1. Future Telecommunication of Japan Yoshiyuki Sukemune Naoshi Sato Communications and Information network Association of Japan November, 2007

2. 2 Contents 1.Broadband Services 2.Mobile Communication Services 3.Next Generation Networks

3. 3Contents 1.Broadband Services

4. 4 Fixed BB Service: Sub’s in Japan (Yr/Mth) Source: MIC (Ministry of Internal Affairs & Communications) Total 12.214.917.619.621.423.325.126.427.2 Diffusion rate per household 25.9%31.7%37.4%41.6%45.5%47.1%50.7%53.3%54.9% (Million sub’s)

5. 5 Fixed BB Services: Fee & Speed Monthly Charge (US$) Max. Speed (Mbps) previouscurrent DSL Approx. 23 to 28 8-12 Down 12-50 Up 2-5 FTTH32 to 47100Up & Down 100 CATV28 to 378-10 Down 30-160 Up 2-10 Exch Rate: 1US$ / 120JPY Source: MIC

6. 6 Contents 2. Mobile Communication Services

7. 7 Growth of Mobile Com. Sub’s Million Sub’s Source: TCA (FY) 1999 Start of mobile internet access service 2000 First mobile phones with cameras 2001 Start of 3G service 3G (72%) With built-in camera 85%) Internet accessible (87%) Number of mobile phone subscribers Aug. HSDPA Oct. MNP

8. 8 Contents provider Information charges Commission fee (9% of Information charges) Information Users Mobile Carrier Packet communications charges Business Model of Mobile Internet Service NowHereafter Information charge Official site: Fixed rate All-in-one fixed rate Unofficial site: Free / Direct payment to ICP PC site: Pay-per-use Communication charge Pay-per-use

9. 9 Diverse Applications Communication Tool Communication Tool Entertainment Gear Entertainment Gear Int’l roaming  151 countries Life Kit Mail  Up to 2MB data attachable  Plenty of pictogram preinstalled Push to Talk  Up to 20 people Music  1.5M Tunes with flat monthly charge Games  Up to 1MB program Digital TV Broadcast “One Seg.”  Free  Available in urb Info services  Weather, stock quotes, restaurants, events e-wallet – m-commerce  Ticket & Seat reservations  Trading stocks  Functions as train- passes, tickets, keys  Credit card functions Security  Authentication

10. 10Contents 3. Next Generation Networks

11. 11 Transition of Telecom Networks Current networksNext generation networks IP 網 PSTN Mobile phone network PCs Subscriber phones (IP phones) Cell phones PCs Subscriber phones (IP phones) Cell phones TVs IP network NGN Broadband Switching systems Routers Full IP-based SIP IMS

12. 12 NTT’s Roadmap for NGN FY20062007 2008- Building relay network Field trials relay nodes optical wave length transmission devices NGN Implementa- tion Service Launch Core network Service Control Functions Building subscriber networks edge nodes Seamless access with mobile networks Service control functions by IMS (ITU standard conformance) Full-scale NGN Field trial service (areas, users limited) Broadband Internet access IP phone IP-Multicast services 2-way video (data) communication Ethernet services, etc. STEP1 STEP2 STEP3 FTTH users: 30 mil. (Mar., 2011)

13. 13 Challenges for NGNs - 1 Convergence of Telecom & Broadcasting Termination of analog TV in 2011 Different Laws for Telecom and Broadcasting Copyright Limitation on Network Transmission for TV Program Coordination among Stakeholders’ Interests CATV operators Telecom carriers Broadcasters Cable RF (Wireless) NGN

14. 14 Current Model (Vertical Type) Broadcasting Competition Rules for IP-based Telecom Industry Network Neutrality - - Changes in Business Model IP-based (Horizontal Type) TelecomCATV Contents Platform Networks (NGN) ICPs ISPs Telecom Carriers Universal Service --- Expansion of Communication Media Voice Communications   IP Phone, Mobile Phone, BB? FMC --- Inside Conflict among Telecom Carriers Challenges for NGNs - 2

15. 15 Access fees Challenges for NGNs - 3 NTT vs Other Telecom Carriers Explosive growth of P2P traffic by high speed, low fixed rates

16. 16 New Generation Network ICT Industry Renovation Creation of Unconventional Business NEW INDUSTRIAL STRUCTURE Evolution toward Ultra Hi-productive Society