
The communications ministry will from the next fiscal year expand its financial assistance to local governments to enable wider access of the 5G next-generation communications standard even in remote islands or mountainous areas.
The Internal Affairs and Communications Ministry will shoulder part of the expenses necessary to either install or repair fiber-optic cables and aims to spread high-speed and large-capacity communications networks as soon as possible in preparation for the 5G era.
Specifically, the central government will cover 27% of the cost necessary for municipal governments to in effect build infrastructure to improve the capacity and speed of fiber-optic networks. Target municipalities are those in such places as remote islands and mountainous areas where private enterprises might shy away from taking on the installation of such technology from a profitability standpoint.
Such financial support used to only apply to the installation of new fiber-optic networks, but the central government is widening the scope of its support to cover expenses to improve current networks or bring fiber optics to cable TV networks.
According to the ministry, about 98% of municipalities nationwide have installed fiber-optic communications networks as of March 2018. However, a certain number of existing fiber-optic networks are incompatible with the 5G standard due to low capacity. This is especially the case where capacity shortages are frequently seen in networks installed by municipalities.
In addition to financial support, the central government will also make use of municipal bonds for the development of depopulated areas. The measure is based on a law in which the central government will help 817 depopulated municipalities by paying 70 percent of their operating costs. Usually, municipalities concerned apply for the issuance of bonds, which will be screened by prefectural governments. However, in the case of the installation of fiber-optic networks these bond applications will be accepted in principle.
Leading mobile phone companies will start commercial 5G services this spring. With a transmission speed up to 100 times faster than that of the current 4G standard, 5G technology enables the simultaneous connection of many devices and can be utilized for unattended farming and remote-control of construction machinery. The ministry aims to eliminate regional differences in the communications environment compared to urban areas by expanding financial support.
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