ICT Policy in JapanICT Policy in Japan - 総務省 · ICT Policy in JapanICT Policy in Japan ... self-sustaining ICT Society New IT Reform ... Invigorating the Economy by Exploiting

©2008 MIC. All Rights Reserved. 0

ICT Policy in JapanICT Policy in Japan

PTC’08 30th ANNIVERSARY CONFERENCE Opening Plenary

January 13, 2008

Kiyoshi MORIKiyoshi MORIViceVice--Minister for Policy CoordinationMinister for Policy Coordination

Ministry of Internal AffairsMinistry of Internal Affairs and Communications, JAPANand Communications, JAPAN


1. Current Situation of Broadband and Mobile Services in Japan

Total: 27.2 MillionTotal: 27.2 Million

2001 2002 2003 2004 2005 2006

5M

10M

15M

20M

25M

30M

June, 2007

FTTHFTTHAppx.36%

（9.7 million）

DSLDSLAppx.50％

（13.8 million）

CATVCATV Appx.14％（3.7 million）

0

10

20

30

40

50

60

70

80

90

100

2001 2002 2003 2004 2005 2006 2007

Internet connection

IMT-2000

IMT-

2000

2001Start of IMT-2000 service2001Start of IMT-2000 service

69.1M75.66M

81.52M87M

91.79M96.72M

98.88M

IMT-200070 Million

(72%)

IMT-200070 Million

(72%)

Internet Connection84 Million(87%)

Internet Connection84 Million(87%)

Inte

rnet

Con

nect

ion

（million subscribers）


Source ： ITU Internet Reports 2006 ”digital.life”（December 2006）

Broadband prices (100kbit/s)Broadband prices (100kbit/s)(US dollar)(US dollar)

2. Japanese Broadband Service in Global Comparison

Speed of DSLSpeed of DSL（（Mbit/sMbit/s））

5.12

6.016

6.144

6.144

6.144

8

8.128

8.128

8.192

10.24

12.288

12.288

20.48

24

24

30.72

51.2

51.2

0 10 20 30 40 50 60

Philippines

Germany

Poland

Hong Kong,China

Iceland

Brazil

Portugal

The U.K.

Kazakhstan

France

Italy

Taiwan,China

Netherlands

Finland

Sweden

Singpore

Korea

Japan

1.21

1.08

1.07

1.01

0.93

0.93

0.83

0.69

0.63

0.51

0.49

0.36

0.36

0.34

0.3

0.24

0.23

0.14

0.08

0.07

0 0.2 0.4 0.6 0.8 1 1.2 1.4

Belgium

Brazil

Macao,China

Canada

Bosnia-Herzegovina

Portugal

Hong Kong,China

Lithuania

The U.K.

Germany

United States

Finland

France

Taiwan,Chaina

Italy

Singapore

Sweden

Netherlands

Korea

Japan


3. National target : Steps taken in Japan on ICT Strategies

2001 2003 2004 2005 2006

e-Japan Priority Policy Program(March 2001)

e-Japan Strategy u-Japan policy of MIC

e-Japan Priority Policy Program - 2002 (June 2002)

e-Japan Priority Policy Program - 2003(August 2003)

e-Japan Priority Policy Program - 2004(June 2004)

Realizing a

Ubiquitous N

etwork

Society

ee--Japan StrategyJapan Strategy((January 2001January 2001))

e-Japan Strategy Ⅱ(July 2003)

e-Japan Strategy II Acceleration

Package (February 2004)

IT Policy package(February 2005)

New IT Reform New IT Reform StrategyStrategy

((January 2006January 2006))

◆IT Basic Law◆Establishment of IT Strategy Headquarters(Director General: Prime Minister)

u-Japan Promotion Program ２００６（September 2006）

uu--Japan Promotion Program Japan Promotion Program ２００６２００６（（September 2006September 2006））

Realization of a self-sustaining ICT Society

New IT Reform StrategyPolicy package(April 2007)

2007

Priority Policy Program - 2007

（July 2007）Priority Policy Program - 2006（July 2006）

2010


4. Competition Policies

１．Promote Service Based Competition Policy– Collocation Rules and Unbundling Rules

• For DSL (Sep. 2000)• For FTTH (Apr. 2001)

２．Promote Facility Based Competition Policy– Facilitation of applying for use of public property such as

roads (Nov.2000)– Guidelines on right of way (Apr. 2001, rev. Apr. 2007)

３．ADR (Alternative Dispute Resolution, est. Nov, 2001)


70 8

0

2

4

6

8

10

12

14

16

Mar-99 Sep-99 Mar-00 Sep-00 Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07

DSLDSL

Cable ModemCable Modem

(millions)

FTTHFTTH

5. Development of DSL service market

and introduction of interconnection rules

OthersApprox. 57.2%

Approx. 38.0%

【End-Mar.07】

NTT E/W

Establishment of collocation and Establishment of collocation and unbundling rules for access networks unbundling rules for access networks of NTT E/Wof NTT E/W

Autumn 2000Autumn 2000Autumn 2000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

01.4 01.10 02.4 02.10 03.4 03.10 04.4 04.10 05.4 05.10 06.4 06.10

0

10

20

30

40

50

60

fastest

highest

cheapest

（yen）（M）

FY2006 Evaluation of Competitive Situation in the Telecommunications Business Field （MIC)

12

07.03

©2007 Ministry of Internal Affairs and Communications. All Rights Reserved.

6. ADSL Service Speed and Fee


7. Issues to be tackled

<Ⅰ. Back ground>1. From PSTN to IP → Full IP Network

・Fixed + Mobile=FMC・Wired + Wireless・Communication + Broadcasting

2. Horizontal + Vertical market integration3. ICT contribution to the growth of GDP

<Ⅱ. Issues for the future>1. Connectivity2. Universality3. Consumer Protection4. Security5. International Cooperation (inc. environment issues)

→ NGN → NwGN

“New Competition Promotion Program 2010”


Leased circuit

～ 1980 1990 ～ present Beginning of 2010 ～

Telephonenetwork

Telephonenetwork

IP network

ISP/ASP

My Line Direct

telephone carriers

Mobile phone network

PHS

Analog →2G→3G

Wireless LAN

Mutually complementary

networks of various kinds coexist

Use of IPFMC

use of IP

IP network

AD

SL

Application/content

SophisticatedIP network

Leased circuit

ADSL/FTTH/CATV

Internet

Next generation network (NGN)

IP network

FTTH

CA

TV

WirelessLAN

Mobile access

Telephone networks still exist

Existing mobile phone networks use IP one after the other

8. Transitions in Telecommunications Network (toward NGN)


9. Market structure and the change9. Market structure and the change

Development of horizontal market integration

Transition from PSTN to IP based networks (“Everything over IP” age)

From “intramodal” competition to “intermodal” competition

Significant changes to the market structure (paradigm shift)

Voice Data Video

Mobile Fixed

Regional Long distance International

Horizontal integration

“Packet based”

“Ubiquitous”

“Communication”

Integrated service

Development of vertical market integration

Business models in broadband era are developed to the vertical integrated ones.

Example) Fusion of FMC (Fixed and Mobile Convergence), communication and broadcasting. Telephone

age IP age

Digitization of content (integration of video,

data and video)

Integrated services provided

by a single independent telephone company

Narrowband to broadband

Contents and application layer

Platform layer

Telecom service layer

Physical network layer

Vert

ical

inte

grat

ion

Telecom service

Various contents application

over

Integrated service

Packet service

“Ubiquitous”

“Communication”

Horizontal integration


10. Invigorating the Economy by Exploiting ICT

1.00.7

0.3 0.30.5

0.9

0.40.7

1.0 0.9

0.9

0.8

-1.9

-0.7

1.6

-0.9

0.3

1.3

1.5

1.3

2.2

2.5

2.0

0.7

0.0

2.1

-0.4

-1.6

1.5

Real GDP growth rate

1.9

-2.0

-1.0

0.0

1.0

2.0

3.0

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

ICT industry Other industries Real GDP growth rate

（％）

ICT industry accounts for 40% of real GDP growth

(Source) White Paper 2007 “Survey on Economic Analysis of ICT”

©2008 MIC. All Rights Reserved.

1. Promote Facility Based Competition

2. Review of Designated TelecommunicationsFacilities System (Dominant Regulations)

3. Review of Calculation Method for Interconnection Charges of NTT East/West

Main Policies Items

(b) Develop competition policies to prevent the abuse of collective market power

(f) Review of financial accounting system (differentiate interconnection account from service account)

(b) Facilitate to use fibre networks owned by local governments etc.

(c) Promote diversification of access networks

(e) Development of interconnection rules for NGNs of NTT E&W

(a) Appropriate Implementation of competition safeguard system

(c) Comprehensive review of designated telecommunication facilities system

(a) Promote open-up policy for establishment of network infrastructure

(d) Study of appropriate factors for fair competition with respect to cooperation of NTT E&W with NTT DoCoMo

(a) Review of calculation method for fixed line interconnection charge

(b) Review of calculation method for optical fibre interconnection charge

(c) Study of calculation method for interconnection charge of NGN11

11. New Competition Program 2010 (1) (September, 2006)


12. New Competition Promotion Program 2010 (2)

4. Promotion of Competition in Mobile Market

5. Development of Environment for Realization of IP-based Terminal Equipments

6. Review of Tariff Policy

Main Policies Items

(b) Development of test-bed for communications devices that can be used for mutual-connectivity verification

(c) Development of consumer protected environment when they use communications devices

(a) Review of technology standards and quality certification system regarding communications devices

(a) Development of environment for effective operation of network

(b) Study and review of network neutrality and pro-competition framework

(c) Study of measures to strengthen coordination among platforms

7. Review of Universal Service System

8. Development of Environment for Ensuring Network Neutrality

9. Strengthen Dispute Resolution Function

10. Strengthen Consumer Protection Policy


13. IP Traffic on the Networks (Total Volume)The total amount of IP traffic in Japan was estimated at 721.7Gbps (May 2007), which accounts for about 1.4 times more than that of the previous year (523.6Gbps).Necessity for enhancing network capacity is increasing.

424.5Gbps (2005.5)

468.0Gbps (2005.11)

523.6Gbps (2006.5)

636.6Gbps (2006.11)

721.7Gbps(2007.5)

323.6Gbps (2004.11)

303.2Gbps (2004.10)

269.4Gbps (2004.9)

0

100

200

300

400

500

600

700

800

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

[Gbps]

Estimated download traffic of broadband users in Japan

306.0Gbps(2007.5)

238.6Gbps(2007.5)

167.0Gbps(2007.5)

Monthly average of daily traffic of broadband customers (ADSL/CATV/FTTH) of major ISPs in Japan

(ref.1) Monthly average of daily peak traffic exchanged at major IXsin Japan

(ref.2) Monthly average of daily traffic exchanged at major IXsin Japan

（source: MIC Japan)

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19©2007 Ministry of Internal Affairs and Communications. All Rights Reserved.

Others( web or mail etc)

Others( web or mail etc)

14. IP Traffic (a major ISP)

15

Content

Platform

Transmission infrastructure

Transmission facilities

Transmission services

<Information and Communication Law (tentative)>[Unrestricted distribution of information][Benefit of information and communications technology to everyone][Establishing the safe and secure network Society]

Fundamental Principle

◆ Ensuring flexible use of radio waves by making the classification of services broader, etc.

Cable Television Broadcast Law

Cable Television Broadcast Law

Law C

oncerningBroadcast on

Telecomm

unication ServicesLaw

Concerning

Broadcast on Telecom

munication Services

Communications Broadcasting

Laws and orders concerning

measures against illegal and

harmful information

Wire Telecommunications LawWire Telecommunications Law

Telecommunications Business Law

Telecommunications Business Law

ＮＴＴLaw

ＮＴＴLaw

Law Concerning Wire Broadcasting

Telephone Business

Law Concerning Wire Broadcasting

Telephone Business

Radio Law (wireless)Radio Law (wireless)B

roadcast LawB

roadcast Law

Law to R

egulate the Operation of

the Cable S

ound Broadcasting Service

Law to R

egulate the Operation of

the Cable S

ound Broadcasting Service

◆ Reconfiguration of rules for content, with emphasis on social functions and impacts

◆ Study on rules to ensure openness, including the necessity of such rules

◆ Integration of rules for transmission services of communications and broadcasting

<Present legal system>

©2007 Ministry of Internal Affairs and Communications. All Rights Reserved.

15. Restructuring of Legal System for Communications and Broadcasting


http://www.soumu.go.jp

[email protected]

Ministry of Internal Affairs and Communications (“MIC”), Japan

MICMIC

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Documents

ICT Policy in JapanICT Policy in Japan - 総務省 · ICT Policy in JapanICT Policy in Japan ... self-sustaining ICT Society New IT Reform ... Invigorating the Economy by Exploiting