The ever-increasing global population and its centralization in larger cities are among some factors creating a serious issue of traffic congestions in growing cities.Traffic congestions not only lead to economic and time losses, but contribute to air pollution and global climate change. It is without question, one of the core issues in traffic infrastructure design in urban areas.Amid this trend, the development and introduction of the next-generation traffic infrastructure that addresses the issue of traffic congestion is ongoing around the world.The next-generation traffic infrastructure will achieve high cost efficiency and lower environmental burden while providing smoother, and safer means of transportation for urban residents.The cornerstone in this mission is the latest ICT.NEC offers ICT-based next-generation traffic infrastructure in collaboration with local firms and other organizations in Japan and other parts of the world, including Asia and Europe.NEC has already delivered systems in Japan and other countries that have not only reduced traffic congestions, but also established safe and secure transportation for users and a framework for early responses in the event of accidents.This report overviews NEC's cutting-edge technologies and efforts in the areas of traffic infrastructure networks and systems, which NEC has developed over the years.

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Safer Cities &Public Services

New approaches essential to relieve traffic congestions in world cities

Lifeline Infrastructure

Social Value Creation Report

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According to 2015 UN statistics, the world population, which was 2.5 billion in 1950, is estimated to grow to 9.1 billion by 2040 and 9.7 billion by 2050. The populations in Japan and developed countries in Europe will remain at an overall stable level or decrease due to low birth rates. At the same time, rapid increases in population are expected in the Middle East and African countries. Furthermore, most of the increased population is predicted to concentrate even more in urban areas. One of the serious social problems that arise from population increase and concentration in urban areas is traffic congestion. The negative impact of traffic jams on the society is enormous, causing economic loss as well as a serious level of air pollution. Today, the growth in road transportation demand and the inefficient utilization of automobiles continue to deteriorate road traffic conditions year by year. The economic loss and increase in logistics cost incurred from the time lost are already seriously affecting the economy on a global scale. One of the specific losses that derive from such traffic congestions is personnel costs. The extensive travel time caused by traffic jams increase labor hours. In addition to aggravating fuel efficiency, congested traffic leads to

increased CO2 and NOx emissions, which are factors of air pollution and global climate change. According to an European location-based service provider, the most traffic-congested city in the world is Mexico City, the capital of Mexico, followed by Bangkok in Thailand, Istanbul in Turkey, Rio de Janeiro in Brazil, Moscow in Russia, and Bucharest in Romania. However, this survey possibly does not include sufficient data from the Asian region; we can readily imagine Jakarta in Indonesia, known for its heavy traffic, ranking high on the list.

Serious impact of traffic congestions on economies globally

Lifeline Infrastructure

Ranking of the most congested cities globally* Figures indicate the overall daily congestion level Source: TomTom Traffic Index 2016 http://www.tomtom.com/trafficindex

No.1 Mexico City 59%

No.2 Bangkok 57%

No.3 Istanbul 50%

No.4 Rio de Janeiro 47%

No.5 Moscow 44%

No.6 Bucharest 43%

No.7 Salvador 43%

No.8 Recife 43%

No.9 Chengdu 41%

No.10 Los Angeles 41%

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In present-day cities of emerging economies, the number of automobiles is increasing at an overwhelming rate, exacerbating the already serious traffic congestion. Under such circumstances, the most pressed for solution to traffic congestions is an effective "transport demand management." There are broadly four approaches to transport demand management. The first approach is "congestion charging", which suppresses traffic demand during congestion; the second is "public transportation shift" where commuters' modal shift from automobiles is encouraged; the third is "telework" for adjusting the cause of travel; and finally the fourth, "personal mobility" for more efficient use of roads. Congestion charges primarily aim to ease congestion level, particularly to reduce traffic density during peak times in urban districts. The benefits include, not to mention smoother traffic, creation of new revenue streams, air pollution and noise control, and promotion of the use of public transportation. Congestion charges are already implemented in London and Stockholm, where several improvements, including reduced traffic, accidents, and exhaust emissions, are observed. For a successful switchover to public transportation, a

convenient public transportation system must be established as an alternative to private cars. Guideway transits, such as subways, are expensive and have a long construction time--therefore, dedicated-lane buses called bus rapid transits (BRT) are mainly used. For example, a pilot program for promoting bus use was operated from 2011 through 2014 by Japan International Cooperation Agency (JICA) in the public transportation improvement project conducted in Hanoi, Vietnam. Telework is intended to reduce travel by permitting workers to commute to an office near home. The pilot program conducted by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) of Japan has reported that almost half of the teleworkers were able to reduce their commuting time. Compact one or two-seater personal mobility vehicles can make more effective use of roads. An example of the use of such vehicles is the adoption of one-seater vehicles by delivery services in Japan. These innovations have immediate effects and are deployable with investment at the city expansion planning stage, which make them suitable for growing cities in dealing with traffic congestion problems.

The "transport demand management" required for relieving traffic congestions

Lifeline Infrastructure

Congestion charging

Telework

Public transportation shift

Personal mobility

Transport Demand Management

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3

2

4

Number plate-based control and car pool lanes are implemented to reduce traffic flow. The charges produce revenue, which is supported by an automatic number plate recognition system that uses detection cameras to identify number plates.

Teleworking consists of the promotion of working at home and other means of adjusting the source of traffic congestions. In emerging economies, however, telecommunications infrastructure must be set up first.

A modal shift from private cars to public transportation is promoted.In particular, buses and BRTs have lower construction costs and shorter construction times compared to other public transportation systems.

In promoting efficient use of roads, including future adoption of autonomous vehicles, compact EVs are running on a trial basis for short-distance travel.

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As mentioned on the previous page, a modal shift to

public transportation as one way of relieving urban

traffic congestions involves entry restriction by law, the

promotion of park & ride, the development of bicycle

and walkway environments, and the promotion of the

use of public transportation systems, including BRTs,

LRTs, and MRTs*.

Among other things, bus transportation is the most

realistic means to alleviate the urban traffic issue due to

the low investment costs and short construction time. In

particular, a mass public transit system called BRT is

attracting attention due to its high cost efficiency and

short construction period.

In a BRT system, bus vehicles run on a dedicated lane

distinguished from other general lanes and stop at

dedicated boarding stations. It is also characterized by its

station platform, which rises above the ground for easier,

smoother boarding and debarkation. In most cases, bi-

articulated high capacity buses are used to enable mass

transit. Passengers are required to pay fares at the

stations before boarding.

Compared to urban transportation by railroad, BRTs can

be deployed with a unit construction cost per distance as

low as one-third to one-fourth of the cost of the former. A

price standard acceptable by local residents is especially

necessary in emerging economies--bus transit services

can offer a means of accessible transportation thanks to

its low investment cost.

As of May 2016, BRTs are established in 203 cities

around the world, running on a total of 363 dedicated bus

lanes extending 5,322 kilometers and used by

approximately 33 million people. As BRTs originated in

Brazil in the 1970's, they are most commonly seen in Latin

America, running in 59 cities in 11 countries over a total

distance of 1,637 kilometers.

In 2004, the first BRT in Asia was established in

Indonesia--the TransJakarta. What started out as a

13-kilometer route now extends over 207 kilometers and

carries 320,000 passengers daily. The introduction of

and planning for a BRT system is also ongoing in China,

Thailand, South Korea, Malaysia, and the Philippines.

BRTs as practical solutions to traffic congestion

Lifeline Infrastructure

TransMilenio in Bogota, ColumbiaStarted operation in 2000, modeling the first BRT system that originated in Curitiba, Brazil.* LRT: Light Rapid Transit MRT: Mass Rapid Transit. Both are new railroad-based public transportation systems in Singapore, etc.

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Today, NEC supports numerous public transportation

infrastructures all over the world with its ICT.

The exemplary example in the Asian region is the bus

fl eet management system (FMS) in Hong Kong. The

FMS features safe and secure bus operations centering

on log data collection and automated announcements.

Buses have served a key function in the public

transportation network in densely populated Hong

Kong. However, local buses in Hong Kong lacked an

operation management system, with no bus operation

data collected. This made it impossible for bus service

operators to have an accurate understanding of bus

operation information, including whether buses were

operating according to schedule and the drivers' driving

behavior.

In addition, the absence of announcements and

in-vehicle displays informing passengers of coming

stops were making the service unfriendly especially for

tourists.

The FMS uses GPS to obtain bus location information,

which helps collect operation data, such as operational

status, any deviations from schedule, and on which

routes delays tend to occur.

The bus driver can identify the next stop from the

location information during operation and release

automated in-vehicle announcements and stop

displays, which relieves him from making

announcements himself and allows him to concentrate

on driving, contributing to enhanced safety.

From 2014, NEC Asia Pacifi c, an NEC overseas

subsidiary, has implemented a suite of innovative

technologies for SMRT Corporation, a Singapore public

transport service provider, that support bus service

excellence.

The remote monitoring system improved drivers'

driving behaviors and bus operation. In April 2016,

Internet of Things (IoT), video analytics, and Software-

Defi ned Networking (SDN) solutions came together to

provide real-time gathering of intelligent information to

improve commuter experience and bus transportation

services. NEC built a system that announces the

departure times of buses and trains and displays route,

fare, estimated duration, and other passenger-friendly

information. For the security of commuters, video

analytics technology is utilized to analyze changing

behavioral patterns of people and age/gender profi les

of people.

These data can also help in bus schedule planning

and optimization for ensuring safer, more secure bus

operation.

NEC's ICT supports next-generation public transportation infrastructure around the world

Lifeline Infrastructure

NEC's ICT solutions contribute to safer operation, increased revenue, and business streamlining of public transportation systems

Smart Command CentreBig Data Analytics, etc.

Fleet Management System

Automated Fare Collection System / AFC clearing center

Passenger Information System

Depot Management System

E-Money System

Mobile Ticketing System

Electric Vehicle Charger

6

2

Research, study,

overseas business.

Consulting.System

designing / developing.

Project management.

Training.Quality

assurance.Maintenance.

ITS solution

SDN

M2I

Certificating connection

M2M

encrypting

mobility wireless network

IPv6

Wi-Fi

QoS control

5G / LTE

Converting address

Optical fiber

Gateway sensorServer for

image analysis / traffic counting

Road side deviceServer for providing

informationIG control device

Server for toll collection

SDN / OpenFlow

OTN / DWDM

Virtualization / abstraction

Mesh network

QoS control

IP multi-cast

Traffic managementProviding

information Facility control Toll collectionMonitoring

infrastructure

Automatic operation

Backbone

Network

Autonomy ·Decentralization

Edge Computing

BIGDATA

Cloud Computing

Upgrade functions

ICT platform (common function), Communication control / control for devices and users / security certificationApplication layer

Wide area network layer

Edge layer

Short distance network layer

Device layer ETC / toll collectionSensor /

surveillance camera Connected carInformation board /

Smart phoneSensor /

electricity meter

Accelerometer / Optical vibration

camera

Local / Access network

Network

IoT

Device Computing

Application layerApplication layer

Wide area network layerWide area network layer

Edge layerEdge layer

Short distance network layerShort distance network layer

Device layerDevice layer

NEC has long pursued its R&D efforts in character, image,

and voice recognition, which are now coming into fruition

one by one.

Among others, image recognition technologies

continue to evolve at a rapid pace--as an example, a

person can be identifi ed, searched, and have their age

and gender verifi ed by their full-face image using face

recognition technology.

NEC has developed image recognition technologies

that enable automatic counting of people riding an

automobile.

A recognition system using cameras installed on

highways and parking areas can capture the side view of

moving vehicles and count the number of passengers. In

the counting process, the system fi rst recognizes the face of

each passenger from captured images and identifi es each

passenger and their seating position from serial images.

Combined with the use of infrared cameras, individuals

can still be identifi ed during nighttime hours. Detection is

not interfered by UV-blocking glass, smoked glass

windows, or windows covered with commercially available

fi lms, as long as they are not specialized types.

Europe and certain other regions are seeing more of

High Occupancy Toll(HOT) and / or High Occupancy

Vehicle(HOV) lanes, or other lanes exclusively accessible

to vehicles occupied by a certain number of passengers

or more. Precise congestion charging is made possible

by the simultaneous performance of automatic

passenger detection and automatic number plate

recognition.

Such image recognition technology can be applied to

many different applications, including security cameras,

facility entry/exit management, and other non-traffi c

fi elds.

NEC, with extensive achievements in one-stop system

developments from IoT devices to applications, uses its

ICT to realize the new road traffi c infrastructure for the IoT

age.

NEC's ICT embodied in road traffic solutions

Lifeline Infrastructure

Road traffic solutions using ICT

NEC’s IoT 5 layer architecture

7

NEC works together with local enterprises to build

next-generation traffic infrastructure starting from

system design, which includes institutional designs.

To give an example, in October 2015, NEC entered into

an MOU with Colas SA, a Bouygues group (France) road

construction company, for cooperative efforts for the

development of innovative solutions for efficient mobility

and car sharing. Currently, NEC and Colas SA are jointly

engaged in the High Occupancy Vehicle(HOV) project, in

which NEC's image recognition and analysis technologies

are used to efficiently monitor the number of passengers

in each vehicle driving on car sharing lanes--a lane

dedicated to vehicles carrying a certain number of

passengers or more--established in France. Together

with Colas SA, through the effective proliferation and

promotion of higher occupancy in vehicles, NEC aims to

contribute to the reduction of CO2 emission, traffic jams,

loss of time and accidents, as well as explores the

expand cooperation in other areas, such as Intelligent

Transport Systems (ITS), by conducting joint activities

and exchanging information.

In the field of ITS, NEC also contributes to the

development of ITS in Moscow in partnership with the

Russian system integrator, SITRONICS KASU. NEC set

up 28 LED displays, each 9 square meters in area, that

are designed to inform drivers about traffic jams,

accidents and weather forecasts in real-time, helping

them select the best route to reach their destination

quickly.

Looking at Asia, NEC is working on the development of

a transit fare charging system in Bangladesh. This

technical assistance project is a joint contract with JICA

and aims to facilitate smooth traffic flow by building a

transit fare charging system (clearing house) where a

common IC card can be used for multiple public

transportation systems in Dhaka. NEC's IC ticket system

development know-how and technologies cultivated in

Japan is at the core of this system.

With insights into issues that growing cities are

experiencing, NEC is expanding its successful

undertakings in effective ICT applications, achieving

optimization of traffic networks, transit fare collection,

sales increase, and improvements in customer

satisfaction.

While respecting the essential values pursued by

society and by their customers, NEC wishes to work

together with everyone and use the ICT to design new

social values for the sake of a brighter world.

If you have any questions concerning the contents of

this report or NEC initiatives, please do not hesitate to

contact us.

Next-generation traffic infrastructure carried forward in cooperation with local enterprises

Lifeline Infrastructure

The roadside displays in Moscow are equipped with wireless functions that enable networked information updates and display status management.

Lifeline Infrastructure

Please direct any inquiries to the following contact or an NEC marketing representative.

NEC Corporate Marketing Groupnec-vision@crp.jp.nec.comTEL: +81 (0)3 3454-1111 (main) http://www.nec.com/en/global/about/vision/index.html

©NEC Corporation 2016 Catalog No.16040035E

NEC Group is focusing its efforts on providing “Solutions for Society” by upgrading the social infrastructure with ICT. NEC defined six megatrends based on a structural observation of the global economy and social trends. Based on the six megatrends, NEC formulated seven themes for social value creation as its mission.

This Social Value Creation Report is issued for each of the seven themes listed above and summarizes NEC's concepts, efforts, and proposals, in addition to social issues and global trends. NEC hopes that this report can be the first step in establishing cooperative creative partnerships with customers.

Sustainable EarthEstablish a sustainable lifestyle base by utilizing limited resources effectively and taking measures to prevent damage to the global environment in order to live in harmony with the Earth.

Safer Cities & Public Services

Help emerging countries build safe and secure cities, and help developed countries mature their societies. Establish a "global" administrative service platform through joint initiatives between the public and private sectors.

Lifeline Infrastructure

Establish ICT systems that resolve disparities of area and delivery time, and build safe and efficient lines for travel, utilities, etc. that can support around-the-clock activities in society.

CommunicationBuild a platform for information and communications to support the distribution of information and knowledge, which becomes more important as society advances.

Industry Eco-System

Innovate a new industrial ecosystem including connection of industrial machinery with the Internet, 3D printers, crowdsourcing and reverse innovation.

Work StyleCreate new work style and relationship with society in which people work together with communities and robots regardless of gender and generation.

Quality of LifeBuild a diversified and equal society to support people's enriched and active lives through contributions to education, healthcare and medicine.

The names of products and companies appearing in this document are the trademarks or registered trademarks of their respective companies.

Editorial supervisor: Institute for International Socio-Economic Studies