September 26, 2003,Vol. 14, No. 12 ISSN 1346-5317

I. Current Status of IT Policies

2. Current status
i) At present, with respect to preparation of high-speed (DSL, cableTV Internet)/ultrahigh-speed (FTTH) access network infrastructures to theInternet, the goals listed in the "e-Japan Strategy" of 2001 are advancingfar beyond the original schedule.  For instance, one of the goalsis to create an environment that enables 24-hour connection to high-speedaccess networks from at least 30 million households and ultra high-speedaccess networks from 10 million households within 2005.  The numbersof households already enabled to access to the high-speed and ultrahigh-speedInternet are 35 million for DSL, 23 million for cable TV Internet and 16.8million for FTTH.
ii) As for the aspect of tariff, Japan has realized 24-hour connection/flat-ratetariffs at the world's lowest level.  According to a 2003 survey conductedby ITU, Japan's comprehensive evaluation of broadband communications servicein terms of speed is high while the charge is at the world's lowest level.

3. Policy deployment
i) There has been the active policy deployment behind such swift improvementof broadband environment.  Since the 1980s, MPHPT has been implementingcomprehensive policy initiatives such as pro-competitive policies, promotionpolicies for industries and technology policies.  For the pro-competitivepolicies, since the market liberalization in 1985, MPHPT has been consistentlypromoting fair competition.  In recent years, MPHPT introduced regulatoryframeworks for opening up facilities of incumbent carriers, such as DSLin September 2000 and fiber-optic cables in April 2001.  Furthermore,MPHPT introduced a series of new regulatory frameworks for preparing competitiveenvironments through revision of legal schemes in response to the age ofthe Internet, for example, asymmetric regulations in June 2001 by amendingthe Telecommunications Business Law (TBL), abolishment of the businessclassification of Type I and Type II telecommunications carriers in July2003 by amending TBL.
ii) MPHPT has been implementing measures for preparing infrastructures,including support for fiber-optic network construction, projects for correctingvariances in telecommunications services.  In recent years, MPHPThas been actively implementing promotion measures for preparing infrastructuresand for supporting ICT businesses through promotion of the School Internetproject, digitalization of broadcasting and support for ICT ventures. In addition, MPHPT's other policies, for instance, the Japan Gigabit Network,R&D on consumer electronics with ICT functions, technology policiesas exemplified by international standardization activities for the third-generation(3G) mobile communications systems, greatly contributed to such rapid changes.
iii) Without saying that the key factors for success at the first phasewere the active efforts in the private sector, appropriate and timely effortsat the information and communications administration have also played asupportive role to date.  Even in the new deployment in the future,policies to be taken by the administration shall play an appropriate role.
iv) In 2001, the Government established the Strategic Headquartersfor the Promotion of an Advanced Information and Telecommunications NetworkSociety (IT Strategic Headquarters).  The Government has been implementingrelevant policies on a government-wide basis.  Countries around theworld are intensively implementing construction of ICT infrastructuresas national strategies.  On the contrary, Japan's Internet accessnetworks were depending on low-speed and ineffective POTS and tariffs wereset forth on a usage sensitive charge.  In order to address thesecircumstances and strategically deploy ICT policies in a coordinated manner,the IT Strategic Headquarters adopted the "e-Japan Strategy" in January2001, prescribing the goal, "to make Japan the world's most advanced ITnation within five years" and consisting of the four pillars of 1) buildingan ultrahigh-speed Internet network and pro-competitive policy, 2) establishingrules on electronic commerce and preparation of new environments, 3) realizingan electronic government and 4) nurturing high-quality human resources.

II. Building a "New, Japan-Inspired IT Society"

2. Strategy making use of Japan's features and strength
i) In the U.S., which has the strongest competitiveness in the ICTfield, the IT Bubble burst in March 2000.  Since 2001 more than fiftytelecommunications carriers have filed for bankruptcy under the BankruptcyAct, as exemplified by the famous case of WorldCom (current MCI) in July2002.
ii) In Europe, due to the skyrocketing of bidding prices in frequencyauctions, mobile carriers and users are forced to shoulder heavy burdens. It is said that mobile carriers in Europe paid almost 100 billion dollarsfor the extremely high license fees in 2002.
iii) Considering those factors, Japan shall employ a strategy makinguse of Japan's features and strength without simply following the Westernapproaches so as to realize ICT policies in response to the new phase.
iv) In the field of ICT, Japan has comparative competitiveness to othercountries in such areas as 1) portable terminals (wireless, mobile technologies),2) consumer electronics with ICT functions, 3) digital TV terminals, 4)IPv6, 5) optoelectronics, 6) animation/game industries, 7) car navigation,etc.  As seen in rapid penetration of car navigation and cellulartelephones, Japanese people are flexible and like new products.  Thiscan be one of strengths of Japanese people.
v) Japan shall make the most of such technologically superior fieldsand the characteristics of Japanese people.  Through strategic andprioritized resource allocation and intensive investments, Japan shallcreate a "New, Japan-Inspired IT Society" for its people and users withconcerted efforts of the industry-academia-government, and thereby transmitit as a model to the world.

3. Promotion of ICT policies for realizing the "New, Japan-InspiredIT Society"
i) As for ICT policies for building the "New, Japan-Inspired IT Society"it is vital to develop interactive linkage between applications and infrastructuresthrough 1) active expansion of application use by developing applicationsmaking the most of Japan's superior areas, at the same time, 2) continuouspromotion of advancement in infrastructures almost at the world's mostadvanced level.
ii) With respect to "R&D on applications," it is essential to:1) promote utilization of advanced technologies including electronic tags,etc. in which Japan retains superior competitiveness in R&D and practicaluse thereof, 2) prepare an environment for encouraging creation and distributionof content to be used by various media, and 3) actively promote e-government/localgovernments that are expected to be a driving force of applications.
iii) As for "advancement of infrastructures," it is vital to: 1) promoteR&D for realizing ubiquitous networks comprising the next-generationcore infrastructures, 2) ensure security comprising key technologies forubiquitous networks, and 3) comprehensively encourage use of wireless broadbandplatforms.  In addition, it is essential to: 1) steadily promote digitalizationof broadcasting networks including terrestrial broadcasting, etc., and2) thereby encourage interaction between the Internet and digital TV systems.
iv) As mentioned above, while developing interactive linkage betweenapplications and infrastructures, Japan's indispensable future strategyis to: 1) internationally expand Japan's policies from Asian countries/economiesto the world through steady implementation of the "Asia Broadband Program,"and 2) promote Japan's international contribution in the ICT field.
v) Significant goals of Japan's ICT policies in the future include:1) creation of many success models through the abovementioned comprehensiveand strategic policy deployment, and 2) transmission of the "New, JapanInspired Society" leading the world.

III. Priority Policy Areas in FY2004 Budget

i) Realization of a ubiquitous network society
ii) Promotion of digitalization of broadcasting
iii) Promotion of content distribution
iv) Comprehensive promotion of security strategy
v) Preparation of wireless broadband environment
vi) Strengthening of international activities
vii) Promotion of e-government/local governments
viii) Other priority matters (a) promotion of R&D, b) promotionof advancement of space communications/positioning infrastructures, c)promotion of network construction, d) creation of ICT ventures, e) humanresource development, f) promotion of information barrier-free, and g)promotion of consumer protection)

2. Outlines of each priority areas are as follows:
1) Realization of a ubiquitous network society
i) When an ICT society enters into the phase of expanding ICT use,it is increasingly vital that networks be easy-to-use and beneficial forusers.  In particular, it is anticipated that a ubiquitous networksociety will be realized in which everyone is allowed to access networksmutually linking people-to-people, people-to-products and products-to-products.
ii) Toward realization of such a ubiquitous network society, MPHPTwill: 1) promote R&D on key technologies for ubiquitous network, 2)promote advanced use of e-tags, etc., 3) prepare testbeds therefor, 4)make use thereof, 5) promote R&D on key technologies and applicationtechnologies, and 6) promote verification experiments thereon.  Inaddition, MPHPT will address advancement of the Internet, including promotionof IPv6.

2) Promotion of digitalization of broadcasting
i) Through promotion of digitalization of broadcasting, TV units athome can be a gateway to an ICT society.  It is anticipated that consumersat home will be enabled to use various beneficial services with ease-of-use.
ii) To this end, toward smooth shift to digital broadcasting, throughsteadily implement the analog frequency change support service and thoroughawareness campaigns on merits of digitalization and schedule thereof, MPHPTwill promote digitalization of terrestrial broadcasting.  MPHPT will:1) facilitate transition from BS analog broadcasting to BS digital broadcasting,2) promote R&D on advanced broadcasting systems in response to digitalizationof broadcasting, and 3) promote utilization of terrestrial digital broadcastingat local public entities.

3) Promotion of content distribution
i) It is anticipated that content business will be activated throughformulation of the content distribution market utilizing broadband platformsnow in course of construction, and that creation of new values will bepromoted through realization of an environment for use of affluent andmultifaceted content.
ii) To this end, MPHPT will: 1) standardize technologies indispensablefor distribution of broadband content including broadband programming,2) implement verification experiments thereof for rulemaking, 3) promoteuse of archived content including cultural asset information, etc., and4) promote content production/distribution in local communities. In order to realize effective archives on web information as intellectualproducts in the age of the Internet, MPHPT will implement verificationexperiments for standardization of relevant technologies.

4) Comprehensive promotion of security strategy
i) Reflecting advancement in deployment of broadband networks, theInternet has been penetrating into socioeconomic activities on a globalbasis and become a key infrastructure supporting wide-ranging activitiesof corporations and individuals.  It is foreseen that its significancewill increase at an accelerating pace in the future.
ii) To this end, MPHPT will: 1) promote establishment of key technologiesfor network security, 2) encourage telecommunications carriers to implementinformation security measures, 3) foster human resources in charge of informationsecurity, and 4) promote public awareness campaigns on information security.

5) Preparation of wireless broadband environment
i) Construction of a wireless broadband environment is indispensablefor realizing a ubiquitous network society.  It is anticipated thatnew radio systems, including rapidly spreading wireless LANs, the fourth-generationmobile communications systems, intelligent transport systems (ITS), willbe developed and introduced.
ii) To this end, MPHPT will: 1) open up broadband frequencies for realizinghigh-speed networks via wireless LANs, etc., 2) develop an open radio administrativestrategy for enabling liberalized business deployment, 3) promote development/introductionof the next-generation wireless systems, including 4G systems, ITS andultrahigh-speed wireless LANs, and 4) address advancement of mobile IPtelephony.

6) Strengthening of international activities
i) In order to bridge the digital divide in developing countries/economiesand, in particular, to support further development of Asian societies/economies/culturesincluding Japan, Japan is required to: 1) further promote deployment/useof broadband platforms paying due consideration to Asian diversities, and2) actively contribute to the World Summit on the Information Society (WSIS)to be convened in December 2003 by the United Nations.
ii) To this end, MPHPT will: 1) steadily implement the "Asia BroadbandProgram" adopted in March 2003 for preparing a broadband environment inAsia, and 2) actively contribute to the declaration and the action planto be adopted at WSIS.

7) Promotion of e-government/local governments
i) With regard to e-government/local governments, preparation of coreinfrastructures for enabling online administrative procedures will be completedby the end of FY2003.  It is vital to: 1) utilize the prepared infrastructures,2) improve convenience and services for Japanese nationals, and 3) improveservices of e-government/local governments in response to ongoing ICT introduction.
ii) To this end, based on the "e-Government Construction Program" (decisionreached on July 17, 2003 by the Liaison Meeting of CIOs of the Office andMinistries), MPHPT will promote measures for 1) providing consumer-orientedadministrative services and 2) realizing a simplified and efficient government.
iii) As for e-local governments, in order to realize the e-Governmentand e-local governments, key infrastructures for online administrativeprocedures will be completed by the end of FY2003.  From now on, eachlocal public entity is requested to construct/operate an e-local governmentby making use of key infrastructures to be prepared.
iv) Local public entities shall be key players to construct e-localgovernments.  Thus, local public entities shall maintain and operatenecessary systems and prepare legal frameworks such as prefectural ordinancesat their own judgments and responsibilities.  Even so, in order toattain the ICT strategic goal of Japan, "to make Japan the world's mostadvanced IT nation by 2005," the Government shall take necessary measuresfor supporting local public entities.
v) In cases of emergencies including large-scale disasters, in orderto implement swift and appropriate rescue activities, it is critical tointroduce ICT into firefighting and disaster prevention through the governmentand local public entities.

8) Other priority matters
In addition to 1) through 7), MPHPT will address priority matters,including a) promotion of R&D, b) promotion of advancement of spacecommunications/positioning infrastructures, c) promotion of network construction,d) creation of ICT ventures, e) human resource development, f) promotionof information barrier free, and g) promotion of consumer protection.

In order to raise the awareness of IT ventures concerningintellectual property and to promote the diffusion of knowledge as wellas information exchange with experts, MPHPT will, under the auspices ofNippon Keidanren, the Japan Venture Capital Association (JVCA), etc., holda series of seminars in collaboration with the Japan Patent Attorneys Association(JPAA), et al. from October 2003 through September 2004, in 14 venues nationwide.
This will be the first ever attempt for JPAA to holda series of nationwide seminars with a full-fledged curriculum tailoredto support IT ventures.  Some two hundred patent attorneys will lectureat the seminars.

1. Objectives
Effective use of intellectual property is critical forIT ventures in terms of management strategy in order to gain the technologicaladvantage and as a result improve their power to attract such necessitieslike funds..
In Japan, however, many IT ventures have low awarenessas to the need to obtain intellectual property rights.
In addition, IT ventures are not necessarily offeredsufficient opportunities to meet intellectual property experts (patentattorneys, etc.) face to face.  Furthermore, regional discrepanciesexist  since depending upon the location there are extremely few experts.
Thus, with the objectives of raising IT ventures' awarenessconcerning intellectual property and of promoting the diffusion of knowledgeas well as information exchange with experts, MPHPT has decided to holdin collaboration with JPAA a series of seminars nationwide.

2. Application method
Please apply for the seminars via the TAO website at:
http://www.venture.tao.go.jp/
For further information on the seminars, please contact:
Development Planning Division, Development AdvancementDepartment, TAO
Telephone: +81-3-3769-6815

 

On September 8, 2003, the second China-Japan-KoreaIT Ministerial Meeting was held at Shilla Hotel, Cheju, the Republic ofKorea.  Attendants from Japan included Mr. KATAYAMA Toranosuke, Ministerfor Public Management, Home Affairs, Posts and Telecommunications; Vice-MinisterNABEKURA Shin'ichi; Mr. OKU, Director of International Cooperation Division,and others; from China, Mr. WANG Xudong, Minister of Information Industry;Mr. QU, Deputy Director-General of Foreign Affairs Department, and others;and from Korea, Dr. CHIN Dae-Je, Minister of Information and Communication;Dr. YANG, Director-General of International Cooperation Bureau and others.
The outline of the meeting was as follows:
1. Ministerial Meeting
Acknowledging that ICT is an indispensable infrastructurein order to develop Asia and enhance mutual ties, and that the cooperationamong the three countries accelerates the deployment of broadband platformsthrough Asia, the three ministers exchanged opinions on wide-ranging topicsincluding development and cooperation through establishment of new cooperationmodels for the ICT field.
Upon conclusion of the meeting, toward further developmentof the ICT field, the three ministers agreed that the three countries shouldpromote cooperation in the seven information and communications areas,such as 3G and the next-generation (4G) mobile communications systems,the next-generation Internet (IPv6) and information security; the threeministers then signed the Arrangement.

2. Japan-China ICT MinistersBilateral Meeting
In the afternoon of September 8, 2003 (after the IT MinisterialMeeting), Minister KATAYAMA had a meeting with Minister WANG of MII, China. At the meeting, the two ministers exchanged opinions on bilateral cooperationin the ICT field, including the strengthening of cooperation under thescheme of Japan-China ICT partnership, cooperation on IPv6 and introductionof 3G into China.

3. China-Japan-Korea ICT Business Forum
From the afternoon of September 8 (after the IT MinisterialMeeting) through the morning of September 9, 2003,  the ICT BusinessForum was held with executives (CEOs, presidents, etc.) of representativeICT companies from the three countries participating.
During the forum, the executives made presentations andactively exchanged information/opinions on the promotion of cooperationin the ICT field among the three countries' business sectors.

(From left to right in the front row)
Mr. WANG Xudong Minister, Ministry of Information Industry, China,Dr. CHIN Dae-Je, Minister, Ministry of Information and Communication, Korea,Rep. KATAYAMA Toranosuke, Minister, Ministry of Public Management, HomeAffairs, Posts and Telecommunications, Japan

Reference

1. Preamble to the Arrangement
At the Second China-Japan-Korea IT Ministerial Meeting,the three ICT Ministers of China, Japan and the Republic of Korea,
i) Acknowledging the importance of cooperation amongChina, Japan and Korea in the information and communication area to bringco-prosperity to Northeast Asia in the 21st century;
ii) Acknowledging that ICT is an indispensable infrastructurein order to develop Asia and enhance mutual ties, and that the cooperationamong the three countries accelerates the deployment of broadband platformsthrough Asia;
iii) Seeking the co-development of the region by establishingnew cooperation models in information and communications policies,
Have reached the following common recognitions:

2. Purpose of the Arrangement
The purpose of the Arrangement is that the three countriesshall promote the Marrakesh Declaration (September 24, 2002) as well asthe cooperative activities, including joint R&D and information exchanges,for enhancing development of the "seven information and communication areas."

3. Scope of cooperation and activitiesin "seven information and communication areas"
i) 3G and Next-Generation Mobile Communications 
¥ Wireless Internet service 
¥ International roaming of mobile communications
¥ Joint R&D and standardization of mobile communicationstechnologies and services
¥ Other mobile communications areas agreed to by theSides
- Establishment of a Working Group in order to promotethe abovementioned cooperation

ii) Next-generation Internet (IPv6)
¥ Exchange of information and joint hosting of seminarsfor the promotion of IPv6 
¥ Cooperation in R&D and standardization of IPv6
¥ Development and promotion of IPv6 application services 
¥ Exchange of policies and experts on IPv6
- Establishment of a Working Group in order to promotethe abovementioned cooperation

iii) Digital TV and Broadcasting
¥ Information exchange of digital TV and broadcasting
¥ Promotion of digital TV and broadcasting technologies 
¥ R&D on digital broadcasting technologies and services
¥ Exchange of experts from industry, academia, researchinstitutes and other related organizations
¥ Other digital TV and broadcasting areas agreed by theSides
- Establishment of a Working Group in order to promotethe abovementioned cooperation

iv) Network and Information Security
¥ Information exchange on network and information securitypolicies and  mechanism
¥ Joint response to cyber-attacks including hacking andvirus 
¥ Information exchange on online privacy protection information
- Establishment of a Working Group in order to promotethe abovementioned cooperation

v) Open Source Software
¥ Information exchange on measures of open source software application promotion
¥ Exchange of technology and research information
¥ Exchange of experts from industry, academia, researchinstitutes and other related organizations
- Establishment of a Forum in order to promote the abovementionedcooperation

vi) Telecommunications Service Policies
¥ Research on telecom service policies
¥ Information exchange on classification of telecommunications service providers
¥ Information exchange on telecommunications market entry
¥ Information exchange on interconnection policies
¥ Information exchange on dispute settlement among telecommunicationsoperators
- Establishment of a Forum in order to promote the abovementionedcooperation

 vii) The 2008 Beijing Olympics
¥ Information  sharing on experiences/know-how accumulatedthrough past international events
¥ Construction and enhancement of communications network,network and information security, system integration and e-government forthe Beijing Olympics
- Establishment of a Liaison System in order to promotethe abovementioned cooperation

On September 16, 2003, MPHPT, together with the Communications andInformation Network Association of Japan (CIAJ), convened a "Symposiumon Strengthening the Wireless IT Industry."  At the Symposium, informationexchanges among people from the wireless IT industry and academia weremade on future trends of a ubiquitous network society, from the standpointof R&D on wireless IT and the potentials of wireless business thatcan be realized by frequency reallocations.
In recent years, demands for radio spectrums have been rapidly increasing,as exemplified by cellular telephones and wireless LANs.  In responseto such circumstances, the Symposium was held in order to realize a morestrategic radio administration, for further contribution, through use ofradio spectrums, to the improvement of quality of life and the revitalizationof the Japanese economy.
At the Symposium, Mr. KATAYAMA Toranosuke, then MPHPT Minister, gavea keynote address, clearly stating the "Strategy for Frequency Liberalization"based on the "Radio Policy Vision."  In the keynote address, the Ministerexpressed that contribution to realization of the ubiquitous network societythrough construction of the world's most advanced broadband environmentis set forth as one of the mid- to long-term goals and that efforts toimplement drastic review of frequency assignments and swift reallocationsystems are required.  The Minister also showed the view that MPHPTwill, as the first attempt in the world, allocate frequency bands exclusivelyfor consumer electronics with IT functions, which Japanese consumer electronicsmanufacturers with international competitiveness have been expecting tobe allocated.
Under a title of "Ubiquitous Computing and Japan's IT Strategy," ProfessorSAKAMURA Ken (Director, YRP Ubiquitous Networking Laboratory; and Professor,the University of Tokyo) illustrated future impacts of ubiquitous computingon the Japanese industries from the standpoint of promoting R&D oninformation and communications systems comprising ubiquitous networks.
Mr. ITO Yasuhiko (Senior Vice President, KDDI Corp.), under a titleof "Business Opportunities Created upon New International Frequency Allocation,"predicted the potentials of business creation through the frequency reallocationin the future ubiquitous network society from the standpoints of assumingthe Chairman of Radiocommunication Assembly (RA-03), etc. and of a telecommunicationscarrier.
Mr. KAWADA Takashi (Advisor, Matsushita Electric Industrial Co., Ltd.),under a title of "Future Outlook of Wireless IT in the Age of UbiquitousNetworks," forecasted the potentials of wireless business to be broughtabout by wireless IT consumer electronics from the standpoint of a comprehensiveelectronics manufacturer.
At the end of the Symposium, Mr. IKEDA Shigeru (President, CIAJ), undera title of "Industrial Approach toward Realization of the Ubiquitous NetworkSociety," anticipated the future market and management strategies of theIT network industry with respect to IT businesses in an expanding wirelessubiquitous network society, from the standpoint of presiding over an associationconsisting of corporate members in various fields relating to informationand communications networks.
The outcomes of this Symposium would contribute to the accelerationof efforts for deliberating upon the future radio administration and thestrengthening of the wireless IT industry.