11 april, 2008 shigeo okamoto

©2008 Ministry of Internal Affairs and Communications. All Rights Reserved.

11 April, 2008

Shigeo OKAMOTODirector for Promotion of Broadband

Ministry of Internal Affairs and Communications (MIC), Japan

Presenter

Presentation Notes

Good Morning, everyone. It is my great pleasure to make a presentation at OECD Workshop on Fibre Investment and Policy Challenges . My name is OKAMOTO, director for promotion of broadband, Ministry of Internal Affairs and Communications, Japan. Today, I’m going to talk about “Japan's Strategy for the Nationwide Development of Broadband including FTTH”. I’d like to introduce Japan’s experience up to the present and the challenges that are currently being undertaken, I hope this presentation could be some help to you to get a better understanding of what we have done and are doing.


1. Overview of Japan’s Telecom Market & ICT Strategy

2. Broadband Progress in Japan

3. Japan’s Strategy on Bridging Digital Divide

Table of Contents

Presenter

Presentation Notes

I’ll conduct the presentation in this order. First, Second, Finally,


１． Overview of Japan’s Telecom Market & ICT Strategy


FTTH11,324,627

ＦＷＡ12,585

CATV3,827,502

ＤＳＬ13,133,113

※As of Dec. 2007

【Number of Telecommunication Service Users】

（Unit: 10 thousand）

Fixed Communications (telephony)

Mobile Communications (telephony)

Broadband serviceIP Telephony

Transition in the Number of Japan’s Broadband Subscribers

【Number of Broadband Service Users】


Presenter

Presentation Notes

The number of broadband subscribers in Japan is approximately 28.3 million at present (left graph, black line). The graph at the right indicates that there are 13 million DSL subscribers, but this number is beginning to decrease. On the other hand, we are seeing the rapid growth of FTTH, with the service provided to 11 million users.

©2008 Ministry of Internal Affairs and Communications. All Rights Reserved.Source ： ITU Internet Reports 2006 ”digital.life”（December 2006）

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

Japanese Broadband Service in Global Comparison

Speed of DSL（Mbit/s）


Presenter

Presentation Notes

An ITU survey concludes that Japan is now ranked first with regard to the price and speed for broadband services in the world.


6

Japan’s National IT Strategies

2001 2003 2004 2005 2006

e-Japan Priority Policy Program(March 2001)

ICT policy of MIC 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)

World’s cutting-edge IT evaluation

Realizing a U

biquitous N

etwork Society

e-Japan Strategye-Japan

Strategy ⅡNew IT Reform Strategy

～

Valuing IT applications

Infrastructure development

u-Japan Promotion Program ２００６（September 2006）

Realization of a self-sustaining IT Society

Ubiquitous Network Society

2007

Priority Policy Program - 2007

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

Presenter

Presentation Notes

The e-Japan strategy was adapted as a national ICT policy package by the Japanese government between 2001 to 2005. the strategy aims the realization of a self-sustaining IT society by 2010. This was followed by the u-Japan policy adopted by our Ministry which began in 2006 and is scheduled to end in 2010.


Universal

Japan will lead the world in 2010 as the world’s cutting-edge “ICT nation”

MIC’s u-Japan Policy

u-Japan policy

package

1.Development of ubiquitous networks

2.Upgrading the usage of ICT

3.Improvement of the environment for the usage of ICT

5.Technology strategy

4.International strategy

Ubiquitous

User-oriented Unique

u-Japan is a next generation ICT society which is equipped with properties as follows

Concept

Outline

Presenter

Presentation Notes

U-Japan Policy was adopted by MIC. The key concept is that u-Japan is a next generation ICT society which is equipped with properties of 4 U’s. That is, Ubiquitous, Universal, User-oriented, Unique. Based on this Policy, u-Japan Policy Package was also adopted. It is characterized by 5 prioritized policy areas, the development of ubiquitous networks is one of them.


２． Broadband Progress in Japan

a. Setting National Targets

b. Structures to Promote

c. Suitable Competition Policy for FTTH

Presenter

Presentation Notes

Let us move to the next topic, broadband progress in Japan. With respect to the rapid development of broadband services in Japan, We feel that three factors have played a prominent role. The first was the establishment of a national goal by the government-led ICT strategy. The second was we established structures to promote composed of various players. The third was the introduction of a suitable competition policy. I’m going to explain from the first one.


2. Development of IT Infrastructure

(1)The Realization of an IT Society without Digital Divide

Targets1. By FY 2010, infrastructure improvements such as for optical fibers, are promoted in order to eliminate all areas where broadband service remains unavailable.

『New IT Reform Strategy』（January 2006 IT Strategic Headquarters）

Targets for Broadband Development in Government’s ICT Strategies

Targets:By FY2010, Japan will:1 Eliminate all zero-broadband areas throughout the country.2 Achieve over 90% household access to Ultra high-speed Interactive Broadband Networks (UIBN).

『Next Generation Broadband Strategy 2010 』（August 2006 MIC）

Presenter

Presentation Notes

One of the main pillars of our ICT strategy is the nationwide development of broadband infrastructure. We are set to provide broadband services to all the households by 2010, Ultra high-speed Broadband, typically FTTH, to 90% of these households.






Presenter

Presentation Notes

Then I’d like to talk about structures for the promotion of nationwide broadband.


Task Sharing

• Vigorous deployment of broadband networks.• Positive disclosure of information about broadband-zero areas.• Demand creation• Active involvement in taskforces

Private Sector

• Formulation of broadband deployment plans in collaboration with the private sector

• Demand creation and utilization promotion by proposing utilization measures and examples

Local Authorities

• Grant of investment incentives to providers

• Support for regional initiatives• Promotion of technologies• Support for establishment of

taskforces• Compilation and publication of

relevant information

Government

Presenter

Presentation Notes

This chart shows the task sharing among 3 main players for the development of BB. We do not take the idea that private sector should be responsible for the construction in all regions including less-profitable regions. Conversely, we do not push the public sector into the full commitment without any cooperation by the private. We are thinking that public-private partnership is absolutely necessary.


Details of Structures to Promote Nationwide Broadband Installation (Nationallevel, Regional level)

Prefecture A

WG for Promotion of Nationwide Broadband

The Association for Promotion of Public Local Information and Communication (APPLIC)

Prefevture B

National level promotion structure

…….

Regional level promotion structure with participation of prefectural governments, cities, towns, villages,

business units, and the national government (in principle, the prefectural government unit)

Information and Communications Infrastructure CommitteeSharing of information related to infrastructure development statusCreation of a roadmapCreation and delivery of manuals, etc.Sharing of information related to case examples of activitiesPromotion of sharing of regional public networks (optical fibers), etc.

Regional level promotion structure

Close coordination & cooperation

Presenter

Presentation Notes

This chart shows the details of structures to promote nationwide broadband installation. At national level, we formed the Information and Communications Infrastructure committee which consists of the representatives of prfectures, basic local authorities, business units, academic society and national government inside our external body APPLIC. The main task of the committee is information sharing, creation of roadmap, promotion of public network sharing. In regional revel, the similar promotion structure had been established to study and act for the installation of BB infrastructure.


Roadmap for promoting nationwide broadband development

（Example of Okinawa Pref.）

Service A

rea C

overage Rate

BB

FY ２００６ FY ２００７ FY ２００８ FY ２００９ FY ２０１０

９１．２％１００％

９０％

No-broadband

Area

ZERO

ZERO

LocalAuthorities

Households

１１

FTTH

４６ Thousand

７

５

３

７２．０％

９４．３％

７３．８％７７．８％８１．９％８５．９％

９５．７％９７．１％９８．５％

５１６

２２

Presenter

Presentation Notes

The promotion structure drew up a Roadmap for promoting nationwide broadband development prefecture by prefecture. Japan has 47 prefectures and this chart is the example of Okinawa Pref. According to this time schedule, one of the element of the roadmap. the coverage rate is supposed to be 100% from 94.3% in FY2007.


2006年度 2007年度 2008年度 2009年度 2010年度

達成目標達成目標達成目標達成目標達成目標

※｢計画･整備状況｣Ａ：整備済みＢ：整備中Ｃ：整備詳細を計画Ｄ：整備を検討中Ｅ：未検討Ｓ：著しく整備困難

恩納村計画・整備状況Ａ

整備世帯数約2千世帯

座間味村計画・整備状況Ａ

整備世帯数約207世帯

渡嘉敷村計画・整備状況Ａ


竹富町計画・整備状況Ａ

整備世帯数約1,766世帯

南大東村計画・整備状況Ｂ


北大東村計画・整備状況Ｂ


本部町他５市町村計画・整備状況Ｂ

整備世帯数約1,616世帯

南城市及び宜野座村計画・整備状況Ｄ整備世帯数：未定

３自治体５地域他計画・整備状況Ｅ整備世帯数：未定

整備世帯数：50.2万世帯

世帯カバー率：94.3％

世帯カバー率(超高速)：73.8％











世帯カバー率：100％

世帯カバー率(超高速)：90％

国頭村、大宜味村及び東村計画・整備状況Ｄ整備世帯数：未定

Roadmap for promoting nationwide broadband development

（Example of Okinawa Pref.）

Presenter

Presentation Notes

The roadmap has the other element, the flow chart. This is flow chart for the development in by region in Okinawa prefecture. The pink indicate “already installed”, the green indicates “under construction,” the blue and yellow means “not yet but under consideration”.


Interest aid

local tax

Low-interest loan

Debt guarantee

2. Aid to a local authorities

Grant-in-aid

national tax

1. Investment incentives for telecommunications carriers

Subsidy to regional intranet infrastructure

Government’s Assistance for Development of Broadband

Tax breaks

financial adjustment to local authorities

Presenter

Presentation Notes

MIC also prepared for some assistance scheme for development of broadband. We have two types of assistance, one is investment incentives for business units and the other is aid to a local authorities. The assist to the business is indirect method like low-interest loan, tax breaks, on the other hand, the aid to the local authorities is direct financial transfer.






Presenter

Presentation Notes

Let me talk briefly about the introduction of a suitable competition policy.


ⅰ Competition Policy

Promote Service Based Competition Policy

Promote Facility Based Competition Policy

ⅱ Intensified “Competition” among Operators

Collocation Rules (Oct.2000)Unbundling Rules (Apr. 2001)

The Promotion of FTTH Services

Facilitation of applying into public property such as roads (Nov.2000)Guidelines on right of way (Apr. 2001)


Presenter

Presentation Notes

To promote facility based competition, both unbundling and collocation rules were introduced. And, to promote facility based competition, the government set guidelines on access to poles and conduits owned by NTT East and West.


70 8

DSL

Cable Modem

(millions)

FTTH

Trend in the Number of Japan’s Broadband Subscribers

K-OPTI. Com, a subsidiary of an electric power company, introduced a low-price double play.

September 2004

Presenter

Presentation Notes

As a result, the fierce competition that has enjoyed among operators emerged.


Opticalization of NTT East and West

※The ratio of coverage is the average of NTT East and West. The ratio of opticalized access network means that of opticalized feeder point.

【The trend of Opticalization of access network】

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

coverage 10% 13% 16% 19% 27% 35% 43% 58% 72% 81% 84% 86% 89%

Presenter

Presentation Notes

It brought about FTTH service rapidly spreading throughout Japan.


Service Area Coverage Rate of Households (Estimation)

Broadband

Ultra high-speed (FTTH)

March, 2007

93.9％(47.33M households)


March, 2006





December, 2007

Presenter

Presentation Notes

The efforts I referred to have achieved a successful outcome in general. Please refer to the chart. This shows estimated service area coverage rate of households for both broadband service and ultra high speed. BB coverage rate went up to 95.8% in December 2007 from 93.9% in March 2006. Ultra high-speed coverage increased to 85.3% from 79.7%.



a. Current Status on DD

b. The Strategic Meeting on Bridging the Digital Divide


Service Area Coverage Rate of Households (Estimation)

Broadband

Ultra high-speed (FTTH)

March, 2007



March, 2006





December, 2007

Presenter

Presentation Notes

In general, the development of broadband services is going successfully., as seen in the coverage rate.


Digital Divide Getting Serious

• In general, the development of broadband services is going successfully.

• On the other hand, digital divide between urban and rural areas is getting serious.

• Digital divide on FTTH is more serious than other “ordinary” broadband services.

Presenter

Presentation Notes

On the other hand, The rapid growth of BB arise a policy problem. digital divide between urban and rural areas is getting serious. Digital divide on FTTH is more serious than other “ordinary” broadband services. I’ll show you some examples of digital divide.


Ok

ina

wa

Kagoshim

aM

iya

za

ki

Oi

ta

Kum

amoto

Na

ga

sa

ki

Sa

ga

Fu

ku

ok

aK

oc

hi

Eh

im

eK

ag

aw

aTokushim

aYam

aguchiH

irosh

ima

Ok

ay

am

aS

him

an

eT

ot

to

ri

Wakayam

aN

ar

aH

yo

go

Oo

sa

ka

Ky

ot

oS

hi

ga

Mi

eA

ic

hi

Sh

izu

ok

aG

if

uN

ag

an

oYam

anashiF

uk

ui

Ish

ika

wa

To

ya

ma

Niig

ata

Kanagaw

aT

ok

yo

Ch

ib

aS

aita

ma

Gu

nm

aT

oc

hig

iI

ba

ra

ki

Fukushim

aYam

aguchiA

ki

ta

Mi

ya

gi

Iw

at

eA

om

or

iH

ok

ka

ido

BB Service Area Coverage Rate of Households (Estimation)

○ National Average ９５．８％％（December, 2007）

Presenter

Presentation Notes

This graph shows BB service area coverage. In Metropolis areas like Tokyo and Osaka, the rate is around 100%. However, in rural prefectures like Kagoshima, Kochi and Iwate, the rate is around 85%.


FTTH Service Area Coverage Rate of Households (Estimation)

○ National Average ８５．３％

％

（December , 2007）

Ok

ina

wa

Kagoshim

aM

iya

za

ki

Oi

ta

Kum

amoto

Na

ga

sa

ki

Sa

ga

Fu

ku

ok

aK

oc

hi

Eh

im

eK

ag

aw

aTokushim

aYam

aguchiH

irosh

ima

Ok

ay

am

aS

him

an

eT

ot

to

ri

Wakayam

aN

ar

aH

yo

go

Oo

sa

ka

Ky

ot

oS

hi

ga

Mi

eA

ic

hi

Sh

izu

ok

aG

if

uN

ag

an

oYam

anashiF

uk

ui

Ish

ika

wa

To

ya

ma

Niig

ata

Kanagaw

aT

ok

yo

Ch

ib

aS

aita

ma

Gu

nm

aT

oc

hig

iI

ba

ra

ki

Fukushim

aYam

aguchiA

ki

ta

Mi

ya

gi

Iw

at

eA

om

or

iH

ok

ka

ido

Presenter

Presentation Notes

The divide is more serious as for FTTH than ordinary boradband. This graph shows FTTH service area coverage. In Tokyo and Osaka, the rate is also 100%, while in some prefectures, the rate is below 60%.


Broadband Coverage in Kanto Region

Tokyo

http://www.soumu.go.jp/joho_tsusin/broadband/map/kanto.html

Cable Internet/Wireless

DSL

FTTH

Presenter

Presentation Notes

This map shows the broadband coverage in Kanto Region where Tokyo Metropolis belongs to. pink, orange and yellow means FTTH is in service. centered in Tokyo, the areas are widely spread. Besides those areas, in most of the regions, DSL service, indicated by green, is supplied to users.


Broadband Coverage in Hokkaido Region

Sapporo

http://www.soumu.go.jp/joho_tsusin/broadband/map/hokkaido.html

Cable Internet/Wireless

DSL

FTTH

Presenter

Presentation Notes

Conversely, please look at the Hokkaido Region which is in the northern part of Japan. There are only few areas where FTTH is in service. Also, Even ordinary BB is NOT available in no-small part of the land.


Necessity for Bridging Digital Divide

In rural areas,• Demand gets smaller (depopulation and aging) • Costs gets higher (no scale economy).

The divide is getting a more structural problem and may have worsen the gap between urban and rural areas.

Broadband is essential for the vitalization of rural areas.

MIC formed “The Strategic Meeting on Bridging the Digital Divide”

Presenter

Presentation Notes

Our understanding is like this: In rural areas, Demand gets smaller due to depopulation and aging, Costs gets higher because there is little or no scale economy. The divide is getting a more structural problem and may have worsen the gap between urban and rural areas. Broadband is essential for the vitalization of rural areas. That’s why our Ministry formed “The Strategic Meeting on Bridging the Digital Divide”



a. Current Status

b. The Strategic Meeting on Bridging the Digital Divide


Purpose of the Meeting

“The Strategic Meeting on Bridging the Digital Divide”Studies participated in by academic experts, Local governments, communications

carriers, and related organizations, etc.

Broadband Network Development

Mobile Phone Network Development

Study Items

October 2007 March 2008

Identification of areas to andextraction of

problems

Study onOptimalpolicy support

Proposing policy support

required

Strategic Meeting on Bridging the Digital Divide

June 2008

Phase 1 wrap-up

Final wrap-up

Presenter

Presentation Notes

“The Strategic Meeting on Bridging the Digital Divide” is formed to study effective measures to eliminate non-broadband areas by FY 2010, �thereby bridging the digital divide. We formed the meeting in October 2007, after the studies participated in by academic experts, Local governments, communications carriers, and related organizations, etc. the meeting wrapped up the phase 1 report in this March.


3. Specific measures aimed at bridging the digital divide

Outline of Phase 1 Report

1. Significance of bridging the digital divide

4. Follow-up organization aimed at bridging the digital divide

2. Basic viewpoints toward bridging the digital divideTasks confronting provincesBasic viewpointsDevelopment goalsDevelopment entities and division of roles

Development of ultrahigh-speed broadband infrastructureElimination of mobile telephone dead zones

Integrated promotion of development and utilization of infrastructure

Development of broadband infrastructure

Utilization of local information advisors

Inte

grat

ed

prom

otio

n

Presenter

Presentation Notes

This is the outline of Phase 1 report. It is composed of 4 parts. 1..2..3..4.. I’ll explain the details on 2 and 3.


New Ideas for Development Goals

Development of Broadband infrastructureCurrent development goals(1) Non-broadband areas will be eliminated by FY 2010.(2) The ratio of households covered by ultrahigh-speed broadband services

will be increased to 90% or more by FY 2010.

Concept of development goals up to FY 2010➢ Development will be promoted, taking demand –creating action like the

utilization of public applications into consideration

“Increase of ratio of households covered by ultrahigh-speed broadband services to 90% or more”➢ Download First

Solution of the problem of non-broadband areas

ADSL

CATV

FTTH

FWA

Various wireless broadband systems

3.5 G mobile telephones etc. Satellites

Presenter

Presentation Notes

As I mentioned before, we have set the development goals toward FY 2010. Of course we will keep this target, but will add some new ideas into the goals. First, we decided to attach more importance on demand side rather than supply. Concretely speaking; development of BB should be promoted, not under the concept that demand to BB exist s from the beginning, but under the concept that the utilization of public applications like telehealth or e-government demands should be created by the used of the applications, thus action should be taken accordingly. Also, we’ll make efforts to introduce various NEW technologies and services . So far, we concentrated on 4 typical technologies and services, ADSL, FTTH, CATV and FWA But for the future, we will promote new BB services for example new wireless system like WiMAX, 3.5G mobile and satellite. Finally , as for ultrahigh-speed broadband services , we will emphasize download speed more than upload. This implies that diverse access lines other than “pure” FTTH ,such as the combination of optical access lines and wireless networks, should be utilized, according to the characteristics and circumstances of areas.


Concrete Measures Aimed at Bridging the Digital Divide (1)

1. Development of broadband infrastructure(1)Promotion of “Combined Project”

(a) Support for promotion of integrated development of projects such as “Broadband infrastructure,” “Development of mobile phone service area”, “Terrestrial digital broadcasting” etc.

(b) Support for promotion of broadband development in which fiber-optic network development and new wireless technologies (WiMAX, high-power LAN) are combined

(2) Development of satellite broadband servicesSupport should be provided in developing the environment for usage of satellite broadband in areas where it is difficult to develop terrestrial broadband infrastructure.MIC should facilitate to develop the environment for the usage of satellite broadband aimed at providing for individuals.

Presenter

Presentation Notes

This slide shows concrete measures aimed at bridging digital divide contained in the phase 1 report. First, the report suggests the importance of the promotion of “combined project” We are going to support for the promotion of integrated projects such as “Broadband infrastructure,” “Development of mobile phone service area”, “Terrestrial digital broadcasting. Also, we will support for the promotion of broadband development �in which fiber-optic network and new wireless technologies (WiMAX, high-power LAN) are combined. Second, the report emphasizes the development of satellite broadband services. We are going to support should be provided in developing environment for the usage of satellite broadband where it is difficult to develop terrestrial broadband infrastructure.


Internet

Subscriber’s residence

FTTH, CATV, FWA, etc.



Reception station

Facilities such as mobile telephone exchanges

Base station facilities such as for mobile telephones

Support for charges

Support for development costs

(1)

(2)

Internet


FTTH, CATV, FWA, etc.



Reception station

Broadband infrastructure development

Mobile phone infrastructure development

Support for development costs by Project for Assistance in Area Development Such as for Mobile Telephones

Internet



Subscriber’s residenceReception station


Future activities

Broadband services

Exmaples of “Combined Projects”

Conventional practice

Support for development costs by Grants for Promotion of Regional Information Communications Infrastructure Development

Project for Assistance in Area Development Such as for Mobile Telephones

Transmission path facilities

Sharing of steel towers for broadband services

Support for development costs by Grants for Promotion of Regional Information Communications Infrastructure Development

Support by Project for Assistance in Area Development Such as for Mobile Telephones


Support for charges

Transmission path facilities

Support for development costs

Presenter

Presentation Notes

These pictures show the examples of combined projects. The left shows the traditional project scheme. Under the scheme, the actions tend to be taken and assistances tend to be prepared by type of infrastructure. For example , the assistance for BB and mobile are prepared separately. Under the suggested scheme, we will assist the project regardless of the types of infrastructure. Also, we will recommend the combination of fiber optic al, wireless system, and mobile service. We will apply our assistance scheme more to this kind of combination.


Centralized Reception Type

Direct Reception Type

Configurations of Satellite Broadband Services

internet

internet

Satellite earth station



Satellite circuit

Satellite circuit

Target area for broadband services

Target area for broadband services

ADSL, FTTH, wireless communication, etc.

(* Developed by entities such as local governments)

Presenter

Presentation Notes

This slide indicates the configurations of satellite broadband services. Our ministry will facilitate both types of satellite broadband services provided for individuals. I mean by both types Type for direct reception by users Type centralized reception at bases and delivered to users by terrestrial service Efforts will be taken, such as model projects intended to cover non-broadband areas.


Concrete Measures Aimed at Bridging the Digital Divide (2)

3. Solution of problem of mobile telephone dead zones

4. Integrated promotion of development of infrastructure and utilization thereof

A menu of “Combined Projects” involving support for both infrastructure development and utilization will be established, and such projects will be promoted.

5. Utilization of regional information advisors

6. Follow-up system

2. Development of ultrahigh-speed broadband infrastructure(1)Promotion of communications carriers’ development of subscriber fiber-optic

networks(2) Promotion of local governments’ development of fiber-optic (3) Promotion of realization of ultrahigh-speed cable television Network

Presenter

Presentation Notes

These are other measures for bridging DD. For example, we will support: The promotion of communications carriers’ development of subscriber fiber-optic networks, local governments’ development of fiber-optic networks and realization of ultrahigh-speed cable television Also We are going to support Integrated promotion of development of infrastructure and utilization thereof.


BB including FTTH Developed Steadily in Urban

Digital Divide Getting Serious and Structural

Necessity for Combined Projects and Satellite Broadband

Summary

Presenter

Presentation Notes

I just explained all the topics for today’s presentation. As we know, in Japan, BB including FTTH are being developed steadily in urban areas but digital divide between the rural and urban is getting more serious and structural. Because we believe that broadband is essential for the vitalization of rural areas, we formed the strategic meeting. The study highlighted the necessity for combined projects and the utilization of satellite broadband. Based on the final report of the meeting published in this June, We are to take various efforts to promote broadband diffusion. It would be our great pleasure if we could have another opportunity to introduce what we will do in the days ahead. I hope the presentation was informative to you. Again, I appreciate today’s opportunity. Thank you very much.


Thank you very much.

11 april, 2008 shigeo okamoto

Documents