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KDDI mobile customers across Japan hit by prolonged network troubles
(July 2, 2022/ JAPAN TODAY)


KDDI says mobile network almost recovered across Japan
(July 4, 2022/ JAPAN TODAY)

An ever weakening yen punishes the nation
(Oct 21, 2022/ The Japan Times Editorial)



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KDDI mobile customers across Japan hit by prolonged network troubles
(July 2, 2022/ JAPAN TODAY)

To tell the truth I use a KDDI mobile phone and a KDDI network for the internet and I make it a rule to check a stock market and trade stocks every week day.
So KDDI network troubles upset me a little


KDDI Corp, one of Japan's top three carriers, said Saturday its mobile customers have been facing difficulties making calls and getting online for over half a day, with the disruption of its nationwide networks also impacting services from banking and transmission of weather data to parcel deliveries.

The au mobile brand operator said work to restore the networks continues after the disruption began at around 1:35 a.m., but no time frame for a resumption of services has been provided.

The trouble, which the company said is due to a failure with its voice call system, has also affected its low-cost UQ Mobile brand and its lower-priced "povo" wireless customers, as well as other firms using KDDI's networks.

KDDI apologized and said it is still investigating the number of users who complained about being inconvenienced. As of March, its infrastructure has around 62 million mobile subscriptions, with individual contracts for the au, UQ Mobile and povo brands accounting for about 31 million users.

The communications ministry has yet to classify the disruption as a "serious incident." Japan's telecommunications business law stipulates that the government can apply the label requiring a report on the issue's cause within 30 days if 30,000 people or more cannot dial emergency numbers such as 110 or 119 for an hour or longer.

Users of Rakuten Mobile Inc and Jcom Co's low-cost mobile services have also been affected as their services use KDDI's lines.

The Japan Meteorological Agency said it could not transmit some data on temperatures and other weather conditions and is not sure when the service will be restored.

A regional bank in Gifu Prefecture reported disruption with some of its automated teller machines. Ogaki Kyoritsu Bank said that of its 212 ATMs outside bank premises, such as at stations in Gifu and nearby prefectures of Aichi, Mie and Shiga, 190 could not be used, but ATMs in conveniences stores and its branches remain unaffected.

Transport giant Yamato Holdings Co. said the KDDI disruption is likely behind its customers' inability to track parcel deliveries online.

Local governments and fire departments, including from the western city of Kyoto and the city of Saitama, north of Tokyo, called on the public to use a landline or public telephones to dial 119 for fire or ambulance services.

The disruption has prompted customers to flood Twitter with their frustration at being unable to make phone calls or get data connections, with some complaining they cannot leave home.

Japan's largest mobile carrier by subscribers, NTT Docomo Inc, suffered a system failure in October and was issued an administrative order to prevent a recurrence. The disruption, lasting around 29 hours and affecting at least 12.9 million users, was labeled a serious incident by the communications ministry.




KDDI says mobile network almost recovered across Japan
(July 4, 2022/ JAPAN TODAY)

KDDI Corp said Monday voice calls and data communications have almost been restored nationwide, two days after the Japanese telecom giant suffered disruptions on up to 39 million mobile connections during maintenance work.

But KDDI, the country's second-largest mobile carrier by subscribers, did not have a firm timetable set for complete service restoration as of 4 p.m.

Users of its au mobile phones continued to have difficulty making calls Monday due to a temporary limit placed on network traffic, even after internet and data communication services were largely restored.

The disruption, which occurred around 1:35 a.m. Saturday, has affected up to 39.15 million mobile connections and disrupted banking systems, the transmission of weather data, parcel deliveries and network-connected cars.

Speaking at a press conference Monday, Deputy Chief Cabinet Secretary Seiji Kihara said the trouble is "extremely regrettable" as mobile networks are important infrastructure for the public and their activities, and he has demanded an "in-depth explanation for users" from the carrier.

KDDI's problems come at a time when the government is pushing for digitalization as one of its top priorities. It also highlights the risk of a large-scale communications breakdown as everything from cars to factory equipment becomes connected to the internet.

Some automatic teller machines at Ogaki Kyoritsu Bank in central Japan remained out of service as of Monday morning. Yamato Transport Co saw its system for confirming deliveries disrupted, while drivers using Toyota Motor Corp's connected-car service could not reach a call center or do other tasks.

The Japan Meteorological Agency's weather data transmission remained partially inoperative as of 8 a.m. even as a typhoon approached Japan, although the agency said it does not have any significant impact on its weather forecast work.

The problem also affected the carrier's low-cost UQ Mobile brand and its lower-priced "povo" mobile customers, as well as smaller rivals leasing connections from the company, such as Rakuten Mobile Inc.

The network failure occurred while the switching system for voice calls was replaced during regular maintenance, with repair work triggering a concentration of traffic that led the company to reduce user access.

During that time, the carrier experienced a cascade of technical problems that further prolonged the connection difficulties.

Internal Affairs and Communications Minister Yasushi Kaneko said Sunday he believes the disruption should be classified as a "serious incident." This requires a carrier to report details of the problem and relevant preventive measures.

KDDI President Makoto Takahashi apologized for the disruption at a press conference Sunday, admitting it was the largest outage in its corporate history. The carrier is considering compensating individual and corporate users, he added.

The latest service outage follows a system failure at NTT Docomo Inc, Japan's largest mobile carrier, in October last year that lasted around 29 hours and affected at least 12.9 million users.

SoftBank Corp, the country's third-largest mobile carrier, in December 2018 also suffered an outage that affected around 30.6 million users.

KDDI shares fell during Monday trading on the Tokyo Stock Exchange, ending the day down 1.7 percent at 4,241 yen after dropping as much as nearly 4 percent.





An ever weakening yen punishes the nation
(Oct 21, 2022/ The Japan Times Editorial)
Original Article is from Here.

Japanese policy makers can take some solace that the strong U.S. dollar is behind the yen's decline.

《The yen continues to slump on the back of a strong dollar and as traders try to guess when and if the Japanese authorities will intervene to halt its further decline. 》

As the yen surpassed the 150 per dollar level, Japan’s economic and financial policy makers face growing pressure to change course.

A currency this weak is bad for Japan, bad for Asia and bad for the world. Measures to strengthen the yen threaten efforts to promote stable and sustainable price increases and grow wages as a result, however. Raising interest rates — the principle measure readily available to strengthen the currency — could also increase the government’s debt burden, an ominous concern when that deficit is already twice the country’s gross domestic product.

Japanese policy makers can take some solace from the fact that the factor driving this situation is the strong dollar. That does not release them from an obligation to minimize the impact of decisions made in Washington and protect this country’s economy.

The yen has been steadily declining in value against the U.S. dollar. This week it surpassed the 150 level, its lowest point in 32 years. That represents a loss of some 23% of its value against the dollar this year.

That slide prompted the Finance Ministry — the part of the government responsible for the yen’s value — to intervene in currency markets for the first time in 28 years. Last month, it spent ¥2.8 trillion ($19.5) to prop up the yen when it hit the 145 level. There are reports of “stealth intervention,” or spending to support the currency without official acknowledgement by the government.

By one estimate, the ministry spent around ¥1 trillion ($6.7 billion) last week without officially acknowledging the move. The continuing decline in value shows that neither effort provided more than temporary relief. Major investment banks now forecast that the yen will fall to 155 to the dollar by year’s end.

The primary reason for the yen’s plunge is the large and growing gap between interest rates in the U.S. and those in Japan. Concerned about breakneck inflation, the U.S. Federal Reserve has engaged in a concerted and unflinching effort to stop prices from rising. It has lifted interest rates five times this year and it shows no inclination to stop doing so until prices stabilize.

In Japan, however, the chief concern is creating stable inflation. For decades, price levels have been stagnant with wages flat, which has discouraged consumer spending and depressed investment. To create the 2% inflation that it believes critical to a healthy economy, the Bank of Japan has implemented a zero-interest rate policy to encourage growth.

Prices are climbing in Japan. Core inflation reached 2.8% in August, the fifth consecutive month that the figure exceeded the BOJ’s 2% target, and is expected to top 3% in September. But that is the result of rising input prices, raw materials in particular, and the weak yen. Officials and experts believe that the desired 2% inflation hasn’t been inculcated and once the current turbulence ends, Japan will again be trying to stimulate price increases.

As a result, Japanese officials, including Prime Minister Fumio Kishida and BOJ Gov. Haruhiko Kuroda, insist that they will stick with existing policy. That means there is a great and growing gap between interest rates here and in the U.S., and money continues to flow out of the country — creating more downward pressure on the value of the yen.

Japan is hoping that the country’s reopening will stem some of the pressure on the currency. As tourists return to take advantage of the weak yen, their spending will create a countervailing force in exchange markets. The government is reportedly anticipating that those visitors will spend ¥5 trillion ($34 billion) over the next financial year, The BOJ is hoping that tourism will also spur demand for services, providing new impetus for wage growth.

In a country that relies on imports for roughly 60% of food and 90% of its energy supply, higher prices are devastating. Food prices are increasing at their fastest rate since 1991, which means that inflation-adjusted wages have fallen for five straight months through August. The Japanese government is taking steps to ease the pain. It has provided subsidies to oil wholesalers to lower the price of gas at the pump and will continue to do so through the end of the year. Prime Minister Kishida has said that he will offer relief to counter rising electricity bills early next year. He has also signaled interest in helping on natural gas bills. too.

After setting aside over ¥200 billion in April to give ¥50,000 per child to low-income, single-parent households and child-rearing households, it has reportedly decided to distribute another ¥50,000 each to low-income households as part of a relief package to mitigate the impact of inflation. In addition, the government is said to be preparing a second extra budget with ¥10 billion in subsidies to help companies boost exports, and exploit a weak yen.

If tourists are now enticed to visit Japan, foreign workers are not. A weak currency reduces the value of their wages. For those who come to earn money that will support families in their home country, this may oblige them to look elsewhere for work. It will also reduce the willingness of high-skilled workers to offer their talents here.

The impact of the weak yen has rippled through the region. As Japanese input prices rise, so too have the price of products manufactured here, which is then transmitted through entire supply chains.

Meanwhile, the strong dollar discourages purchases of U.S. made goods. In the current environment, that encourages the regionalization of production networks as countries try to avoid exchange rate risks. Regional trade architectures like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership reinforce this evolution as the U.S. is a member of neither group.

Japan is in both, but a weak currency reduces its status and standing. Weak demand for imported goods will marginalize it within those structures. Foreign investment will decline as prices increase and foreign currency reserves shrink. Both will allow other countries to assume a higher profile in regional trade.

Still, the country could profit from a weaker yen but that will materialize over years as production returns to these shores. In the interim, Japan needs moderate, sustained price increases that yield modest inflationary pressures and create the stability and predictability that businesses need to make investment plans and will push up wages.

This requires a division of labor. The BOJ must stick to its current easy money policy, while the Kishida government tries to dampen the volatility of currency movements and works to minimize the harm a weak yen does to households and businesses. To ensure long-term economic viability, the government must do more to stimulate innovation and foreign investment, to provide for a steady infusion of capital, ideas and talent.

More must be done to welcome the tourists who seek to enjoy this country’s many splendors while the yen is cheap. Ultimately, a capable, competent and future-oriented government will provide the confidence that the world seeks from Japan and the Japanese people should rightly demand from their leaders.