©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
©2008 MIC. All Rights Reserved. 1
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)
©2008 MIC. All Rights Reserved. 2
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
©2008 MIC. All Rights Reserved. 3
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
©2008 MIC. All Rights Reserved. 4
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)
©2008 MIC. All Rights Reserved. 5
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
©2008 MIC. All Rights Reserved. 7
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”
©2008 MIC. All Rights Reserved. 8
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)
©2008 MIC. All Rights Reserved. 9
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
©2008 MIC. All Rights Reserved. 10
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)
©2008 MIC. All Rights Reserved. 12
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
©2008 MIC. All Rights Reserved. 13
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)
Download
Upload
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
©2008 MIC. All Rights Reserved. 16
http://www.soumu.go.jp
Ministry of Internal Affairs and Communications (“MIC”), Japan
MICMIC
Thank You !Thank You !