October 04, 2004,Vol. 15, No. 13 ISSN 1349-7987

Notice

Best regards,
Editorial staff of the "MIC Communications News"

Rep. YAMAGUCHI Shunichi, Senior Vice-Minister for Internal Affairsand Communications, Japan, delivered a keynote speech at the plenary session.

The ASIA 2004 consisting of an international Exhibition and Forum broughttogether some 24,500 people.
At the Forum, about 100 executives, including seven Ministers and awide range of leading industry participants as well as high-level representativesfrom government and regulators, actively exchanged opinions on varioustopics on ICT, such as broadband, mobile communications and ubiquitousnetworks.
Rep. YAMAGUCHI Shunichi, Senior Vice-Minister for Internal Affairsand Communications, Japan, delivered a keynote speech at the plenary session,introducing i) Japan's success in the penetration of broadband platformsand key policies of MIC for the success, ii) Japan's efforts to realizea ubiquitous network society, and iii) holding of the WSIS Thematic Meetingin Japan.  After his speech, active discussions took place.
Two-hundred twenty-four companies, etc. from 25 countries mainly inAsia participated in the Exhibition, featuring the latest technologies,products and services in the ICT field.  From Japan, 15 entities,including telecommunications carriers, manufacturers and universities,participated in the Exhibition, displaying mobile communications relatedto a ubiquitous network society and the latest technologies, products andservices related to broadband systems.

Senior Vice-Minister YAMAGUCHI visited Japan's booths and other boothsincluding Samsung, Korea Telecom and Intel.
Through those events, Japan's latest technologies and equipment aimingto realize the ubiquitous network society have strongly impressed Asiaand the rest of the world.  MIC will contribute to the realizationof the next-generation ICT society in the world, such as transmission ofconcepts for the "ubiquitous network society" at the World Summit on InformationSociety (WSIS).

[ITU TELECOM]
ITU TELECOM is an event organized by the ITU consisting of an internationalExhibition and a Forum for the purposes of raising awareness of ITU MemberStates on the latest technologies and policy trends and spreading thereof. There are two types of TELECOM; "World TELECOM" has been held every fouryears and "Regional TELECOM" has been held every two to four years in Asia,Africa, South and North Americas and Arab.

1. Cities surveyed
MIC has compared prices for i) Internet access services, ii) domestictelephone services, iii) cellular telephone services, iv) internationaltelephone services, and v) leased circuit services in Tokyo, New York,London, Paris, Duseldorf and Geneva on a basis of the Telegraphic TransferSelling (TTS) Rate as of June 1, 2004.

2.  Survey period
The survey period was basically February 2004.  However, wherethe tariffs concerned were revised, such tariffs were included in thissurvey to the greatest extent possible.

3. Outline (points)

• The charges for broadband access to the Internet on a flat-rate basis,including ADSL services, are at the lowest level in the world.
• In Tokyo, while domestic telephone charges for daytime local calls arethe lowest in the world, fees for facilities-installation are at a higherlevel compared to other cities.
• In Tokyo, domestic cellular telephone charges are at a lower level comparedto those in cities of the U.S. and Europe.

Note: There are many tariff systems on a country-by-countrybasis, such as differences between ordinary charges and discount charges,between regions in the same country, fluctuation in exchange rates, etc. Thus, a uniform comparison is not necessarily indicating a reality in eachcountry.  Readers are aware that results of this survey are one ofthe indices.

Points of individual charges to be focused on are as follows.

1. Access to the Internet

• Comparing ADSL services at a speed of 1 Mbps or higher with those in othercities, along with the development in competition among carriers, chargesfor Tokyo have become at the world's lowest level.
• With respect to communications speeds, speeds at Tokyo are 40 Mbps at themaximum while those for other cities are from 1 Mbps to 3 Mbps (8 Mbpsfor Seoul).  When comparing charges on a basis of communications speeds,charges for Tokyo are much lower.
• Charges for cable Internet services in Tokyo are ranked the third followingParis and New York.  When it comes to communications speeds, whileother cities are ranging from 256 kbps to 1.5 Mbps, Tokyo is at a speedof 30 Mbps, comparatively lower prices than in other cities.

• Charges for domestic telephone services in daytime in Tokyo are the lowestin comparison with other cities, and those in nighttime (at 8:00 p.m.)are the second lowest following Duseldorf.
• Ordinary charges for domestic long-distance telephone services in Tokyo,especially in comparing inter-prefectural telephone services, are lowerthan those for inter-state and intra-state long-distance telephone servicesin New York, but at a higher level than in European cities.  Discountcharges for domestic long-distance telephone services in Tokyo are slightlyhigher than those in other cities.
• Monthly basic charges for residential users and corporate users are atnearly equal levels to other cities.  Initial subscription chargesin Tokyo are the highest, but relocation charges are the lowest.
• An OECD model that compares domestic telephone tariffs in six world cities(Tokyo, New York, Geneva, London, Paris and Duseldorf) indicates that,for residential service, ordinary and discount charges in Tokyo are atnearly equal levels to those in European cities.  As for corporateuse, Tokyo and other cities, except New York where ordinary charges areat a high price level, have almost same level of charges, and discountrates in Tokyo are the lowest.

3. Cellular telephone services

• Package-type tariff plans containing monthly basic charges and fixed hoursof air-time charges are the mainstream in many cities.  Such plansvary from city to city.  Thus, simple comparison of charges betweencities is very difficult.
• Where comparing package plans most similar to a package plan reflectingthe actual traffic (2 hours of use per month) of Japan in FY2002, chargesin Tokyo are at lower levels.
• Air-time charges in Tokyo are lower in cases of cellular-to-fixed; chargesfor cellular-to-cellular calls are at nearly same levels as in other cities.
• Charges for fixed-to-cellular calls in Tokyo are the lowest than thosein other cities.
• Upon comparison utilizing a Tokyo model under which average actual usages,including distance ranges, time zones, etc., are calculated based upontraffic data in Japan, charges in Tokyo are in the second place followingParis.

4.  International telephone services

• While ordinary charges for international telephone calls from Tokyo toNew York are lower than those from New York to Tokyo, ordinary chargesfor international telephone calls from Tokyo to other cities except NewYork are higher than those from other cities except New York to Tokyo.
• Discount charges for international telephone calls from Tokyo to Londonand Duseldorf are lower than those from London and Duseldorf to Tokyo. However, discount charges for international telephone calls from Tokyoto other cities except London and Duseldorf are higher than those fromother cities except London and Duseldorf.
• Comparing charges for international telephone services through the useof the Tokyo model, such trends are seen as indicated above.

5. Domestic leased circuit services

• In Tokyo, charges for leased digital circuit services of 64 kbps for distancesof 15 km and 50 km are the lowest.  Charges for leased digital circuitservices of 1.5 Mbps for a distance of 15 km are in the second place followingNew York; and those for 50 km are the second highest following Geneva. Charges for leased digital circuit services of 45 Mbps for distances of15 km and 50 km in Tokyo are the lowest.
• When utilizing the OECD model, charges for leased digital circuit servicesof 64 kbps in Tokyo are the lowest; those for 1.5 Mbps in Tokyo are thesecond highest following Geneva; 45 Mbps are lower following Duseldorfand New York.

6. Conclusion

(1) According to this survey, although communications chargesin Japan vary depending upon types of services, charges for broadband andcellular telephone services are lower in comparison with other countries. 
(2) MIC will henceforth prepare an environment for reducing charges,including promotion of fair competition, in order to make Japan the mostadvanced ICT nation in the world.

[Reference 1]
Surveyed carriers

• Japan: Nippon Telegraph and Telephone East Corp., NTT Communications Corp.,NTT DoCoMo, Inc., its communications Inc.
• U.S.: Verizon Communications, AT&T, Comcast, Verizon Wireless
• U.K.: British Telecom, Vodafone, Telewest Communications
• France: France Telecom, Orange France, noas (a cable TV broadband carrier)
• Germany: Deutsche Telekom, T-Mobil, Infocity (a cable TV broadband carrier)
• Switzerland: Swisscom, Swisscom Mobile

[Reference 2]
¥ OECD Model
The Organization for Economic Cooperation and Development (OECD) carriesout a price competition using a model it has formulated which sets a trafficpattern by communications distance range, time zone, etc. in order to compareprices of telecommunications services in its 30 member countries.

Note: In cases of cellular telephones, under the OECD model,air-time charges in Japan are calculated as a comparatively higher pricerange.  Since the OECD model was designed based upon internationalcommunications between OECD member countries, there is a problem that themodel does not necessarily reflect the actual status of Japan.

Since February 2004, MIC has been holding the "Study Group on Networkingof Digital Information Consumer Electronics" (Chair: Prof. HATORI Mitsutoshi,Chuo University) for deliberating upon comprehensive measures, etc. topromote networking of digital information consumer electronics (CEs) thatwill be conducive to improvement in convenience of social lives. Recently, the Study Group has compiled its findings as a report on challengesto realize networking of digital information CEs and promotion measuresthereof.

[Outline]
In recent years, digital information CEs, such as digital TV units,digital video recorders, are being placed on the market.  Digitalinformation CEs with network interconnection functions have potentialsto realize advanced services.
However, at present, standards of methods to interconnect digital informationCEs are different type-by-type and field-by-field (CEs of digital AV, PC,telephone/facsimile, white goods, etc.).  Even in cases of the samestandards, details of methods to interconnect and control CEs are differentmanufacturer-by-manufacturer.  Subsequently, equipment in differentfields and equipment made by different manufacturers cannot be interconnectedto each other for utilizing digital information CE functions.
The Study Group has i) surveyed trends in technologies related to digitalinformation CEs in Japan and foreign countries, ii) analyzed consumer needsfor digital information CEs, and iii) deliberated upon challenges to realizenetworking of digital information CEs and promotion measures thereof. Results of such studies have been compiled as a report.
MIC will, paying due respect to the report, carry out R&D on necessarytechnologies, take measures for ensuring interconnectivity, and continueto consider various measures for networking of digital information CEs.
 

Challenges
i)    Standards for methods to interconnect digitalinformation CEs differ, type-by-type and field-by-field.
ii)    Methods to interconnect and control CEs differmanufacturer-by-manufacturer.
¥When types and fields of CEs differ from each other, such CEs cannot beinterconnected via networks.
¥Even CEs in the same field, such CEs made by different manufacturers cannotbe interconnected to each other via networks.
On the other hand, the following efforts for networking digital informationCEs in major foreign countries are being made:

• Korea: Based upon the 90% household coverage of broadband platforms, thepublic and private sectors have been promoting a "digital home" initiative. Concerted efforts of the public and private sectors, including two groupsof SK Telecom and KT, aim at establishing 10-million "digital homes" by2007.
• Europe: Under IT policies of the European Commission, the "eEurope 2005,"theEU is focusing not only on PC but also the third-generation mobile telephonesystems, digital TV, etc. as Internet access platforms, and promoting R&Dthereon.
• U.S.: Networking at home is centered on cable Internet.  A privatesector group, mainly Microsoft and Intel, is trying to establish a de factostandard for realizing the "digital home."
• China: The Chinese government has been strengthening production of digitalCEs.  Henceforth, such efforts will be directed to digital informationCEs.

• Service content market
• Content, such as entertainment information on movies, drama, etc.
• Services, such as distance learning (tele-education), security services,etc.
• Appliance market
• Digital information CEs, such as TV, washing machine, PC, modem, etc.
• Network platform market

- Networks, including ADSL, cable Internet, fiber-optic cables, etc.
- Platforms, such as ones for billing, authentication

i)    Communications speed (high-speed services:50 Mbps or higher, low-speed services: around 64 kbps)
ii)    Quality of communications (time delay: within10 ms (required for wired and wireless communications)
iii)    Functions needed for ensuring communicationsaccording to an ordering of priority of emergency levels

(2)    Agreement on protocols to be used

¥    It is required that coverage of communicationsmedia, transmission systems, etc. shall be identified; and unified standardsfor equipment control and recognition protocols shall be established.

¥    It is required that network architecturesfor realizing interconnection between various communications systems withdifferent communications speeds, high-speed or low-speed systems, shallbe established.

(4)    Realizing interconnection between many anddifferent communications systems

¥    It is required that R&D on technologiesfor realizing interconnection among multiple CEs employing different communicationssystems, including other networks, shall be carried out.

¥    It is required that database functionshandling information on equipment IDs, services to be provided by equipment,users' rights-of-use, etc. shall be needed.

(6)    R&D on functions relating to managementof equipment authentication, user authentication and the provision of services

¥    It is vital to realize functions for managinginformation in (5) and for granting authentication.

¥    It is vital to unify equipment settingfunctions ("plug and play"), data formats, etc. or to develop mutual conversionfunctions.

Issues related to preparation of a promotion scheme for interconnection
(1)    Preparation of a scheme for experiments on interconnectionand procedures for experiments

¥    It is essential to prepare a scheme forexperiments on interconnection and details of test items and proceduresfor experiments.

¥    It is necessary, for reducing R&D burdensfor meeting networked CEs, to standardize various technologies and to shareinformation.

Issues from the viewpoint of users
(1)    R&D on technologies for security and authentication

¥    It is vital to develop security and authenticationtechnologies for i) responding to unauthorized access, ii) ensuring securecommunications, and iii) user authentication.

¥    It is vital to develop standardized, simplifiedand automated user interface employing universal designs which do not requirehigh-level knowledge for operating equipment setting.

¥    It is essential to strive to reduce costspertaining to networking, such as equipment prices, installation fees,repair fees, outsourcing costs, etc.

Issues for widespread use
(1)    Copyright protection

¥    It is vital to consider establishment oftechnical standards, etc. for copyright protection, countermeasures againstunauthorized use of content, etc.

¥    From the viewpoints of simplifying complicatedprocedures for use and increasing users, it is vital to realize the provisionof a comprehensive service (one-stop services), etc.

¥    It is essential to develop technologiesfor saving power, etc. from the viewpoints of considering cost burdenson users and environmental protection, etc.

¥    It is vital to invest in priority R&Dfor implementing research activities, standardization activities and verificationexperiments.

¥    It is vital to promote technological development,including home gateway functions for ensuring interconnectivity among differentcommunications standards.

(3)    Promotion of common standards

¥    It is vital to promote common standardsamong Japan and foreign countries for various relevant protocols, informationexchange formats, etc.

¥    It is necessary to implement interconnectiontests and verification experiments on communications standards for digitalinformation CEs through participation of the private sector, etc.

(5)    Promotion of collaboration with foreign countries

¥    Upon carrying out R&D and standardizationactivities in Japan, it is necessary to promote harmonization with European,North American and Asian countries, including China and Korea.

¥    In order to carry out R&D and verificationexperiments, in addition to collaboration among industry-academia-government,it is vital to extend results thereof to the general public through collaborationwith the civil society.

(7)    Utilization of wireless broadband environments

¥    In cases where house wiring is difficult,wireless systems interconnecting digital information CEs without restrictionsare to be utilized.

¥    In cases where house wiring is allowed,inexpensive plastic fiber-optic cables, etc. enabling high-speed and stablecommunications are to be utilized.

(9)    Implementation of measures for protectingcopyrights

¥    With respect to content to be used by digitalinformation CEs, it is vital to consider copyright protection technologiesand frameworks for enabling content holders to grant license to users.

¥    It is vital to i) establish technologiesand frameworks for protecting personal information obtained through digitalinformation CEs and ii) consider explicit liabilities for compensatingusers in faults, etc.

¥    It is vital to pay consideration to theearth's environment through extended lives by ensuring repair parts andenergy savings, including reduction of power consumption while in waitingmode.