Trends of Informationand CommunicationsPolicies

1 Development ofTelecommunications Policies(1) Study on ideal method of calculating connectioncharges from fiscal 2005 onward

The diffusion of mobile phones and rapid rise of IPphones have dramatically changed the environment sur-rounding fixed line telephones, such as the considerableand continuous decrease in the traffic from fixed linetelephones. In light of this situation, the MIC consulted

the Telecommunications Council in April 2004 about anideal method of calculating connection charges from fis-cal 2005 onward. In response, the council submitted areport on the calculation method of connection chargesand the handling of the non-traffic sensitive (NTS) costs(the costs that arise irrelevant to the amount of traffic),among other matters.

Based on this report, the MIC revised the regulationsfor interconnection charges and started applying the newconnection charges in April 2005.

1 Promotion of the national ICTstrategy

Recognizing that the first-phase targets of the ICTstrategy are in the process of being achieved, the ITStrategic Headquarters evolved the strategy into the sec-ond phase—the expansion of IT use—and in July 2003formulated e-Japan Strategy II. For the realization of an“energetic, worry-free, exciting, and more convenient”society, e-Japan Strategy II takes up seven areas for lead-ing efforts including medical care, food, and administra-tive service.

In an effort to securely implement e-Japan Strategyand e-Japan Strategy II, the IT Strategic Headquartershas formulated the e-Japan Priority Policy Programevery year, clearly indicating the concrete measures, thecompetent ministries and agencies, and the time limit forthe implementation. In June 2004, the e-Japan PriorityPolicy Program - 2004 was drawn up. The e-JapanPriority Policy Program - 2004 has two aspects: a priori-ty policy program to ensure the achievement of the 2005goals (last program) and a priority policy program toserve as strategic steps for goals in 2006 and beyond(pre-program). Furthermore, since 2005 is the year forattaining the goals of the e-Japan Strategy, the ITStrategic Headquarters laid down the IT Policy Package- 2005 in February 2005 to put forth the last spurt from auser perspective without slowing down the efforts todate. This package mainly contains measures in fieldsfamiliar to people’s lives, such as administrative service,medical care, and education.

2 u-Japan PolicyIn order to study measures and challenges toward

achieving u-Japan, the MIC established the PolicyRoundtable for Realizing a Ubiquitous Network Societyin March 2004 and compiled the “u-Japan Policy” inDecember of the same year.

The basic concept of the u-Japan Policy stands onthe following three principles.

First is the development of ubiquitous networks.While conventional infrastructure development had cen-tered on wire communications, a shift from narrowbandto broadband such as DSL, CATV, and optical fiber, theu-Japan Policy aims at building seamless ubiquitous net-works where users need not be conscious of whether thecommunication is wired or wireless.

Second is advanced use of ICT. Conventionally, useof ICT was often intended for pioneering digitization orboosting up digitization wherever lacking. However, theu-Japan Policy focuses on using ICT to resolve socialproblems.

Third is upgrading an enabling environment. Thespread of ICT to all areas of daily life could furtherincrease concerns and obstacles that are already emerg-ing in the cyber society and generate new unexpectedproblems. In order to clear these problem in advance, theu-Japan Policy includes drastic measures in the area ofuse environment.

Through implementation of the policy based on thesethree principles, the u-Japan Policy aims to achieve a“value-creating” society where ICT penetrates every cor-ner of life like grassroots and various new values aregenerated through creative ICT use.

Ch

ap

te

r3

55

Section 1Realizing a Society of Advanced Information andCommunications Networks

Section 2Development of Information and CommunicationsPolicies

Ch

ap

te

r3

56

(2) Study on ideal basic monthly charges and installa-tion fees

Upon consultation with the TelecommunicationsCouncil in April 2004, a study was also conducted onthe ideal basic monthly charges and installation fees inorder to examine the handling of NTS costs. The councilcompiled a report on ideal basic monthly charges andinstallation fees among other matters in October of thesame year. Based on this report, NTT East and NTTWest revised their basic monthly charges in January2005 and their installation fees in March of the sameyear.

(3) Study on the ideal Universal Service Fund SystemThe Universal Service Fund System was introduced

in June 2002 to ensure provision of telecommunicationsthat are essential for national life throughout Japan. Ithad been decided from the beginning that the systemshould be reviewed about two years after its introduc-tion, with necessary measures to be taken based on theresults. Since then, the number of mobile phone sub-scribers has exceeded the number of fixed line telephonesubscribers and the use of IP telephones has rapidlybecome widespread. In addition, competition in thetelecommunications field is likely to further intensify inthe future due to the expected growth of new fixed-linetelephone services called chokushu-type services, inwhich subscribers call without using NTT’s switchingnetwork, and the reduction in the basic monthly chargesand the installation fees of NTT East and NTT West.Against this backdrop, in November 2004, MIC request-ed advice from the Telecommunications Council onfuture policies for an ideal Universal Service FundSystem, including issues such as the scope of universalservice, the method of calculating the cost for providinguniversal service, and the method of financing this cost.

(4) Implementation of the competition review in thetelecommunications field

The MIC started a measure called “the competitionreview in the telecommunications field” in fiscal 2003 inorder to accurately understand the competition status ofthe telecommunications field, which is becoming evercomplex with the introduction of IP and broadband net-works, and to reflect it in the policy. The competitionreview in fiscal 2004 covered not only “Internet connec-tivity” and an “intra-company network,” which had beensubject to the fiscal 2003 review, but also “mobile com-munications” and “IP telephones” for analysis and eval-uation. Since increased convergence of these serviceswould affect not only terminals but also network config-urations, the MIC analyzed and evaluated the competi-tion status while watching the future relationship amongthe three services—broadband, mobile phones and IPtelephones.

(5) Dispute settlement between carriersThe telecommunications field is seeing the occur-

rence of complicated disputes between carriers in linewith the advancement/diversification of services andincreased use of IP networks. Therefore, theTelecommunications Business Dispute SettlementCommission presents flexible and reasonable resolutionsfor individual dispute cases from the viewpoint of thepublic benefit status of telecommunications services anduser protection even if there were no existing rules.Furthermore, when the commission finds that rules haveyet to be developed in the course of dispute settlement ordeliberation of matters consulted on by the Minister forInternal Affairs and Communications, it recommends tothe minister that new rules be developed, as well asexpects the minister to develop new rules based onprecedents accumulated by the commission. The com-mission processed 37 cases and made two recommenda-tions to the Minister for Internal Affairs andCommunications by the end of fiscal 2004.

Such formal dispute settlement procedures haveaccomplished certain results, but in order to enhance thesystem for offering information on a dispute settlementprior to entering such formal dispute settlement proce-dures and to provide appropriate advice to telecommuni-cations carriers that come to seek opinions on variousmatters, the commission opened the“Telecommunications Business Dispute SettlementConsultation Desk” in December 2004, and offersappropriate suggestions on dispute settlement means.

2 Development of broadcastingpolicies(1) Promotion of digital broadcasting

The digitization of broadcasting will dramaticallychange the conventional viewing mode where viewersreceived one-way services, and generate a viewing stylein which people, or viewers, actively take part in the ser-vice. By providing a wide array of advanced servicesthat could not be provided through conventional broad-casting, the digital broadcasting enables various viewingmodes that could not have been imagined in the analogtechnology phase, as well as significantly improves theusability of the radio spectrums, which are people’scommon resources, and opens up the possibility for yetmore advanced use.

In order to realize a complete shift to digital broad-casting in 2011, the MIC is promoting digitization of allbroadcasting, while coordinating with the NationalConference for Promotion of Terrestrial DigitalBroadcasting.

(2) Advanced use of terrestrial digital broadcasting inthe public service field

The MIC sought advice from theTelecommunications Council on ideal future use of ter-restrial digital broadcasting in a wide range of fields,challenges and solution measures toward achieving suchuse, and the role that should be played by administrationin January 2004, and received an interim report in July

Ch

ap

te

r3

of the same year. In response to this report, the MICplans to construct a model system assuming advanceduse of terrestrial digital broadcasting, and implementpilot projects for developing new services that utilize theadvanced functions of terrestrial digital broadcasting,such as broadcasting for mobile terminals and server-type broadcasting.

(3) Addressing various challenges pertaining to digiti-zation of broadcasting

It is expected that advanced use of a digitized broad-casting infrastructure, development of new services incollaboration with sophisticated information and com-munications networks, enhancement of ubiquitous envi-ronment for using broadcasting, and use of contents suchas broadcast programs under a digital environment willall make smooth progress, and that broadcasting willgreatly contribute to increasing convenience in people’slives, constructing a vigorous economy and society, andcreating new culture through its digitization. Under suchan environment, the MIC set up the Study Group for theDevelopment of Digitization and Broadcasting Policy inJuly 2004, and examines the development of digitizationand new broadcasting services, public broadcasting inthe age of digital broadcasting, and broadcasting con-tents in the digital age, so as to smoothly shift to digitalbroadcasting and develop broadcasting that can preciselymeet the diverse needs of the people/viewers.

(4) Future of radio broadcasting in the digital ageWhile many local stations face severe business con-

ditions amidst rapid changes in the environment sur-rounding terrestrial radio broadcasting, test broadcastingfor practical application of digital radio broadcasting waslaunched in Tokyo and Osaka in October 2003, andexpectations are growing for digitization of terrestrialradio broadcasters. In light of this situation, the MIC hasbeen studying the basic role of terrestrial radio broad-casting in the digital age, measures for the developmentof a business model for terrestrial radio broadcasting inthe multimedia and digital age, and the future of terres-trial radio broadcasting that takes the above into consid-eration at the Consultative Group on the Future Image ofRadio Broadcasting in the Digital Age since September2004.

(5) Review of the restriction of foreign investment atbroadcasting stations

Terrestrial broadcasting, using public radio spec-trums which are national assets, is finite and scarce innature, and plays a large role in conveying informationthat is indispensable to people’s lives at times of disaster,etc. It is even positioned as a designated local publicinstitution in the Disaster Measures Basic Law.

In response to the changes in situation in recentyears, such as an increase in incoming investment inJapan and rapid changes in the styles of shareholdingand capital contribution, the MIC submitted a bill par-

tially amending the Radio Law and the Broadcast Law tothe 162nd session of the Diet in April 2005 in order tointroduce regulations on indirect investment in additionto the current regulations on direct investment withregard to foreign investment in terrestrial broadcasting.

3 Promotion of policies concerningeffective radio spectrum use

In order to build a wireless broadband environment,it is essential to enable the use of large amounts of radiowaves for mobile communications systems, wirelessLAN, and other core elements of the environment.Therefore, MIC formulated and released the “Guidelinesfor Radio Spectrum Reallocation” in October 2003, set-ting forth the basic concepts of the radio spectrum reallo-cation. In this policy, MIC indicates its plan to examinereallocation to secure a spectrum of about 330 to 340MHz in bandwidth, mainly in the 1.7 GHz band and 2.5GHz band, for mobile communications systems in themedium term (within five years).

In addition, the Radio Law was amended in 2004 inorder to introduce a benefit system for existing radiospectrum users whose frequency use will come to anearly end to assist with expenses that normally arisewhen the said period of use comes to an early end, fromthe viewpoint of facilitating prompt frequency realloca-tion.

With regard to wireless systems for joint use such ashigh-output outdoor wireless LAN, the MIC implement-ed deregulation and introduced a post-check registrationsystem in place of the existing pre-check licensing sys-tem, while maintaining the spectrum order. With theintroduction of the registration system, it becomes possi-ble to register radio stations with the same mode of usein a batch while radio stations had to be individuallylicensed based on detailed information in the past. Inaddition, individual radio stations can be freely estab-lished based on registration (reporting detailed informa-tion ex post facto). In this manner, this revision will dra-matically expedite and simplify the procedure for open-ing a radio station, and is expected to promote free use ofradio spectrums.

With respect to the Spectrum User Fee System, morethan 12 years have already passed since its introduction,and circumstances surrounding radio spectrum user feeshave dramatically changed, including development ofbusinesses that use radio spectrums for such devices asmobile phones or wireless LAN. Therefore, the MICexamined the revision of the Spectrum User Fee Systemat the Study Group on Policies Concerning the EffectiveRadio Spectrum Use, and based on the proposals by thestudy group in October 2004, submitted a bill to amendthe Radio Law to the 162nd session of the Diet inFebruary 2005 (Figure 3-2-1).

57

Section 3Upgrading Information and CommunicationsNetworks

Ch

ap

te

r3

58

Figure 3-2-1 Review of the Spectrum User Fee System

[Current system] [Proposed system]

�� �������� �� � �� �� ��� �

������ ����� �� ��� ���� ����

�� �� �� ���� �� ������ ����

���

Technical experiment to es-tablish technical regulations for more effective use of ra-dio spectrum

Monitoring and correction of radio usage

Operation of Radio Station Database

Analog frequency conver-sion etc.

Monitoring and correction of radio usage

Operation of Radio Station Database

Analog frequency conver-sion etc.

R&D for the expansion of ra-dio spectrum resources

�������� ������� � �����

���� �������� ������� �� � �

� � ������ �� � ����

�������

The expansion of possible areas of use for mobile phones and related devices

�� � � �� ���� � ����

��������

・��� � � ����� �

・����������� ���� �� ���

�� ��� � �� � ��� � �������

�� ��

!������������ � ���

� � ������� ����

�����

�������

����� �

1 Promoting improvement of thenetwork infrastructure(1) Development of advanced infrastructure befittinga frontrunner

The MIC has implemented demonstration tests on ashift of the whole Internet infrastructure from IPv4(Internet Protocol version 4) to IPv6 (Internet Protocolversion 6) since fiscal 2003 to resolve problems in net-work operation and secure interconnectivity betweenvarious equipment, and formulated a model for a smoothshift to IPv6. In addition, the MIC also engages in pro-moting the shift to IPv6 on a global scale by sending outthe results of these demonstration tests to other countriesand contributing to the IPv6 Ready Logo program,which is an international effort to certify compatibilitywith IPv6 specifications. In fiscal 2005, the MIC plans topromote full-fledged diffusion of IPv6 based on theachievements to date by investigating attractive applica-tions that use the characteristics of IPv6, such as a facili-ty management system, in cooperation with local gov-ernments.

(2) Study on construction of next-generation networkinfrastructure

The MIC has been convening the Study Group onNext-Generation IP Infrastructure since February 2004,and compiled the first report in June 2004. The reportpointed out the current situation where Japan’s backbone

traffic is centralized in Tokyo, and proposed counter-measures against a future surge in traffic, such as theneed for the development and commercialization of tech-nology for reinforcing networks, the need forefforts/technical development on traffic control and qual-ity assurance, and the need for examining technical chal-lenges in decentralizing traffic, in order to strengthen thenext-generation IP infrastructure. Based on this report,the MIC launched “R&D on the Next-GenerationBackbone Circuit” in fiscal 2005 and has been promot-ing this effort, while it also continues to examine variouschallenges related to next-generation IP infrastructuredevelopment.

(3) Management of IP addresses and domain namesDue to the increasing penetration of the Internet in

society and the economy worldwide, including in devel-oping countries, and the growing importance of theInternet, wide-ranging challenges related to the Internetincluding an ideal international management frameworkfor domain names and IP addresses are currently beingdiscussed at the Working Group on Internet Governance(WGIG) of the United Nations. The WGIG, of whichestablishment was requested of the U.N. SecretaryGeneral during the first phase of the World Summit onthe Information Society (WSIS), has been making activeefforts since its establishment in November 2004 inorder to contribute to the discussions in the second phaseof the WSIS. The MIC is proactively participating in

international discussions, mainly in the WGIG.

(4) Study on mobile phone number portabilityFrom November 2003 discussions were held by the

MIC’s Study Group on Mobile Number Portability,which compiled a report in April 2004. In response tothis report, the MIC created and published “GuidelinesConcerning Introduction of Mobile Number Portability”in May of the same year.

(5) Efforts toward upgrading mobile communicationssystems

In response to the report by the Radio RegulatoryCouncil in March 2005 on formulation of technical stan-dards for the high-power passive tag systems using the950 MHz band, the partial amendment of the Rules forRegulating Radio Equipment concerning frequencyassignment, and the draft partial amendment of theFrequency Assignment Plan, the MIC amended the rele-vant ministerial ordinance, etc. in April of the same year.With this amendment, RFID tags became usable not onlyin the conventional 135 kHz, 13.56 MHz, and 2.45 GHzbands, but also in the 950 MHz band, which allows rela-tively long-distance communications and has the poten-tial for new usage.

(6) Upgrading wireless access systemsSince the 5 GHz band frequency was globally allo-

cated for wireless access systems at the WorldRadiocommunication Conference (WRC-03) in July2003, the MIC consulted with the TelecommunicationsCouncil on the technical requirements in October of thesame year in order to institutionalize the use of the newband, and received a partial report in November 2004.Based on this partial report, the MIC sought advice fromthe Radio Regulatory Council in April 2005 on the draftof the necessary stipulations. The MIC received theadvice in the same month, and based on that advice, itinstitutionalized the use of the new band in May of thesame year.

(7) Promoting intelligent transport systems (ITS)As a measure to promote the diffusion and upgrade

of ITS, the MIC promotes dedicated short-range commu-nications (DSRC) in cooperation with the DSRC ForumJapan (Secretariats: Association of Radio Industries andBusinesses (ARIB), Highway Industry DevelopmentOrganization (HIDO), and Japan Automobile ResearchInstitute (JARI)), the ITS Info-Communications Forum(Secretariat: ARIB), the Smartway Project AdvisoryCommittee, and the Study Committee for PracticalApplication of Smart Plates (Secretariat: Ministry ofLand, Infrastructure and Transport). At the same time,the MIC diffuses/develops ITS in local communities, andprovides international cooperation by using Japan’s ITStechnology in Asia, particularly in China.

In terms of R&D of ITS, the MIC engaged in “R&Dof Internet ITS” until fiscal 2004, and plans to launch

and promote “R&D of ubiquitous ITS” in fiscal 2005 incooperation with the Study Group for Promotion ofAdvanced Safety Vehicles (ASV) and autonomousmovement support projects in order to achieve a ubiquityfor ITS.

2 Promoting advances in broad-casting(1) Promoting digitization of terrestrial broadcasting

In the three major metropolitan regions, the MICbegan countermeasures for transmitters in August 2002and countermeasures for individual households and oth-ers in February 2003. It also implements countermea-sures in other areas, and steadily promotes the respectivemeasures according to the plan, launching countermea-sures in 353 regions and completing countermeasures forabout 2.3 million households (about 54% of the total) bythe end of fiscal 2004.

Under the cooperation of the National Conferencefor Promotion of Terrestrial Digital Broadcasting andLocal Councils to Promote Terrestrial DigitalBroadcasting, the MIC drew up the concrete target timefor starting broadcasting at the prefectural capitalsnationwide, the implementation of which is planned bythe end of 2006, and published the result as a roadmapfor the opening of new terrestrial digital televisionbroadcasting stations (prefectural capitals).

(2) Upgrading satellite broadcastingBased on the report by the Study Group on

Protecting Personal Information in the Field ofBroadcasting and Satellite Broadcasting in the Age of ITcompiled in February 2005, the MIC announced theresults of the invitation to comment on applying the LawConcerning Broadcast on Telecommunications Servicesto the use of left-hand circular polarization that is trans-mitted from communications satellites at 110 degreeseast longitude in March of the same year, and plans tomake necessary institutional improvements.

(3) Upgrading cable televisionAs the cable television networks become more and

more sophisticated, new modes of services such asFTTH have been started. In light of this situation, theMIC sought advice from the TelecommunicationsCouncil on the technical requirements for cable televi-sion networks mainly based on optical fiber cables as“technical conditions for improving cable television net-works with FTTH” in July 2004 in order to smoothlyprovide the transmission characteristics specific to opti-cal fiber and services that converge broadcasting andcommunications, and received a report from the councilin March 2005. The MIC plans to formulate technicalstandards based on the report.

Ch

ap

te

r3

59

Ch

ap

te

r3

3 Convergence of communicationsand broadcasting

On the basis of the “Law Concerning Promotion ofthe Development of Technologies for Communicationsand Broadcasting Convergence,” which went into effectin November 2001, the MIC grants subsidies to privatedevelopers of technologies used for services that con-verge communications and broadcasting, and it estab-lishes telecommunications systems for the common use

of such developers, thereby supporting the developers ofsuch technologies and accelerating and promoting thedevelopment of services that converge communicationsand broadcasting.

1 Measures for improving credibili-ty of electronic data(1) Promotion of use of time business

The time business, which involves time distributionservices (distribution of accurate time information onnetworks) and time certification services (certification ofthe time at which the electronic data existed and non-tampering thereafter by certifying the validity of the timestamp attached to the electronic data), is becomingincreasingly important recently for improving the credi-bility of distributed or stored electronic data in variousfields such as e-commerce. The MIC is making activeefforts to promote the use of the time business by, forexample, formulating and releasing “Guidelines on TimeBusiness” in November 2004, which would enable usersof private-sector time businesses to use their serviceswith confidence.

(2) Digitization of documents obliged by statute to bestored

The statutory obligation on private business opera-tors, etc. to store documents on paper had been animpeding factor for increasing the efficiency of businessactivities and operational management in the private sec-tor. Therefore, it was set forth in the e-Japan Strategy IIAcceleration Package (decided by the IT StrategicHeadquarters in February 2004) to enact a uniform law,which basically allows electronic storage of documentsand account books in the private sector, while ensuringthe accuracy, readability, etc. according to the content ornature of the documents. In response to this, the Law forthe Use of Information Communications Technology forthe Storage of Documents by Private Sector Companiesand the Law on Improvement of the Related Laws inLine with Entry into Force of the Law for the Use ofInformation Communications Technology for theStorage of Documents by Private Sector Companies (e-Document Law) were established in November 2004 and

entered into force in April 2005.

2 Establishment of environment forpromoting the creation and growthof ICT venture companies

The creation of new businesses is believed to beimportant for achieving sustainable development of theJapanese industry and stimulating the Japanese econo-my. On the other hand, many recently started ICT ven-ture companies face such problems as a lack of businessaccomplishments, lack of established technical evalua-tion, and lack of physical collateral and credibility, andoften have difficulty in procuring funds, securing staff,and finding clients, which makes it hard for them to turnan excellent technology into a new business. Therefore,in order to promote the startup and growth of ICT ven-ture companies, the MIC provides various support mea-sures in the areas of fund supply, human resources,know-how, and so on in cooperation with the relatedministries and agencies.

60

Section 4Promoting ICT in Private Companies

Ch

ap

te

r3

1 Promoting ICT in local areasIn December 2003, the MIC convened the “Study

Group on the Promotion of IT in the Regions” to investi-gate the current status of local digitization, systematical-ly sort out matters such as an ideal future public networkconnecting municipalities, prefectural governments, andthe national government, and ideal applications forupgrading administration by using this public network,and it considers the measures for fiscal 2005 onward.The study group compiled a report in March 2005. Thereport included proposals on the following in order tofurther promote ICT use in local areas in the future basedon the above current status: (i) implement public applica-tions on the national public network; (ii) develop next-generation local information platforms; (iii) reform lega-cy systems in local governments; and (iv) developframeworks for promoting ICT in local areas includingresident participation programs. The MIC intends to con-tinue studies toward achieving an introduction of ICT inlocal areas to suit a ubiquitous network society, based onthe proposals in this report.

2 Accomplishing e-governmentAs for application and notification procedures of

national administrative organs, about 13,000 procedures(96%) were conducted online by March 2004. Effortswill be made to provide secure one-stop administrativeservices thorough a single gateway on the Internet<www.e-gov.go.jp>. In addition, in order to reduceusers’ burdens, we are working on simplifying and ratio-nalizing the administrative procedures, including priori-tizing those with at least 100,000 applications per year.

3 Achieving e-local governments(1) Constructing e-local governments

As of April 2005, an ICT security policy has beenformulated by all prefectural governments and 2,236municipalities (92.5%), and a personal information pro-tection ordinance has been enacted by all prefecturalgovernments and 2,368 municipalities (97.9%). TheMIC will provide support such as fiscal measures forlocal governments so that all local governments conductICT security audits from the perspective of organization-al and comprehensive ICT security management. At thesame time, it will study ways to evaluate the ICT securi-ty level of the local governments and develop/demon-strate systems adopting technology for reinforcing per-sonal information protection.

(2) The Public Certification Service for Individuals(JPKI)

An electronic certificate from the JPKI service isvalid for three years and is issued at 500 yen. It is issuedby being stored in a smart card such as the BasicResident Register card after a strict personal identifica-tion process at the municipality desk. Then the residentcan file an online application with an administrativeorgan while accompanying strict personal identification,by taking an electronic signature procedure through theuse of the private key stored in the smart card and send-ing the electronic signature along with the electronic cer-tificate.

As of April 2005, the procedures subject to the JPKIservice were procedures of eight national governmentoffices, 29 prefectural governments, and some munici-palities, such as declaration of national taxes, and appli-cation for issuance of a passport. The use of the JPKIservice is expected to be expanded to various other pro-cedures of the national government and local govern-ments in the future.

61

Section 5Promoting ICT in Administration and Public Services

Ch

ap

te

r3

62

1 Promoting the Production,Distribution and Preservation ofContent

As the construction of an advanced info-communica-tions infrastructure proceeds with the spread of opticalfiber and the start of digital broadcasting, finding waysto promote the use of this infrastructure has become amajor issue. It was thus addressed in the “e-JapanPriority Policy Program 2004,” the “Intellectual PropertyStrategic Program 2004” and in other initiatives drawnup by the Government’s IT Strategy Headquarters andIntellectual Property Strategic Headquarters.

Further addressing these issues, the MIC has devel-oped multi-content multi-use technology aimed at appro-priately protecting content-related rights in the variousscenarios of use, while securing high levels of freedomand convenience for the use of content on personal com-munication networks. The MIC also engaged in R&Drelated to technologies that enable efficient and secureediting and the distribution of high-quality video contentof 8 megapixels such as digital cinema over networks,building and testing technologies and systems capable ofarchiving Web information and promoting their use(such information, which is a particularly valuable assetas it encompasses knowledge and culture in digital form,is easily deleted or lost during daily updates), and so on.In addition, in order to create an environment in whichusers can easily assess the safety of content, the MIC isactively promoting the establishment of a system, tenta-tively named the “Content Safety Mark,” as a way forWeb site builders to demonstrate that their sites are freeof illegal or harmful content.

2 Developing human resourcesThe MIC implements the “Support System for Info-

communications Human Resources Training Projects”for subsidizing public-private ventures and public-ser-vice corporations that implement information and com-munications training programs, with the aim of develop-ing personnel with expert knowledge and skills in theinformation and communications fields. Also, in order toeffectively and intensively develop personnel who canappropriately deal with ICT security incidents such asunauthorized access and cyber attacks, the MIC startedthe “Support System for the Opening of the Info-Communications Security Human Resources TrainingCenters” in fiscal 2004 for financially assisting facilitydevelopment of public-private ventures that developpractical training facilities.

Furthermore, from fiscal 2005, the MIC is investigat-ing and studying the abilities required for high-level ICTpersonnel, such as project managers and CIO, who canengage in strategic digitization in companies, and thepractical method for developing such personnel underindustry-university-government cooperation. At thesame time, the MIC is engaged in “DevelopmentAdvanced Info-Communications Human ResourcesTraining Programs” in which model educational pro-grams for fostering these personnel are developed.

1 Consumer administration intelecommunications services(1) Measures against spam

The MIC set up the Study Group on a Framework toHandle Spam in October 2004, and has been conductingan extensive study on the necessary measures forrestraint/prevention of spam distribution, such as lawenforcement by the government, self-regulation bytelecommunication carriers, technical solutions, aware-

ness and international cooperation.Based on the discussions in this study group, the

MIC promoted the consideration to amend the currentlaw, and submitted a bill partially amending the Law onRegulation of Transmission of Specified Electronic Mailto the 162nd session of the Diet in March 2005. The billincluded expansion of the scope of specified e-mail,expansion of the scope of prohibited transmission of e-mail to a fictitious e-mail address, prohibition fromtransmitting e-mails by using false sender information,

Section 6Promoting Network Contents Distribution andDeveloping Human Resources

Section 7Protecting Information and Communications Users

Ch

ap

te

r3

and introduction of direct penalties for the offenders.The bill was approved in the Diet in May of the sameyear.

(2) Measures against billing fraudsIn order to eliminate the anonymous nature of pre-

paid mobile phones, which is the cause for the frequentuse of these mobile phones for offenses such as billingfrauds, the MIC repeatedly considered new measures toreinforce personal identification in June 2004, along withmobile phone carriers, etc. As a result, the respectivemobile phone carriers and the MIC announced their newmeasures in November of the same year and startedoperation from April 2005.

Moreover, in order to eliminate the anonymousnature of prepaid and other mobile phones and preventtheir misuse, the mobile phone carriers and PHS carrierswere obligated to confirm personal identification of thesubscriber upon conclusion/transfer of a subscriptioncontract. In addition, the Law on Confirmation ofPersonal Identification of the Subscribers, etc. by VoiceMobile Communications Carriers and Prevention ofMisuse of Voice Mobile Communications Services wasproposed to the 162nd session of the Diet as a bill pre-sented by a Diet member, and the bill was approved inApril 2005. This law punishes acts including the follow-ing: an act of declaring a false name or address uponsubscription, etc.; an act of commercially transferringmobile phones or PHS to others for value without theconsent of the mobile phone/PHS carriers; an act ofcommercially lending mobile phones/PHS to others forvalue without confirming the name and address of theborrower; an act of transferring mobile phones/PHSowned by others.

(3) Measures against illegal and harmful contentsIn October 2004, the MIC and telecom groups

worked together to revise the “Guidelines Related toLibel and Privacy” which were prepared by theConference on Examining Guidelines for the ProviderLiability Law, consisting of industry organizations, etc.,adding a procedure in which the human rights organiza-tion of the Ministry of Justice (Director of a LegalAffairs Bureau or a District Legal Affairs Bureau) asksthe Internet service provider (ISP) to remove certaininformation when the distribution of the information onthe Internet seriously abuses human rights and when it isdifficult for the injured party to recover from or preventthe damage by themselves. The MIC also made efforts topublicize the revision.

The distribution of imitation and pirated copies atInternet auction sites has also been a growing problemrecently. Hence, in December 2004, the “Working GroupRelated to Trademark Rights” was launched by telecomcarriers, groups of rights holders, and others to studynew guidelines governing methods for providers torespond.

(4) Measures against phishingThe problem of phishing, which is an act of obtain-

ing personal information on the Internet by fraud, hasalso been surfacing in Japan since around the autumn of2004. Because e-mail and Websites are serving as coretools for phishing, since January 2005 the MIC has con-vened the Liaison Group for the Promotion of PhishingCountermeasures, mainly consisting of telecommunica-tions carriers providing Internet access services, to shareinformation and consider effective countermeasures.

2 Promoting measures for infor-mation security and privacy protec-tion(1) Government-wide information security measures

The government’s information security policy wasdrastically reviewed by setting up a Committee forEssential Issues on Information Security in theInformation Security Special Investigation Council inJuly 2004. Based on the decision of the IT StrategicHeadquarters (“The Review of the role and functions ofthe government in terms of measures to address informa-tion security issues” December 2004) given in responseto the committee proposals, the National InformationSecurity Center was established in April 2005 in order toreinforce uniform and cross-sectoral comprehensiveadjustment of information security measures across theentire government. Also, in March 2005, the InformationSecurity PolicyConference, which is capable of formu-lating basic strategies on information security policy andconduct ex ante and ex post facto evaluation of informa-tion security policy, was established within the ITStrategic Headquarters.

(2) Protecting personal information in the informa-tion and communications field

Regarding the protection of personal information,which comprehensively covers all fields, in May 2003the government promulgated the Law Concerning theProtection of Personal Information. This law went intofull effect in April 2005.

With regard to further measures for protecting per-sonal information in the information and communica-tions field, the MIC revised the “Guidelines on theProtection of Personal Information in theTelecommunications Business” and enacted “Guidelinesfor Protecting Personal Information of BroadcastingReceiver, etc.” in August 2004 based on the examinationat the Study Group Concerning Information Privacy inthe Telecommunications Business Field and the StudyGroup on Protecting Personal Information in the Field ofBroadcasting and Satellite Broadcasting in the IT Age inorder to more strictly ensure appropriate handling of per-sonal information. These guidelines have been appliedsince April 2005.

The above study groups also examined legislativemeasures for protecting personal information in the

63

Ch

ap

te

r3

information and communications field, and concludedthat it is appropriate to consider development of a legalsystem that can punish acts of leaking personal informa-tion in a cross-sectoral manner in their reports releasedin December 2004 and February 2005 respectively.

3 Overcoming the digital divideIn the process of examination conducted by the

Study Group on Putting in Place Balanced NationwideBroadband Platforms since June, it was recognized anewthat local governments that are making progressiveefforts are playing a certain role in developing localbroadband infrastructures in an increasing number ofcases. In light of this, the “Plan for Eliminating ZeroBroadband Areas”—an interim report mainly consistingof the Plan for Accelerating the Installation of aRegional Broadband Infrastructure, which summarizethe challenges and measures in developing broadbandinfrastructure for reference by local governments—wascompiled in February 2005.

4 Improving the environment forradio spectrum use

Along with the rapid spread and upgrading of radiospectrum use including mobile phones, concerns have

been raised that the radio waves might cause adverseeffects on the human body or cause malfunctions tomedical equipment, such as the heart pacer. To ease suchconcerns and to develop an environment that allows peo-ple to use radio spectrum safely and confidently, theMIC has formulated adequate criteria and implementedresearches.

Moreover, to protect radio equipment from electro-magnetic interference from other equipment, the MIChas contributed to the establishment of internationalstandards at CISPR and introduced domestic standards incompliance with the international standards.

In addition, in order to increase the volume of infor-mation that can be transmitted on the power line commu-nication system, there have been demands in recent yearsto expand the frequency range that can be used (2-30MHz to be added). The MIC has set up the“StudyGroup on High-Speed Power Line Communications”andhas been investigating possibilities and conditions for thecoexistence of high-speed power line communicationswith radio uses since January 2005.

1 Developing R&D policies in theinformation and communicationsfield(1) Future R&D promoting strategy

In order for Japan to achieve sustainable economicdevelopment and for the Japanese people to lead safelives with peace of mind, it is necessary to make activeand strategic investments in selective areas of scienceand technology and to maintain and develop the compet-itiveness of industry through the promotion of researchand development. From this perspective, the Second-Term Science and Technology Basic Plan (approved bythe Cabinet in March 2001) placed special priority onfour fields of science and technology, including theinformation and communications field, and stipulatedthat R&D resources should be allocated to these fields ina preferential manner.

With the aim of actively promoting R&D in theinformation and communications field toward achieve-ment of a future ubiquitous network society, the MIC setup the R&D Strategic Committee within theTelecommunications Council and examines strategies on

the priority R&D fields, the roles of the national govern-ment and public organizations, and methods of strength-ening the international competitiveness and internation-ally expanding Japan’s information and communicationstechnology.

(2) Developing R&D environmentAn open test-bed network environment would be

required to realize next-generation advanced networks atan early stage under collaboration of Japanese and over-seas industries, universities, governments, and communi-ties, revitalize the Japanese economy and society, as wellas to strengthen Japan’s international competitiveness.

The cutting-edge R&D test-bed network (JGN II)operated by the National Institute of Information andCommunications Technology governed by the MIC sup-ports R&D at the light wavelength level by introducingstate-of-the-art optical switching, and provides accesspoints in all prefectures nationwide. It is used as theinfrastructure for industry-university-government collab-oration and regional collaboration around the nation byuniversities, research institutes, private companies, andlocal governments. The pioneering efforts concerning

64

Section 8Promoting R&D

Ch

ap

te

r3

various technology through R&D and demonstrationtests on JGN II are generating extensive spillover effects,such as improvement in Japan’s technical capabilities,strengthening of industry-university-government collab-orations, creation of new businesses and industries, revi-talization of local activities, and effects of developinghuman resources.

2 Implementing selective R&D(1) R&D on basic technology for ubiquitous networks

Placing emphasis on technologies that have thenature of basic technology, involve high risks, and havehigh spillover effects, the MIC has been implementingR&D on three technologies—microchip networkingtechnology, ubiquitous network authentication/agenttechnology, and ubiquitous network control/managementtechnology—since fiscal 2003 under an industry-univer-sity-government collaboration framework, and aims toestablish elemental technologies.

(2) R&D toward development of next-generation,high-function network infrastructure

The MIC implements R&D on very high-functionnetwork technologies that use quantum information andcommunications technology and nanotechnology. Whilequantum information and communications technologyrealizes extremely safe encryption communications andultrahigh-capacity information transmission by puttinginformation on each photon, nanotechnology realizeshigher-performance, smaller, and more power-savingnetwork components such as relay transmission andswitching by making use of the nano-scopic physicality.

(3) Advanced use of RFID tagsSince fiscal 2004 the MIC has been implementing

R&D on technology for swapping the attributive infor-mation in RFID tags between different platforms inresponse to dynamic environmental changes, technologyto link RFID tags with networks, and technology to con-trol access rights to RFID tag information. Also, as aneffort to promptly commercialize the R&D results, itconducts user-participation-type demonstration testsacross Japan.

In addition, recognizing the need to have RFID tagssmoothly accepted by society by taking appropriate mea-sures from a consumer privacy protection standpoint, theMIC summed up the basic concept and formulated/pub-lished joint guidelines with the Ministry of Economy,Trade and Industry in June 2004 under the cooperationof the parties concerned, such as consumer groups.

Currently, the MIC is examining the effectiveness ofthe guidelines through demonstration tests in the respec-tive fields, and plans to create detailed rules by field andmodify the guidelines as required.

(4) Connecting robots with ubiquitous networksBy connecting ubiquitous networks with personal

robots and industrial robots that are expected to be usedin homes and offices in the future (networked robots), itis anticipated that new lifestyles will be created andresponses will be possible to such social problems asaging, medical treatment, and nursing care. The majorkey to realizing networked robots would be the networktechnology connecting ubiquitous networks with robots,and in order for Japan to lead the world in the field ofnetworked robots, the necessary core technology must bepromptly established. Since fiscal 2004, the MIC hasbeen implementing R&D on such issues as “networkedrobot linkage technology” and “people-friendly commu-nication technology.”

(5) Advances in space communicationsBecause of their many features such as the capacity

to provide wide-area and simultaneous communicationsand to be disaster-proof, space communications are usedin a wide range of fields, including communications,broadcasting, and positioning technology. In considera-tion of the role that space communications should play inthe information and communications infrastructure thatwill be rapidly developed and advanced in the future, theMIC is promoting the development of demonstrationsatellites and satellite experiments in order to realize thespace communications that will be required.

65

Ch

ap

te

r3

1 Promoting international policies(1) Promoting the Asia Broadband Program

As an action plan to build a broadband environmentin Asia, the MIC, and related ministries, formulated the“Asia Broadband Program” in March 2003 on the basisof the “e-Japan Priority Policy Program-2002” and the“Basic Policies for Economic and Fiscal PolicyManagement and Structural Reform 2002.” This pro-gram is treated as a subject to be steadily promoted inthe “e-Japan Strategy II” and “e-Japan Priority PolicyProgram - 2004” as well.

The MIC arranged for cooperation to promote thisprogram with nine Asian countries/regions to date, andreached an agreement on a cooperation arrangement ineight ICT fields in Japan, China, and the Republic ofKorea. Furthermore, the MIC implements various R&Dprojects, human resources development measures, andpolicy dialogues based on these arrangements.

Furthermore, in order to accelerate the measuresbased on this program under strong public-private col-laboration, the MIC convened the Asia BroadbandPromotion Council starting in March 2004. In August ofthe same year, the council indicated the “measures thatshould be made into projects by fiscal 2005” and “pro-jects that should be implemented or launched by fiscal2005” with regard to fields to be promoted intensivelyand the concrete measures in the priority fields.Currently, the MIC is creating projects and implement-ing measures based on these indications.

(2) Bilateral and multilateral effortsIn the June 2001 Japan-U.S. summit meeting held at

Camp David in the United States, a target was set tocooperate with each other for sustainable growth throughJapan-U.S. dialogues, and multi-faceted discussions areheld every year under the various meetings includingvice-ministerial-level dialogues, public-private meetings,regulatory reforms, and competition policy initiatives.

In October 2004, the Japanese and U.S. governmentsexchanged written requests on regulatory reforms andcompetition policy in fields including telecommunica-tions, with regard to Japan-U.S. regulatory reform andcompetition policy initiatives.

Furthermore, the Japan-EU action plan, which setsforth concrete fields and content for ten years of cooper-ation starting in 2001, was adopted in the Japan-EU sum-mit meeting held in Brussels (Belgium) in December1999. In June 2004, the “Joint Statement on Cooperationon Information and Communication Technology” wasissued in the joint press statement of the 13th Japan-EUsummit meeting.

In addition, in January 2005, Taro Asao, Minister forInternal Affairs and Communications, met with theIndian Minister for Communications and InformationTechnology when he visited Japan, and adopted andsigned a joint statement on the future promotion of bilat-eral cooperation in the ICT field including promotion ofthe Asia Broadband Program.

(3) Cooperation and collaboration by Japan, China,and the Republic of Korea

In September 2002, the First China-Japan-Korea ICTMinisterial Meeting was held in Marrakesh, Morocco,with the aim of promoting cooperation among Japan,China, and the Republic of Korea in the information andcommunications field and with the attendance of repre-sentatives from private companies and research institutesin the three countries.

The Third China-Japan-Korea ICT MinisterialMeeting was held in Sapporo, Japan in July 2004. Fromthe viewpoint of further promoting cooperation amongJapan, China, and the Republic of Korea in the informa-tion and communications field, the “arrangement forcooperation” that had been agreed to in 2003 wasrevised, and “cooperation on RFID tags/sensor net-works” and other matters were included as new coopera-tive items.

(4) World Summit on the Information Society (WSIS)The second phase of WSIS is scheduled to be held in

Tunis, Tunisia in November 2005. The agenda includesconsideration of a concrete method and a mechanism ofimplementation of the Plan of Action adopted at the firstphase of WSIS held in Geneva (Switzerland) inDecember 2003, the basic principles of InternetGovernance, and the financing mechanism for bridgingthe digital divide.

The Japanese government is planning to contributeas much as possible to the second phase of WSIS, incooperation with the ITU and the wide-ranging interna-tional organizations.

Meanwhile, the Japanese government has beenactively contributing by, for example, holding a WSISthematic meeting on a ubiquitous network society inJapan in May 2005, and drawing up the proposal onforeseeable problems toward the realization of a ubiqui-tous network society and specific measures to overcomesuch challenges.

2 Promoting international cooper-ation

Information and communications are attracting high

66

Section 9Promoting International Strategies

1 Efforts of Japan Post, etc.(1) Outline of Japan Post

The government released the “Basic Policy on thePrivatization of the Postal Services” in September 2004.The basic policy indicated that Japan Post will be priva-tized in 2007, and its privatization will be finally com-pleted after a transitional period based on the five basicprinciples in advancing privatization of the postal ser-vices (revitalization, consistency, convenience, resourceutilization, and consideration) in order to achieve the fol-lowing interests of the people: (i) the potential of thefour functions of postal services (over-the-counter ser-vices, postal services, postal savings and postal lifeinsurance) will be fully demonstrated, high-quality anddiverse services will become available at low pricesthrough freer business management in the market, andmaximum convenience will be achieved; and (ii) funds

that had been flowing into the public sector will flowinto the private sector, and it will be possible to makeuse of people’s savings for revitalizing the economy.

The government submitted the necessary bills to the162nd session of the Diet in April 2005 based on thisbasic policy.

(2) Entry into the correspondence delivery businessIn conjunction with the launch of Japan Post in April

2003, the “Law Concerning Correspondence DeliveryProvided by Private-Sector Operators” (CorrespondenceDelivery Law) went into effect, permitting the entry ofprivate operators into the correspondence delivery busi-ness, which previously was monopolized by the state.

There are two types of correspondence delivery busi-ness: the general correspondence delivery business for“complete participation nationwide” and the special cor-

Ch

ap

te

r3

expectation as a form of infrastructure that, among otherthings, leads to economic development, the expansion ofemployment, and improvement of the national life. Indeveloping countries though, there are still, for example,about 30 countries in which the telephone diffusion ratedoes not even reach one unit per 100 persons, and theinternational digital divide is widening. Therefore, thereis a growing need to construct information and commu-nication networks around the world, including in devel-oping countries.

The MIC supports human resource development inthe ICT field, assists with the formulation of ICT poli-cies and systems through policy dialogue with informa-tion and communication ministries in developing coun-tries, assists with development of information and com-munications infrastructure through implementation ofjoint international experiments and so on, and supportsinternational and regional organizations that promoteglobal cooperation for eliminating the international digi-tal divide. At the same time, it contributes to the sustain-able development of the information and communica-tions field in developing countries in cooperation withsuch organizations as the Ministry of Foreign Affairs,the Japan International Cooperation Agency (JICA), andthe Japanese Bank of International Cooperation (JBIC),mainly through official development assistance (ODA).

3 Promoting international stan-dardization activities

The World Telecommunication StandardizationAssembly 2004 (WTSA-2004) was held in October

2004, and an agreement was reached on the standardiza-tion themes and frameworks for the next study period(2005 to 2008), including promotion of standardizationactivities concerning next-generation networks, rein-forcement of efforts related to home networks and secu-rity, and strengthening of efforts in the Internet field,such as measures against spam (unsolicited e-mail). Inaddition, chairs and vice-chairs of the study groups(SGs), which conduct the concrete standardization activ-ities, were appointed. From Japan, all candidates—twochairs and eight vice-chairs—were appointed.

In June 2003, the ITU RadiocommunicationAssembly (RA-03) for 2003 was held in Geneva,Switzerland. In this meeting, the organization of ITU-Rsuch as the structure of SGs was decided, SG chairs andvice-chairs were appointed, the working methods werereviewed, draft recommendations were approved, andproposed research themes for the next study period wereapproved.

Revision of a working method usually requires atwo-phase procedure involving adoption and approvaluntil a draft recommendation is approved. However, the“procedure for simultaneous adoption and approval,”which is a method to shorten the procedure to a singlephase (simultaneous) procedure for speeding up, wasintroduced. As a result, the shortest period from formula-tion of a draft recommendation until it is adopted andapproved will be shortened from the current sevenmonths to three months.

67

Section 10Development of Postal Administration

Ch

ap

te

r3

68

respondence delivery business for providing “special ser-vices.” Since the Correspondence Delivery Law imposesrequirements that are specific to delivery of correspon-dence, such as confidentiality protection of the corre-spondence, providers of the correspondence deliverybusiness must acquire a license from the Minister forInternal Affairs and Communications. At the end of fis-cal 2004, 111 carriers had acquired a license for specialcorrespondence delivery business, out of which 71 hadalready launched the service.