"Study Group for the Asia Broadband Program"
(Fourth meeting)
Summary of minutes



1. Date and time

     November 7, 2002, 15:30 - 17:30


2. Venue

     First Special Conference Room, 8th floor, Headquarters, MPHPT


3. Attendants
     
(1)Members (alphabetical order; titles omitted from names)
     ASABA Toshiya, ASAI Hiroshi, ESAKI Hiroshi, FUJITA Satoshi, GOTO Shigeki, HOSAKA Masatoshi, IMAI Keiichi, ISHII Hideo, KATO Toshiyuki (substitute attendant: KURAHASHI), KISHI Hirokazu, KONISHI Kazunori, LIM Kian Soon (substitute attendant: NISHI), LIU Dong (substitute attendant: LU), MATSUMOTO Toshifumi, MIKURIYA Toshio, OKI Toshie, Yong-Jin PARK, SAGA Kenji, SHIBASAKI Yoshitaka (substitute attendant: HARADA), SHIOMI Tadashi (substitute attendant: KUBOTA), TAKAHASHI Toshinori, TANAKA Toshiki, YASUMOTO Yoshio

(2)MPHPT
     Vice-Minister TSUKIO Yoshio; OKAYAMA, Director of the International Policy Division; TAJIRI, Senior Advisor for International Public Relations of the International Policy Division; ASAMI, Director of the International Cooperation Division; MIYASHITA, Senior Advisor of the International Cooperation Division; MIHARA, Deputy Director of the International Cooperation Division


4. Agenda
     
(1) Opening

(2) On additional proposals from Members, etc.
     In line with Reference Material 4-2 "On additional proposals from Members, etc. (Members Only)," Members explained their proposals.

(3) On the report (draft)
     In accordance with Reference Material 4-3 "Points of Report (draft) (Members Only)," Mr. TAJIRI, Senior Advisor for International Public Relations of the International Policy Division, explained the points of the report.

(4) Opinion exchange

  
There are activities carried out by the Asia Pacific Next Generation (APNG) Camp. The APNG Camp aims to establish itself as a catalyst for the next generation to grow into capable Internet leaders under the global environment. The APNG Camp was held twice in 2002 and the 3rd Camp will be convened in February 2003. At the 3rd APNG Camp, next-generation Internet leaders will get together mainly from NICs in the Asian region, with the purpose of deliberating concrete issues, such as what to do next. I think we should make use of such activities for discovering and fostering human resources.
It is crucial to provide and operate infrastructures on a stable basis while retaining quality. To do so, major telecommunications carriers in each country/economy shall maintain close ties among them. For instance, there is the PPM consisting of 11 telecommunications carriers from 11 countries/economies. We may make proposals toward such a framework of telecommunications carriers. It is worth the effort.
Human resources working for NPOs, including APNG, are developed. From the viewpoint of relevant industries, there is a strong demand for developing human resources capable of earning money as skilled, ready-to-work labor pool. Industry needs substantial workforce exchange programs rather than educational systems for fostering human resources from scratch. I have heard that some companies have universities. As one of the options, it would be interesting that if we could establish a program under which human resources take practical courses at such universities and then enter into business activities.
When network centers are established, dealing with the acceptable use policy (AUP) is a difficult problem. Considering promotion of the industry, transmission of commercial traffic shall be taken into account. Even testbeds for R&D purposes may transmit commercial traffic. Of course, it is essential to deliberate upon how to ensure that such traffic does not hinder private businesses. Along with the growth of the industry, a structure, within which increased commercial traffic will assist business performances of carriers, is welcome.
When looking into differences between narrowband and broadband, from the viewpoint of businesses, upon introduction of broadband, businesses must change the way of doing business. Discussions were made on the fact that trade volumes among the tripolar of Japan, North America and Europe were well balanced, however, in terms of amounts of information distribution, Asia was far behind North America and Europe. Broadband has potentials to change business activities of manufacturers, distributors, etc. This will change former policy frameworks that governments cannot appropriate a budget for other infrastructures than lifelines. The way of business is, in a sense, an infrastructure of infrastructures. Under such policy frameworks, when business activities are deployed and exchanged throughout the Asian region, there arise concerns about fears that Asia will become far behind the rest of the world. If so, I expect a solution from this Study Group present.
In Asia, there are many people supporting the ICT industry in the world, such as China and India with huge educated and excellent populations. If such human resources supporting the world ICT industry do not move to America, and they work for Asia, this region will come to have the broadest Internet bandwidth. In this sense, when targets are established, I strongly expect efforts to attain thereof.
It is vital to make efforts to accomplish established targets. Once this Study Group alone establishes those targets, other countries/economies will be forced to attain them. When basic concepts are formed, gradual steps shall be taken. Meaning that targets shall be set forth after vigorous opinion exchanges between Asian countries/economies.
With respect to use of broadband, R&D is of course important; however, I think provision of public information would be a good idea, for instance, whether forecasts, disaster prevention or environmental information.
The e-APEC Strategy proposes construction of a database on success stories. In addition, it is also important to share information on cases where a project for some targets under certain conditions will result in failures. Failure is a stepping-stone to success.
Upon formulation of such a program, it is vital to consider strategic approaches anytime. For example, in Indonesia half of all villages have no single POTS. In reality, a huge network construction project in such areas is, in a sense, to pursue an unrealistic approach. There are many types of rural areas, such as islands, mountainous areas, jungles, etc. Thus, after introducing pilot projects for each rural area, we will classify those into success and failed cases. A shared database containing those cases will contribute to the selection of best practices. Such approaches are to be encouraged.
As regards education, various methods for human resource development are needed. For instance, when the Japan International Cooperation Agency (JICA) announced a total support to establish an ICT faculty at a polytechnic in Indonesia, the Indonesian side voiced that there were many educational institutes to be supported by JICA. The Japanese side, however, proposed a different strategic approach that students should be gathered and educated at one polytechnic, with this method being horizontally extended. Otherwise, the ODA budget cannot cover all polytechnics, an all-inclusive method does not work. When implementing the Asia Broadband Program, deliberations shall be made on each approach to address each challenge.
From 2002, almost all Korean online-game providers advanced into the Chinese market. An online game of the biggest Korean game provider was licensed to China, allowing 600,000 people to play the game simultaneously. The game charge is around 30 yen per hour. This much of charge will bring about a shift to China. The Chinese market will drastically grow through the licensing of Chinese providers and construction of R&D centers. The market size is said to be about 1.5 trillion yen. It is regrettable that Japanese providers are not players in this field. Some say that Japan is the most advanced country in terms of IPv6. However, when leading Chinese carriers want to construct IPv6-ready networks or provide IPv6-ready services, those carriers will connect the networks to European networks. In China, trials of new technologies are always carried out in Europe, never in Japan. This is caused by attitudes of the Japanese industry including carriers, who do not show their advanced assets such as technologies. It is very difficult to communicate with Japanese carriers and other suppliers. Japan has been carrying out advanced trials with advanced technologies under advanced concepts. I expect that the Asia Broadband Program will advocate messages that all of Asian countries/economies aim at reaching the next step will be formulated.
Asian networks will definitely become the world's most frequently used networks in the future. In comparison with Europe and America, at present, Asian networks lack many things to be enhanced. I would like to see a report describing concrete details that toward the realization of Asian broadband networks under the leadership of Japan, to what extent the Japanese government can do for the realization, at the same time, to what extent the Japanese government can do for closing the digital divide. Sometimes proposals included in this kind of report tend to be neglected. At this time, I anticipate that concrete proposals to be surely implemented will be contained in the report.
Will this project be carried out as an international cooperation project without considering the industry, or as support measures for the Japanese industry to some extents? Japan's presence in China is small because of bigger country and business risks. In contrast to Japan, European businesses and Motorola of the U.S. could enter into the Chinese market thanks to the backing up of their governments. Japanese companies have been given no single morsel of support from the Japanese government. If this project is support measures for the Japanese industry, Japanese companies can boldly participate in this project without knowing details of the market. On the contrary, if this project is to be implemented as an international cooperation project, I think that we must make hard-working efforts in a step-by-step fashion, for example, we should survey success cases to date and employ the best feasible and effective methods.
To establish a base for human resource development can be one feasible option. Strategically speaking, if Japanese companies enter into other markets at their own risks, I would like to say that it would be correct to make the most of already-established infrastructures in the targeted market taking into consideration cost-effectiveness.
With broadband, we can effectively use collaboration through international video transmission. Thus, headquarters of companies will be enabled to communicate with local staff via such infrastructures. I think that if the broadband infrastructure would allow business staff to make business talks or anything necessary, effective international communications between headquarters and branches could be achieved. Accordingly, the AUP shall be designed to allow commercial use.
In order to make Japan the leader in this Asia Broadband Program, Japan shall develop an initiative to make use of broadband in Japan. Local areas in Japan are affluent in inexpensive land, low-priced goods, fresh air, etc.; however, there is no industry in such areas. People born in such areas are forced to move to Tokyo. Tokyo is a city with expensive land, high-priced goods, toxic air, etc. Broadband can be a solution to address such problems. Japan shall open up a path to a leading model of broadband. Through these efforts, Japan would be the leader of this Asia Broadband Program. Indeed, to think worldwide is important in a sense. To transmit Japan's ownership, however, would be to forge solid footing.

(5) Schedule from now on
     Mr. TAJIRI, Senior Advisor for International Public Relations of the International Policy Division, explained the schedule that the fifth meeting would be held on November 18, 2002, and the Secretariat is to inform members of details of the fifth meeting.

(6) Closing




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