Development of the Access Environment in Japan and Future Policy Themes

2nd IGF Meeting

November 13. 2007

KIYOSHI MORIKIYOSHI MORI

Vice-Minister for Policy CoordinationVice-Minister for Policy Coordination

Ministry of Internal Affair and Communications, JAPANMinistry of Internal Affair and Communications, JAPAN

Qualifying, Quantifying, and Meeting

the Challenge of Internet Access Cost

Qualifying, Quantifying, and Meeting

the Challenge of Internet Access Cost

2

2,691

3,825

4,731

5515.5

5602.9

56785808

57455878

5917

6,1966,223

6,263

6,285

6,263

6,1646,028

5,907

5,781

5,636

5,456

5,245

6,0226,133

6,077 5,961

'07.4末現在10221.7

9982.6

98699648

9764

9475

9,361

1,170

4332131711388749

5,685

6,678

7,482

8,112 8,665

9,147

2,644

2,576

2,5042,330

2,4222,2372,148

38722 85

1,541

943

1,951

1433.1

1375.9

13001145.7

1209.71060.4

976.7

830.5

527.60

2,000

4,000

6,000

8,000

10,000

12,000

'90/3

'91/3

'92/3

'93/3

'94/3

'95/3

'96/3

'97/3

'98/3

'99/3

'00/3

'01/3

'02/3

'03/3

'04/3

'05/3

'05/9

'05/12

'06/3

'06/6

'06/9

'06/12

'07/3

+固定電話（加入電話 ＩＳＤＮ）

+移動電話（携帯電話 ＰＨＳ）

高速・超高速インターネット加入者数

IP電話

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

FTTHFTTH 8,803,898

FTTHFTTH 8,803,898

ＦＷＡＦＷＡ11,632ＦＷＡＦＷＡ11,632

8,803,898

11,632

14,013,248

3,609,625

CATVCATV3,609,625CATVCATV

3,609,625

ＤＳＬＤＳＬ 14,013,248 ＤＳＬＤＳＬ

14,013,248

※As of April. 2007

【 Number of Telecommunication Service Users】（ Unit: 10 thousand ）

Fixed Communications

Mobile Communications

High/Ultra-High-Speed Internet

IP Telephone

Transition in the Number of Japan’s Broadband Subscribers

【 Number of High/Ultra-High-Speed Internet Service Users】

3Source ： ITU Internet Reports 2006

”digital.life” （ December 2006 ）

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

　　 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

J apan

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

J apan

4

Mobile Phone Users in Japan

0

10

20

30

40

50

60

70

80

90

100

2001 2002 2003 2004 2005 2006 2007

Internet connection

IMT-2000

IMT

-200

0

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

69.1M

75.66M

81.52M

87M91.79M

96.72M 98.88M

IMT-200070 Million

(72%)

IMT-200070 Million

(72%)

Internet Connection

84 Million (87%)

Internet Connection

84 Million (87%)

Inte

rnet

Co

nn

ecti

on

（M

illi

on

su

bsc

rib

ers）

5

　 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)

Realizin

g a

Ub

iqu

itou

s N

etwo

rk S

ociety

e-Japan Strategye-Japan 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 u-Japan Promotion Program ２００６２００６（（ September 2006September 2006））

u-Japan Promotion Program u-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

6

　　 Results of e-Japan StrategyResults of e-Japan Strategy

◆ Trends in broadband usage charges and contracts

◆ Trends in broadband usage charges and contracts

　　

InfrastructureInfrastructure

0

2000

4000

6000

8000

10000

Mar 2001 Mar 2006

7,800yen7,800yen

2,600yen2,600yen

Approx.22 million contracts

Approx.22 million contracts

（円）（円）

Approx.0.9millioncontracts

Approx.0.9millioncontracts

0%

20%

40%

60%

80%

100%

Mar 2001 Mar 2006

◆ Rate of HP publishing in public schools◆ Rate of HP publishing in public schools

Life・ Human resourcesLife・ Human resources

Approx. 30%Approx. 30%

Approx. 76%Approx. 76%Approx. 2.5 times

Approx. 2.5 times

　　 　　

◆ Percentage of national procedures that can be performed by electronic application and notification

◆ Percentage of national procedures that can be performed by electronic application and notification

e-Governmente-Government

0%

20%

40%

60%

80%

100%

Mar 2001 Mar 2006１％１％

９６％９６％

0%

10%

20%

30%

Mar 2001 Mar 2006

◆ Internet trading rate on the stock market ◆ Internet trading rate on the stock market

e-Commercee-Commerce

※Buy/sell price total base※Buy/sell price total base

Approx. 6%Approx. 6%

Approx.32%Approx.32%

Usage Charge:Approx.1/3

Usage Charge:Approx.1/3

Subscribers：Approx.26

times

Subscribers：Approx.26

times

Approx. 5.4 times

Approx. 5.4 times

(Trends in monthly usage charges for DSL)

7

Summary of u-Japan PolicySummary of u-Japan Policy

By the year 2010, 100% of By the year 2010, 100% of the population to have the population to have

high-speed or ultra-high-speed high-speed or ultra-high-speed Internet access.Internet access.

By the year 2010, 80% of By the year 2010, 80% of the population to appreciate the population to appreciate the role of ICT in resolving the role of ICT in resolving

social problems.social problems.

By the year 2010, 80% of By the year 2010, 80% of the population the population

to feel comfortable with ICT.to feel comfortable with ICT.

u-Ja

pan

polic

y

Packag

e

（ 2005 ）

1. Development of ubiquitous networks

Preparation of broadband infrastructures

on a nationwide basis

Preparation of an environment having seamless access to wire

and wireless networks

Promotion of content creation, distribution and use

2. Upgrading the usage of ICT

Promotion of introduction of universal designs

Promotion of “21 strategies for ICT’s Safety and Security”

3. Improvement of the　 environment for the usage of ICT

Formulation of the "Charter for Ubiquitous

Network Societies"

Regional divide exists when about 10% of municipalities don’t have

access to broadband.

45% of ICT users value ICT as useful for problem solution.

About one third of users feel insecure when using the Internet.

（ 2010 ）

target

Present Status

8

Impact of the ICT industry on economic growth Impact of the ICT industry on economic growth

〈 Contribution of ICT industry to the Changes in Real GDP 〉

出典：平成１９年度情報通信白書

1.0 0.70.3 0.3 0.5

0.90.4

0.7 1.0 0.9

0.90.8

- 1.9

- 0.7

1.6

- 0.9

0.3

1.3

1.51.3

GDP実質 成長率1.9

1.5

- 1.6

- 0.4

2.1

0.0

0.7

2.0

2.52.2

- 2.0

- 1.0

0.0

1.0

2.0

3.0

8平成 9 10 11 12 13 14 15 16 17

情報通信産業 その他の産業 GDP実質 成長率

（％）

More than 40% of real GDP growth is driven by the ICT industry

The contribution of ICT industry growth to the national economy is tremendous. The ratio of contribution to the growth of GDP in Japan is 42.4%.The contribution of ICT industry growth to the national economy is tremendous. The ratio of contribution to the growth of GDP in Japan is 42.4%.

1998 2004 2005 2006 20071999 2000 2001 2002 2003

Real GDP growth

ICT industry Real GDP growth ratioOther industries

9

（２） Freedom to choose Networks（２） Freedom to choose Networks

（１）Measures to respond to increase in traffic（１）Measures to respond to increase in traffic

Policies related to diversifying content and increasing access

Future Tasks related to advancements in Internet accessFuture Tasks related to advancements in Internet access

（３） Secure/ safe use of the internet（３） Secure/ safe use of the internet

10

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]

(Ref.2) Monthly average of daily traffic exchanged at major IXs in Japan

Estimated download traffic of broadband users in Japan

（ source: MIC Japan)

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.

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.

IP Traffic on the Networks (Total Volume)IP Traffic on the Networks (Total Volume)

(Ref.1) Monthly average of daily peak traffic exchanged at major IXs in Japan

Monthly average of daily traffic of broadband customers (ADSL/CATV/FTTH) of major ISPs in Japan238.6Gbps

(2007.5)

167.0Gbps(2007.5)

306.0Gbps(2007.5)

11

Freedom to Choose NetworksFreedom to Choose Networks

B

D

C

X

QoS may differ QoS may differ according to thaccording to the networke network

Interconnection Interconnection among ISPsamong ISPs

SessionControl

AuthenticationSecurity

Charging

Edge node

Core node

Opticalaccess

Otheraccesses

WirelessLAN

collaboration

collaboration

Next Generation Network Internet

ubiquitous network

Networked home Networked home appliancesappliances

TVsTVsTelephonesTelephones

Cell Cell phonesphonesPCsPCs

E

A

Tier 1Tier 1

collaboration

Security and anthentication sySecurity and anthentication system may depend on applicatistem may depend on applications used in terminalsons used in terminals

Application Application functionfunction

Platform/ServicePlatform/Servicefunctionfunction

NetworkNetwork functionfunction

（（ transmission)transmission)

Core Networks

Access Networks

Application ServersApplication Servers

Content delivery　

Video phone

･･･････

12

MIC’s Efforts to Ensure Reliability of Information and Communications networksMIC’s Efforts to Ensure Reliability of Information and Communications networks

Ⅱ　 Development of human skills

Ⅲ 　 Measeues to cope with diversification of goods connecting to 　 networks

Ⅰ　Making robust and reliable networks

Measures against cyber-attacks

Promotion to share information between telecommunications carriers

Implementing exercises against cyber-attacks

Improvement of security management

Enhancement of educational activities on security

Ensuring security in the era when consumer electronics are connected to networks

R&D for preventing information leaks

R&D on the cryptography and authentication systems

http://www.soumu.go.jp

k-mori@soumu.go.jp

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

MICMIC

Thank You !Thank You !

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