Next Generation Network Development in Japan
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1 2009/TEL39/LSG/RR/007 Agenda Item: 2 Next Generation Network Development in Japan Submitted by: Japan Regulatory Round Table - Facilitating Next Generation Network Development: Policy and Regulatory Priorities for a Vibrant ICT Environment Singapore 15 April 2009
2 APEC TEL39 Regulatory Roundtable Next Generation Network (NGN) development in Japan Apr. 15, 2009 Massa NAKANO Director, Multilateral affairs office, Ministry of Internal affairs and Communications (MIC), JAPAN Overview of the Market in Japan
3 (Unit: Million) Japan s total population: 127 million Japan s total household: 49 million Broadband Deployment Optical Fibers (FTTH) Number of contracts: million Number of carriers: 170 DSL Number of contracts: million Number of carriers: 48 FTTH overtakes DSL (June 08) mil mil 6 4 Cable Internet Number of contracts: 4.08 million Number of carriers: mil 2 0 Wireless (FWA) Number of contracts: 0.01 million Number of carriers: mil Note: Reported numbers compiled by MIC in accordance with the provisions of the Rules for Reporting on Telecommunications Business. (Numbers compiled before the end of March 2004 were reported voluntarily by carriers) Sharp Increase in Traffic (Broadband) (Gbps) Download of 988 Gbits (123 Gbytes) per second The volume is the scale that broadband users on the whole download approx. equivalent to 2.3 million pieces of writable DVDs (4.7Gbytes) in one day ( ) (2006.5) ( ) (2007.5) ( ) (Note) 6 ISPs and 7 networks: Internet Initiative Japan (IIJ), NTT Communications, K-OPTI.COM, KDDI (including former POWEREDCOM), SoftBank BB, SoftBank Telecom Summarization and test calculation of the figures were performed with the cooperation of Professor Hiroshi Esaki (University of Tokyo), Associate Professor Akira Kato (University of Tokyo), Researcher Kenjiro Cho (IIJ), and Associate Professor Kensuke Fukuda (National Institute of Informatics). (2008.5) ( ) more than double increase in the three years Download traffic of broadband subscribers of 6 cooperative ISPs [A] Average volume of traffic exchanged at major domestic IXs [C] Traffic from 6 cooperative ISPs exchanged at major domestic IXs [B]
4 Next Generation Network (NGN) All packet type networks for next generation, enable wide-ranging distribution of multifunctional services based on IP (Internet Protocol). The NGN is designed to have both high reliability of PSTN, and flexibility of the Internet. Sustained Economic Growth Increased User-Friendliness Application / Contents Solutions to Social Problems Next Generation IP based Network Fixed Telephone Access Platform Internet/ISP Service Stratum Transport Stratum Wireless Access Next Generation IP based Network Cellular Phone Access Broadband Access CATV Access Broadcast Network Home Electric Appliances Fixed Telephone PC Information Videophone Terminal / PDA Cellular Phone PC TV, Radio NGN in the Japan market
5 NGN by NTT in Japan NGN (1) IP-based network deployed by existing telecom operators (NTT in Japan) (2) Managed network with a framework that provides QoS and security (safety and security). (3) Multi-functional services as well as telephone service. NTT launched commercial NGN services in April Migration Smooth migration from existing network to NGN prospective service Scalability More new services, such as, Fixed and Mobile Convergence service Fixed One Telephone Number Mobile Service list of NTT s NGN Monthly fee for NGN (Home type) - Internet access (100 Mbit/s) 5,200 Yen (about $52) Additional cost (ISP fee, it depends on a provider) - OCN 1,260 Yen (about $ 13) 1,260 Yen (about $ 13) - Plala 1,050 Yen (about $ 11) Monthly fee for Optional NGN service - IP-phone service 1,500 Yen (about $15) and call charge Merit - TV broadcasting (retransmission) Yen (about $7) - On-demand TV service 2,625 Yen (about $26) - Internet security service (virus check etc.) 420 Yen (about $4)
6 07 NGN in the Market (geographical coverage) In March 2008, launched commercial services in Tokyo, Osaka and some other areas. During FY2008 (By March 2009), rollout services in each prefecture (47 prefectures in Japan) By the end of FY 2010 (March 2011), covers the existing FTTx area. FY2008 FY2009 FY2010 Launch in certain areas of Tokyo, Osaka, etc. Internet Access & IP-Phone services Ethernet Service Launch of Commercial Services Rollout in Tokyo metropolitan district Expansion in Osaka and major cities Launch in certain areas of Tokyo and Osaka Expansion in major cities nationwide Expansion in current fiber access area by the end of FY 2010 Service rollout according to user needs Video Distribution Retransmission of digital terrestrial broadcasting over IP *1 VOD/Multichannel broadcasting Service deployment in conjunction Tokyo and Osaka with NGN deployment & user needs Service offering *2 in balance with NGN deployment *1 With broadcasters consent for retransmission *2 Provided on the existing IP networks as well (Source) NTT Future NGN Service Line-up Various services utilizing the characteristics of the NGNs are planned to be provided successively. FY2007 Existing IP networks FY2008 NGN (in the market) FY2009 and after For Home For Business On-site support FLET S Home Security Remote support Wii with optical broadband The Internet access service IP-Phone with NGN IP-Phone devices usable in blackouts collaboration For corporate customers FMC Solutions High audio quality phones Multifunction Home Gateway Video on demand, other TV related service Safety/security SaaS collaboration (Earthquake early warning, etc.) Health promotion Medical systems (Physical data such as body weight, etc.) Music broadcast collaboration QOS ensured Casting service Optical broadband service (Business Type) High-definition quality videophone Legend : Already provided : To be provided Multifunction STB NGN-compatible IP-Phone (for large offices) High-security VPN QoS ensured VPN QOS ensured Business Ether-wide Terminal monitoring (LAN/WAN monitoring) 10 (Note): When service provision start timing differs between NTT East and NTT West, the services provided by NTT East are entered. (Source) NTT material
7 Japan s NGN service subscribers The first year results Actual number of subscribers Target subscribers April 2008 March 31, 2009 (start of FY2008) (End of FY2008) Policy Approach to NGN
8 1985 NTT was privatized, and the market was liberalized Docomo was established, and mobile division of NTT was transferred to Docomo 1999 NTT was split into 4 legal entities, separating local service operators from long-distance one. Structure of NTT Group Mobile Phone Career Long-Distance Career Telecommunications Career for Local service Competition in the Telecommunications Market Share of Subscribers, etc. by Service (End of September 2008) [Fixed line telephone] [IP Telephone] [Cellular phone, PHS] NTT East and NTT West 86% SoftBank BB KDDI etc. NTT East, NTT West and NTT COM 52% au SoftBank PHS etc. NTT DoCoMo 49% [DSL] [Optical Fiber] SoftBank BB eaccess etc. NTT East and NTT West 36% Enterprises related to power companies KDDI USEN etc. NTT East and NTT West 73% * Share by major telecommunications carriers
9 Facilities Type I designated facilities (fixed) Telecommunications facilities (fixed) designated as essential facilities Type II designated facilities mobile) Criteria 50% of share (fixed subscribers access line) 25% of market share (terminal facilities) Restrictions Regulation on Dominant operators in Japan Access lines and related telecommunications facilities Restriction on customers information Equal treatment of other companies Equal treatment of manufacturers, etc. Firewall with specified carriers Facilities without any essentiality although the operators are limited due to availability of frequency Base station lines and related mobile telecommunications facilities Restriction on customers information Equal treatment of other companies Equal treatment of manufacturers, etc. Service tariff regulations Interconnection rules Tariff and price (cap) regulation Authorization of interconnection tariffs Rules for interconnection tariffs (e.g. LRIC) Separate account for interconnection Notification of interconnection tariffs Operators with designated facilities NTT East and West NTT DoCoMo etc. Designated facilities based on Telecom Biz. Law NTT East and West provide open access to competitive operators. (Telephone network) (Leased line) - Local switch connection - Toll switch connection (DSL) - Transmission line (dry copper, line sharing, etc.) - Router for DSL - Network termination equipment - Transmission line for leased line - Node switch for leased line (Optical fiber) - Transmission line (dark fiber) - Router for Optical fiber - Network termination equipment (NGN) Decided in 2008 (1) Local switch connection (2) IGS (Interconnection Gateway Switch) connection (3) Toll switch connection (4) Ethernet connection. NTT East and West shall establish interconnection tariff, and obtain Ministry s approval.
10 Calculation of the Interconnection Charges for NGN Interconnection Charge for NGN at FY2009 Points for NGN cost drivers Relay router and transmission line are shared all services and functions. So the costs are allocated with following considerations; - Port capacity ratio Provisionally, Port capacity ratio used by each service allocated to each functional cost - Relationship between capacity and price of device Price of the device is not 100 times if capacity of the device is 100 times. (Actually, Price of the device is only 7.4 times if capacity of the device is 100 times) - With or Without QoS If the service is ensured QoS, added-band-width to QoS is considered Toward Fixed Mobile Convergence service There is a possibility that the dominant mobile operator collaborate with the dominant fixed operators. The Ministry s Note as of July 2007 The Guideline of Fair competition relating to NTT East/West prospective service Fixed One Telephone Number Mobile -NTT East/West shall obtain Ministry s approval to launch a new service -Concerning a possible partnership with NTT DoCoMo, the basic stance is described in the Note
11 THANK YOU! Massa NAKANO
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