Strategy for building next-generation communications infrastructure about to be rolled out; Japanese companies aim for greater market share

The Ministry of Communications plans to draft a new strategy aimed at rolling out a next-generation communications infrastructure. This step has been taken in view of the rapid increase in the use of artificial intelligence technology.

The Ministry of Internal Affairs and Communications aims to fully introduce a communications network that utilizes optical technologies in Japan by 2030, with the Innovative Optical and Wireless Network (IOWN), a next-generation network being developed by NTT Group, in mind. The government will also continue to set up systems necessary for communications services using communications satellites and unmanned vehicles.

The ministry will soon release a strategy for “realizing a next-generation information and communications infrastructure that supports an AI society.” Many observers have pointed out that the increasing use of generative AI and other AI technologies will require increased electricity consumption. The ministry has decided that a high-speed, low-latency communications network that does not consume as much power will be needed in Japanese society in the 2030s, when AI will be used in a wide range of fields.

The ministry will promote the implementation of an all-photonics network — a communications network that uses optical technologies — such as IOWN, to allow multiple AIs specializing in certain fields to work together and to establish data centers that process information in locations across the country. The use of optical technologies will enable high-speed, low-latency communications that require significantly less power.

The strategy’s planning calls for the introduction of new technologies that will allow multiple business operators to connect via an optical network by around 2028, and for the full introduction of these services in Japan by around 2030. The strategy envisions that multiple data centers will be connected and able to operate in an integrated manner. The ministry will also support the international standardization of this technology in an effort to expand operations abroad.

The use of high-altitude platform stations — airborne base stations that enable mobile phone communications — and even more satellite communications are forecast to continue through the 2030s. Consequently, the government will develop relevant legislation and provide support for the development of related technologies.

According to the ministry, Chinese telecommunications giant Huawei Technologies Co. held a 30.6% share of the global market for transmission equipment using optical technologies in 2022. Japanese companies Fujitsu Ltd. and NEC Corp. held a total share of 7.2%, and this figure has increased in recent years. Under the new strategy, such manufacturers of relevant equipment will also strengthen their efforts to expand their business abroad in parallel with the practical adoption of optical networks.