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Contents

Information and Communications Policy .......................................................... 2

Telecommunications Administration ............................................................... 23

Postal Service..................................................................................................... 44

Postal Savings Service ...................................................................................... 48

Postal Life Insurance Service ........................................................................... 52

International Policy and Cooperation .............................................................. 55

Policies Supporting Administrative Activities ................................................. 63

Statistics ............................................................................................................. 65

Note: In line with the Japanese Government reorganization, on January 6, 2001, the Ministry ofPosts and Telecommunications (MPT), together with the Ministry of Home Affairs and theManagement and Coordination Agency, was integrated into the “Ministry of Public Man-agement, Home Affairs, Posts and Telecommunications (MPHPT).” Please be advisedthat throughout this report “MPT” on and before January 5, 2001, is currently “MPHPT.”Where an article refers to “MPHPT,” if the article describes a matter occurring on andbefore January 5, 2001, said “MPHPT” shall be read as “MPT.”

2001 Annual Report

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Strategy” and the “e-Japan PriorityPolicy Program” in their FY2002budget requests.1) e-Japan Strategy

The e-Japan Strategy states that Ja-pan must take revolutionary yet re-alistic actions promptly in order tocreate a “knowledge-emergent soci-ety,” where everyone can activelyutilize IT and fully enjoy its benefits,thus the government shall inten-sively implement the four prioritypolicy areas, namely i) establishmentof the ultrahigh-speed network in-frastructure and competition poli-cies, ii) facilitation of electronic com-merce, iii) realization of electronicgovernment and iv) nurturing high-quality human resources; in addi-tion, it also sets targets that Japanshall establish an environmentwhere the private sector, based onmarket principles, can exert its fullpotential and make Japan theworld’s most advanced IT nationwithin five years.2) e-Japan Priority Policy Program

The e-Japan Priority Policy Pro-gram, clarifying the roles of the pub-lic and private sectors, expresslyshows measures with realistic tar-gets and time periods in intensivelyimplementing the following fivepolicy areas with vital priority in or-der to realize the Priority Policy Pro-gram: i) formation of the world’smost advanced information and tele-communications networks, ii) pro-motion of education/learning andhuman resources development, iii)facilitation of electronic commerce,iv) introduction of IT into the admin-istration and utilization of IT in otherpublic areas and v) ensuring of se-

I. Deployment of Info-communications Strategytoward the 21st Century

Information andCommunications Policy

1. Promotion of IT strategy atthe central government level

The Japanese government estab-lished the “Strategic Headquartersfor the Promotion of an AdvancedInformation and Telecommunica-tions Network Society (IT StrategicHeadquarters)” (headed by thePrime Minister) in January 2001,based upon recognition that promo-tion of the IT revolution is a nationalstrategy. At the first session of theHeadquarters held on January 22,2001, the “e-Japan Strategy” wasadopted, based on the Basic IT Strat-egy, as a national strategy for IT.

March 2001, at the third session,the Headquarters adopted the “e-Ja-pan Priority Policy Program” thatmaterializes the “e-Japan Strategy”and clarifies measures the govern-ment should rapidly implement withpriority to form an advanced infor-mation and telecommunications net-work society.

From now on, under the leader-ship of the cabinet with the IT Stra-tegic Headquarters as its center, thegovernment will implement this Pri-ority Policy Program steadily, moni-tor the progress of the measures andreview the program every spring,monitor the progress of the mea-sures continuously every autumn,and when necessary add new mea-sures to the program, thereby pro-moting rapid transformation to theworld’s most advanced IT society.

Furthermore, the “e-Japan 2002Program” was adopted in June 2001,as an annual program which directsthe office and ministries to includeannual measures of the “e-Japan

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curity and reliability over advancedinformation and telecommunica-tions networks. In addition, the Pri-ority Policy Program includes sev-eral cross-cutting issues requiringmeasures with importance, reaching220 measures. The government willactively cope with such issues as i)promotion of R&D, ii) bridging ofthe digital divide, iii) countermea-sures against newly emerging prob-lems along with transformation ofsocioeconomic structure and iv) pro-motion of international harmoniza-tion and contributions.3) e-Japan 2002 Program

In FY2002, this program gives pri-ority to five pillars, namely i) promo-tion of widespread use of the high-speed and ultrahigh-speed Internet,ii) introduction of IT into education/learning and strengthening of hu-man resources development, iii) en-hancement of content over networksin both quantity and quality, iv)steady promotion of the e-govern-ment and e-local governments andv) strengthening of international ac-tivities. The government will, basedupon this program, strive to achievetargets listed in the “e-Japan Strat-egy” by intensively and comprehen-sively implementing IT policy mea-sures.

2. IT Policy Principles

1) The age of “IT revolution,” com-parable to the Agricultural Revo-lution and the Industrial Revolu-tion, has started. Information tech-nology (IT) is the important driv-ing force of socioeconomicgrowth. The sustainable growthand prosperity in the 21st centuryare dependent on whether it ispossible for the promotion of so-cioeconomic structural reforms tobe achieved through widespreaduse of IT. As shown in the “Okinawa Char-ter on Global Information Soci-ety” (July 2000), the internationalcommunity shares this recogni-tion; accordingly, many Europeanand Asian countries and the U.S.are promoting the IT revolutionas national strategies.

2) In order to create an internation-

ally competitive “IT nation” inwhich benefits of the IT revolu-tion are shared by all, Japan shallstrategically and intensivelyimplement comprehensive policymeasures by combining private-and public-sector strengths. In July 2000, the “IT StrategyHeadquarters” and the “IT Strat-egy Council” were establishedwithin the Cabinet. At the sametime, the budget allotment framesof the “Rebirth of Japan,” whichfocuses on IT policies in theFY2001 budget request scheme,were adopted, resulting in the cre-ation of the IT revolution promo-tion system.

3) Based on those recognition, the ITpolicy toward FY2001 is beingdeployed for attainment of thefollowing four goals:

i) Preparation of IT infrastructuresupporting the IT revolution Promote the preparation of ITinfrastructure, ranging from fa-cilities and equipment to regu-latory frameworks, applica-tions and content, in whichbenefits of IT can be shared byall in Japan prior to the rest ofthe world, through results oftechnological innovations.

ii) Strategic R&D for securing in-ternational competitiveness Invest with priority into tech-nology development, whichcontributes to creation of newbusinesses, in order to secureglobal competitiveness forJapanese society and economyin the international communitywhere the IT revolut ionprogresses.

iii) Expand digital opportunitiesbased upon the Okinawa Char-ter on Global Information So-ciety (IT Charter)

Based upon the IT Charter, real-ize an information society whereeveryone can reap its full eco-nomic and social benefits by seiz-ing its digital opportunitiesthrough bridging of the digitaldivide.

iv) Promotion of information secu-rity measures Comprehensively promotepreparation of regulatory

frameworks and R&D on infor-mation security measures in-cluding countermeasuresagainst hackers, crackers andcyberterrorisim, taking into ac-count the fact that socioeco-nomic activities are becomingmore and more dependent onelectronic networks.

3. Millennium Projects

With an eye to the new millen-nium and in response to issues thathumanity faces, the government in-augurated “Millennium Projects,” orinitiatives for creating new indus-tries through robust technologicalinnovations. The projects aim to es-tablish a core which plays an impor-tant role in building a new centuryfull of vision and vigor. The projectsin fact deal with collaborative initia-tives based upon technological inno-vations among the industrial, aca-demic and public sectors in the fol-lowing three fields, these being ofurgency and importance to Japansocioeconomically: 1) IT; 2) the agingof the population; and 3) environ-mental protection.

In order to effectively implementthe projects, favored budget treat-ments were made in the “Info-com-munications/Science and Technol-ogy/Environment, etc. Special Bud-get for Economic Rebirth Package”(250 billion yen) set forth in theFY2000 budget.

Outline of IT projects in MillenniumProjects1) Project “Computerization of Edu-

cation”[Goals]• Enable Internet access from all

public elementary, lower second-ary and upper secondary schoolswhile having all public schoolteachers master the use of com-puters by FY2001.

• Aim to develop by FY2005 an en-vironment where the Internet canbe accessed from all elementary,lower secondary and upper sec-ondary schools where teachersand students can use computersin all classes at all grade levels.

[Measures]i) Provide computers and Inter-

Information and Communications Policy

2001 Annual Report

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In consideration, a “Law to Pro-mote R&D for Developing Technolo-gies Related to Specified Public Tele-communications Systems” was en-acted on May 6, 1998. MPT, in co-operation with relevant ministriesand agencies, decided to conduct allnecessary procedures to enable theTelecommunications AdvancementOrganization of Japan (TAO) to con-duct R&D on the technology neces-sary for telecommunications systems(specified public telecommunica-tions systems) conducive to the fol-lowing public services.1) Educational support system (in

collaboration with the Ministry ofEducation, Culture, Sports,, Sci-ence and Technology)

2) Irrigation control system for agri-culture (in collaboration with theMinistry of Agriculture, Forestryand Fisheries)

3) Electronic filing system for appli-cation procedure (in collaborationwith the Ministry of Land, Infra-structure and Transport)

4) Support system for people withdisabilities suffering from re-stricted mobility (in collaborationwith the Ministry of Land, Infra-structure and Transport)

5) Telecommunications systemwhich improves the security ofpolice communications (in col-laboration with the National Po-lice Agency)

6) Telecommunications systemwhich helps information collec-tion regarding natural disasters

7) Telecommunications systemwhich helps advanced use of in-formation regarding fishery (incollaboration with the Ministry ofAgriculture, Forestry and Fisher-ies)

8) Telecommunications systemwhich helps electronic proceduresin filing applications with localgovernments

net connections at all schools• Develop and support intra-

school LANs at public el-ementary, lower secondaryand upper secondary schools

ii) Systematically support use ofIT and computers

• Implement training programsfor teachers at public schools

• Provide comprehensivelyhigh-quality content forschools

2) Computerization of governmentadministration

[Goals]Regarding administrative proce-

dures between the private sector andthe government, implement an infra-structure for “Electronic Govern-ment” to realize paperless adminis-trative procedures over the Internetby FY2003.[Measures]• Build a common infrastructure

(government approval infrastruc-ture, standardized systems, secu-rity, etc.) to realize electronic ad-ministrative procedures betweenthe private sector and the govern-ment

• Introduce a leading system utiliz-ing the Internet to realize elec-tronic filing (paperless proce-dures) of applications with thegovernment

3) IT 21st Century Plan (IT21)[Goals]

The government will create an In-ternet and computer environment inwhich all Japanese nationals regard-less of location can securely, rapidlyand easily obtain, process and trans-mit information they want throughuse of the ultrahigh-speed Internetby FY2005.[Measures]• Construct a super-Internet with

10,000 times faster transmissionspeed and 30,000 times bigger in-terconnection scale than the exist-ing Internet, on which users cansecurely and accurately access in-formation they want.

• Realize a new-generation comput-ing environment in which every-one can easily handle high-per-formance information processingand network interconnection.

4. Promoting public sector info-communications

Info-communications plays an im-portant role as a tool to drasticallychange the Japanese socioeconomicsystem as a whole.

The advancement of info-commu-nications technology and the estab-lishment of an advanced info-com-munications society by utilizing thetechnology is one of the most urgentgoals needed to enrich people’slives.

Taking this into consideration, thegovernment demonstrated issues tobe solved concerning advanced info-communications and particular poli-cies in the “Action Plan for Eco-nomic Structural Reform and Cre-ation” (approved at the Cabinetmeeting on May 16, 1997) and the“Basic Guidelines on the Promotionof an Advanced Information andTelecommunications Society“ (de-cided upon by the Advanced Infor-mation and Telecommunications So-ciety Promotion Headquarters onNovember 9, 1998).

Use of IT in the public sector willlead to a reduction in administrativeservice costs through use of IT in thegovernment that improves con-sumer convenience.

It also takes on important roles foradvancing the introduction of ITinto the entire socioeconomic sys-tem.

It is necessary for the governmentto introduce advanced applicationsas a user and promote R&D on info-communications systems that willconstitute the basis for a variety ofpublic services including adminis-trative, educational and transporta-tion services, in cooperation with therelevant ministries and agencies, sothat all Japanese can become benefi-ciaries of well-administrated publicservices.

II. Promotion of Multimedia Content

1. Results Deploying-Type R&D

There is a growing need for re-search and development of telecom-

munications systems with advancedfunctionality, for such purposes asfacilitating distribution of contentsuitable for the Internet and digital

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agencies. The Agency identifies con-crete goals and schedules.

In December 1999, the VirtualAgency submitted its findings as afinal report, describing projects in-cluding measures for realizing anelectronic government (E-Govern-ment) and the “Education Comput-erization Project.“1) Goals and targeted schedule

Aiming to implement by FY2005environments where the Internet canbe accessed from all elementary,lower secondary and upper second-ary schools and teachers, the govern-ment will foster human resourcessuitable for an advanced informationsociety through drastic changes inteaching methods, resulting inheightened student abilities in think-ing, imaginative and expressivepower.2) Necessary measuresi) IT equipment environment

The government will prepare set-tings where teachers and studentscan use computers and access theInternet in all classes at all grade lev-els.ii) Support measures• Enable all teachers to gain com-

puter literacy, through trainingfor teachers, to teach their stu-dents.

• Support IT introduction intoschools through the participationof human resources from outsideschools in cooperation with com-munities and private enterprises.

• Implement initiatives to promotethe development and provisionof high-quality educational con-tent in collaboration with the pri-vate sector and relevant minis-tries and agencies.

• Develop functions for a nationalcenter for school education

3) Issuesi) Adopt education concerning mor-

als, rules and netiquetteIt is necessary for students to un-

derstand: a) roles of information andIT in society; b) common rules con-cerning morals and copyrights indealing with information; and c) re-sponsibilities in transmitting infor-mation on the Internet, among oth-ers.

Information and Communications Policy

III. Building of an Information Society Open to Ev-eryone

1. Report from “Study Group onInfo-communications Secu-rity”

In order to deliberate on indis-pensable measures for informationsecurity that support the sound de-velopment of advanced informationand telecommunications society, theCommunications Policy Bureau ofMPT formed a “Study Group on Se-curity Assurance in the Usage ofInfo-communications” (Chair: Dr.Hiroyuki OHNO, Emergency Com-munications Section, Communica-tions Research Laboratory, MPT:currently Emergency Communica-tions Group, Information and Net-work Systems Division, Communi-cations Research Laboratory) inMarch 2000. After a series of meet-ings, the study group compiled itsfindings as a report in November2000.

The report recommends adoptionof necessary measures for informa-tion security, in terms of technology,management, regulatory frame-works, etc.

In particular, this report points outthe importance of the following mea-sures:1) Promotion of R&D on informa-

tion security

broadcasting. In FY1999, the Tele-communications Advancement Or-ganization of Japan (TAO), with thecooperation of local governments,universities and private enterprises,conducted the “New Techno-appli-cation Research Project,” which ap-plies the fundamental technology re-sulting from R&D efforts to furtherresearch into advanced telecommu-nications systems which facilitatedistribution of content appropriatefor the Internet and digital broad-casting.

Outline of the projects1) R&D on creative communica-

tions/broadcasting systemsTAO, by entrusting R&D projects

to other parties, conducted R&D into

such projects as: 1) an advanced sys-tem that contributes to the enhance-ment of education, transport and so-cial welfare services for daily life;and 2) multipurpose system-con-figuration technology which worksas infrastructure for an advancedsystem which facilitates distributionof content including broadcast pro-gramming.2) R&D on content distribution

platformsTAO has been promoting systems

development for distributing, via theInternet, content suitable for e-pub-lishing, digital music, streamingvideo and the Internet, under an ap-propriate charging system, main-taining high quality and without im-posing stress on the users.

2) Preparation of governmental or-ganizations in charge of informa-tion security

3) Popularization of information se-curity management in accordancewith security policies

4) Realization of network securityassessment and evaluationschemes

5) Promotion of human resourcesdevelopment

The report also points out the im-portance of promoting internationalcollaboration, and shows guidelinesfor formulating security policies foreach sector comprising the networksociety, including i) users, ii) variousservice providers and iii) public en-tities. In particular, examples of se-curity policies are illustrated respec-tively in the report for personal us-ers, service providers and vendors.

2. Virtual Agency’s “EducationComputerization Project“

The Virtual Agency is a task forceunder the direct control of the primeminister, and not otherwise associ-ated with any particular ministry oragency, set up in December 1998 asa solution to deal with the increas-ing number of issues that fall outsidethe jurisdiction of ministries and

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ii) Enhance “heartfelt education”(cultivation of sentiments)

It is necessary for students tostrengthen “heartfelt education” inparallel with i) above, paying dueconsideration to concerns about lack-ing experience in society and nature,failing to establish human relation-ship and losing a grasp on the reali-ties of life due to immersion in vir-tual space.iii) R&D on teaching methods

The government decided to com-mence R&D on filtering and block-ing harmful information over the In-ternet in the Millennium Projects, inorder to promote info-communica-tions technology indispensable uponintroducing IT in education.

3. Use of the Internet in schools

Aiming to establish an environ-ment where children can freely usethe Internet

Schools have a responsibility todevelop in children as high a degreeof information literacy as possible, toenable them to live successfully in anadvanced information society of thefuture. Of Japan’s public schools,57.4%, up 21.8 percentage pointsover the previous f iscal year(FY1999: 35.6%), had access to theInternet by the end of March 2000(Table III-3). There are moves toconnect all public schools to the In-ternet by FY2001, and new NationalCurriculum Standards will be intro-duced in FY 2002 that include edu-cation in information technology(IT).

MPT started a new three-yearR&D plan (one year extended later)in FY2000 by expanding a networkR&D project in the three-year “R&Dproject on network managementwith multi-type access lines for In-ternet connection (School Internet)”(two years extended later) sinceFY1999. This R&D plan entitled“R&D on the Internet utilizing newhigh-speed access networks” is car-ried out in collaboration with the“R&D promotion project for linkingschools through multimedia” of theMinistry of Education, Sports, Sci-ence and Culture (currently Ministryof Education, Culture, Sports, Sci-

Internet

• The R&D started in FY2000 is being carried out with 600 schools

[R&D] R&D on the Internet utilizing new high-speed access networks

• The R&D started in FY1999 is being carried out with 1,075 schools.

Satellite circuit

Local network center (25)

Local network center (30)

Cable TV line

Cable TV lineWireless local loop

Wireless local loop

Fiber-optic cable

Digital subscriber line Digital subscriber line

Central network center (TAO)

[R&D] R&D project on network management with multi-type access lines for Internet connection (School Internet) since FY1999

One-way satellite communications

Two-way satellite communications

Fig. III-3 Experimental advanced Internet access networks for schools

One thousand and seventy fiveschools have been connected to theseresearch networks through the“R&D project on the Internet utiliz-ing hybrid access networks,” whichis launched in FY1999.

These research networks, calledthe “School Internet,” consist of the1,675 schools, 55 regional networkcenters throughout Japan and theCentral Network Center in MitakaCity, Tokyo.

23,607 11,507 48.7% 23,344 98.9%10,418 7,068 67.8% 10,418 100.0%

4,146 3,320 80.1% 4,146 100.0%925 554 59.9% 921 99.6%

39,096 22,449 57.4% 38,829 99.3%

Elementary schoolsLower secondary schoolsUpper secondary schools

Special schoolsTotal

Number of schools (A)

Schools connected (B)

Ratio of connected schools (B/A)

Schools with computers (C)

Ratio (C/A)

Table III-3 Number of state schools with Internet access (as of March 31, 2000)

Source: “Survey of IT Education in Schools (FY1999),” the Ministry of Education, Science,Sports and Culture

ence and Technology).The objective of this R&D is to

carry out R&D on network construc-tion in an age where moving pictureinformation is distributed on a full-scale basis. For the purpose, verifi-cation experiments are conducted onresearch networks that enable 600schools selected from some 40,000elementary/lower and upper sec-ondary schools to be connected tothe high-speed Internet throughhigh-speed access networks.

IV. R&D to Support Advancement and Diversifica-tion of Info-communications

1. R&D for space communica-tions technology ushering inthe future

MPT is promoting the timelyimplementation of the followingR&D projects in fixed and mobilecommunications as well as broad-casting and positioning technologiesto build satellite communicationsnetworks interoperable with fiber-optic and terrestrial wireless net-

works.1) Engineering Test Satellite-VIII

(ETS-VIII)Includes the development of tech-

n o l o g i e s f o r 1 0 - m e t e r - c l a s sdeployable antennas, 400W-classhigh-power transponders and satel-lite on-board switches, all of thesebeing conducive to the realization ofpersonal mobile multimedia satellitebroadcasting and communications,among other areas. Verification and

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MPT has been carrying out R&Don the Quasi-Zenith Satellite System.

A minimum of three satellites willbe placed into synchronous orbit atan inclination of approximately 45degrees to the geostationary orbit.These orbits are seen from the Earthas a figure of “8” from north tosouth, with its center on a point onthe geostationary orbit. One of thethree satellites is always seen nearthe zenith from Japan. With thethree satellites at a higher elevationthan geostationary satellites, high-quality mobile communications sys-tems, etc. will be enabled throughthe development of new orbitswhich complement geostationaryorbits that are congested.6) R&D on advanced broadcasting

satellite systemsIn response to the need for sophis-

ticated and diversified satellitebroadcasting, the next-generationadvanced broadcasting satellite sys-tem is anticipated to be realized.MPT has been conducting a satellitebroadcasting system which enablescompensation for rainfall attenua-tion throughout Japan, utilizing the21GHz broadband satellite broad-casting band that can be used from2007 under the authorization of theInternational TelecommunicationUnion (ITU).

2. Promotion of construction ofGeographical InformationSystem (GIS)

GIS is a system that integrates elec-tronic map data and ledger data, aswell as statistics in different formats,then carries out statistical processingand simulation. Because GIS enablesa broader range of economic activi-ties more efficiently, the U.S. andEuropean countries are promotingthis system as national initiatives.

In Japan, as part of central govern-ment efforts to promote GIS, the “Li-aison Committee of Ministries andAgencies Concerned with Geo-graphical Information System (GIS)”coordinates governmental policiesconcerning GIS; in January 1999, the“GIS Promotion Conference betweenthe Government and the Private Sec-tor” was established for promotion,

Information and Communications Policy

testing in space is scheduled to startin 2003.2) Next-generation LEO System

(NeLS)Includes R&D into technologies

needed for mobile satellite commu-nications systems using next-genera-tion low-earth orbit (LEO) satellitesthat will enable worldwide videotransmission using handheld termi-nals, in line with increasing global-ization and needs for multimedia incommunications. Verification andtesting in space are planned to startaround 2005.3) Gigabit Internet Test Satellite

Includes R&D into the Gigabit In-ternet Test Satellite in order to estab-lish technologies for ultrahigh data-rate satellite communications sys-tems that have such advantages aswide-area coverage, simultaneousand multiple destinations, disastertolerance, etc. and will also enablesupplementation of terrestrial Inter-net access networks.

Verification and testing of thisR&D project in space will be carriedout, together with R&D results of theGigabit Satellite project to date,through use of the Gigabit InternetTest Satellite to be launched in 2005.After the launch, the government isplanning to conduct joint experi-ments with countries and economiesin the Asia-Pacific region using theGigabit Internet Test Satellite.4) Research on orbital maintenance

system (OMS)With the progress of space devel-

opment such as the growth in thenumber of satellites for communica-tions and broadcasting, concernsabout the worsening of the space en-vironment caused by increasingspace debris are arising. To this end,with the aim of preserving the spaceenvironment and to enhance the re-liability of space communications,MPT has been conducting R&D onan orbital maintenance system(OMS) for eliminating unnecessarysatellites on orbits, repair and in-spection satellites, etc. In FY2001,prior verification experiments of re-mote inspection technology will beconducted in space.5) Research on quasi-zenith satel-

lite system (“Figure-8” satellite)

in cooperation with the private sec-tor, of GIS-related initiatives, includ-ing efficient construction of and in-teroperability of GIS. Since FY2000,a GIS model district project has beenimplemented based upon collabora-tion between the private and publicsectors.

In FY1998, MPHPT (Informationand Communications Policy Bureau)kicked off R&D activities on elementtechnology, such as communicationsprotocols for constructing distrib-uted GIS, which uniformly handlesmultiple GISs having different dataformats; in FY2000, MPHPT devel-oped a prototype of distributed GIS.

In addition to the prototype,MPHPT started R&D in FY1999upon information technologies suchas automatic matching of 3-D infor-mation, which requires formidableefforts for collection, as well as loca-tion information toward the con-struction of 3-D GIS. In FY2000, theministry carried out R&D on i) tech-nology for increasing the number ofdata collection areas, ii) improve-ment of the ratio of automated op-erations and iii) enhancement in dataaccuracy. Shared-use facilities forsupporting information technologyR&D regarding storage and distribu-tion of large-capacity GIS data wereopened in Yokosuka City, Uji Cityand Naha City.

As a key member of the “LiaisonCommittee of Ministries and Agen-cies Concerned with GIS” and the“GIS Promotion Conference betweenthe Government and the Private Sec-tor,” MPHPT will participate forcelyin central government efforts to con-struct GIS.

3. R&D on ultrahigh-speedphotonic network technology

In recent years, transmission ofhuge data (e.g., movies) has been re-quired to the Internet. R&D on ul-trahigh-speed photonic networktechnology is indispensable fortransmitting the huge data. Ultra-high-speed photonic network tech-nology enables optical communica-tions throughout the network, bymeans of wavelength division mul-tiplexing (WDM) technology which

2001 Annual Report

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itself carries out R&D activities.Gigabit Network Link and the

shared-use research facilities areopen to universities, research insti-tutes, private companies and otherorganizations for a variety of R&Dactivities for five years from FY1999through FY2003. The former isrented out free of charge (users payfor network charges from accesspoints to their own facilities) andusers of the latter are charged mini-mum expenses for fuel, lighting andother items.

In close collaboration with theNext-Generation Very High-SpeedNetwork Promotion Conference,which has been formed with the pri-mary function of maintaining thesmooth and efficient operation ofJGN, TAO has been promoting R&Dactivities utilizing JGN, by contractresearch whose themes solicitedfrom the public under the “Fund forR&D themes utilizing JGN” schemeestablished in FY1999. From FY2001,TAO will add an environment whereIPv6 can be used as the basic Inter-net protocol to JGN, thus promotingR&D on IPv6.

The latest information is availableat:

h t t p : / / w w w . j g n . t a o . g o . j p /english/index_E.html

8. R&D on a consignment basis

MPHPT is promoting R&D intooriginal and innovative info-commu-nications technology on a consign-ment basis through subsidies forfunding excellent R&D themes se-lected from applicants. To this end,the Telecommunications Advance-ment Organization of Japan (TAO)invites R&D themes from the publicthrough the following R&D promo-tion schemes:1) R&D promotion scheme for cre-

ative info-communications tech-nology

Implements R&D into original andinnovative info-communicationstechnology on a consignment basisby inviting R&D themes from uni-versities, research institutes, etc.2) R&D promotion scheme for real-

izing international standardsContributes to international stan-

dardization activities, implements

multiplexes different signals onwaves having different wavelengthsin an optical fiber, as well as opticalrouting technology without convert-ing optical signals into electrical sig-nals. Ultrahigh-speed photonic net-work technology realizes ultrahigh-speed data transmission by maxi-mizing the transmission capacity ofoptical fibers.

In order to realize the most ad-vanced information and telecommu-nications society in the world,MPHPT has been promoting R&Don ultrahigh-speed photonic net-work technology under a unifiedacademia-industry-governmentR&D scheme in collaboration withTAO, universities, etc.

4. Promotion of “Basic Re-search 21 for Breakthroughsin Info-communications”

Fundamental interdisciplinaryR&D, more than simply an extensionalong the lines of existing technolo-gies, is essential for “breakthroughs”that will open up new modes of info-communications in the 21st century.In FY1998, MPT began a fundamen-tal and interdisciplinary researchproject called “Basic Research 21 forBreakthroughs in Info-communica-tions (BT21).” The aim of the project,which will be carried out under thedirection of the CommunicationsResearch Laboratory (CRL), is toconduct R&D as well as encourageinternational research exchangesbased on cooperation between gov-ernment, academia and industry.

This project has established threemain focal areas of study in responseto new technological needs: “Ad-vanced materials, devices andphotonics for communications tech-nology,” “Realization of friendlycommunications society” and “Edu-cation of biological information func-tion and its application.” These re-search themes are intended to pro-mote more effective and efficient re-search incorporating a wide range ofrelated sciences, including physicaland life sciences as well as humani-ties and social sciences.

5. R&D for promotion of ad-

vanced technology transfer

TAO contributes to the creation ofnew businesses by transferring theadvanced technologies studied inCRL to application-oriented R&D.

Under this technology transferscheme, application-oriented R&D:“R&D on efficient light modulationdevices in 10-GHz band,” “R&D onadaptive communications technol-ogy,” etc. have been carried out. Thepromotion of technology transferdescribed above contributes to therebirth of Japanese economy.

6. Subsidies for leading-edgeR&D

TAO has been subsidizing part ofR&D expenses to ventures, etc.which carry out R&D on leading-edge and original technology in thecommunications and broadcastingfields (leading edge R&D subsidiza-tion scheme). In FY1999, TAOadded an R&D promotion schemefor supporting university-industrytie-ups (university-industry tie-upR&D subsidization scheme) and anR&D promotion scheme for support-ing particularly promising technol-ogy fields as designated by TAO(priority technology field R&D sub-sidization scheme).

7. Promoting R&D using JapanGigabit Network

Japan Gigabit Network (JGN) is anationwide open testbed for promot-ing R&D activities on ultrahigh-speed networking technology in-cluding the next-generation Internetand high-performance applicationtechnologies. It was established byMPT and TAO at a total cost of 57.3billion yen using the supplementarybudget in FY1998.

The JGN consists of three bodies:the ultrahigh-speed optical-fiber net-work called “Gigabit NetworkLink,” which has 64 access points na-tionwide; five shared-use researchfacilities (Gigabit Laboratories) lo-cated in Tsukuba, Keihanna (KansaiScience City), Kita-Kyushu, Kyotoand Okayama (Kyoto and Okayamafacilities also have WDM networks)and ;Research Centers where TAO

http://www.jgn.tao.go.jp/

9

R&D indispensable for realizing in-ternational standards.3) R&D promotion scheme for re-

gional proposalsBy targeting at joint research teams

consisting of local companies, uni-versities, public research institutes,etc., invites R&D themes into origi-nal and innovative technology meet-ing local needs, then implements theR&D themes on a consignment ba-sis.4) R&D promotion scheme for sup-

porting university-industry tie-ups and younger researchers withpriority.

Promotes R&D through univer-sity-industry tie-ups, and imple-ments original and innovative R&Dthrough support for younger re-searchers5) R&D promotion scheme utiliz-

ing Japan Gigabit NetworkInvites R&D themes necessary for

realizing advanced applications uti-lizing the Japan Gigabit Network,then implements selected R&Dthemes on a consignment basis.6) R&D promotion scheme fund-

ing international joint researchInvites R&D themes from the pub-

lic, then subsidizes part of expensesfor promising R&D activities con-ducted by international joint re-search teams.

Through introduction of those keytechnology research promotionschemes in the info-communicationsfield, in addition to various leadingR&D projects being carried out effi-ciently and effectively, it is expectedthat Japan’s R&D capacity will beenhanced and researchers’ levelsheightened through creation of acompetitive research environment.

9. Establishment of the Commu-nications Research Labora-tory, an Independent Admin-istrative Institution

Since April 1, 2001, the Communi-cations Research Laboratory (CRL)becomes an Independent Adminis-trative Institution with the purposesof enhancing the efficiency of opera-tions and the flexibility of manage-ment in accordance with administra-tive reforms. CRL inherited service

operations from the national re-search institute CRL. CRL is con-ducting R&D in the following fourpriority research fields:1) Info-communications and net-

working technology2) Wireless communications tech-

Information and Communications Policy

nology3) Electromagnetic wave technology

for measurement, standards andapplications

4) Basic and advanced research ofinfo-communications

V. Measures for environmental protectionthrough use of info-communications

1. R&D on global environmentmeasurement technology

The global environment problemsinclude global warming caused byincreasing greenhouse gases such ascarbon dioxide generated from con-sumption of fossilized fuel, ozone-layer destruction by emission offluorocarbons, deforestation by acidrain, expansion of ocean contamina-tion, etc. In order to establish effec-tive countermeasures against thosephenomena and forecast thereof, itis necessary to monitor and analyze

details of those global environmen-tal changes.

To this end, MPHPT has been car-rying out R&D on the global envi-ronment measuring technologythrough improvement of informa-tion quality and reliability in obtain-ing data on the global environmen-tal changes, such as disasters, globalwarming and other environmentalissues on a global scale, thus contrib-uting to advancement in identifyingcauses of the global environmentalchanges and improving forecast ac-curacy.

VI. Regional information intensification in promo-tion of info-communications usage

1. Promotion of Telework/SOHO

Telework (or telecommuting)/small office home office (SOHO) of-fers a workstyle free from confine-ment to fixed work locations, as en-abled by the use of info-communi-cations. Not only individuals andbusinesses, but also society as awhole can benefit from telework/SOHO because it reduces the burdenof commuting on workers, improvesproductivity, realizes a comfortablelifestyle, enables engagement inwork while childrearing, increasesjob opportunities for the elderly andpeople with disabilities, and contrib-utes to environmental preservationby making actual travel unneces-sary.

In particular, with the rapid pen-etration of IT including the Internetand the revision of traditional em-ployment conditions such as lifetimeemployment and seniority systems,SOHO businesses are emerging andtheir number is increasing rapidly as

independent businesses that ignoreconventional corporate structures.

To promote telework/SOHO,MPHPT has been carrying out thefollowing measures:i) Telework Center Construction

Project (see Note);ii) R&D on info-communications

systems contributing to SOHO,etc.;

iii) Reduction of the fixed assets taxon facilities and equipment fortelework;

iv) Funding scheme for facilities andequipment for telework/SOHO;

v) Hosting telework promotionalevents; and

vi) Trials on telework by MPHPTpersonnel

Meanwhile, the Asia-Pacific Eco-nomic Cooperation (APEC) projectto compile a “Telework Manual,”which was proposed by Japan topromote telework in the Asia-Pacificregion, has been completed, and themanual has already been made pub-lic.

2001 Annual Report

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Program.” It constructs advancedinfo-communications systems inhighly motivated municipalities toprovide public-sector applicationscovering more than one field, includ-ing administrative, educational,medical and social welfare. Theiraim is to realize “future multimediacities” as well as an advanced info-communications society as soon aspossible.

This program has a greater degreeof appeal than similar programs inthe past, for the following reasons:1) Financial support for software has

been made available for the firsttime, targeting content produc-tion expenses.

2) Financial support for hardwarehas been expanded to includetransmission lines and terminals.

3) The level of financial support, at50%, is quite high.

4) Financial support has been ex-panded to include third-sectororganizations and nonprofit or-ganizations.

MPHPT expects that these “futuremultimedia cities” will serve as rolemodels for 3,300 local governmentsin Japan, spurring them to introducepublic sector applications. As ofMarch 31, 2001, 42 projects in 36 ar-eas were designated as future mul-timedia cities.

6. Okinawa International Infor-mation Special DistrictProject

In Okinawa Prefecture, the U.S.military bases and facilities are con-centrated, affecting the islanders’ liv-ing environment and regional devel-opment. Taking this into account,the central government has been tak-ing necessary measures for helpingOkinawa Prefecture i) gain economicself-reliance as a regional economy,ii) secure employment, iii) contributeto improvement of the prefecturalliving standard and iv) develop Oki-nawa as a region that contributes toJapan’s economy and society.MPHPT in FY1996 proposed the“Okinawa Multimedia Special Dis-trict Project” (the Multimedia Island Concept in Okinawa). Sincethen, MPHPT has been getting ex-

Note: Telework Center Construction Project:Since FY1994, subsidies from the na-tional funds have been granted to localgovernments or third-sector bodies thatproceed with the construction projectsof shared-use telework centers, withthe aim of creating a base for furtherintroducing telework into local commu-nities.

2. Survey and study on regionalIT potential indicators

The purposes of this survey andstudy, so that local governments, etc.in charge of regional IT promotioncan assess and evaluate the progressof IT introduction in their regions,are to clarify the concepts of “re-gional IT potential indicators” and toset forth the “manual for investiga-tion on regional IT potential.”

Upon selection of fields and itemsto which IT potential indicators ap-ply, MPHPT selected six fields in-cluding 22 items in accordance withtypes of public services for residentsin the communities, from the stand-point of those residents. As for itemsmaking up the indicators, two tofour steps are set forth, taking intoconsideration differences in quality,such as what is enabled by IT andwhat benefits for service users aremade available.

As regards the significance of theintroduction of IT potential indica-tors, the indicators can help localgovernments, local residents, etc.,that are not much interested in re-gional IT, recognize benefits and ne-cessity of IT, by indicating the con-crete progress in implementing IT;and IT potential indicators canclarify problems to be solved by in-dicating the level of progress in IT.

3. Teletopia project

The Teletopia Project is an initia-tive aimed at solving a variety ofproblems in local communities andreinvigorating societies by promot-ing regional IT through the introduc-tion of info-communications mediasuch as cable TV, data communica-tions and community broadcastinginto designated communities.

Since its launch in FY1985, a totalof 189 communities have been des-ignated as Teletopia communities

throughout Japan as of the end ofMarch 2001, where a variety of sys-tems have been built to accommo-date the special needs of each com-munity including the revitalizationof a community, the promotion oflocal business and the expansion ofmedical as well as social welfare ser-vices.

4. Project for Enhancement ofRegional and Life-relatedInformation Infrastructure

The Project for Enhancement ofRegional and Life-related Informa-tion Infrastructure is a modelingproject aimed at enhancing the con-venience of people’s daily lives, re-invigorating local economies and ac-celerating the development of info-communications infrastructure, bydeveloping and introducing info-communications applications topublic-sector services such as admin-istrative, educational, medical andwelfare services.

During the period between April1994 and March 2001, the project wasimplemented at 303 sites nationwideincluding 85 local government net-works, nine telework centers, 184advanced local cable TV networks,four districts designated under theCity Central District RevitalizationProject Using Multimedia, and 26facilities under the Regional IntranetInfrastructure Construction Project,two informat ion barr ier - f reetelework centers and 655 facilitiesunder the Regional Internet Infra-structure Construction Project.

5. Advanced Info-communica-tions System Model CityConstruction Program

The introduction of IT in the pub-lic sector is expected to spur wide-spread adoption of IT in Japanesesociety, which will lead to the cre-ation of an advanced info-communi-cations society.

In line with this, MPHPT, in col-laboration with the Ministry ofEconomy, Trade and Industry(METI), has been carrying out the“Advanced Info-communicationsSystem Model City Construction

11

pected results, such as job creation,through a variety of policy measuresfor transforming Okinawa into an“info-communications hub” in theAsia-Pacific region.

Furthermore, based on the resultsof the MMI project, the “OkinawaInternational Information SpecialDistrict Project,” which acceleratesthe realization of “info-communica-tions hub” and invites domestic andoverseas IT industries into Okinawa,was proposed by the final report of“Okinawa Economic Build-up Plan”(approved by the “Okinawa PolicyCouncil” in August 2000). The “Oki-nawa Economic Build-up Plan” pro-poses various measures for helpingthe islands gain economic self-reli-ance.

MPHPT has been deploying, in amultifaceted and multilayered man-ner, a range of policy measures forrealizing the “Okinawa InternationalInformation Special District Project,”based upon the following five pro-motion measures:1) Constructing a Global Internet

eXchange (IX) for building an info-communications hub in the Asia-Pacific region

2) Advancing regional info-commu-nications networks

3) Inviting, clustering and fosteringdomestic and overseas IT-relatedindustries and research institutes

4) Concentrating domestic and over-seas content and applications

5) Promoting accelerated and enmasse human resources develop-ment programs

7. Telecom Venture BusinessFund

In May 1998, the “Telecom Ven-ture Business Fund” (or Telecom In-vestment Enterprise Cooperative)was established with the aim ofspawning new telecommunicationsand broadcasting businesses (Note).

The Fund is giving financial assis-tance to “new telecommunicationsand broadcasting businesses” who isgiven authorization by the Ministerof Public Management, Home Af-fairs, Posts and Telecommunicationsunder the “Law for Promoting Speci-fied Telecommunications and Broad-

Information and Communications Policy

casting Businesses.” The new busi-ness with authorization that is newlyestablished or is within five yearssince its inception and with capitalof one billion yen or less (where ajuridical person who has Type I tele-communications business permis-sion shall be a juridical person withcapital of 1.5 billion yen or less) canbe given capital investment from theFund. The upper limit of capital in-vestment per authorized business is200 million yen or up to 30% of thetotal capital.

8. Promotion of New IT Applica-tions R&D (Multimedia PilotTown Project and others)

Through the Telecommunications

Advancement Organization of Japan(TAO), MPHPT will conduct follow-up R&D, winning cooperation fromenthusiastic local governments, uni-versities and private companies, fornew IT applications and realizingfurther advanced info-communica-tions system based on basic technol-ogy which has been developed indesignated communities under pilotprojects.

Through these activities, MPHPTwill create new demand for a vari-ety of multimedia model townswhich will produce new lifestyles,and contribute to a socioeconomicrevolution toward an advanced in-formation society.

VII. Contribution to Development of the GlobalInformation Infrastructure

1. Promotion of internationalstandardization

The International Telecommunica-tion Union (ITU) is a specializedagency of the United Nations incharge of telecommunications issues,whose objectives are promotion ofinternational cooperation for im-proving telecommunications as wellas rational use, promotion and pro-vision of technical support for devel-oping countries, and enhancing effi-ciency of telecommunications ser-vices. MPHPT, through ITU, is en-gaging in the promotion of interna-tional standardization.

From September 27 through Octo-ber 6, 2000, the World Telecommu-nication Standardization Assembly(WTSA-2000), the general meeting ofITU Telecommunication Standard-ization Sector (ITU-T) held everyfour years, was held in Montreal,Canada. The WTSA is an importantmeeting which deliberates activityreports, draft Recommendations anddraft resolutions presented by eachstudy group (SG) of ITU-T and theTelecommunication StandardizationAdvisory Group (TSAG), as well asdecides basic direction of ITU-T incoming four years such as review ofworking methods, establishmentand abolition of SGs, allocation of re-

search tasks, and appointment ofchairs and vice-chairs of SGs andTSAG.

The meeting accepted the intro-duction of new procedure enablingrapid adoption of Recommendationsutilizing electronic methods for tech-nical Recommendations not relatedwith regulatory or policy issues, or,Alternative Approval Process(AAP), and the introduction of “As-sociate,” a new membership whichallows participation in specific SGs,as a system to promote participationof private enterprises, etc., in activi-ties of ITU-T. And, as the SpecialStudy Group (SSG) on standardiza-tion of network portion of mobilecommunications was established,the progress of standardization incollaboration with ITU-R and otherorganizations is expected. Delibera-tions were made on draft Recom-mendations studied by each SG andTSAG from 1997 to 2000, 54 new andrevised Recommendations were ap-proved. Research themes for 2001through 2004 were approved, andchairs and vice-chairs of 14 SGs andTSAG were appointed including achair and six vice-chairs from Japan.

The Radio Assembly (RA-2000),t h e g e n e r a l m e e t i n g o f I T URadiocommunication Sector (ITU-R)held once in every two or three

2001 Annual Report

12

nications Research Laboratory (CRL)in Kobe City, Hyogo Prefecture. Thecenter is equipped with advancedinfo-communications experimentalfac i l i t ies inc luding an ATM-backboned network and serves as ahub for international joint studies onthe info-communications infrastruc-ture in the Asia-Pacific region.

The project members are conduct-ing international joint R&D and ex-periments on next-generation tech-nologies such as IP over satellite,IPv6 and the next-generation Inter-net, as well as application technolo-gies including telemedicine, distancelearning, and so on. APII Technol-ogy Center also has been trainingmultimedia info-communicationsexperts who will be required to de-velop the next-generation network inthe Asia-Pacific region.

Note: A testbed is an experimental networkfor conducting verification experimentsin order to develop networking and ap-plications technologies.

4. Promotion of GENESISproject

Toward the realization of a globalmultimedia society, in promotinginterconnectivity and interoperabil-ity experiments on broadband net-works by G7/G8 countries, a varietyof issues have emerged for buildingand utilizing the next-generationglobal broadband networks.

GENESIS project beginning fromFY1997 identifies technological prob-lems and finds solutions throughR&D, thus contributing to the real-ization of a global multimedia soci-ety.

GENESIS project is conducting thefollowing elemental technologies:1) R&D on network control technol-

ogy for next-generation globalbroadband networks;

2) R&D on application technologyfor next-generation global broad-band networks; and

3) R&D on network performancemeasurement technology for next-generation global broadband net-works.

In conducting R&D, an interna-tional broadband network linkingthe U.S., the EU and the Asia-Pacific

years, was held from May 1 through5, 2000, in Istanbul, Turkey. The RAis an important meeting which ap-proves Recommendations of StudyG r o u p s ( S G s ) a n d t h eRadiocommunication AdvisoryGroup (RAG), Questions determin-ing research strategy of the next pe-riod, as well as decides basic direc-tion of ITU-R such as organization ofITU-R, appointment of chairs andvice-chairs of SGs and RAG, and re-view of working methods.

At the meeting, 74 Recommenda-tions providing technical and opera-tional conditions, etc., for variousradiocommunications includingcommunications such as radio trans-mission methods of the third-genera-tion mobile communications system(IMT-2000), the Electronic Toll Col-lection (ETC) system of IntelligentTransport Systems (ITS), and auto-mobile radars for supporting safedriving. Nearly 400 Questions con-cerning next period’s research activi-ties, such as advancement of IMT-2000, study on the next-generationmobile communications system andresearch on frequency sharing of thestratospheric radio platform andother services, were approved. Thusfar, research on broadcasting-relatedtechnology has been made by SG10(broadcasting service - sound) andSG11 (broadcasting service - televi-sion) of ITU-R. However, since themeaning of separating the two re-search areas recedes along with theinnovation in digital broadcastingtechnology, it was decided to inte-grate SG10 and SG11 into SG6(Broadcasting Service-Terrestrialand Satellite). Appointments ofchairs and vice-chairs of seven SGsincluding newly established SGswere made, and four from Japanwere appointed as chair or vice-chair. Review of work methods wasalso made, and, as in the case withITU-T, the introductions of AAP andAssociate system were approved.

2. Promotion of the Asian Info-communications Council(AIC)

Based on Japan’s proposal, theAsian Info-communications Council

(AIC) was established in FY1988aimed at supporting the sound de-velopment of the telecommunica-tions infrastructure, contributing tosocioeconomic development andimproving the quality of life in eachmember country.

AIC, initially started with fourcountries (Japan, the Republic ofKorea, the Philippines and Sin-gapore) was expanded to nine coun-tries with the participation of China,Indonesia, Malaysia, Thailand andVietnam. A total of 100 organiza-tions participating in AIC includetelecommunications administra-tions, carriers, communicationsequipment manufacturers, universi-ties and other related organizations.

So far 25 conferences of AIC havebeen held. By designating a five-year period from April 1998 toMarch 2003 as the third AIC term,AIC has launched new extensivejoint experiments on Internet Proto-col (IP), Wireless Local Loop (WLL)and other items. In October 1999, thename AIC was changed from theAsian ISDN Council to the AsianInfo-communications Council, in or-der to respond to the latest techno-logical trends.

In February 2000, the first AICmeeting since the name change washeld in Denpasar, Indonesia on thethreshold of new millennium. Themeeting was successfully closedwith the first official participation ofa Vietnamese delegation.

The AIC joint experiments are an-ticipated contributing to the devel-opment of Asian info-communica-tions infrastructures and the revital-ization of the Asian economy.

3. Promotion of the APIITestbed Project

The Asia-Pacific Information Infra-structure (APII) Testbed Project isaimed at contributing to regionaleconomic development by promot-ing the construction of info-commu-nications infrastructure in the Asia-Pacific region.

In order to practically promote theproject, MPT on February 13, 1997opened the APII Technology Centerin the Kansai branch of the Commu-

13

Information and Communications Policy

were successfully conducted using45Mbps links. In Phase II from No-vember 2001, it is planned to con-duct experiments using 155 Mbpslinks.iv) The national Satcom application

experiment groupThe group, in February 1998, con-

ducted experiments on 3D ultrahigh-definition video transmission at the18th Nagano Winter OlympicGames.

6. Promotion of the POST-PARTNERS Project

MPHPT, in cooperation with coun-tries in the Asia-Pacific region, hasbeen promoting an internationaljoint experiment known as thePOST-PARTNERS (Post-Pan-PacificRegional Telecommunications Net-work Experiments and Research bySatellites) Project.

The purpose of this project is topromote technology transfer, humanresources development and the dif-fusion of satellite communications inthe region.

Many countries in the Asia-Pacificregion are made up of a multitudeof islands with populations spreadout over a wide area, and with in-sufficient transportation and com-munications networks.

In such a region, satellite links arean extremely effective means of com-munications and are expected toplay an essential role in building the

region are planned to be constructed,through the collaboration with theJapan Gigabit Network (JGN) Projectin Japan, and JEG (Japan-EuropeGlobal Architecture for Multi-MediaAccess) Project as well as APII (Asia-Pacific Information Infrastructure)Testbed Project.

5. Promotion of satellite applica-tion experiments

Since October 1997, MPHPT hasbeen hosting the “Satellite Applica-tion Experiments Promotion Confer-ence,” chaired by Dr. YasuhikoYASUDA, professor at the School ofScience and Engineering, WasedaUniversity. One of this PromotionConference’s missions is to supportthree high-data rate (HDR) satellitecommunications experiments jointlyconducted by Japan and Europe, Ja-pan and the U.S., and Japan and theRepublic of Korea, that are to verifythe feasibility of HDR satellite com-munications technologies over anadvanced info-communications in-frastructure. Another mission is topromote experiments on satellite-based applications in Japan.

1) Roles and structure ofthe Conference

The Promotion Council is com-prised of experts, satellite communi-cations carriers, communicationsequipment manufacturers, inter-ested organizations, etc. Its purposeis to create a satellite testbed neces-sary for the experiments and to con-tribute to the smooth promotion ofsatellite communications experi-ments using the testbed. (See Fig.VII-5.)2) Experiment plani) The Japan-U.S. experiment group

As part of G7’s “Global Interoper-ability of Broadband Network”(GIBN) project, this experiment ispromoted by the CommunicationsResearch Laboratory (CRL) and theU.S. National Aeronautics and SpaceAdministration (NASA) as key ac-tors, in collaboration with industries(communications businesses, manu-facturers, etc.) and universities.

As Phase 1, the “high-definitionvideo postproduction experiment”was conducted in March 1997 with

success. In May 2000, as Phase 2,various communications experi-ments were made by expandingtransmission capacity to 155 Mbpsand using ATM high-speed satellitelinks with success.ii) The Japan-Europe experiment

groupA group representing the Japanese

side in the Japan-Europe Joint HDRSatellite Communications Experi-ments is also part of GIBN. Experi-ments (Japan-Europe Gamma: JEG,which links Japan and Europe viaHDR satellite circuits) are carried outprimarily by the CRL and the Euro-pean Space Agency (ESA), in col-laborat ion wi th the ESA- ledGAMMA (Global Architecture forMulti-Media Access) project.

In Phase 1 (from July 1997 throughNovember 1999) of the project, vari-ous experiments utilizing 2Mbpslinks were successfully closed.iii) The Japan-Republic of Korea ex-

periment groupAt a Japan-Republic of Korea Bilat-

eral Consultation held in April 1995,Japan’s proposal to conduct the In-ternational Joint High-speed Com-munications Experiments linkingAsian countries/areas gained con-sensus. Based on the High-DataRate Satellite Communications Ex-periment Project agreed with KoreanMinistry of Information and Com-munication in September 1997, inPhase I between November and De-cember 2000, various experiments

• Earth radio propagation• Experiments in multimedia

communications • Data transfer for applications• TV conferencing

Communications satellite

Goal

Promotion of APII

Expected results

Content of project

Asia-Pacific regionJapan

Fig. VII-6 POST-PERTNERS

2001 Annual Report

14

Asia-Pacific Information Infrastruc-ture (APII) network of the future.

As the very first project of thePOST-PARTNERS, a joint experi-ment was launched in January 1997between Japan and Thailand. Sincethen, a variety of experiments havebeen conducted including a mea-surement of the characteristics of sat-ellite radio-wave propagation forstudying basic satellite communica-tions technology, a multimedia sat-ellite communications experimentusing 1.5 Mbps satellite links, a dis-

tance learning (telelearning) experi-ment by holding an internationalworkshop at which reports on thecurrent status of each country’s com-munications and cultural affairswere provided, and a telemedicineexperiment in which medical imageswere transmitted.

As of FY2000, Thailand, Indonesia,Malaysia, Fiji and the Philippines areparticipating in the project. MPHPTis going to expand the experimentsby connecting with conventional net-works.

FY2000, 70 such grants have beenmade. In addition, in order thatopinions of people with disabilities,etc. will be reflected on R&D towardmore meaningful R&D, MPHPT hasbeen holding opinion exchangemeetings between private enter-prises conducting R&D with the sub-sidies and users of the info-commu-nications equipment since FY2000.

5. Study Group on Accessibilityfor the Elderly and Peoplewith Disabilities

MPHPT, in collaboration with theMinistry of Health, Labor and Wel-fare (MHLW), studied measures forsupporting non-profit organizationspromoting use of IT by the elderlyand people with disabilities as wellas for putting R&D results of info-communications technology intopractical use for the elderly andpeople with disabilities, and com-piled a report of the “Study Groupon Accessibility for the Elderly andPeople with Disabilities” in May2001. The report advocates mea-sures for supporting non-profit orga-nizations, including i) organizinggroups engaging in Senior-Net or PCvolunteers, ii) constructing portalsites providing information on thosegroups, iii) providing lecture manu-als and education materials, and iv)improving subsidization systems toR&D on info-communications tech-nology for the elderly and peoplewith disabilities.

6. Measures for the Diffusion ofWebsites Friendly to Every-one

In FY2000, MPHPT, in order thatthe elderly and people with disabili-ties can easily access to ordinarywebsites and understand the contentthereof, created a system with func-tions to check and correct websites,which is necessary in supportingthem. From FY2001, with the coop-eration of local governments, etc.and organizations of people withdisabilities all over Japan, the min-istry is planning to conduct verifica-tion experiments of the system andto open the system to the public.

VIII. Preparation of “Information Barrier-Free”Environment

1. R&D for imaging technologyfor advanced telemedicine

The Telecommunications Ad-vancement Organization of Japan(TAO) carries out R&D on technol-ogy concerning moving picturenatural vision (the next-generationimage display/transmission sys-tem), which reproduces super-realistic images with true color,gloss and texture, based on multi-spectral imaging beyond the RGB-based systems, the foundation ofcurrent imaging systems. The sys-tem is expected to be applied tomany areas including telemedicine,electronic museum, electronic trans-action, etc.

2. Information Barrier-freeTelework Center Construc-tion Project

For the purpose of promoting ex-pansion of the job opportunities andself-reliance by utilizing IT for theelderly and people with disabilities,MPHPT has been supporting localgovernments, etc., constructing info-communications systems, etc. andconstructing Information Barrier-free Telework Centers that expandopportunities for the elderly andpeople with disabilities to partici-pate in society since FY1998. ByFY2000, four projects have been con-ducted throughout Japan.

3. Development and deploy-ment of info-communicationssystem supporting self-reliance and social participa-tion of the elderly

MPHPT, through TAO and withthe cooperation of local govern-ments, etc., has been carrying outR&D for realizing info-communica-tions systems in the welfare field tohelp the elderly. The systems ex-pected to be realized include: wide-area care support systems, which en-ables efficient provision of care ser-vices and regional welfare informa-tion, etc., and the next-generationvisiting-care support systems withwhich nurses, etc., can get the latestcare information at the homes beingvisited.

4. Subsidies to R&D on info-communications and broad-casting services for theelderly and people withdisabilities

Since FY1997, to private enter-prises, etc. conducting R&D on info-communications and broadcastingservices for the elderly and peoplewith disabilities, MPHPT, throughTAO, has been granting subsidies tocover part of R&D expenses as the“ S u b s i d y f o r R & D o n i n f o -communications and broadcastingservices for the elderly and peoplewith disabilities.” As of the end of

15

Information and Communications Policy

ming production facilities, etc., spe-cial tax incentives, no- or low-inter-est loans from the DevelopmentBank of Japan, and guaranteed obli-gation by TAO based on the “Ad-vanced Television Broadcasting Fa-cility Promotion Temporary Mea-sures Law” enforced in November1999.

2. Creating market for content

1) Measures on distribution andarchiving of content

Although the progress of multime-dia/multichannel characteristicsthrough digitalization of broadcast-ing and widespread use of thebroadband Internet is expanding de-mands for content, the distributionthereof has not been fully facilitated.MPHPT is promoting the followingpolicy measures for creating the en-vironment for facilitating the distri-bution of content.i) Verification experiments on con-

tent distribution platform (systemfor processing and managingcopyrights and neighboringrights)

Upon distribution of content, fa-cilitation of the secondary use ofcontent and prevention of illegalcopying have become urgent issues.In FY2000, TAO created copyrighttransaction and management sys-tems, carrying out verification ex-periments for realizing content dis-t r ibut ion plat forms enabl ingcontent’s smooth distribution overnetworks, verification experimentson copyright transactions by contentcreators for sales and; verificationexperiments on illegal-use detectionsystems, for embedding ID in eachcontent using digital watermark, dis-tribution over networks, and trackand search locations, etc. of said con-tent through a retrieval system.ii) Developing database manage-

ment systems for the promotionof the secondary use of broadcastprogramming

MPHPT has been conducting de-velopment of database management

systems for promoting the second-ary use of broadcast programmingthrough creation of shared databasesutilizing existing broadcast pro-gramming databases made by indi-vidual broadcast programming pro-duction companies, etc. sinceFY1999.iii) R&D for archiving broadcast pro-

grammingTAO carries out the R&D on a sys-

tem which i) digitalizes broadcastprogramming libraries (the Broad-cast Program Center) which collectand archive broadcast program-ming, ii) connects them via networkand iii) enables remote and high-speed retrieval and browsing of theprogramming. It also carries out theR&D of the system which providesrelatively short broadcast programs,such as local information programs,on demand from the viewer booths.iv) Study Group on the Formation of

Network Distribution Market ofDigital Content

While the progress of multi-chan-nel in digitalization broadcastingand expansion of in the broadbandInternet increases demands for con-tent, the smooth distribution thereofhas not been achieved since, for ex-ample, rules for regulating transac-tions of copyrights, etc. at using con-tent via networks have not been es-tablished. Based on the reality,MPHPT had been holding the“Study Group on the Formation ofNetwork Distribution Market ofDigital Content” since February2001, studied institutional and tech-nical issues for creating a copyrightmanagement system required forforming the smooth content distribu-tion market, and compiled a reportin July 2001.

3. Promotion of mobile Internetcontent

1) Toward vigorous development ofmobile content business

Against the backdrop of recent ex-plosive diffusion of mobile phones,the Internet access service of mobilephone has made drastic growth, andadvancement and diversification ofcontent business utilizing mobilenetwork are ongoing. On the other

IX. Promotion of Content

1. Advancement of the environ-ment for content production

1) Measures on the production ofcontent

Along with the advancement ofthe Internet and diffusion of digitalbroadcasting, in order for the ben-efits thereof to be fully enjoyed, ithas become necessary to create anenvironment in which diversifiedcontent is amply provided. For thatpurpose, MPHPT is promotingpolicy measures toward advance-ment of the environment for contentproduction.i) Verification experiments on con-

tent distribution platform (Net-work Collaboration)

The digital content industry is ex-pected to develop as Japan’s key in-dustry in the 21st century. In pro-ducing content, the realization of anadvanced collaborative content pro-duction environment utilizing net-works, which is employed in the U.S.and the U.K., has become a chal-lenge. For the purpose of promot-ing Japanese digital content industryand strengthening its internationalcompetitiveness, the Telecommu-nications Advancement Organiza-tion of Japan (TAO) conducted veri-fication experiments on collaborativeproduction of visual content utiliz-ing networks within the Tokyo Met-ropolitan area and between Tokyoand Okinawa in FY2000.ii) Next-Generation Intelligent Con-

tent Distribution System Devel-opment Promotion Project

As one of the “Innovative Devel-opment of Info-communications Sys-tems,” TAO carries out the R&D, byentrustment, on a content distribu-tion system which promotes the us-age of the advanced broadband con-tent using digital technologies, suchas interactive and storing functions.iii) Support for the digitalization of

broadcast programming produc-tion facilities, etc.

In order to promote early diffusionof terrestrial digital broadcasting,toward relevant broadcast program-

2001 Annual Report

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hand, the quality of content and themanner of protecting users are ques-tioned. As the third-generation mo-bile communications system (IMT-2000) service starts up, distributionof moving picture content is real-ized. The advent of diversified busi-ness methods providing more ad-vanced applications is expected, butthere is a concern that problems willbecome further complicated andgrave.

MPHPT had been holding the fol-lowing study groups and studied forthe purpose of making an environ-ment necessary for mobile contentbusiness to shoulder social liabilityand to grow:i) Study Group on Business Model

over Next-Generation MobileCommunications System

In Japan, preceding the rest of theworld, the commercial service ofIMT-2000 is launched in FY2001, andthe advent of various business mod-els providing more advanced appli-cations is being expected. In thesecircumstances, MPHPT had beenholding the “Study Group on Busi-ness Model over Next-GenerationMobile Communications System”from July 2000, studied on i) theIMT-2000, which is expected to growas a new platform of socioeconomicactivities, ii) feasibility of businessmodels based thereon, iii) its effectson people’s daily lives, industry andeconomy, iv) issues to be solved forits vigorous development and v) theroles the government should play.In June 2001, the group compiled itsfindings as a report.ii) Study Group Concerning Policies

for the Preparation of a MobileContent Business Environment

Along with the rapid growth ofmobile phone’s Internet access ser-vices represented by “i-mode,” on-line content provider business utiliz-ing mobile networks is being ad-vanced and diversified. Meanwhile,the existence of content problematicfrom the perspective of protectingminor users and the lack of transac-tion rules based on the features ofmobile terminals. Under these cir-cumstances, MPHPT held the“Study Group Concerning Policiesfor the Preparation of a Mobile Con-

tent Business Environment” forgrasping the situation of content dis-tributed over mobile networks andstudying effective measures for pro-

tecting users. In June 2001, the studygroup compiled its findings as a re-port.

X. Broadcasting Policies for the Multimedia Age

1. Approaches for promotingadvancement of cable TV

Besides retransmission of terres-trial and satellite broadcasting, cableTV operators also provide their com-munity-oriented TV programs andcommunications services such as theInternet access service, thereby play-ing an important role as an info-communications infrastructure incommunities. At the end of 2000,cable TV household subscribers ex-ceeded 10 million and the number ofcable TV Internet access service con-tractors was 784,000. These figureshave been showing a steady growth.

As digitalization progresses in theentire broadcasting media as sym-bolized by the start of broadcastingsatellite (BS) digital broadcasting inDecember 2000 and the launch of ter-restrial digital broadcasting sched-uled to start in 2003, the digitaliza-tion of cable TV, whose householdssubscribers comprise over 20% of allthe Japanese households, is also inprogress.

The role of cable TV is expected togrow even further, such as supply ofa variety of services meeting de-mands of communities, includinghigh-quality advanced broadcastingservices, various administrative ser-vices and communications serviceswhich provide the high-speed Inter-net access.

Thus, MPHPT intends to promotedissemination, digitalization andbroadband service operations ofcable TV systems through financialsupport measures and tax incentives,along with the subsidy on construct-ing cable TV facilities. In addition,from FY2001, MPHPT is taking mea-sures such as the addition of thedigital headend, which is necessaryfor transmitting digital broadcastingas one of the targets for assistancebased on the Temporary Measures

Law for Preparing Telecommunica-tions Infrastructure, as well as theestablishment of cable TV wide-areadigital investment project which pro-vides assistance for operators whointends to achieve efficient businessoperations by sharing the digitalheadends.

2. Approaches for promotion ofdigital terrestrial broadcasting

Digitalization of broadcastingbrings high-definition pictures with-out ghosts, pictures suitable for re-ception by a mobile terminal unit, di-versified services such as interactiveservice by improved affinity to com-munications services, as well as ef-fective utilization of radio waves. Inaddition, it is also expected to bringa significant economic repercussion,including expansion of the broad-casting market, and creation of ter-minal and content markets. Namely,digitalization is becoming globaltrends.

As regards the terrestrial TVbroadcasting, the “Advisory Com-mittee on Digital Terrestrial Broad-casting” has been held since June1997, and the Committee compiledits findings as a report in October1998. In the report, it is recom-mended that in the three major met-ropolitan areas of Tokyo, Kinki andChukyo, the full-scale digital terres-trial TV broadcasting is to be com-menced until 2003, while in other lo-cations, the full-scale digital terres-trial TV broadcasting is expected tobe commenced until the end of 2006.

Subsequently, the “Joint StudyCommittee Concerning Digital Ter-restrial Broadcasting” was estab-lished in September 1999, aiming topromote joint study by MPT (cur-rently MPHPT), Japan BroadcastingCorp. (NHK) and commercial broad-casters in order to deliberate on mea-sures for commencing digital terres-

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vember 2000, the Radio RegulatoryCouncil released a report on the li-censing policy, etc. for practical trialbroadcast stations, and, over the pe-riod from April through June, 2001,MPHPT accepted applications for li-cense for practical trial broadcast sta-tions which operates digital terres-trial sound broadcasting.

3. Approaches for diffusion ofdigital satellite broadcasting

MPHPT, with the aim of diffusingdigital satellite broadcasting (Broad-casting Satellite [BS] digital broad-casting and Communications Satel-lite [CS] digital broadcasting), tookthe following measures:1) Start of BS digital broadcasting

Since it started in December 2000,BS digital broadcasting is not onlyproviding the digital high-definitionTV broadcasting with realistic sen-sations, but is also providing broad-casting services capitalizing on digi-tal features, including a variety ofversatile and convenient data broad-casting and digital sound broadcast-ing that offers CD-quality sound.

For the diffusion of BS digitalbroadcasting, upon start of BS digi-tal tuner built-in TV sales in June2000, trial broadcasting beganmainly for demonstration at shops.At the G8 Kyushu-Okinawa SummitMeeting 2000, BS digital tuners wereset up at open reception sites for thepublic and major post offices in Oki-nawa and elsewhere throughout Ja-pan to broadcast the Summit Meet-ing. The live broadcast of the high-school baseball championship inAugust and Hi-Vision (high-defini-tion TV: HDTV) programming overthe period from September to No-vember were also broadcast by thedigital system. The Sydney Olym-pic Games in September were alsobroadcast by digital HDTV broad-casting.

With the start of BS digital broad-casting, the Association for Promo-tion of Satellite Broadcasting, whichfalls under the jurisdiction ofMPHPT and consists of program-supplying broadcasters and receivermanufacturers, started engineeringbroadcasting for improving func-

tionality of the receivers and alsotheir operations for the promotion ofthe penetration of BS digital broad-casting. The Association will makefurther efforts with an eye toward“10 million household subscriptionsin 1,000 days after start of the broad-casting.” MPHPT for its part willwork to raise public awareness con-cerning the diffusion of BS digitalbroadcasting, while assisting thosebroadcasters in their public relationsefforts.2) East longitude 110 degree CS digi-

tal broadcastingCS digital broadcasting has been

offered by using three CSs (in thegeostationary orbit at East longitude124, 128 and 144 degrees). In addi-tion to them, in October 2000, a CS(N-SAT-110) was launched at Eastlongitude 110 degree, the same orbitlocation as the Second Launcheddigital BS-4 satellite. Subsequently,MPHPT developed frameworks forthe broadcasting via CS.

For technical standards, from thestandpoint of viewers’ benefits andsound penetration of the CS broad-casting, MPHPT considered the pos-sibilities of expanding the CS digitalbroadcasting systems. As a result,MPHPT added a broadcasting sys-tem almost identical with the BSdigital broadcasting system to a listof CS digital broadcasting systemsand decided to employ it for the Eastlongitude 110 degree CS digitalbroadcasting.

Furthermore, for the East longi-tude 110 degree CS digital broad-casting, MPHPT adjusted regulatoryframeworks through frequency allo-cation and formulation of approvalpolicy, etc., while requiring that dueconsideration be given to the realiza-tion of highly functional servicescapitalizing on the characteristics ofdigital broadcasting and to the pro-motion of those services.

Against the backdrop of this situ-ation, in September 2000, SpaceCommunications Corp. and JSATCorp. were approved as facility-supplying broadcasters, and 18 pro-gram-supplying broadcasters weredecided in December 2000. Theywill start operations from the springof 2002. In particular, highly func-

trial broadcasting. In April 2000, themembers of the Committee, prior tothe shift to digital terrestrial broad-casting, shared a common under-standing that includes i) the numberof households to be affected by theanalog frequency changes as causedby the required change in frequen-cies allocated for existing analogbroadcasting in some regions, ii)costs to deal with such effects and iii)a draft broadcast channel allotmentplan for main stations all over Japan.Based on these considerations at theCommittee, MPHPT requested bud-gets required to cover such costs in-volved in the analog frequencychange in the FY2001 budget, andapproximately 12.3 billion yen wasapproved. In connection with this,the “Law to Amend the Radio Law”was passed the Diet in June 2001 toallow implementation of measuresfor the frequency changes in analogbroadcasting as a task associatedwith the change of specific frequen-cies. Also, in June 2001, the Commit-tee reached a common understand-ing on a draft broadcast channel al-lotment plan for large-scale digitalrelay stations throughout Japan.

MPHPT instituted tax incentivesand financial support measures toalleviate the burden of capital invest-ment for digitalization at broadcast-ers and to put digital broadcastinginto widespread use at an earlystage. Furthermore, in May 1999, the“Advanced Television BroadcastingFacility Development PromotionTemporary Measures Law” thatstipulates provisions of measures forpromoting construction of digitalterrestrial TV broadcasting facilities,passed the Diet to pave the way forbroadcasting audience enjoyment ofdigitalization benefits.

As for the digital terrestrial soundbroadcasting, the Telecommunica-tions Technology Council releasedpartial reports in November 1999 onthe technical requirements for thedigital terrestrial sound broadcast-ing system and on the technical re-quirements for installation of digitalterrestrial broadcasting stations. Inresponse to them, MPHPT formu-lated technical standards in Decem-ber 2000. On the other hand, in No-

Information and Communications Policy

2001 Annual Report

18

tional services such as storage-typedata broadcasting and interlockingto the Internet are foreseen.

Besides, MPHPT requested theAssociation of Radio Industries andBusinesses (ARIB), which is respon-sible for developing private stan-dards for digital broadcasting receiv-ers, to formulate digital DTH tech-nical standards as well as to developcommon terminals, allowing for re-ception of both BS digital broadcast-ing and East longitude 110 CS digi-tal broadcasting with a single an-tenna and a receiver. The advent ofsuch terminals is eagerly being an-ticipated.

4. Progress Report of a “StudyGroup on BroadcastingPolicy”

Chapter 1. Environmental changes sur-rounding broadcasting

I. BackgroundThe environment surrounding broad-

casting has changed noticeably alongwith rapid technological innovation inthe info-communications field, as high-lighted by the advent of services, suchas data broadcasting, Internet broadcast-ing, etc. that are radically different fromtypical broadcasting and communica-tions of the past.

It is necessary to consider what abroadcasting system should be in lightof such a situation.II. Period for study

It is necessary to bring into view thechanges in social situations, such aslong-term trends of technology and ser-vices, but regulatory frameworks do notneed to be capable of coping with allforeseeable technological developments.Study is made on the basis of the needto review the regulatory frameworksflexibly, in response to trends in the ser-vices.III. Convergence of communications and

broadcastingAt least for the time being, it is appro-

priate to study supposing the currentregulatory frameworks for communica-tions and broadcasting would remainvalid. It is, however, necessary to pro-mote proper policies toward conver-gence of communications and broad-casting.

Convergence of communications andbroadcasting consists of i) servicemerger, ii) switching merger, iii) busi-ness merger and iv) terminal merger.

III-1. Service merger- Data broadcasting has been catego-

rized as broadcasting. However,studies are necessary if it is appropri-ate to impose the same regulations ondata broadcasting as imposed uponother types of broadcasting.

- It is necessary to deliberate on theconcept of broadcasting and studythe adequacy of current classificationof broadcasting and communicationsin the future including proceduraladjustment, by referring to cases inforeign countries.

- Accompanying services that are notoffered for viewing, such as an engi-neering slot, do not need to be regu-lated, however, it is necessary to for-mulate measures to ensure equitableoffering.

III-2. Switching merger- By allowing more flexible use of trans-

mission facilities for CS digital broad-casting, cable TV, etc., it is necessaryto develop regulatory frameworks toallow smoother unbundling of trans-mission facilities and content distri-bution.

- It is appropriate to treat the afore-mentioned regulatory frameworkdevelopment as strictly tentative andto undertake a review thereof at anappropriate time.

- Regulations concerning content areto be studied further.