1. Development of the Access Environment in Japan and Future Policy Themes 2nd IGF Meeting November 13. 2007 KIYOSHI MORI Vice-Minister for Policy Coordination Ministry of Internal Affair and Communications, JAPAN Qualifying, Quantifying, and Meeting the Challenge of Internet Access Cost

2. 2 FTTH 8,803,898FTTH ＦＷＡ 11,632ＦＷＡ 8,803,898 11,632 14,013,248 3,609,625 CATV CATV ＤＳＬ 14,013,248ＤＳＬ ※ As of April. 2007 【 Number of Telecommunication Service Users 】 （ Unit: 10 thousand ） Fixed Communications Mobile Communications High/Ultra-High-Speed Internet IP Telephone Transition in the Number of Japan’s Broadband Subscribers 【 Number of High/Ultra-High-Speed Internet Service Users 】

3. 3 Source ： ITU Internet Reports 2006 ”digital.life” （ December 2006 ） Broadband prices (100kbit/s) (US dollar) Japanese Broadband Service in Global Comparison Speed of DSL （ Mbit/s ）

4. 4 Mobile Phone Users in Japan IMT-2000 2001 Start of IMT-2000 service 69.1M 75.66M 81.52M 87M 91.79M 96.72M 98.88M IMT-2000 70 Million (72%) Internet Connection 84 Million (87%) Internet Connection （ Million subscribers ）

5. 5 Steps Taken in Japan on ICT Strategies 20012003200420052006 e-Japan Priority Policy Program (March 2001) e-Japan Strategyu-Japan Policy of MIC e-Japan Priority Policy Program - 2002 (June 2002) e-Japan Priority Policy Program - 2003 (August 2003) e-Japan Priority Policy Program - 2004 (June 2004) Realizing a Ubiquitous Network Society e-Japan Strategy (January 2001) e-Japan Strategy Ⅱ (July 2003) e-Japan Strategy II Acceleration Package (February 2004) IT Policy Package (February 2005) New IT Reform Strategy (January 2006) ◆ IT Basic Law ◆ Establishment of IT Strategy Headquarters (Director General: Prime Minister) u-Japan Promotion Program ２００６ （ September 2006 ） u-Japan Promotion Program ２００６ （ September 2006 ） Realization of a self-sustaining ICT Society New IT Reform Strategy Policy Package (April 2007) 2007 Priority Policy Program - 2007 （ July 2007 ） Priority Policy Program - 2006 （ July 2006 ） 2010

6. 6 Results of e-Japan Strategy Results of e-Japan Strategy ◆ Trends in broadband usage charges and contracts Infrastructure 7,800yen 2,600yen Approx.22 million contracts （円 ） Approx.0.9million contracts ◆ Rate of HP publishing in public schools Life ・ Human resources Approx. 30% Approx. 76% Approx. 2.5 times ◆ Percentage of national procedures that can be performed by electronic application and notification e-Government １％ ９６％ ◆ Internet trading rate on the stock market e-Commerce ※ Buy/sell price total base Approx. 6% Approx.32% Usage Charge :Approx.1/3 Subscribers ： Approx.26 times Approx. 5.4 times (Trends in monthly usage charges for DSL)

7. 7 Summary of u-Japan Policy By the year 2010, 100% of the population to have high-speed or ultra-high-speed Internet access. By the year 2010, 80% of the population to appreciate the role of ICT in resolving social problems. By the year 2010, 80% of the population to feel comfortable with ICT. u-Japan policy Package （ 2005 ） 1. Development of ubiquitous networks Preparation of broadband infrastructures on a nationwide basis Preparation of an environment having seamless access to wire and wireless networks Promotion of content creation, distribution and use 2. Upgrading the usage of ICT Promotion of introduction of universal designs Promotion of “21 strategies for ICT’s Safety and Security” 3. Improvement of the environment for the usage of ICT Formulation of the "Charter for Ubiquitous Network Societies" Regional divide exists when about 10% of municipalities don’t have access to broadband. 45% of ICT users value ICT as useful for problem solution. About one third of users feel insecure when using the Internet. （ 2010 ） target Present Status

8. 8 Impact of the ICT industry on economic growth 〈 Contribution of ICT industry to the Changes in Real GDP 〉 出典：平成１９年度情報通信白書 More than 40% of real GDP growth is driven by the ICT industry The contribution of ICT industry growth to the national economy is tremendous. The ratio of contribution to the growth of GDP in Japan is 42.4%. 1998200420052006200719992000200120022003 Real GDP growth ICT industry Real GDP growth ratio Other industries

9. 9 （２） Freedom to choose Networks （１） Measures to respond to increase in traffic Policies related to diversifying content and increasing access Future Tasks related to advancements in Internet access （３） Secure/ safe use of the internet

10. 10 [Gbps] (Ref.2) Monthly average of daily traffic exchanged at major IXs in Japan Estimated download traffic of broadband users in Japan （ source: MIC Japan) The total amount of IP traffic in Japan was estimated at 721.7Gbps (May 2007), which accounts for about 1.4 times more than that of the previous year (523.6Gbps). Necessity for enhancing network capacity is increasing. The total amount of IP traffic in Japan was estimated at 721.7Gbps (May 2007), which accounts for about 1.4 times more than that of the previous year (523.6Gbps). Necessity for enhancing network capacity is increasing. IP Traffic on the Networks (Total Volume) (Ref.1) Monthly average of daily peak traffic exchanged at major IXs in Japan Monthly average of daily traffic of broadband customers (ADSL/CATV/FTTH) of major ISPs in Japan 238.6Gbps (2007.5) 167.0Gbps (2007.5) 306.0Gbps (2007.5)

11. 11 Freedom to Choose Networks B D C X QoS may differ according to the network Interconnection among ISPs Session Control Authentication Security Charging Edge node Core node Optical access Other accesses Wireless LAN collaboration Next Generation NetworkInternet ubiquitous network Networked home appliances TVs Telephones Cell phones PCs E A Tier 1 collaboration Security and anthentication system may depend on applications used in terminals Applicationfunction Platform/Servicefunction Network function function （ transmission) Core Networks Access Networks Application Servers Content delivery Video phone ･･･････

12. 12 MIC’s Efforts to Ensure Reliability of Information and Communications networks Ⅱ Development of human skills Ⅲ Measeues to cope with diversification of goods connecting to networks Ⅰ Making robust and reliable networks Measures against cyber-attacks Promotion to share information between telecommunications carriers Implementing exercises against cyber-attacks Improvement of security management Enhancement of educational activities on security Ensuring security in the era when consumer electronics are connected to networks R&D for preventing information leaks R&D on the cryptography and authentication systems

13. http://www.soumu.go.jp k-mori@soumu.go.jp Ministry of Internal Affairs and Communications (“MIC”), Japan MIC Thank You ! ©2007 Ministry of Internal Affairs and Communications. All Rights Reserved.