OLYMPUS TECHNOZONE Vol.56 2003-01

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Under the e-Japan five-year plan, broadband is advancing rapidly

Sumio Kawai Tomonori Aoyama
Sumio Kawai
Tomonori Aoyama
Sumio Kawai
Saito: 
Professor Aoyama's major expertise is in the field everyone refers to as the next-generation communication infrastructure. That is, optical fiber networks and other broadband transmission systems that can provide high-speed and high-volume communication. The project to lay the foundations of a high-speed network within five years, the e-Japan five-year plan, was launched in 2001. This is expected to bring great benefits to the Japanese economy. I wonder how you see things developing?

Aoyama: 
Looking at it from the business perspective, the situation has become very severe. Some people are calling it a 'telecomms winter'. In America, the IT bubble burst and this has driven many communications companies and ISPs (Internet service providers) into bankruptcy. Financial crises have also afflicted communications companies in Great Britain, France, and Germany. Here in Japan, too, the situation is rather severe especially at NTT, and the only bright spot has been the mobile phone business.

Sumio Kawai How fast is broadband transmission?
Sumio Kawai
How fast is broadband transmission?
(click on image to expand it)
Sumio Kawai
Kobayashi: 
Even so, the volume of information traffic on the Internet has been rapidly expanding.

Aoyama: 
Yes, high-speed Internet services, which we generally call broadband, have made rapid advances in Japan. It has been estimated that people in more than 5 million households have access to ADSL or CATV lines that provide speeds ranging from a minimum of 500 kbps up to 8 Mbps. Although the number of users is still small, even FTTH (fiber to the home), billed as the ultimate Internet access method, now has around 80,000 subscribers. In an attempt to help revive Japanese industries, which have been hit hard since the collapse of the bubble economy, the government has proceeded with its e-Japan scheme based on IT. It has mapped out measures to lay an infrastructural foundation with the aim of providing 30 million households with high-speed (including ADSL) Internet access and 10 million households with FTTH by the end of 2005.

In most large urban areas, optical cables have already been laid underground. A network infrastructure is now in place so that users who apply for FTTH can be connected to the service promptly by extending a fiber from the main cable via an utility pole to their residence.


Saito: 
However, it is true that there are still only 80,000 subscribers at this time.
To what extent do you think the user base will expand given the status of the fiber network infrastructure in large cities?

Aoyama: 
I can see it spreading in larger metropolitan areas such as Tokyo and Osaka down to cities where prefectural offices are located. NTT and other telecommunications companies, electric power companies, and local self-governing bodies are also actively working to lay fiber cables in underground utility tunnels. Along with the spread of the fiber infrastructure, Yusen Broad Networks and other venture companies have recently come on the scene. At the same time, competition has reduced joining fees and monthly charges. Japan now has the cheapest broadband tariffs in the world. People complained that high usage charges delayed the uptake of the Internet in Japan, but that is simply not true of broadband. Now the situation is such that, in Japan, you can use the Internet at the cheapest fixed monthly charge in the world.

Saito: 
I too am very surprised at the way prices have been falling rapidly. But how many people are generally aware of this?

Aoyama: 
Well, that's probably true. The question is what we can expect from 100 Mbps high-speed services. Isn't ADSL fast enough? You know, 8 Mbps is probably just about right for browsing the web and, if motion pictures are compressed by MPEG or other methods, it's possible to watch movies with the same quality as video.

Saito: 
So, in the end, motion picture services are the key, aren't they? Once you can view video easily without stress, there's no going back.

Kobayashi: 
With 100 Mbps FTTH, you could see Hi-Vision aired in real time. It is becoming more and more important to provide high-quality content that can fully exploit this high-speed communication infrastructure.

Aoyama: 
Absolutely, that is crucial. There is another thing: whether or not the owners of content can supply it over a network without concerns. We still have to deal with authentication and fee collection - essential to any fee-paying system - security for copyright protection, and other issues. The biggest challenge here is to establish a system by which an owner who has interesting and useful content can supply this content to a provider and secure a return on investment.
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