Transcript 080303_bb_policy_in_japaneu - Too-Much-TV

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Broadband Competition Policy in Japan
March ２００８
Yasu TANIWAKI
([email protected])
Director, Telecommunications Policy Division
Telecommunications Bureau
Ministry of Internal Affairs & Communications (MIC), JAPAN
1
Broadband Competition Policy in Japan
✔
■Current Status of Broadband Market in Japan
■Outline of “New Competition Policy Program 2010”
■Specific Issues
□Network Neutrality Issues
□Focus on Openness for Platform Functions
□Revitalization of Mobile Business
□Review of Universal Service System
□Terminal Equipment Policy in the IP era
Transition in the Number of Japan’s Broadband Subscribers
【Number of Telecommunication Service Users】
【Number of Broadband Service Users】
（Unit: 10 thousand）
12,000
13,483,359
As
' 0 of
8 . 1Jan.
末 現2008
在
移
動電話
（ 携 帯 電 話 + Ｐ Ｈ(telephony)
Ｓ）
Mobile
Communications
10548. 6
高
速・超高速
イ ン タ ー ネッ ト 加 入 者 数
Broadband
service
IP電Telephony
IP
話
10,000
ＤＳＬ
16,000,000
固
定 電Communications
話 （ 加 入 電 話 + ＩＳ(telephony)
ＤＮ）
Fixed
9982.6
9764
10429
10307.8
14,000,000
9475
9869
9648
9,361
9,147
8,112
12,000,000
8,665
FTTH
8,000
10,518,659
10,000,000
7,482
6,678
6,285
6,028 6,164
6,223
6,196
6,077
5,961
5,781
6,000
6,263
5,456
6,263
5,907
5,685
6,133
6,022
As of Dec. 2007
5878
5917
5745
5808
5239. 8
8,000,000
5421.7
5333
5678
5,636
5,245
5602.9
4,731
6,000,000
CATV
4,000
3,825
3,748,618
As of Sep. 2007
2776. 3
2,691
2,148 2,237
1,951
2,000
2,330
830.5
976.7
433
22
ＦＷＡ
1300
1145.7
12,451
85
527.6
0
7/
9
'0
7/
3
'0
6/
9
'0
6/
3
'0
5/
9
'0
4/
3
'0
2/
3
'0
0/
3
'0
8/
3
'9
6/
3
'9
4/
3
'9
2/
3
'9
'9
0/
3
0
00
/1
2
01
/3
01
/6
01
/9
01
/1
2
02
/3
02
/6
02
/9
02
/1
2
03
/3
03
/6
03
/9
03
/1
2
04
/3
04
/6
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/9
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/1
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/3
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/6
05
/9
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/1
2
06
/3
06
/6
06
/9
06
/1
2
07
/3
07
/6
07
/9
49 87
2,000,000
As of Dec. 2007
1209.7
1060.4
387
138 171 213
1676. 6
1375.9
943
4,000,000
2,504
1,541
1,170
2,576
2,422
2
3
Tariff for Broadband Services
(yen/month)
IP phone charge
PSTN phone charge
6,510
internet charge
IP phone charge
5,991
6000
5,754
5,985
5,250
5,200
5000
4,693
4,900
4000
4,389
4,095
4,095
4,206
3,505
3,969
3,570
3,465
3000
2,980
2,908
2000
1,344
1000
0
1,050
(1)
NTT East(1)
K-opticom
NTT East (2)
(100 M)
(100 M)
(100 M)
USEN
(100 M)
FTTH
FTTH
(single residences)
(multiple residences)
Note 1: When using BB.excite as the ISP
Note 2: When the service can be provided to 8 or more residences
Note 3: Includes basic IP telephone charges as well
NTT East(1)
(47 M)
Softbank BB
(50 M)
(3)
(3)
KDDI
(50 M)
KDDI
(5 M)
Itscom
(30 M)
ADSL
Sources: Respective company web sites
Itscom
(512k)
Cable
4
Japanese Broadband Service in Global Comparison
Broadband prices (100kbit/s)
Speed of DSL
(US dollar)
（Mbit/s）
Japan
0.07
Japan
51.2
Korea
0.08
Korea
51.2
Netherlands
Singpore
0.14
Sweden
0.23
Singapore
0.24
0.3
Italy
Taiwan,Chaina
30.72
Sweden
24
Finland
24
Netherlands
0.34
France
0.36
Finland
0.36
United States
Taiwan,Chaina
12.288
Italy
12.288
France
0.49
0.51
Germany
20.48
The U.K.
0.63
Lithuania
0.69
Hong Kong,China
0.83
10.24
Kazakhstan
8.192
The U.K.
8.128
Portugal
8.128
Brazil
8
Portugal
0.93
Iceland
6.144
Bosnia・Herzegovina
0.93
Hong Kong,China
6.144
Poland
6.144
6.016
Canada
1.01
Macao,China
1.07
Germany
Brazil
1.08
Philippines
Belgium
5.12
1.21
0
0
0.2
0.4
0.6
0.8
1
1.2
10
20
30
40
50
1.4
Source ： ITU Internet Reports 2006 ”digital.life”（December 2006）
60
Next Generation Broadband Strategy 2010 (August 2006)
Status of broadband service availability
FY２００５
FY２００６
FY２０１０
（as of the end of March 2006）
（as of the end of March 2007）
（Target set by the government)
broadband
service
47.3 million
（94％）
48.6 million
（95％）
100％
super high speed
broadband（ＦＴＴＨ）
40.2 million
（80％）
42.7 million
（84％）
90％
5
Legal Framework of Telecom Related Market In Japan
Content
Telecom service
Content
Cable
modem
service
Content
CATV
Service
Broadcast
Telecom Network
Telecom Business Law
CATV network
CATV Law
Broadcast Law
6
7
Broadband Competition Policy in Japan
■Current Status of Broadband Market in Japan
✔
■Outline of “New Competition Policy Program 2010”
■Specific Issues
□Network Neutrality Issues
□Focus on Openness for Platform Functions
□Revitalization of Mobile Business
□Review of Universal Service System
□Terminal Equipment Policy in the IP era
8
From monopoly
to competition
Further promotion
of competition
1997 
1985 
 Introduction of
market
principles
 Privatization of
NTT--PC
From “ex-ante”
regulation to “expost” regulation
 Reorganization of NTT (1999)
 Deregulation of market entry
restriction
 Abolition of foreign investment
regulation (except for NTT and
NTT regional companies)
 Establishment of interconnection
rules (introduction of LRIC model)
Age of Telephony
2001 
 Strengthening of
asymmetric
regulations
 Establishment of USF
mechanism
 Setting up of
Telecommunications
Business Dispute
Committee
2004 
 Abolition of Type I and
Type II business
categories
 Drastic deregulation of
price and tariff
regulations
 Introduction of
competition review
mechanism
Emergence of
Internet
Transition to Full
IP-based networks
Transition from ＰＳＴＮ to ＩＰ-based networks
Review of competition rules through transparent procedures
Review of Competition Rules corresponding
to transition to full IP-based networks
Outline of Japanese Telecom Competition Policy
9
Current Status of Japanese Telecom Market
Number of competitive telecom carriers
April 1985
87
April 1989
April 1993
April 1997
738
1,259
4,726
April 2001
Feb 2008
14,441
9,348
Structure of NTT group (reorganized in July 1999)
Regulated under NTT Law
NTT
(Holding company)
NTT
DoCoMo
NTT
Communication
NTT regional companies own
93% of all the access lines.
(as of the end of March 2007)
NTT East
NTT West
Market Share of NTT East and West
(as of the end of March 2007)
（share by number of lines）
Copper lines
９９．９％
Copper&fiber&
ＣＡＴＶ lines
９２．５％
FTTH
７８．９％
（share by revenue）
Fixed telephone
（including ISDN）
ＡＤＳＬ
FTTH service
９０．６％
３８．０％
６９．０％
10
Development of DSL Service Market and Introduction of Interconnection Rules
11
(millions)
16
Others
Approx.
62.0%
NTT E/W
Approx. 38.0%
14
【End-Mar. 07】
12
10
8
6
Autumn 2000
Establishment of collocation and
access networks
0unbundling rules for
7 8
of NTT E/W
DSL
Cable Modem
4
2
0
Mar-99 Sep-99 Mar-00 Sep-00 Mar-01 Sep-01 Mar-02 Sep-02 Mar-03 Sep-03 Mar-04 Sep-04 Mar-05 Sep-05 Mar-06 Sep-06 Mar-07
Changes in Market Environment and Review of Competition Policy
Changes in competitive environment
(1) Progress of broadband deployment
(2) Development of horizontal market integration
(3) Development of vertical market integration
【Development of horizontal market integration】
【Development of vertical market integration】
“New Competition Promotion Program 2010” (Sep 2006, revised in Oct 2007)
Related to a review of a framework of competition rules to address the transition to IP-based
networks, define a road map for deliberation to be implemented by the early 2010s.
12
13
Mutual Interaction among Different Layers
Content and
Applications
Platform
Utilization
Functions to ensure smooth
delivery of content and
applications
- Ensuring security
(Charging and Authorization etc.)
- QoS control
- Copyright clearance (DRM etc.)
Mutual
Interaction
Telecom
Service
Physical
Networks
Infrastructure
14
Development of Comprehensive Broadband Policies
Transition to IP Networks (Mainly Broadband Networks)
● Full Transition from PSTN to IP networks (☞ “Everything over IP” )
● Emergence of a variety of new business models (☞ review of vertically Integration business models)
● Transition to IP Networks makes lost the rational for the concept of “distance”
Direction of Implementing Policies
● Promotion to use information & communication network as the basis to support the socio-economic system.
● Acceleration of effective interaction between communication networks and content/applications.
(“Creation of Good Circulation Related to Development of Markets”).
● Development of the competitive environment allowing for smooth response to rapidly changing market situations.
Development of Broadband Policies
Balanced
development
of infrastructure
●Eliminating the
Broadband-Zero Areas
by 2010
Next Generation
Broadband Strategy
2010
(August 2006)
Improvement of
environment
to Promote Competition
●Fair Competition
●Predictability of
Competition Rules
New Competition
Promotion
Program 2010
(Sep 2006)
Promotion of
protecting users
Innovation of
new industries
●Prevention of spam
●Protect of private
(personal) Information
●Prevention of
distributing illegal/harmful
Information
●Protection against
viruses
●Protection from cyber
attacks
●Establishment of
legal System in
correspondence to
convergence between
telecom & broadcasting
●R&D
●Promotion of
Standardization
●Promotion of content
Markets
International
contribution
●Promotion of Asia
Broadband Program
●Contribution to
Activities in
international
organizations
(ITU,OECD,APEC)
●Promotion of
bilateral/multilateral
policy consultations
“The world’s fastest achievement of the IT revolution in FY2010” (Realization of u-Japan)
Position of the “New Competition Promotion Program 2010”
Early 2010s
Present (2006～)
IP based networks recognized as principal
networks to replace PSTN
Transition from PSTN to full IP based networks
Establish fair competition rules *
“New Competition Promotion Program 2010”
Periodical review
(on annual basis)
and revolving of the program
Comprehensive review
Facility-based competition promoted by:
 Promote further opening of poles, etc. owned by NTT
E/W and electric power companies
 Promotion of opening fiber-optic network installed by
local governments to telecom carriers
 Promote introduction of new wireless access
technology
Competition environment improved by:
 Progressive revision of dominant regulations
 Establishment of competition safeguard in response to
NTT’s med-term management strategy
 Establishment of interconnection rules related to NGNs
to be developed by NTT
 Review of access charge calculation method
(copper and optic fibre)
 Promotion of MVNOs into the mobile market
Other key measures include:
 Promotion of further competition in terminal layer
 Review of USF mechanism
 Improvement of dispute settlement mechanism
Consideration of comprehensive legal framework including
telecommunications and broadcasting
Status of NTT*
will be concluded following
consideration in 2010,
based on status of broadband
deployment and the progress
of NTT’s
medium-term management
strategy
Comprehensive legal
framework*
including
telecommunications
and broadcasting
will be concluded by 2010
15
16
Broadband Competition Policy in Japan
■Current Status of Broadband Market in Japan
■Outline of “New Competition Policy Program 2010”
✔
■Specific Issues
□Network Neutrality Issues
□Focus on Openness for Platform Functions
□Revitalization of Mobile Business
□Review of Universal Service System
□Terminal Equipment Policy in the IP era
17
Broadband Competition Policy in Japan
■Current Status of Broadband Market in Japan
■Outline of “New Competition Policy Program 2010”
■Specific Issues
✔
□Network Neutrality Issues
□Focus on Openness for Platform Functions
□Revitalization of Mobile Business
□Review of Universal Service System
□Terminal Equipment Policy in the IP era
Basic Viewpoints on Network Neutrality
【Progress of Market Integration】
Change of Market Structure
■Changes on network structure
（Transition from PSTNs to IP based networks）
■Progress of market integration such as FMC
■Proliferation of new communications such as P2P
Network Neutrality
Ensuring utilization of networks
“with proper cost allocation”（A）
and
“without any discrimination”（B）
A) Equitable cost allocation to networks
Consideration on equitable cost allocation systems among relevant
players (CPs, ISPs, common carriers, users) in the progress of
network congestion.
B) Equal access to networks
Consideration on equal access to networks to prevent abuse of
market dominance and to ensure fair competition in the progress of
changes of network structures and market integration.
SG on Network Neutrality
(Nov. 2006 – Sep. 2007)
Considered the new competition rules
to ensure proper network utilization
from “mid-term” perspectives
18
Basic Framework for Ｎetwork Ｎeutrality
19
Network neutrality (from the user perspective)
(1) IP-based networks should be accessible to users and easy to use, allowing ready access to
content and application layers.
(2) IP-based networks should be accessible and available to any terminal that meets the relevant
technical standards, and should support terminal-to-terminal (or “end-to-end”) communication.
(3) Users should be provided with equality of access to telecommunications and platform layers at a
reasonable price.
Note: In this case, "the user" refers not just to end users but also includes
content providers and other related companies that conduct business using
IP networks.
Policy evaluation parameters for ensuring network neutrality
Equal access to networks
Equitable cost distribution of networks
Neutrality of telecommunications layer with
respect to other layers
Neutrality of cost sharing models for upgrading
the communications networks
Specific policies deployed in an integrated manner for parameters
IP Traffic on the Networks (Total Volume)
○ The total amount of IP traffic in Japan was estimated at 812.9Gbps in Nov 2007,
increased by about 2.5 times in 3 years.
[Gbps]
900
812.9Gbps
(2007.11)
800
Estimated download
traffic of broadband
users in Japan
721.7Gbps (2007.5)
700
636.6Gbps (2006.11)
600
523.6Gbps (2006.5)
500
339.8Gbps
(2007.11)
468.0Gbps (2005.11)
424.5Gbps (2005.5)
400
323.6Gbps (2004.11)
303.2Gbps (2004.10)
300
294.0Gbps
(2007.11)
(ref.1) Monthly average
of daily peak traffic
exchanged at major IXs
in Japan
269.4Gbps (2004.9)
200
199.4Gbps
(2007.11)
0
1
2
3
4
5
6
7
8
9
10
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12
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8
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1
2
3
4
5
6
7
8
9
10
11
12
100
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Monthly average of
daily traffic of
Broadband customers
(ADSL/CATV/FTTH) of
major ISPs in Japan
(ref.2) Monthly average
of daily traffic
exchanged at major IXs
in Japan
2007
Efforts for Grasping Current Status of Internet Traffic in Japan , MIC
20
Traffic Exchanged among ＩＳＰs（as of Nov 2007）
21
○ “The traffic flowing into domestic ISPs from foreign ISPs（Inbound traffic, B3）” has been
remarkably increasing by twice in 1.5 year. It has exceeded “the traffic exchanged at any
place outside domestic major IXs (mainly private peering, B2)” at Nov 2007.【left diagram】
○ In the traffic exchanged among domestic ISPs, the percentage of “the traffic exchanged at
domestic major IXs (B1)” has turned upward again.
〔B１〕 the traffic exchanged at domestic major IXs
〔B２〕 the traffic exchanged at any place outside domestic major IXs
〔B３〕 the traffic flowing into domestic ISPs from foreign ISPs
＜Inbound traffic to domestic ISPs＞
[Gbps]
＜Outbound traffic from domestic ISPs＞
[Gbps]
160
160
B1
B2
B3
140
B1
133.7
140
129.0
120
93.5
100
B2
B3
124.5
120
107.6
94.9
100
80.9
40
20
53.1
47.9
48.2
36.3 38.0
35.9
40.1
28.5
25.3 27.7
57.1
90.5
68.1
77.4
66.2
68.4
41.6
54.0
62.3
81.8
71.2
48.1
43.3
37.8
57.8
41.6
33.0
30.9 31.8
16.7
14.1 15.4
20
0
70.8
60.1
58.4
60
40
83.4
77.6
80
68.5
55.1
108.4
94.5
73.3
80
60
116.4
113.3
47.8
39.8
24.1
0
04.5
04.11
05.5
05.11
06.5
06.11
07.5
07.11
04.5
04.11
05.5
05.11
06.5
06.11
07.5
07.11
Efforts for Grasping Current Status of Internet Traffic in Japan , MIC
IP Traffic (Downstream)
 P2P traffic has a significant impact on networks rather than streaming and web surfing.
 Average P2P occupation rate increased by 30% at peak traffic level and by 10% at off
peak level in 6 months period.
Occupation rate of bandwidth
Others (web, mail etc.)
Randomly selected day in April 2006
Occupation rate of bandwidth
Randomly selected day in November 2005
Top
Bottom
22
23
IP Traffic (Upstream)
 P2P occupation rate is higher in upstream than in downstream.
 P2P traffic occupied no less than approx.50% throughout 24h in Apr.2006.
Others (web, mail etc.)
Occupation rate of bandwidth
Occupation rate of bandwidth
Randomly selected day in November 2005
Randomly selected day in April 2006
Top
Bottom
Bandwidth Usage and P2P Users
10% of all users occupy 60 through 90% of the traffic
24
Distribution of uses in all traffic
Traffic volume
75%
P2P traffic
25%
Other traffic
(more than 90% of all users)
(less than 10% of all users)
P2P users (10%) controls 60 through 90% of the traffic.
63%
Heavy users
(10% of P2P users)
37%
average users
(90% of P2P users)
User (ascending sort )
Top 10% of P2P users(*) occupy more than 60% of the traffic
Bandwidth used by heavy users completely differs from
that used by average users.
Traffic volume
average user : 550Mbyte
Top 10% among P2P users occupy over 60% of the
traffic
x 30
x 190
P2P user : 17Gbyte
P2P heavy users: 104Gbyte
P2P User (ascending sort )
(*) “the P2P users” are considered as the users whose P2P traffic exceeds over 1 Mbyte
within 24 hrs.
(Note) The data was provided by Plala Networks) (partly extracted)
Measured : 2003/6/30 – 2003/7/1 11:59
(*) the Plala Networks has controlled its P2P bandwidth since
November 2003, therefore the latest published data in uncontrolled
situation is for 2003.
Background of Dramatic Traffic Increase
■Broadly usage of P2P-based file exchange, driven by increasing availability for
broader upload bandwidth in response to proliferation of FTTH service
■In addition to increase of rich content including video, many new
business models with CGC (Consumer Generated Content) have emerged.
⇒Content may flow into the network from a variety of network edges
■Some new factors possibly to making Internet traffic increase.
●Emergence of new communications represented by M2M in line with
progress of ubiquitous economy
●Increase of network utilization including SaaS within firms
●Proliferation of grid computing
25
Dispersion of Intelligence in Networks
Newly emerging services coordinated
between terminal equipment and intelligence in
servers
networks
（meshed
End user as a
“private” content provider
Remarkable improvement of
computing capability of terminal
equipment such as ＰＣs
Ubiquitous economy, CGC(Consumer
Generated Media), diversity of content
delivery mode including P2P
26
Relationship between Upper tier ISP and Lower-tier ISPs
27
CP
ISP-A has an opportunity to compensate for the
increasing equipment cost by collecting from CPs and
ISP-B.
ISP-A
Rich content
（video streaming, etc. ）
transit
ISP-B
ISP-B has no opportunity to compensate for the
increasing equipment cost difficult to collect directly
from end users.
End user
30
Coping with the Traffic Increase
28
■Additional charge on heavy users?
✔User charges are a fixed rate on a best-effort basis.
⇒Possibility to disturb equality of cost burden among heavy users and light users.
✔In general, it is acceptable to collect an additional charge from heavy users.
✔On the other hand, issues to be considered exist:
・acceptable to develop multi-tiered Internet structures (fast lane and slow lane)?
・possible to find rational price differentiation between heavy users and light users?
→In the meantime, a case-by-case approach should be taken.
■Additional charge for CPs?
✔Both the CP and ISP markets are competitive.
→Market principle may work.
■Equality on cost allocation among ISPs?
✔Market mechanism may not work due to several factors such as asymmetry of
information (eg. upper-tier ISP vs. lower-tier ISP), and increasing burden for
enhancing network capacity.
✔It is appropriate to allow for packet shaping without any bit discrimination.
Actions to Be Taken to Cope with Network Congestion Using Ｐ２Ｐ
■Currently unclear if technological innovation can absorb incremental cost due to
increasing traffic.
■For coping with dramatic traffic increase (network congestion), ensuring dynamic
Interaction is required between networks and terminals, allowing networks to
flexibly absorb traffic fluctuating. （☞network scalability）。
■Advantage of P2P in allow for improving content delivery efficiency should be
utilized. Flexible choice of content delivery technologies such as C/S
model and CDN as well as P2P should be ensured.
■ Under as a first step has been traffic dispersal methodology using P2P.
consideration
29
P2P Network Experiment Council


■
30
“P2P Network Experiment Council” was established in August 2007.
Result of experiments will be summarized by end-March 2009.
Purposes
・“P2P Network Experiment Council” was established with the aim of promoting new content delivery businesses using broadband
network, and diffusing the use of broadband services to regional areas.
・ To achieve the above targets, the council participants exchange their information and views on new network services applying P2P
application technologies, support P2P-experiments and P2P-services, and examine the results of experiments.
■
Participants(in alphabetical order)
– Bitmedia Inc., BitTorrent K.K., BROTHER INDUSTRIES LTD., DREAMBOAT Co.Ltd., INFOCITY Inc., Internet Initiative Japan Inc.,
Grid Solutions inc., Japan Broadcasting Corporation, J-Stream Inc., Kadokawa Digix INC., Mandala, NEC Corporation,
NHK ENTERPRISES Inc., NTT Communications Corporation, SOFTBANK BB Corp., TOKYO SHOSEKI CO.LTD.,
TOYAMA INTERNET SHIMINJUKU, TV Bank Corp., VeriSign Japan K.K.
-MIC (as an observer)
P2P Network
Experiment Council
SG on P2P Delivery Model
SG on Joint Delivery Architecture
P2P Security Guideline Drafting Group
Content delivery service providers
Content holders
Culture
Education
Movies/
Cartoon
Films
Sports
Games
Study Group
On
Effective
Delivery
Network
Telecommunication carriers,
CDN service providers, P2P service providers
ISPs, IXs, Content holders
Local
Government
A
Local
Government
B
Local
Government
C
Local
Government
D
Challenges to Making “Packet Shaping” Operational
31
Since a large amount of Internet traffic volume is caused by P2P, some ISPs set out the traffic
restriction for P2P in order to maintain the current flat-rate fee system for broadband Internet
access services.
■A conference composed of four telecom business associations （Japan Internet Providers Association,
Telecommunications Carriers Association, Telecom Service Association, Japan Cable and
Telecommunications Association）has been established. （MIC is participating as an observer.）
■The report is scheduled for provision in Spring 2008.
■At the outset, the conference will set the basic standards regarding packet shaping rules.
Based on the standards, ISPs will establish and implement their own operating rules.
■Establishment of “Guideline for Packet Shaping”
☞The guideline will clarify the basic standards; such as information coverage which ISPs are
required to set as their contract conditions; the fundamental requirements for operating the
packet shaping; relevant legal interpretation （including secrecy of communication）.
■Enforcement of dispute resolution system
■Arrangement for figuring out the details of Internet traffic volume.
■Facilitation of efficient content distribution systems （including the utilization of local IXs. ）
31
Specific Policy Issues on Network Neutrality
Equitable cost allocation of networks
Revealing network congestion（traffic volume doubled in ２ years）
Necessity for developing cost sharing model
on building up additional network capacity
■Additional charge for heavy users（☞no specific factor to disturb healthy
competition. More detail discussion on reasonable differentials between heavy users
and light users etc.） are to be required.
■Additional payment by CPs to ISPs --- not required under the healthy competitive
environment in CP and ISP market (dependent on market mechanism)
■cost allocation between upper tier ISPs and lower tier ISP (possibility for
market mechanism not working effectively）
Necessary to develop scalable networks
to absorb fluctuations of traffic
Basic principles on packet sharing to be
specified to avoid disturbing competition,
ensuring confidentiality of communications,
proper measures to provide
Information on packet shaping
to subscribers etc.
Easing traffic congestion by taking
advantage of Ｐ２Ｐ
technology
certain level of criteria on packet shaping
to be developed
Field trials on traffic dispersion
using Ｐ２Ｐ technology
Development of “Guideline for packet
shaping”
32
Equal access to networks
Development of NGNs
Progress of Market Integration
Necessity of preventing abuse of market dominance
（ensuring horizontal and vertical fair competition
Establishment of interconnection
rules on NGNs
developed by NTT East and West
Issues to be considered include:
✔scope of facilities required to be opened
✔calculation method of access charges
✔terms for interconnection by competitive
carriers
✔other issues including measures to
ensure openness for video delivery
platform, smooth coalition between fixed
networks and mobile networks
Consideration of interconnection
rules on NGN
Review of dominant regulation
in correspondence to market
integration
Issues to be considered include:
✔ Review of threshold definition on market
dominance
✔ Prevention on abuse of market
dominance among plural markets
(Collective dominance, leverage
of market dominance with other
closely related markets)
✔ Establishment of mechanism to prohibit
market dominance jointly abused by
dominant carriers and related entities
✔ Utilization of competition review system
Consideration of reform of dominant
regulations
33
Change of Market Structure and Network Neutrality
Physical network
layer
Collaborative business
models
Communication service
layer
Business model
developed by one single
player
Vertical
integration
Platform layer
a variety of
content and applications
Ubiquitous networks
Horizontal
integration
Users including Ｍ２Ｍ
A variety of intelligence aroud networks
Content and application
layer
Layers --- Comparison among Different Models
Layered Competition Model
NGN（ITU-T Recommendation）
Content & Application Layer
Network Neutrality
Edge users
Application Functions
（Content Delivery, etc.）
Platform Layer
Platform Service Function
（Session control, authentication,
security, charging system, etc. ）
Communication Service
Layer
Core Networks
Physical Network Layer
Networks
Telecom Carriers
（including ISPs）
Access Networks
Terminals （PCs including OS）
Edge users
34
Differences between the Internet and NGNs
35
■Internet
a) No scheme to ensure overall QoS on end-end basis.
b) Each NW is interconnected on a multilayer basis and the Internet itself is an open and autonomous network.
c) Best effort model to find out best solution through collaboration among anonymous players.
Interconnection with IP
B
C
X
A
D
■Next Generation Networks（ＮＧＮs）
a) IP-based networks are to be restructured from legacy PSTN networks.
b) Networks are controlled by carriers to ensure QoS and security though the functions of SDP (Service Delivery
Platform).
video
Network
Restructuring
Message
Video telephony
IP based
networks
PSTNs
５
Freedom to Choose Networks
Next Generation Network
Application Servers
Application
function
Video
phone
36
Internet
collaboration
Content ･･･････
delivery
Interconnection
among ISPs
B
Tier 1
C
Platform/Service
function
Session
Control
Authentication
Security
Network
function
（transmission)
Core node
Core
Networks
Edge node
Access
Networks
Optical
access
Charging
collaboration
D
X
Wireless
LAN
PCs
collaboration
Other
accesses
cell
phones
QoS may differ
according to
network
A
Security and authentication
system may depend on
applications used in terminals
telephones
ubiquitous network
TVs
E
Networked home
appliances
Interconnection Rules on Next Generation Networks
37
Application Servers
Application
function
Video
phone
Session
Control
Platform/Service
function
Issues to be considered
Access
Networks
xDSL
Authentication
Charging
Security
Core node
Core
Networks
Network
function
（transmission)
Content ･･･････
delivery
Edge node
Optical
access
Wireless
LAN
Other
accesses
Fixed/Mobile phones, networked home appliances , PCs.
■Scope of facilities required to be opened
✔In addition to NNI and SNI, additional measures should be taken to ensure openness between different layers,
taking care of requests by competitive carriers as well as NTT East and West.
✔Necessary to let unbundling rules flexible, reflecting characteristics of IP based networks.
■Calculation methodology for access charges
✔Methodology to set access charges reflecting characteristics of IP based networks
(appropriate profit level should be achieved for NTT East and West).
✔Developing charge settlement system between NGN and ISPs
■Setting appropriate terms required for interconnection (equivalency between NTT East & West and competitive carriers)
■Other issues including measures to ensure openness for video delivery platform,
smooth coalition between fixed networks and mobile networks
Interconnection rules for NGN developed by NTT East/West are currently under discussion at Telecommunications Council.
(The report is expected to be finalized by the end of March 2008.)
Study Group on Internet Policy
Study Group
on Network Neutrality
New Competition
Promotion Program 2010
Study Group on
Internet Policy
（Nov 2006～September 2007）
（revised in October 2007）
（February ～December 2008）
New Competition Promotion Program 2010
（Revised on 23 October 2007）
➢ Development of Environments Intended to Ensure Network Neutrality
In the transition to IP-based networks, a study shall be undertaken concerning the framework for network neutrality, such as fair usage
of networks (neutrality of the communications layer to the other layers) and fairness in cost sharing for the networks (neutrality of the
cost sharing model for increasing network capacity).
For this reason, MIC shall, based on the "Study Group on Network Neutrality" report (released in September 2007), continue to
consider the following regarding several issues over network neutrality.
(b) Consideration of How Network Neutrality and Competition Models should Be
While network structures and market environments are changing drastically in front of us, MIC shall establish a new venue
for consideration in FY2007 to extract and summarize a wide range of medium-term policy issues related to how network
neutrality and the competition model should be, such as the appearance of business models with earnings models that differ from
the existing ones, effects on the competition environment from increasing borderlessness driven by the Internet and the nature of the
internet governance related to it, how market environments should be developed as IPv4 is transitioning to IPv6, and the direction of
business expansion in local regions by entities such as ISPs and CATV operators, and draw a definite conclusion, with 2008 as the
approximate due date.
38
Issues to be Considered at Study Group on Internet Policy
SG on Network Neutrality
（Phase １）
Equitable
cost allocation
of networks
SG on Internet Policy
（Phase ２）
Ｐ２Ｐ network experiment
（～FY08）
Follow-up
（further study）
Other possible solutions
for network congestion
Review on impact on market
structure
In the transition to IPv6
Network neutrality
Interconnection rules for NGN
developed by NTT regional
companies
Promotion of diversity
of access networks
Internet governance issues
Enhancement of ＣＡＴＶ
（to be concluded by the end of March 2008）
Development of models
for sharing responsibility
Review of dominant regulations
(to be concluded by the end of 2008)
Other relevant matters
Review of legal framework
In correspondence to
Emerging new business models
Consideration
on new business models
New competition rules
in response to borderless internet
SG on Platform Functions
Development of overall internet strategy
Development of guideline
for packet shaping
（Spring 2008）
Development for smooth
content delivery systems
Business environment for ISPs
Equal access
to networks
39
Outline of Designated Telecommunications Facilities
Applied as one
Service
regulations
Restrictions
Applied as necessary in case of exceeding
25% of the above weight returns
Tariff and price (cap) regulation
■Restriction of information usage only for
specified business
■Equal treatment of other companies
■Equal treatment of manufacturers, etc.
■Firewall with specified carriers
Authorization of interconnection tariffs
Interconnection
rules
40
■Restriction of information usage only for
specified business
■ Equal treatment of other companies
■ Equal treatment of manufacturers, etc.
Notification of interconnection tariffs
Rules for interconnection tariffs (e.g. LRIC)
Development of interconnection accounts
Telecommunications facilities (fixed)
designated as essential facilities
Facilities without any essentiality although the number of
providers is limited due to availability of frequency
Facilities
Access lines and related telecommunications
facilities
Criteria
Telecommunications facilities serving
a relatively larger proportion of subscribers
Access lines with more than 50% share
(designaｔed on a prefectural basis)
NTT East and West
Type I designated facilities (fixed)
Base station lines and related mobile
telecommunications facilities
Access lines with more than 25% of share
(designated on a business area basis)
NTT DoCoMo etc.
Type II designated facilities（mobile)
41
Basic Directions for Reviewing Dominant Regulations
Service
regulations
＋
Share of
access
lines
bottleneck
Identify the market having
possibility to abuse market
dominance* (vertically and
Essential
facility
horizontally)
Interconnection related
regulations to open
up bottleneck facilities
Conduct restrictions
Market dominance
Identify submarkets (converged
markets) * (Focus to be shed mainly on
the horizontal equivalent competition)
Other market
dominance
Caused by Market share
*
oligopolistic + α
market
environment
Identify the market having
possibility to abuse market
control power* (vertically and
horizontally)
Add these concepts
○ Leverage of market dominance on relevant markets
○ Possibilities of collective dominance in collaboration
with allied companies
*mark indicates the possibility to take advantage of competition review mechanism.
Notification of
tariff
for interconnection
Conduct restrictions
42
Broadband Competition Policy in Japan
■Current Status of Broadband Market in Japan
■Outline of “New Competition Policy Program 2010”
■Specific Issues
□Network Neutrality Issues
✔
□Focus on Openness for Platform Functions
□Revitalization of Mobile Business
□Review of Universal Service System
□Terminal Equipment Policy in the IP era
Study Group on Platform Functions (Feb～Nov 2008)
Content/Applications
layer
Platform
layer
Participation of
new entrants
(new business
model)
Strengthening cooperation of
platform functions
NGN
Telecom services
layer
Content providers, etc.
Mobile telecom
carriers
Fixed telecom
carriers
Market Integration
Terminal
layer
Vendors, etc.
Creation of various business models
Sound growth of ICT market
created by open platform
policies
43
Compatibility of Platform Functions and Diversification of Business Models
✔Compatible platform functions in mobile
service and fixed service create ubiquitous
network environment.
Content /Application
Layer
Content &
Applications
Linkage of authentication
and billing functions, etc.
Mobile
Services
ＦＭＣ
Fixed
Services
Telecom
services layer
Terminal
Layer
Variety of Ubiquitous Terminals
(including networked home appliances)
Ubiquitous Network
Platform
Layer
✔Platform functions roughly include
various functions of changing data
(changing format, adding value, etc.).
✔ For securing network neutrality,
compatibility of platform functions is
necessary.
CASE 1
CASE 2
Cooperatio
n between
Terminals
and NWs
Equipped
In NWs
Cooperatio
n between
Terminals
and NWs
CASE 3
Equipped
in Terminals
Various of platform players are expected
to deliver the diversified business model.
44
45
Benefits of Compatible Platform Functions
■ Benefits of compatible platform functions include;
1 Economic efficiency: Economy-of-scale and economy-of-scope
2 Innovation: Creation of new business and new services
3 Fair competition: Reduction of consumer’s cost, improvement of competition environment
4 Consumer benefit: Network effects, etc.
[1 Economic efficiency]
[3 Fair competition]
・ Cost will drop by gaining a large number of the users who
connect to the network (economy of scale).
・ Business will diversify by gaining different business fields
(economy of scope) .
・ Consumers’ switching cost will decline, which would
contribute to the fair competition between operators.
・ The fair competitive environment in the content and
application field will be realized.
User expansion by
platform
communalization.
[2 Innovation]
・ Open platform functions enable SMEs to
concentrate on their related fields, which promotes
innovation.
By using a platform,
small-scale operators
are able to provide
original and creative
services.
Contents
services
Contents
services
The costs spent
as the burden of
changing
operators fall.
[4 Consumer benefits]
・ The number of the consumers using the same services will increase.
・ The benefit for consumers will improve through the expansion of the
diversity of contents/applications, supporting services, etc. (network effects).
...
The diversity of
services will
expand.
Basic Concept of ID Portability (Tentative Plan)
content
content
content
content
content
Affinity with MVNE business
Utilization of authentication and billing
functions of other business fields
46
content
content
Possibility of creating new profit
model of content delivery business
Possibility of constructing new value chain
in cooperation with tagged information
(new business creation)
User ID Portability
Is it possible to ensure consumer’s control of User ID?
(Consumer's Centric ID Portability)
content
Possibility of new business, such as
advertising on the Internet,
which utilizes attribution information
47
Schedule for platform promoting policies
O Based on NOI, the interim report on the analysis of the influence of platform functions on market competition will be
released as a part of the annual competition review in December 2007.
O A new SG was established in February and will complete a final report in November 2008.
Nov
Dec
Jan 08
NOI
Feb
Mar
Apr
May
Jun
Jul
.......
Nov
“Study group on Platform Functions”
(October 26 to November 22)
➢The purpose of the SG is to promote the cooperation of platform functions,
such as authentication (user ID), QoS management and DRM, and the
creation of new business.
➢The SG will be established by the end of FY2007 and will complete a final
report in 2008.
➢The openness of APIs of mobile terminals will also be discussed in the SG.
Competition Review “Analysis of the influence of
platform functions on market competition" (Interim
Report)
➢In order to grasp the actual condition of platform-relevant markets,
a strategic review entitled, “Analysis of the influence of platform
functions on market competition” has been started as a part of the
“Competition Review of the Telecommunications Business Field
2007“.
➢An interim report will be released in 2007 and a final report will be
concluded in June 2008.
Feedback
48
Broadband Competition Policy in Japan
■Current Status of Broadband Market in Japan
■Outline of “New Competition Policy Program 2010”
■Specific Issues
□Network Neutrality Issues
□Focus on Openness for Platform Functions
✔
□Revitalization of Mobile Business
□Review of Universal Service System
□Terminal Equipment Policy in the IP era
49
Number of Mobile Service Subscribers
（ 1 0 ,0 0 0subscribers)
pe o ple su bsc r ibe d）
(Unit : 10 thousand
（ r at e o f in c r e ase （ ％） ）
12,000
180
number of subscribers
rate of increase from previous year
10,170 160
10,000
9,648
9,147
140
8,665
8,112
8,000
120
7,482
6,678
100
5,685
6,000
80
4,731
3,825
4,000
60
2,691
40
2,000
1,171
0
End of the year
Number of
subscribers
Rate of increase
from previous
year
49
87
138
171
213
1989
1990
1991
1992
1993
20
433
0
1989
1990
1991
1992
1994
1993
1995
1994
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
49
87
138
171
213
433
1,171
2,691
3,825
4,731
5,685
6,678
7,482
8,112
8,665
9,147
9,648
10,170
101.6
77.3
58.8
24.3
24.5
103.2
170.4
129.7
42.2
23.7
20.2
17.5
12.0
8.4
6.8
5.6
5.5
5.4
50
Change of APRU for Mobile Business
Change of the ratio by service in the whole APRU
（Yen/person）
15,000
12,000
9,000
8,235
7,853
1,346
7,004
6,769
6,662
1,607
1,805
1,740
1,867
1,992
6,889
6,245
5,766
5,263
4,902
4,670
2001
2002
2003
2004
2005
2006
6,000
3,000
7,570
data ARPU
voice ARPU
0
（US$ per year)
ＡＲＰＵ（２００３）
Year
A Rratio
PU に占めるデータ
A RinPU
の比率
The
of the data APRU
the
whole APRU
(%)
30
1,000
25
24
800
20
20
18
600
17
14
15
13
13
400
10
6
200
5
米国
フランス
イタリア
韓国
ドイツ
英国
オーストラリア
（*）ＡＲＰＵ（Average Rate Per User）
0
日本
U.
K.
Ita
ly
an
y
Ge
rm
Fr
an
ce
re
a
Ko
Au
st
ra
lia
U.
S.
Ja
pa
n
0
（MIC）
Market share by main mobile phone operators
51
ＨＨＩ（*）
share
100%
5.6% 5.3%
5.2% 5.0%
5.0% 4.9%
4.8% 4.6%
4.5% 4.3%
4.2% 4.1% 4.0%
3.8%
3.7% 3.5%
3.6%
3.7%
3.9% 4.1%
4.2%
4.3% 4.4%
4.5%
6000
90%
15.2% 15.6% 15.9% 16.3% 16.5% 16.7% 16.8% 17.2% 17.4% 17.3% 17.3% 17.2% 17.1% 17.0% 16.9% 16.4% 16.2% 16.0% 16.0% 15.8% 15.6% 15.5% 15.5% 15.6%
80%
5000
70%
22.4% 22.2% 21.7% 21.5% 21.6% 21.7% 21.8% 21.9% 22.2% 22.5% 23.0% 23.7% 24.0% 24.4% 24.8% 25.3% 25.6% 25.9% 26.1% 26.4% 26.6% 26.8%
27.3% 27.7%
60%
3989 4000 4023
50%
4024 4001 3993 3983 3966
3941 3943
3924 3903 3897 3902 3901 3926 3915 3896 3875
3855 3843
3827 3796
3756
4000
40%
30%
56.8% 56.9% 57.2% 57.2% 56.9% 56.7% 56.6% 56.3% 55.9% 55.8% 55.5% 55.0% 54.9% 54.8% 54.7% 54.8% 54.6% 54.4%
54.1% 53.8% 53.6% 53.4% 52.8% 52.2%
3000
20%
10%
0%
2000
01.6
01.9 01.12 02.3
02.6 02.9 02.12 03.3
Docomo group
ドコモグループ
03.6 03.9 03.12 04.3 04.6
au group (including Tu-ka)
auグループ(ツーカーを含む）
04.9 04.12 05.3
Softbank mobile
ｿﾌﾄﾊﾞﾝｸﾓﾊﾞｲﾙ（旧ＶＦ）
(previous Vodafone)
05.6
05.9 05.12 06.3
06.6
Others
その他（ＰＨＳ／ﾄﾞｺﾓを除く）
(exclude PHS/Docomo)
（*）ＨＨＩ（Herfindahl-Hirschman Index）
one of the indicator to measure the degree of monopolizing market. Squares the number of each operator’s market share and adds up.
its range is from 0 to 10,000, and means higher degree of monopoly when it close to 10,000.
06.9 06.12 07.3
(right)
ＨＨＩ(右軸）
（from MIC)
52
Changes required in Mobile Business
Business Model 1.0
Content application layer
Business Model 2.0
Content &
Applications
Content & Application
Platform layer
Mobile
Service
Vertically integrated
Business models
Progress
broadband
development
and IP transition
ＦＭＣ
Fixed
Service
Open
Mobile
Business
Environment
Network layer
Terminal layer
Mobile terminal
Users
variety of ubiquities terminals
（including home appliances）
A various ways to utilize telecommunications
services including M2M (machine to machine)
Ubiquities Network
Telecommunications
service layer
Mobile
Service
Review of Sales Model for Mobile Business (1)
Role of sales incentives
Matters to be considered
✔Activating the potential demand for high
end terminals by providing users with “low
price.”
✔Facilitating diversification of services
through bundling terminals and services.
1. Lack of users’ recognition that cost for terminals is implicitly financed by service price.
2. Rational and equal cost bearing has not been ensured among users.
3. increase of cost owed by carriers due to increasing sales incentives consisting of one forth of
APRU
4. Lack of diversity resulted by unifies sales method
5. Concerns for fair competition caused by that access charge or wholesale price is calculated based
on rate base where sales incentives are included.
6. Limitation for diversity of terminal development with only carriers can decide details of
terminals.
7. Concerns for letting the terminal market shrink
Necessity for revising the current sales model
（discuss policy to clearly show users the terminal cost and the connection cost）
Current
sales model
terminal price
Lack of transparency caused
by bundling terminal price
and service price
Existence of
unfairness among
users
sales Incentive
users
cover
service fee
Cost equivalent to sales
incentives can be recovered from
service revenues within a certain
period of time.
（rational） service fee
53
Review of Sales Model for Mobile Business (2)
Current Model
New Model
Terminal price
Terminal price
(initial cost)
Sales Incentives
User
Excluded from
rate base for access charge
and/or wholesale price in the
telecom business accounting
rule
User
Terminal Fee
[Monthly]
(equivalent to the
sales incentives for
terminals)
54
■
Promotion of MVNO entry
through reductions in access
charge and wholesale price
■
Clarification of earnings and
expenses related to terminal
sales (implicit pressure to
decrease sales incentives)
Compensated
for sales
incentives
Service fee
[Monthly]
Partial introduction in 2008
Consideration of full-scale
introduction by 2010, at the latest
Service fee
[Monthly]
Separation Plan
(separation of terminal fees from
service fees)
Period Contract
Status of SIM unlock
■The real significance of SIM locks will disappear through the introduction of service period contracts.
■However, differences in 3G systems do exist (W-CDMA [Docomo / Softbank] and cmda2000 [au]); thus, SIM unlocks at this time could distort
competition.
■In principle, SIM unlock is desirable. Looking at the direction of future development for BWA and the terminal market, by 2010, this issue of
SIM unlock will be concluded at the timing of 2010.
■ Correction of
inequality on burden of
terminal costs
■ Promotion of terminal
diversification through
SIM unlock
Promotion of New Entries of MVNOs
■ MVNOs (Mobile Virtual Network Operators) provide telecommunications service without setting up their own wireless facilities.
■ MNO goes beyond simple telecommunications service provision to implement vertically integrated business including content/application
layer, represented by music and game distribution, and alliance with financial services.
■ It is expected players in other areas come as MVNOs into the mobile communications market and build up new business models.
■ A “win-win” relationship can be built between MNO and MVNO.
Service Diversification
Service provision
Users
(Enjoy a diversity of services)
New Market Creation
MVNO
(Entry from a variety of business categories)
Added Value
(Services and terminals)
MVNO
Wholesale service and/or
interconnections
MNO
(incumbent mobile telecom carriers)
Linkage of existing services with mobile services
Creation of New Markets
Economic Revitalization
games, e-money and more
MNO
(incumbent mobile telecom carriers)
Revitalization of the mobile business and achieving service diversification
through promotion of new entries as MVNO into the mobile market
55
Implementation of Comprehensive Measures aimed at achieving an Open-style Mobile Business Environment
Content Application
Layer
Platform
Layer
Mobile Business Vitalization Plan (draft)
■Study on business interoperability at platform layer (ID portability etc.) (Study to be launched by the
end of FY 2007)
Communication Service
Layer
Physical Network
Layer
■Provision of information on applicability of related legal frameworks for MNOs and MVNOs (starting
within FY2007)
■Considerations for MVNO acceptance when allocating frequencies for new systems
■Clarification of accounting related to sales incentives (revision of ordinances on Telecommunications
Business Accounting by the end of FY2007)
■Partial introduction of new fee plan (separation plan for service fees and terminal price) in 2008 (final
conclusion to be considered by 2010 at the latest)
■Reexamination of important explanatory items for consumers relating to terminal price and service fees (reexamination
“Consumer Protection Guidelines” by the end of FY2007)
Terminal
Layer
■Consideration of SIM unlocking (final decision to require for SIM unlock to be made by 2010)
Discussion of comprehensive legal system for communications and
broadcasting (ongoing discussion)
■Consideration of standard tariff for wholesale service provided by MNOs to MVNOs
Creation of special ubiquitous zones (discussion aimed at
implementation)
■Revision of MVNO Business guidelines* (implemented by the end of 2007)
Diversification of
mobile access
network (ongoing
discussion)
■Promotion of terminal platform standardization (creation of terminal testbed, etc.)
Consumer
Interface
■Discussion of measures for strengthening consumer protections
Maximize benefit for Japanese users and help give Japan’s ICT industry a comparative
advantage
56
Road map for the Mobile Business Vitalization
57
Realization of cutting edge mobile business environment
1st phase
2nd phase
（by 2011）
7 facts in the
mobile market
➢market maturity
➢fixed market share
➢complicated tariff
plan
➢business strategy
Combining terminal
Equipment and service
➢development of terminal
Equipment market
Focusing on high speck
terminals
➢potentiality of mobile
Content market
➢potentiality of
Solution business (SIers)
In the business market
Review of sales market
of mobile business
Measures
to promote
Further
competition
Action
（Sales Incentive、ＳＩＭ lock etc）
Promotion for MVNO
Development of
Mobile business
vitalization plan
Promotion of developing
Healthy market
environment
Measures to
Develop healthy
market
environment
➢promotion for improving variation
and speed
➢strength of cooperation of
platform functions
➢promotion for mutual
terminal platform
➢challenge for making new
business in mobile business
➢Strength of consumer protection
Annual review by
Review Conference
➢release of progress report
58
Broadband Competition Policy in Japan
■Current Status of Broadband Market in Japan
■Outline of “New Competition Policy Program 2010”
■Specific Issues
□Network Neutrality Issues
□Focus on Openness for Platform Functions
□Revitalization of Mobile Business
✔
□Review of Universal Service System
□Terminal Equipment Policy in the IP era
Universal Service in the Transition to IP Networks
Present
59
early 2010s
2010
Ensuring all regions can have broadband access
(National Broadband Strategy 2010)
・Approximately 30 million FTTH subscribers (NTT mid-range corporate strategy)
ＰＳＴＮ
・Market integration through the spread of broadband and IP (phased disappearance of
service demarcation)
(PSTN is mainstream)
・Subscriber line access
Service
・Public telephones
・Emergency calls
Full IP networks
(Phase 2)
Transition Period
(Phase 1)
Universal System for
telephony
IP Network
(Coexistence of PSTN and IP network)
(Completion of shift to IP network)
・How public telephones and
emergency notification will be
Inclusion and/or exclusion of mobile service, broadband service, IP phone
service
handled
with regard to the spread of
IP
rational of the change of the concept from “universal service” to “universal
access”
Scope to be included as universal provision
・
・
☞Voice service becomes just one component of broadband services.
Eligible Telecommunications Carriers (ETCs)
Supply
System
Provision by NTT East /
West
・ The way to ensure “last resort” of universal service provision
・ Requirements for ETCs, taking into consideration factors such as the diversity of primary entities
providing broadband infrastructure (ex: local governments), etc.
・ Relationship between network maintenance costs and service maintenance costs
・ Service area requirements ETCs are expected to meet
・ Rational for fee regulations (price-cap system), etc.
Cost Calculation Method
Mechanisms for
Preservation
Other
Cost calculation which
assumes PSTN (system
where costs are borne in
relation to the number of
numbers owned)
・ Cost calculation method for multiple transmission configurations (fixed, wireless, etc.)
・ Measures for avoiding increased cost burdens upon users
Cost Allocation Method
・ Rational for specifying beneficiaries and for cost allocation method in case the range of universal
service is enhanced
Issues to be considered for the transition period
Other
・ Measures to replace number priority DB existing in the each local central office
・ The way to finance the cost for removing legacy networks.
・ How long will PSTN be preserved?
・ The way to preserve universality with regard to factors other
than geographic disparity
60
Broadband Competition Policy in Japan
■Current Status of Broadband Market in Japan
■Outline of “New Competition Policy Program 2010”
■Specific Issues
□Network Neutrality Issues
□Focus on Openness for Platform Functions
□Revitalization of Mobile Business
□Review of Universal Service System
✔
□Terminal Equipment Policy in the IP era
Study on Communications Terminals in the IP Era
Background
New Competition Promotion Program 2010 (Sep. 26, 2006)
(b) Review of terminal authentication systems, etc.
Aiming to develop open ubiquitous networks early on and improve the international competitiveness of the entire IT industry in Japan by leading the
world in product development and standardization, a study group to discuss basic functions and authentication systems for IP-based terminals
should be established in 2006 to reach conclusions by the end of 2007.
Started the study on communications terminals in the IP era in Dec. 2006
Functions required for communications terminals in the IP era
IP-based network
Existing analog telephone network
IP-based
network
Switching
system
IP-based
network
Optical access, etc.
Analog
telephones
IP-based
network
…
Ubiquitous devices
Broadband
IP terminal
IP terminal
Any terminal is just connected
to one end of the network
Improved connectivity
IP-based
network
Quality of communications can be freely
changed as terminals and networks are
linked; Diverse terminals can be connected
to each other
IP-based networks
Various functions/services become possible
as terminals and networks are linked
Improved convenience
Ensured safety/security
IP-based
network
IP-based
network
IP-based
network
IP-based network
Firewall
Malformed
packet
Terminals linked to networks detect and
eliminate viruses and malformed packets
My terminal
Get connected anywhere!
A user can use various terminals with his user
ID, and change services and functions freely by
downloading software
Need to develop a terminal authentication system for new functions by 2010
61
Initiatives to Develop Communications Terminals in the IP Era
Studying authentication systems for the IP era
Studying authentication systems by considering new terminal functions, with an aim to
realize open connectivity for diverse terminals
Telecommunications Council will start studying the technical requirements in Sep.
2007 and institutionalize them in 2008
Promoting R&D and standardization
Developing testbeds for verifying connection between different devices
To be reflected in FY 2008 budget
Promoting standardization for the provision of new services as well as global launch
Developing the environment in which users can use terminals safely
Established a study forum in Sep. 2007
Developing a shared responsibility model that identifies responsible players (e.g., provider,
vendor, user) to respond to terminal failures
Establishing a forum where providers, lawyers and consumers can discuss issues for
consumer protection in relation to terminal use
Developing certification systems for the IP era, which includes the use of installation
technicians for diverse terminal installations and troubleshooting
62
63
Any Question?