| January 18 | Tokyo Electric Power obtains conditional approval to become broadband datacom operations. |
| January 31 | Fuji TV, TBS, and TV Asahi lead establishment of broadband content company Toresola. |
| February 1 | SkyPerfecTV begins commercial broadband delivery trials. |
| February 12 | Usen Corporation begins Broad-Gate 02, its fiberoptic ISP service for businesses. |
| February 13 | Fuji Sony and Sony Commmunication Network launch broadband portal "So-net Broadband Mega-Channel." |
| February 22 | Microsoft releases XBOX. |
| March 31 | eBay ceases operations of Japan office and Japanese site. |
| March 31 | SkyPerfecTV and NTT begin streaming video tests on fiberoptic cable. |
April 1 | Mobile Internet Service launches wireless broadband connectivity service. |
| April | JDS launches fiberoptic "Backbone Service" for cable operators offering broadband internet connectivity on a proprietary network. |
| May 7 | DSL provider Yahoo BB begins wireless connectivity option by installing connection points in McDonald's restaurants. This initiative continues with installations at Mr. Donuts and Starbucks Coffee locations. |
| June | SpeedNet tops 10,000 subscribers. |
| June | B Maga (Broadband Magazine) publishes innaugural issue. |
| July 1 | Yahoo BB merges with Tokyo, Osaka, and Nagoya Metallic Communications. |
| August 1 | SkyPerfect Communications launches commercial services of its broadband internet portal SkyPerfect BB. |
| September | Yahoo BB signs up over 1 million ADSL subs. |
| September | FTTH broadband internet users exceed 100,000. |
| December | ADSL subscribers nationwide exceed 5 million. |
| February | DSL access skyrockets with over 10,000 subs added in one month. |
| February | JPNIC establishes Japan Registry Service Co. (JRSC) to commercially administer '.jp' domain names. |
| March 1 | Usen Corp. begins roll out of 100Mbps FTTH broadband network for internet access and proprietary services. |
| March 4 | NTT Docomo i-mode subscribers top 20 million. |
| April | Japan Digital Serve and SCC form "Programming Distribution Center," the planning company that becomes i-HITS Co., Ltd. |
| April 1 | Akamai Technologies Japan established as joint venture with SoftBank. |
| May 15 | MEI establishes Hi-Ho Broadband with TIS (24.5%) and PFU (24.5%) as 51% shareholder. |
| May 25 | SpeedNet launches FWA broadband internet service in Saitama. |
| June 29 | NTT establishes NTT Broadband Initiative (NTT-BB). |
| June 30 | usen tops 1,000 FTTH subscribers. |
| July | SoftBank makes TOB for ADSL pioneer Tokyo Metallic Communications. |
| July 31 | DSL subscribers exceed 400,000. |
| Aug. 1 | Tokai Broadband begins offering ADSL broadband connectivity in Tokyo. |
| Aug. 1 | NTT begins offering FTTH broadband connectivity. |
| September | SkyPerfecTV announced participation in broadband internet program delivery trials with NTT, KDDI, and Japan Telecom affiliates. |
| December | i-HITS established as operating company to deliver broadband content. |
| Dec. 8 | WOWOW begins pay VOD trials over broadband internet. |
| December 31 | ADSL subscribers exceed 1.5 million nationwide. |
| February 22 | NTT Docomo launches i-mode service enabling digital cellular handsets to become terminals for internet email correspondence, web access, and proprietary interactive content menus. |
| July 29 | Tokyo Metallic Communications Corp. is established as DSL provider for broadband internet and online multimedia connectivity. |
| August 8 | NTT Docomo i-mode subscribers top 1 million. |
| November | Sachio Senmoto and Eric Gan found e-Access as a broadband (DSL) ISP, web hosting service, ASP, and IP backbone architect business. |
| December | Aggregate subscribers of top 15 dial-up ISP's in Japan exceed 10 million. |
| December | NTT initiates testing of ADSL service. |