Japan is one of the world’s leading markets for 5G and in a wider context, for mobility.
A recent visit to Japan, close on the heels of an analyst event last year, has helped reinforce this hypothesis. Not only is Japan a leader in 5G network deployment but this comes against the backdrop of massive deployments of 4G LTE around the nation that form an impressive connectivity foundation.
Moreover, Japan is innovating in areas like 6G research as well as the early deployment and utilization of non-terrestrial network options like low-earth constellation (LEO) as well as high-altitude platform systems (HAPS) like Airbus subsidiary Aalto’s Zephyr.
Japan was one of the early adopters of 5G, with all three incumbent operators, NTT DoCoMo, KDDI and SoftBank having launched 5G networks in recent years. The Japanese Government, through its Ministry of Internal Affairs and Communications (MIC), has made digital a priority and is seeing success on several fronts.
5G has been given a key role in the larger Japanese policy goals of enabling a digital industry and society. The Japanese economy has arguably recovered from its “lost decade” in recent years to register growth (even if low by global standards), but it is increasingly challenged by a looming demographic crisis, with Japan’s rapidly aging baby boomer population resulting in persistent shortages of labor, both skilled and unskilled. Digital transformation is critical to transform the economy and retool it to address these challenges.
5G adoption picking up
Unlike Korea and other markets, Japanese regulators have focused on extending 5G coverage across Japan over headline speeds, and the operators have responded with wide deployments resulting near ubiquitous connectivity across indoor and outdoor, as well as urban and non-urban environments. While large numbers of subscribers are still on the near-ubiquitous 4G LTE networks, 5G adoption is picking up at a fast clip in Japan.
An anecdotal story about ChargeSpot should serve as an example of how ubiquitous coverage is a major blessing and can drive new use cases. ChargeSpot is a provider of battery packs for smartphone users. Though the company was originally founded in Hong Kong in 2017, Japan is a massive market for its service, with a large base of smartphone users frequently faced with the rather existential problem of untimely battery drain. The service works pretty seamlessly, download the app, register for the service, add credit card details, and you’re pretty much off to the races.
Charging stations are located across Japan at convenience store chains like 7 Eleven, Lawson and Family Mart, as well as major metro and train stations, and large venues like Universal Studios Japan. Returning the battery pack is also an easy affair, as the app guides the user to the correct station and slot for return.
Now, while having battery packs available at numerous locations is great, it is not sufficient to make for a successful service. What was really impressive and leverages deep and ubiquitous coverage in Japan is the “locate” feature. A simple search on the app not only locates nearby stations but also maps to them with directions. Of course, this doesn’t work as well in really crowded spots like Tokyo Station, but is is very effective in most areas.
It is a testament to the widespread coverage that Japanese operators have achieved for 4G and even 5G, both for macro-outdoor but also indoors. Anyone who has visited Japan can testify to the amount of time spent indoors, in office buildings, skyscrapers, train and metro stations and more.
Connectivity use cases
Deep, ubiquitous coverage, both outdoors and indoors, is helping drive an already vast and increasing number of use cases for connectivity in Japan. Numerous examples abound, cutting across retail, banking, hospitality, transport and more. For retail and hospitality, the humble QR code in combination with smartphone apps and coverage helps perform all manner of financial transactions, at restaurants and vending machines, as well as for information exchange, whether on business cards or for restaurant listings, menus and more.
Even in areas where coverage is not ubiquitous, there is potential for 5G to play a role. For example, Japan’s iconic Shinkansen bullet trains do have onboard Wi-Fi, but connectivity can be infrequent due to coverage gaps along railway tracks, making this a clear and present use case for the emerging class of connectivity through 5G-based FMRCS for railways, or even non-terrestrial satellite-based connectivity.
Beyond consumer, Japan is pushing ahead with enterprise and industrial use cases. Interestingly, the metaverse, which has receded from popular consciousness in markets like the U.S., is sinking roots in industrial Japan.
This seemingly contrarian trend is easily dismissed with highly subjective claims of cultural affinity, but the reality is that a significant ecosystem is building around the industrial metaverse in Japan. Japan’s massive base of industrial enterprises is utilizing dynamic, connected representations of real-world things in the digital world to enable new use cases.
Last year, we came across an example during a visit to 5G Labs of a major Japanese steel company. The use case was 360-degree remote inspection at the steel factory tunnel shafts. Feeds from 360-degree and 4K cameras are sent through a 5G private network to field or remote offices where workers equipped with VR headsets can conduct remote inspections to assess the effectiveness of equipment and surroundings.
There are several other use cases for industrial and enterprise that are already in evidence in Japan, where the regulator has opened up access to the n79 band (~4.8 GHz) for private 5G applications.
While progress on 5G in Japan is noteworthy, the bigger takeaway is the focus on new use cases that leverage the deep and ubiquitous coverage offered by Japanese operators, across both consumer and industrial segments. Japan, once famous for services like DoCoMo’s iMode and synonymous with advanced mobile communications, is rapidly shaping up to reclaim that crown.
Shiv Putcha is the Founder and Principal Analyst at Mandala Insights and the publisher of Beyond the Next Billion. Shiv also works as a Consulting Director with GSMA Intelligence where he is responsible for driving the consulting pipeline and project delivery in the Asia-Pacific region. Prior to founding Mandala, he covered the telecommunications industry in Asia-Pacific for IDC as Practice Leader and Omdia as a Principal Analyst, along with stints at the Yankee Group, Qualcomm and LogicaCMG while based in the United States.
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