there will be more than 200 CATV and 400 satellite broadcasting channels in 2010.

Market news

NEC Software chooses online distribution route

In a move that is highly unusual for a large software developer, NEC Software Chubu has released its Zanatex PC PIM (personal information manager) as a downloadable "shareware" product. According to the company, the savings on packaging and distribution that can be realized by selling Zanatex exclusively through the PC-VAN and NIFTY-Serve networks mean that it is able to offer the product for just JPY3,500, one-tenth the price that it would have to charge if the software were distributed through traditional retail channels. NEC Software Chubu, which will use Zanatex as a test case for future software sales strategy, initially expects to sell at least 5,000 copies per year.

Cognos to launch products in Japan

Application development tool supplier Cognos (of Canada) plans to launch its new software tools in Japan in mid-1997 -- prior to introducing them to the rest of the world market. Teijin Cognos, the firm's Japanese affiliate, will be in charge of the product launch. Japan currently accounts for just 1% of total Cognos sales, but the Canadian company feels that the Japanese market holds great promise and is aiming to boost its Japanese sales share to 5%. The first products to be launched under the new strategy will be new versions of PowerPlay, a report creation tool, and Impromptu, a security tool. Teijin Cognos expects to have a staff of 30 and generate JPY3 billion in sales within three years.

Japanese makers play catch-up

NTT, Matsushita Electric Industrial, Casio Computer, Itochu, JVC, and 13 other companies have established the Easy Internet Association, a cross-industry organization whose purpose is to promote the use of consumer electronics products that enable Internet access. Televisions, word processors, and other consumer electronic products equipped with Internet connection functions are now hitting the market in Japan, and members of the new organization hope to use their world-leading expertise in the consumer electronics arena to catch up to US firms in the Internet sector. The group was expected to have about 50 members by its official launch in September.

IBM Japan to bundle Notes with PC servers

IBM Japan will bundle the latest Japanese-language version of Lotus Notes, Notes R4.1J, with all its PC servers in an attempt to improve its third-place position in the booming market for personal computers that function as network servers. The company will also include InterNotes Web Publisher R4J and an installation kit. Industry analysts expect Japan's PC server sector to double this year, and IBM Japan wants to improve its estimated 15% share of the market. Leaders NEC and Compaq command a 21% and 19% PC server market share, respectively.

Softbank, News Corp. cooperate to enter Japanese media market

Softbank has formed a joint venture with News Corporation of Australia to enter the Japanese media market. As a first move, the pair are acquiring 21.4% of TV Asahi stock for JPY41.75 billion. The joint venture will be equally funded by the two partners. For Softbank, the move represents the latest in a series of acquisitions that have diversified its interests into US cable TV, publishing, the Internet, and computer exhibitions. The joint venture will initially focus on digital satellite broadcasting.

Software CALS consortium

The Software CALS Verification and Testing Consortium (SCALS) was formed at the end of August to develop software for CALS (Continuous Acquisition and Lifecycle Support) systems. The consortium will focus on developing common software standards for security and creating an environment for object-oriented component development. SCALS plans to produce results that can be applied commercially after two years. The consortium, led by NTT Data Communications, comprises over 20 hardware and software firms, including Fujitsu, Hitachi, NEC, Toshiba, IBM Japan, Oracle Japan, and CSK. The US has no comparable track record of CALS software testing, and the consortium hopes to give Japan an edge in the field.

PDA giant comes to Japan

Psion of the UK, the world's largest producer of PDAs (personal digital assistants), will enter the Japanese market in November through licensing arrangements with local firms. The company, which had a 33% share of the global PDA market last year, will make public its proprietary operating system and will establish an office in Tokyo. It plans to launch a next-generation PDA based on a 32-bit RISC processor during 1997.

Business briefs

IBM seeks new sales channels through Softbank tie-up

IBM Japan is cooperating with Softbank to boost sales of its Software Server middleware package for developing information systems. By broadening sales to system developers via Softbank, IBM Japan intends to become less dependent on direct sales and channels managed by its authorized dealers. IBM Japan will work with Softbank to provide dealer training, technical support, and promotions for Software Server. Softbank, meanwhile, has set up BESTeam Support Office, an in-house support organization dedicated exclusively to IBM Japan products.

NEC invests in PDP production

NEC has launched mass production of plasma display panels (PDPs) at its Tamagawa plant, where it recently installed a JPY5 billion PDP production line that occupies 5,000 square meters of floor space. The line, which has an initial output capacity of 1,000 units per month, can produce 20- to 60-inch color PDPs. NEC released a 33-inch PDP for use as a computer monitor in July, and it will introduce a 42-inch wide-screen PDP for TV use in December. Company plans call for an additional investment of JPY1 billion to double the line's capacity by March 1997.

Hitachi shifts desktop PC production to Japan

Hitachi has made a major shift in its PC development and production strategy. The company had been procuring the majority of its desktop PCs from Acer (of Taiwan), but in July switched to complete domestic production. Hitachi plans to boost its worldwide PC shipments by nearly 90% year-on-year, to 650,000 units in FY1996. One of the reasons for the move is the recent yen exchange rate, which has been making imports more expensive than previously. Hitachi intends to slash PC development and production costs 20% by lowering part procurement and distribution expenses and carefully monitoring inventory.

GTE enters Japan's electronic commerce market

GTE, through a tie-up with Sapporo-based BUG, will enter the Japanese market for network-based electronic verification. (For more on BUG, see "Bringing Electronic Commerce to Japan" in Computing Japan's June issue, p. 35.) GTE will establish a Japan affiliate by year-end to market the CyberTrust verification system to the growing number of Japanese companies that are establishing electronic commerce systems. The CyberTrust system confirms the identify of the person placing an order and verifies that the electronic cash presented is valid. GTE has a track record of marketing similar systems to US government departments, and its entry to the Japanese market is being seen as a spur to growth in the electronic commerce field here.

NTT, Microsoft meet over WINE

NTT and Microsoft KK have tied up in a LAN/WAN business that targets small and mid-sized firms. The Windows & ISDN Networking (WINE) Project will bring NTT's ISDN and Microsoft's Exchange Server groupware together to offer network system solution packages to their clients. NTT will become Microsoft's solution provider to help those firms develop network systems by marketing early next year the WINE Kit, which will include an ISDN board, a server, five client PCs, a router, and software. Microsoft will organize industry- and region-specific forums to provide technical and sales support to the clients.

Banking on Windows NT

The Japan Windows Open Services Architecture/XFS Association (WOSA/XFS) has completed standard specifications for using Windows NT servers to support automatic teller machines (ATMs). Specifically, the group has completed the ATM portions of its "Japan Extensions for WOSA/XFS" specifications. The completed specifications will make possible smooth development of ATM terminals by association members that include Oki Electric, Hitachi, Toshiba, Fujitsu, and NEC.

NTT reorganizes to increase international competitiveness

In mid-July, NTT reorganized in a bid to strengthen its competitiveness in Asia and other overseas communications markets. The company has created a single international division, flattening its organization and shifting approximately 1,000 administrative employees to units devoted to promoting multimedia-related businesses. This was NTT's first major reorganization in three years, and only the second since the company was privatized over a decade ago.

Software firms merge

Independent software vendor Fuji Soft and mid-size software firm ABC were to merge on October 1, with three ABC shares worth one Fuji Soft share. The new company, Fuji Soft ABC, is to be capitalized at JPY2.64 billion. It is expected to achieve sales of JPY22 billion in FY1996. ABC, which has focused on mainframe software development, has suffered losses for the past two years as its customers have accelerated their drive to downsize and network computer systems. Some observers expect the merger to pave the way for reorganization of the software industry.

Telecom topics

Mediabank doubles goal

Internet connectivity service provider Mediabank, a joint venture between NTT Data Communications and Softbank, plans to have 100,000 dial-up subscribers by the end of 1997, double its initial projection of 50,000. Mediabank, which concentrates on providing access to individual consumers rather than corporations, will by autumn increase from 20 to 60 the number of access points it shares with NTT Data. The company, which plans to focus on novice users in its new subscriber marketing effort, says it expects Japan will have 10 million Internet users by 2000.

KDD to upgrade international Internet access lines

As part of a program of expanded support for multimedia communications, KDD will upgrade its US-Japan Internet access link from the present 16M bps to 150M bps by the end of the year. It will construct a facility in Osaka to make the route available to service providers in Kansai as well as Kanto. KDD does not offer its own Internet access service, but sells its capacity to others. Among other plans, KDD will also expand its 28K-bps line network to include Hong Kong, Korea, Singapore, and Taiwan, and will build new lines to Thailand and Malaysia. KDD aims to offer international voice calls at JPY100 per minute by 2000.

Japan Telecom to build 120G-bps nationwide loop

Japan Telecom will invest JPY100 billion to build a fiber-optic loop line around Japan. The project, scheduled for completion by the end of March 1999, will increase system reliability by providing route redundancy and will support multimedia communications. The loop line will have a bandwidth of 120G bps, the equivalent of 2 million phone lines. NTT has already installed such a loop, but Japan Telecom will become the first of the new common carriers to do so. Japan Telecom is also using its links with JR to build a network linking its rail stations.

International news

ITJ hopes to launch international frame relay service

ITJ has applied to the Ministry of Posts and Telecommunications for approval to launch its World Stream FR international frame relay service between Japan and the US and Europe. The company will collaborate with GlobalOne of the US and Unisource of Europe to offer services to 18 countries. Monthly fees will be 17% to 30% lower than those now charged by KDD and IDC; this is likely to prompt a marketwide lowering of prices. ITJ intends to expand its service to Singapore and Thailand at an early date.

IBM Japan targets Asian home PC markets

IBM Japan is launching an effort to sell PCs to individual consumers in China, Korea, Hong Kong, and Taiwan, areas where it has a strong track record in corporate sales but little experience with retail sales to individual customers. The company, which says that eventually it intends to secure the number one share position in the personal-use PC markets in each of these regions, is bringing together top managers from each country to work out distribution and other strategies. IBM Japan says it will prepare local language keyboards and other products to meet the unique needs of each market.

Fujitsu bolsters foreign support infrastructure

Fujitsu is bolstering support for its FMV series of PCs outside Japan. Recognizing that users of its notebook PCs travel internationally, the company sees a need for information and repair centers in overseas markets. It will focus initially on Europe and the US, aiming to have a support system in place by the autumn. Support in the US will be handled by Fujitsu PC Corporation, which was established in February. Fujitsu is also considering the creation of Internet access points in various countries to support FMV users traveling outside Japan.

NTT Data targets China

NTT Data Communications plans to launch a full-fledged corporate information system development business in China. The company has begun converting to Chinese a packaged software solution it sells for corporate manufacturing divisions in Japan, and it will begin developing systems based on its localized software from April 1997. NTT Data, which currently does systems integration for Chinese government institutions, foresees expanding demand in the private sector.

Toshiba establishes software joint venture in China

Toshiba has established its first joint-venture computer software development company in China. Capitalized at $1 million, the joint venture is owned 49% by Toshiba and 51% by a software firm affiliated with Dongbei University in Shenyang. Toshiba will commission software development to the joint venture, which will develop software for banking, insurance, post office, and hospital applications. The joint venture will expand its staff from 40 initially to 120 in the second year, aiming for annual sales of JPY1.5 billion within five years.

Research & development

NTT developing "wristwatch" phone

NTT has developed a 70-gram "wristwatch" personal handyphone system (PHS) unit. The "handset" has no keys; the user simply speaks the name or phone number of a person to be called, and the unit then automatically dials. Currently, up to 20 numbers can be recorded. The unit uses an antenna built into a belt and has an optional microphone/earphone. Although the prototype has a range of just 50 meters and continuous talk time of 30 minutes, NTT plans to improve the unit so that it can be used within 100 meters of a PHS base station by the end of FY1997.

In 50 words or less

Fourteen small and mid-size printing and software development firms have banded together to establish New Collaborative Network so as to compete more effectively with their larger rivals. Through NCN, the companies will cooperatively develop printing-related software and systems and open new sales channels.

Fujitsu has formed a Tokyo-based joint venture with Canadian search software developer Fulcrum Technology. The new company, Japan Fulcrum, will sell Japanese-language data search software cooperatively developed by its two parents as well as localized versions of Fulcrum's other products.

Japan credit card giant JCB and Microsoft have teamed up to develop a mechanism for safe and efficient settling of credit card transactions on the Internet. JCB plans to start an experimental electronic commerce service, dubbed Planet, by the end of this year.

Hitachi Computer Electronics and Hitachi Computer Engineering have merged to form Hitachi Information Technology. The new company, capitalized at JPY650 million and owned 62% by Hitachi Corp. and 38% by Hitachi Electronics Service, has 2,500 staff.

NEC has begun offering a data warehouse systems integration service. The company will assign 200 systems engineers to its Data Warehouse SI Service in FY1996, and set up a technical support team for NX7000/PS200 massively parallel UNIX servers.