December 26, 2003,Vol. 14, No. 17-18 ISSN 1346-5317

The World Summit on the Information Society (WSIS), organized bythe United Nations with the preparatory process led by the InternationalTelecommunication Union (ITU),was held in Geneva, Switzerland, from December10 to 12, 2003.  The Summit addressed the establishment of a commonvision concerning the Information Society and adopted a "Declaration ofPrinciples" and "Plan of Action."  About 20,000 visitors from 176countries/economies took part in the Summit, including heads of governmentfrom 54 countries and 83 ministers in charge of ICT. From Japan, His ExcellencyMr. ASO Taro, Minister for Public Management, Home Affairs, Posts and Telecommunicationsparticipated.

The main achievements of the first-ever Summit in the ICT field werethat the "common vision," the "12 key principles" for building an inclusiveInformation Society and the "10 indicative targets" as global referencesto be achieved by 2015, were set forth.  The terms "broadband" and"ubiquitous" were included in the UN Summit documents for the first time.

[Major points of the Declaration of Principlesand Plan of Action]
1. Internet governance
What kind of organizations shall treat the Internet governance, intergovernmentalorganizations or the private sector and civil society?
- The United Nations shall set up a working group on Internet governanceto investigate and make proposals for action, as appropriate, on the governanceof the Internet.

2. Roles of media
Whether it is described in documents that media shall abide by therespective national law as to descriptions on the importance of media inthe information society.
- WSIS reaffirmed the freedom of the expression and the ensuring ofthe diversity of media, which are essential to the Information Society. Diversity of media ownership (exclusion of multiple media ownership) shallbe encouraged, in conformity with national law, etc.

3. Security
Based on the recognition of the significance of security, whether itis described in documents that free information flow should be ensuredwithout affecting trade, etc. and should abide by each national law.
- It is described in documents that security measures should not hinderfree trade and those issues should be addressed with an internationallyharmonized effort.

4. Intellectual property rights (IPRs) and use thereof
Benefits of rights holders (rights protection) are to be protected?or, Benefits of users (free access to information) are to be considered? 
- It is vital to both protect IPRs and share information in promotingcreative activities in the Information Society.

5. Digital Solidarity Fund
In order to bridge the digital divide, a thorough review of existingapproaches and mechanisms should be carried out by a Task Force of theUnited Nations.  Based on the conclusion of the review, the feasibilityand the creation of a voluntary "Digital Solidarity Fund" will be considered.

[Japan's efforts, contributions, etc.]
1. The Asia-Pacific Regional Conference (Tokyo, January 13-15, 2003)and its outputs reflected in the Declaration of Principles and Plan ofAction (in particular, the significance of broadband use and applicationsthereof, significance of ubiquitous, non-discriminatory and affordableaccess, linguistic/cultural diversity, etc.)

2. Statement of MPHPT Minister at the Plenary Session on WSIS
 Minister ASO stressed the significance of a broadband, ubiquitoussociety, and stated that Japan would contribute to the implementation ofthe Declaration of Principles and Plan of Action, including the bridgingthe digital divide, through the steady implementation of the "Asia BroadbandProgram."

3. The Japanese government, jointly with the private sector, under aunified theme of "Perspective for the Ubiquitous Network Society," organizeda  "Workshop,"  "Mobile Content Festival" introducing ringingtone melodies and the "Japan Pavilion" exhibiting state-of-the-art technologies.

4. The Minister, taking the opportunity, met with ministers in chargeof ICT from the ASEAN member states and agreed upon the significance ofAsia broadband platforms.  He also held bilateral meetings with theU.K., China, the Republic of Korea and Switzerland, as well as a meetingwith Mr. UTSUMI Yoshio, Secretary-General of ITU.  In particular,Minister ASO has shared recognition with ministers of China and Korea concerningcooperation on broadband, the significance of the Japan-China-Korea ICTMinisterial Meetings, etc.

Japan Pavilion

Goodwill Ambassador KUBO presides over a workshop on "UbiquitousNetwork Society"

MPHPT from December 16, 2003 commenced various application experiments,including practical experiments on international e-commerce in relationto digital content by setting fiber-optic circuits between Japan and Singapore,in line with the "Asia Broadband Program."
In conjunction with these experiments, MPHPT decided to invite participantsto these experiments for advancing outcomes thereof.  Those invitedthis time are as follows:
1) Content holders and content providers to participate in practicalexperiments on international e-commerce in relation to digital content
2) Participants to implement the various application experiments onthe experimental network between Japan and Singapore

1. Outline of these experiments
These experiments are international advanced IT joint experiments basedon the "Asia Broadband Program," for the purpose of promoting informationdistribution in the Asian region, to be implemented at the same time asa concrete joint project of the two countries based on a cooperative schemein the ICT field under the "Japan-Singapore Economic Partnership Agreement(JSEPA)" which came into force in November 2002.
These experiments, as part of the "Advanced IT Joint Experiments forthe Formation of an International Telecommunications Hub" in FY2003, arecarried out jointly with the Infocomm Development Authority of Singapore(IDA).  Under this scheme, private companies of the two countriesare participating in the practical experiments on international e-commerceof digital content, among other application experiments.
Note: Between Japan and Singapore, since FY2001, verification experiments,including network infrastructure/distribution technologies, etc. were implemented. The experiments this time are based on outputs of the verification experiments.

2. Invitation to participate in the internationaljoint IT experiments
In order to effectively utilize circuits between Japan and Singaporeand to further advance these experiments, MPHPT invites i) content holdersand content providers to participate in practical experiments on internationale-commerce in relation to digital content, and ii) participants to implementthe various application experiments between Japan and Singapore.
 

Guidance for applicants for Japan-Singapore internationaljoint IT experiments

1. Outline of Japan-Singapore international joint IT experiments
Practical experiments concerning e-commerce of digital content andvarious application experiments will be implemented by setting circuitsof 20 Mbps between Japan and Singapore.  Experiments in FY2003 willbe implemented from December 2003 to March 2004.

2. Invitation of participants

1) Content holders and content providers to participate inpractical experiments on international e-commerce in relation to digitalcontent
2) Participants to implement the various application experiments onthe experimental network between Japan and Singapore

1) Since many Singaporean (Japanese) companies will participatein these experiments, Japanese (Singaporean) participants will find businessopportunities that lead to the development of markets in the Asian regionand find business partners. 
2) Since participants will utilize international circuits between Japanand Singapore, participants will be able to develop business trials andmarket research for the future international business deployment.
3) With respect to e-commerce experiments, digital content will bedelivered to end users of each country.  Thus, these experiments willhelp participants increase their presence as service providers and deploybusiness activities prior to their full deployment.

1) Experimental network: IPv4/IPv6 network at a speed of 20Mbps
2) Availability of circuits: Since multiple experiments will be implementedusing the circuits, participants are not necessarily allowed to use allbands of the international circuits.
3) Conditions for interconnection: Those applying for participationmay be requested to pay access costs from the participants' office to thepoint of interconnection depending on experiments.  Costs, however,for the international circuits between Japan and Singapore are free ofcharge.
4) Available time period for circuit use: Until March 2004

1) Deadline for application: 17:00, January 30, 2004
2) Applicants shall submit the following documents to the address notedin 5)

i) Outline of experiment plan
 Prepare the plan in accordance with the attached form, and sendit by real mail (figures are allowed to be attached thereto)
ii) Electronic data of the outline of experiment plan
 The file format preferred is MS-Word, recommended for use asmuch as is possible.  Electronic storage media shall be sent by realmail or the data can be submitted as an attachment to the e-mail.
iii) The documents (media) shall not be returned to the sender.

3) Qualification for applicants: 

i) Experiments shall be ones for contribution to the promotionof advanced IT use in the Asian region.
ii) Plans and results of the experiments shall be reported.  Results,etc. of the experiments are to be made public.
iii) With regard to IPRs, publication methods of the experiment resultsand confidentiality of technical information concerning the experiments,participants shall consult with the contractors of the "Advanced IT JointExperiments for the Formation of an International Telecommunications Hub"and conclude contracts with them prior to the implementation of experiments.
iv) These experiments are not for commercial purposes, but for thepurposes of carrying out verification experiments of e-commerce or broadbandapplication experiments.  Accordingly, participants shall not be allowedto use the international circuits between Japan and Singapore for commercialpurposes. 
v) The international circuits between Japan and Singapore are to beused for multiple experiments.  Thus, participants shall not be allowedto always or exclusively use the circuits, nor to interfere with the "AdvancedIT Joint Experiments for the Formation of an International TelecommunicationsHub." 

4) Selection of participants: International Cooperation Division, InternationalAffairs Department, Telecommunications Bureau, MPHPT, will, if necessary,hold a hearing, and in light of the promotion of the "Asia Broadband Program,"decide upon the successful participants to the "Japan-Singapore InternationalJoint Experiments."
5) Address for sending in the application: International CooperationDivision, International Affairs Department, Telecommunications Bureau,MPHPT, 2-1-2, Kasumigaseki, Chiyoda-City, Tokyo, 100-8926
Persons in charge: Mr. HONDA, Mr. TAMURA
Telephone: +81-3-5253-5936
Facsimile: +81-3-5253-5937
e-mail: asia_broadband@soumu.go.jp

MPHPT has been holding Regular Bilateral Consultations between Canadasince 1985 and between France since 1991, for information/opinion exchangesconcerning the ICT field.  In 2003, the 12th Japan-Canada RegularBilateral Consultation was held in Ottawa, Canada, on November 13; andthe Eighth Japan-France Regular Bilateral Consultation was held in Paris,France, on November 17, respectively.  At the 12th Japan-Canada RegularBilateral Consultation, the Japanese delegates headed by Mr. NABEKURA,Vice-Minister for Policy Coordination, MPHPT and four other officials metwith the Canadian side including Mr. Michael Binder, Assistant Deputy Minister,Spectrum, Information Technologies and Telecommunications, Industry Canada,and 12 members.  At the Eighth Japan-France Regular Bilateral Consultation,the Japanese delegates headed by Mr. ISHIDA, Director-General, InternationalAffairs Department, Telecommunications Bureau, MPHPT, and four other officialsmet with the French side including Mr. Emmanuel Caquot, Director-General,Service for Information Society and Technologies, Ministry of Economy,Finance and Industry (Ministere de l'Economie, des Finances et de l'Industrie)and eight members.  At those meetings, information exchanges and discussionswere carried out under an atmosphere of friendliness.
Highlights of the meetings were as follows:

1. ICT policies
Industry Canada is aiming to promote broadband platform deploymentthrough policy measures for constructing broadband communications networksfocusing on regional societies and use of satellites.  As for policiesunique to Canada, Industry Canada pointed out i) needs to consider thecontent diversity due to a multilingual country, and ii) the narrowingof the digital divide for addressing the vastness of Canada, among others.
In France, the prime minister leads their ICT policies, such as measuresfor raising the penetration rate of PCs through the tax reduction for PCs,and for promoting construction of infrastructures through the tax incentives. However, further efforts are required to address the 3G mobile telephonesystems and terrestrial digital broadcasting systems.
The Japanese side explained Japan's ICT strategies including the "e-JapanStrategy II," the penetration rates of broadband infrastructures and thecurrent status of broadband use, and the perspectives toward a ubiquitoussociety.

2. Pro-competitive policies
In Canada, while competition in urban areas is in progress, there isstill a monopolistic situation prevailing in the residential subscribermarket for rural areas.  Accordingly, such services in residentialsubscribers for rural areas are subsidized by the universal service fund. Industry Canada suggested some of their challenges are how to i) encouragecompetition in the local loop markets and ii) address new services suchas wireless and IP telephony services.
The French side explained i) a bill (electronic communications law)for domestic measures to comply with the EU Directives which will be enactedat the end of 2003, and ii) a bill pertaining to jurisdictions of two regulatorybodies, Autorite de Reulation des Telecommunications (ART) and ConseilSupeieur de l'Audiovisuel (CSA).  The French side said that from nowon, CSA will regulate only content.
From Japan, explanations were made mainly on the contents of the amendmentto the Telecommunications Business Law, and the competition evaluationscheme, universal services and Japan's pro-competitive policies. As for the competition evaluation scheme, Japan will carry out analysisof competitive situations on the "Internet connectivity" market.
Japan and both the Canadian and French sides respectively agreed tocontinue with further cooperation concerning the promotion of competition.

3. Support scheme for the content industry
The French side introduced to the Japanese side an outline of the Frenchmultimedia content industry, including movies, games, TV, etc., and thesupport scheme therefor (R&D system, funds, etc.).  Japan presentedframeworks of content distribution over networks and frameworks for protectionof intellectual property rights.

4. Policies for frequencies
The Canadian side said that the Canadian government would, within sixmonths, release written papers concerning changes of frequency policy frameworksbased on measures for invigorating the frequency secondary transactionmarket and addressing new frequency bands for radio systems without radiolicenses.  When the Japanese delegation asked the counterpart thatthere are questions to employ an auction system or the frequency secondarytransaction market, in view of the nature of spectrum, the Canadian sidereplied that they don't think those schemes are applied to all frequencybands, but to limited markets, such as mobile telephones, wireless LANs,etc.
In France, the frequency auction system and the frequency secondarytransaction market are introduced on a case-by-case basis.  The AgenceNationale de Freuences (ANFR) in charge of frequency administration alsoleaning toward the view that it will be difficult to introduce the spectrumauction system in light of historical and technical backgrounds. The French side referred that spectrum auctions carried out in Europeancountries were not necessarily successful.  With respect to shiftsof frequency bands, they said that the costs for the shift are to be shoulderedby service providers who are newly assigned the spectrum concerned.
The Japanese side explained the "Radio Policy Vision" reported by theTelecommunications Council on July 30, 2003.

5. Mobile communications
For Canada, the 3G mobile communications services will be introducedin 2004 or 2005; for France, the middle of 2004.
In addition, the Canadian side said that i) since Canada is vast, satellitecommunications is playing an important role, and ii) with regard to a licensingsystem for frequencies, they think that an auction system, which is drivenby a market mechanism, is more appropriate than a comparative examinationsystem, for efficient use of frequencies.
The French side introduced the view that i) they recognize competitionamong three mobile telephone carriers is sufficiently in progress, ii)the penetration rate of mobile telephones has increased to 66.5%, iii)a half the mobile telephone customers are users of prepaid-type mobiletelephones, and iv) they are carefully watching the trend concerning mobilenumber portability introduced in June 2003, and v) they stressed that theinteroperability among mobile telephone carriers is vital.
The Japanese side explained the current status of mobile communicationsservices (the number of subscribers to 3G mobile communications services:113,000, the number of subscribers to mobile Internet services: 663,000,and others).
Japan and both the Canadian and French sides respectively agreed tomaintain further cooperative ties on R&D and standardization activitiesin both the public and private sectors, and to continue mutual exchangeof opinions.

6. International relations
The Japanese side agreed with the Canadian side to jointly coordinateopinions of other countries toward the success of the first and secondphases of the World Summit on the Information Society (WSIS).  Inaddition, both sides agreed to continue to deliberate upon implementationof the mutual recognition pertaining to certification of conformity tostandards, and to actively and jointly address various problems.
In France, both parties exchanged opinions on the ITU reform and WSIS,and agreed i) to closely cooperate to jointly address various problems,on a multilateral basis, toward the success of WSIS and further developmentof ITU.

7. Next consultation
The Japanese side agreed with the French side to hold the next consultationbetween the end of 2004 and spring of 2005 in Tokyo; at the working level,both sides will negotiate the details including the schedule and the agenda.

MPHPT convened the first meeting of the "Study Group on Future Aeronauticaland Maritime Communications Systems in the Ubiquitous Network Age" forthe purposes of deliberating upon future aeronautical and maritime communicationssystems in the ubiquitous network age, and future promotion measures thereof.

1. Purposes
Along with the progress of ICT deployment on a global scale, the environmentfor land communications systems has been swiftly shifting from narrowbandto broadband through widespread deployment of mobile Internet systems,wireless LANs, etc.

With respect to aeronautical and maritime communications systems, however,some international airlines and merchant vessels are trying to provideaccess to the Internet via satellite links on a limited scale.  Thus,gaps between communications environments for land communications systems,the convenience of which has been being improved at a rapid pace, and foraeronautical and maritime communications systems, are widening.
In response to such circumstances, MPHPT held the "Study Group on FutureAeronautical and Maritime Communications Systems in the Ubiquitous NetworkAge."

2. The topics to be deliberated upon are asfollows:
(1) The current status and issues concerning aeronautical and maritimecommunications systems
(2) The needs and future outlooks for aeronautical and maritime communicationssystems
(3) Future promotion measures thereof

3. Schedule
The first meeting of the Study Group was held on November 26, 2003. The Study Group will compile its findings as a report by March 2004.

For details refer to the Japanese website:
http://www.soumu.go.jp/menu_news/s-news/2003/031125_1.html

MPHPT released the results (prompt report) of the survey "overallresults of Japan's communications industry (telecommunications and broadcasting),"conducted in October 2003, for the third and fourth quarters (Q-III andQ-IV) of FY2003.  Fixed figures will be posted at the end of January2004 at URL: http://www.johotsusintokei.soumu.go.jp/
The Business Survey Indices (BSIs) in the third quarter (Q-III) andthe fourth quarter (Q-IV) of FY2003 indicate as follows:

• - BSIs for broadcasting business in Q-III turned into plus since Q-IV ofFY2001; BSIs for private broadcasters have recovered.
• - BSIs for telecommunications businesses have been recording continuousplus since Q-II of FY1995.
• - In comparison with the trend of all industries, in particular, BSIs forType II telecommunications businesses and cable TV businesses are trendingupwards.

1. Sales forecasts 
BSIs for Q-III and Q-IV of FY2003 show as follows: 

• - Telecommunications businesses are still in the "upward" tendencies of"14.3" for Q-III and "9.8" for Q-IV of FY2003, respectively.  However,the tendencies are sluggish.
• - Private-sector broadcasting businesses recorded "plus figures" in nearlytwo years, since Q-III of FY2000.
• - Cablecasting businesses are continuously the "upward" tendencies of "36.8"and "55.8."
• - Broadcasting businesses as a whole have turn toward "plus figures" sinceQ-I of FY2001.

Table 1. Business survey index

Notes: 1. Business Survey Index (BSI): the "percentage pointsof companies saying that the sales conditions are improving compared tothe previous quarter" minus the "percentage points of companies sayingthat the sales conditions are worsening compared to the previous quarter."
 2. Basically, indices are estimated at the end of the previousquarter for each.  However, indices for Q-III and Q-IV in FY2003 areestimated at the end of Q-II in FY2003.
 3. Figures for "all industries" are based on the "Indexes ofBusiness Conditions," the Economic and Social Research Institute

Fig. 1.  Trends in Business SurveyIndices

2. Financial positions
The Financial Position Diffusion Index (DI: The "percentage of companiessaying that the financial position are easy compared with the previousquarter" minus the "percentage of companies saying that the financial positionare tight compared with the previous quarter.") shows as follows: 

• - Telecommunications businesses continue to be the "easy" tendencies of"19.0" for Q-III and "14.3" for Q-IV of FY2003, respectively. 
• - Private-sector broadcasting businesses are still the "easy" tendenciesof "16.7" and "16.7." 
• - Cablecasting businesses continue to be the "tight" tendencies of "-5.3"and "10.5." 

Table 2.   Financial positiondiffusion index 

Notes: 1. Basically, indices are estimated at the end of theprevious quarter for each.  However, indices for Q-III and Q-IV inFY2003 are estimated at the end of Q-II in FY2003.
 2. Figures of "all industries" are based on the "Short-term EconomicSurvey of Principal Enterprise in Japan," Bank of Japan.

Fig. 2. Trends in financial position diffusionindex

[Businesses surveyed]
The number of surveyed businesses for each type of business (telecommunicationscarriers and broadcasters) is calculated proportionally with the type'sshare in revenues for FY2002.  To be statistically significant, thesampling number, as calculated from the number of parent populations ofcommunications industry, is set at 133.  Sampling of the businessesin this survey is conducted in descending order from the one with the largestsales down to the 133rd one.

[Survey method]
Conducted by questionnaire (mailing survey cards, entered by businessesvia fax or the Internet)

[Survey items]
Business forecast (conducted only in July, October, January and Apriland reported in the following month, respectively), etc. and sales (everymonth)

[Companies Surveyed]