ISDN in Japan

0 1 •7 7 1E R WU 1~1E ' N E M A 7e1ec0mmun1cat10n5P0f1cy, V01,19, N0. 7, pp. 531-544, 1995 R7H N N ~ 1 ~ ~ C0pyr19ht(~) 1995Ehev~r50ence Ltd Pr1nted1n6reat 8r1tMn.A11r19h~re5erved 0308-5961/95$10.00+ 0.00 15DN 1nJapan A 0r5, 5tatu5 and expe 10n5 Peter van der 5taa1, V01ker 6 r a 5 5 m u c k and Ke1k0 Hatta 7 h ~ a ~ c ~ ~ c0nc~ned w1th the ~ t ~ 9rated 5ew1ce5 ~91ta1 Netw0rk ~ 5 0 ~ 1n Japan. ~ 5k~che5 the a~0r5 1nv01ved 1n 15DN netw0rk5 and 5ew~e5 and 91ve5 an acc0unt ~ the~ h~t0W, current ~ u 5 and m ~ U c expecta, 0 n ¢ 15DN ~ deve10p1n9 5tead1~ 1n Japan 6ut at a pace ~ ~ c0n~un~n9 h ~ h 1n~a1 expectat10n5. 7he m~n 1mped1n9 ~ 0 r 5 a ~ the h ~ h 1nve~men~ w1th u n c e ~ n return5 demanded fr0m the pHvat~ed te1ec0mmun1cet10n5 1ndu~W, 10w 1nte~0nnect~1W and h ~ h pHce5 0f e4u~ment, and c0mpet1t10n fr0m 0ther t e c h n ~ 0 9 ~ med~ and 5e~1ce5. ~ D N ~ n0 ~n9er c0n51dered a5 a 90a1 ~ R5e~ 6 ~ a5 a ~ e p ~ a ~ 1 ~ d ~ R ~ muff1med~ 1 ~ m ~ u ~ . P~er van der 5ta~ 15w1th~e Un~er51~0f 7echn~09y D ~ Facu1~ 0f 7echn0~9Y and 50~e~, De Vde5 van Hey~p~n~0en 2, 2628 R2 De1ff, 7he N~hedand5 (7e1: +31 15 786351; fax: +31 15 78317~. V~ker 6m55muck ~ w1th ~e Re5ea~h Center f0r Advanced 5~ence and 7echnd09y, 7he Un~er51~ ~ 70ky0, K0ma6a • ~1, Me9ur0-ku, 70ky0 15~ Japan (7e~ fax: +81 3 348 1451~. K~k0 Ha~a 15w1th the M~1~W 0f P0~5 and 7e1ec0mmun~af10n5, 1n5~tute f0r P05t and 7e~c0mm u m c ~ n 5 P011cy, 6-19 A2a6ud~ 1Ch0m~ M1nat0-ku,70ky0 106, Japan (7~: +81 3 32247310; fax: +81 3 3224731~. 7he a~h0m am 1nde~ed~ ~e M1n1~ d P05t and 7~ec0mmun~at10n~ N1pp0n 7ee9raph • 7~eph0ne C0rp and 1~0c0m Re5earch 1nc ~r th~r ~me and the 1n~rmat10n ~ey pm~ded and t0 Can0n F0undat10n Eur0pe ~r f1nan~ h~p. c0nt1nued 0n pa9e 532 7he 1nte9rated 5erv~e5 D191ta1 Netw0rk 05DN) ha5 6een heav1~ pr0m0ted 6y the Japane5e 90vernment and teMc0mmun~af10n5 1ndu5~y a5 an 1mp0~ant ~ep 0n the r0ad t0 the 1nf0rmat10n 50dety, t0ward5 wh1ch the nat10n N re501ute1y head1n9.7h15 arf1de de5cr16e5 the h15t0ry, current 5tatu5 and reaf15t1c expectat10n5 0f 15DN 1n Japan. Maj0r act0r5 1n the 15DN 5cene M1n15try 0f P05t and 7e1ec0mmun~at10n (MP7) 7he MP7 ha5 the p0f1f1c~ re5p0n516111ff f0r the p 0 ~ , ~ c 0 m m u ~ c ~ f10n5 and 6r0adca5t1n9 5er~ce5. 1t5 p0f1cy 15 t0 pr0m0te a m0re ec0n0m1c and eff16ent naf10n~ c0mmun~af10n5 1nffa~ru~ure. 7he MP7•5 c0mm~ment t0 15DN ~ m a ~ e d 1n 1t5 5upp0~ f0r re5earch and deve~pment 1n 6r0ad6and 15DN (8~5DN), 0pt1c~ c 0 m m u n ~ f10n5 ~ c h n ~ 0 9 y and 6r0ad6and exchan9e and netw0rk ~chn0~9y.~ 50 far, 5upp0a ha5 n0t extended t0 f1nandn9 p r 0 d u a ~ n and c 0 n ~ r u ~ n 0f the ~ffa~ru~ure. N1pp0n 7e1e9raph • 7e1eph0ne C0~0mt10n (N7~ N 7 7 wa5 pr1vat12ed 1n 1985, evMu~ed 6y the 7dec0mmu~caf10n5 C0unc11 1n 1990 and ~ h e d d e d ~ r an0ther rev~w 1n Apr11 1995. 50me expe~ a ~ve5t1m~, wh11e 0ther5 c0ntend that 0n~ an u n ~ d e d N 7 7 ha5 the p0wer t0 f1nance the Japane5e ~ r m a f 1 0 n 5uper~9hway. Pr0m0t1n9 15DN ~ an 1mp0~am d e m e m 1n N77•5 ~ t u r e ~ a n ~ r a fu1~ ~ t ~ netw0rk. Dur1n9 FY 1992, N71••5 0p~at1n9 ~c0me dec11ned 6y 9.1%. 7h15 wa5 ma1~y due t0 an 1ncrea5e 1n depre~at10n af1f1n9 fr0m 0n90~9 d191ta112at10n.2 1n the f1r5t hMf 0f FY 1995 pre-tax pr0f1t5 dr0pped 6y 66%. N71••5 6uf1ne55 p e r ~ r m a n ~ 15 6e1n9 affeaed 6y 1ncrea5ed c0mpet1t10n fr0m new m ~ k ~ entrant5 and decreaf1n9 rate5 ~ r ~ n ~ d~tance m~ph0ne 5er~ce5. N 7 7 c0nt1nue5 t0 make heavy cap1t~ 531 15DN ~ Japan: P van der 5maL v 6ra55m~k and K Hatta ~ve5tment5 de5p1te d ~ e r 1 0 r ~ 9 ear~n95. 3 1t 1nve~5 a60ut 5% cf 1~ t0t~ revenue5 ~ R•D. 1t ha5 ach1eved 6reakthr0u9h5 1n 0pt1ca1 f16re5, VL51 and enc0d1n9 ~chn~09y. 4 Rdevant key area5 1n R•D f0r nea~future app11cat10n5 are 8 ~ 5 D N and a5ynchr0n0u5 ~an5fer m0de (A7M) 5w1~h1n9.5 K 0 k u 5 ~ D e n 5 h ~ Denwa C0 Ltd ( K D D ) KDD, the 6199e5t Japane5e 1 n t e r n ~ n ~ cart1er, 15 f1nked w1th 125 c0untr1e5 and part1dpa~5 ~ 1 n t e r n ~ n ~ ~ c 0 m m u ~ c a f 1 0 n 5 n~w0~k5 and pr0je~5 5uch a5 1ntd5~, 1nmar5at and ~an~Padf1c ca61e5. 709ether w1th A 7 • 7 and 8 7 , KDD ~a~ed the w0f1d•5 f1r~ ~ r n ~ f10na1 15DN 5erv1ce 1n June 1989. 5~ce Decem6er 1992 1n~rnat10n~ 7~ec0m Japan 1nc 07J), and 51nce J ~ y 1993 1n~rnaf10n~ D 1 9 ~ C 0 m m u ~ c ~ n 5 1nc (1DC) have a150 0ffered the5e 5erv1ce5.6 N77 u5e5 KDD•5 ~ r n a t 1 0 n ~ exchan9e f0r c0nnect10n 0f 1~ 0wn 1N5-Net t0 ~ r n a t 1 0 n ~ 15DN 5er~ce5. M0re than h ~ f 0f KDD~ cap1t~ 5pend~9 90e5 ~t0 ~ ~ n . 7he r ~ ef ~ t 1 2 e d ~ x n ~ n ~ ~an5m1~n5 ~crea5ed fr0m 75 t0 83% dur1n9 FY 1992. New c0mm0n car~e~ (NCC5) 1n 1987 the NCC5 entered the market and cha11en9ed N77 and KDD w1th ~ r u ~ u r ~ 10wer rate5.7he NCC5 depend 0n N77 and KDD f0r u5e 0f the1r drcu~5 and f0r the 1mp~mentat10n 0f new 5erv1ce5. 1f an NCC want5 t0 pr0v1de a new 5erv1ce u~n9 N77•5 fac111t1e5, the tw0 p a ~ 5 have t0 ne90t1ate a60ut the techn1c~ a5pe~5, rate5 and 0ther c0nd1t10n5, and then a5k f0r appr0v~ ~0m 1he MP7. ff a9reement cann0t 6e reached, the MP7 can 1ntervene 6y 5ett1n9 t e c h n ~ c0nd1t10n5 and c 0 ~ h a f 1 n 9 f0r the pr0p05ed 5er~ce, tak1n9 1nt0 acc0unt the 1ntere5t5 0f 60th part1e5 and the nat10n at 1ar9e. 7e~c0mmun~at10n5 e 4 u ~ m e n t and 1nf0rmat10n 5erv1ce 1ndu5tr1~ ~n~d ~m p~e ~1 ~M~ R ~ ~d ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 70ky0 (199~ 7 2N~ N ~ ~ 0 ~ (1992) 2 3 ~ ~ e ~ 29 N0vem6~ 1993 ~H~u0 Yama9ucN, ~ ~ ~ N~ ~n 0f ~e ~ 70ky0 (1991) 51 ff. ~ N~ R•D Annu~ ~ 0 ~ 1 ~ 70ky0 (199~ 3 61~0C0m Re5ea~h 1nc ~ a ~ n and ~ ~ ~ ~n 70ky0 (1994) 2 ~ ~ 12 Ju1y 1993 e N ~ PR m~ef1~ 9~1 ~k~ 9 Au9u~ 1993 and 13 Decem6~ 1993 ~°Japan 1 ~ 0 ~ P~ce5~n9 Dev~0~ ~ ~er ment C e ~ ~ a ~ J1PDEC (199~ 50 532 Japan ha5 the 5ec0nd 1ar9e~ ~ c 0 m m u ~ c a f 1 0 n 5 mark~ ~ the w0dd. Even aher the f0rm~ 0pen1n9 up 0f t~5 mark~, the •N77 Fam1~ (NEC, F~1~u, H1~c~, 0k1) 5t111 h~d5 an e5t1m~ed 80-90% 0f the ~ c 0 m m u ~ a f 1 0 n 5 e4u~ment (7E) mark~. 7 7he num6er 0f m a n u ~ turer5 and 0utp~ 0f 1 5 D N ~ e d e4~pment r05e 5pe~acu~r~ 6etween 1989 and 1993.~ A~er c 0 n t ~ n 9 9r0wth, h0wever, the 7E 1ndu5tr1e5 5tarted t0 d e d ~ e 1n 1993: the 0utput 0f c 0 m m u ~ c ~ n 5 e4~pment ~11 6y 11.3% ~0m the prece~n9 year 1n May 1993.9 F0r the ~f0rmaf10n 5erv1ce5 1ndu5~y the pre~0u5 trend 0f rap~ 9r0wth 5udden~ chan9ed t0 ne9~Ne 9r0wth 1n May 1992. ~° 7 h e 5tate 0f the art 15DN 9enerate5 an~09 and d191ta1 ~an5m~f10n 1n 0ne 1nterface. 1n a pu61~ netw0rk 1t make5 av~1a6~ 5erv~e5 that were pref10u~y re5erved t0 pr1vate 1ea5ed 11ne 5u65cr16e~. 7ran5m~f10n 5peed and v01ume are h19her than 0n the an~09 tdeph0ne 5y~em, and the ~an5m~f10n err0r rate 15 10wer. 15DN 5eparate5 f19n~ and 1nf0rmat10n channd5.1t ~10w5 f1muRane0u5 ~an5m~f10n 0f 1nf0rmat10n 0f var10u5 type5 (data, v01ce and aud10, 5t1H and v1de0 1ma9e5) and a var1ety 0f 5erv~e5 (te1eph0ne, fac51m1~, data c0mmun~at10n~, ~1 ~an5m~ted •a a 51n~e 5u65cr16er 11ne. 7he ec0n0m~ 6enef1t p0tent1~ 0f 15DN c0me5 ~0m 1t5 m0re eff1dent ut11~at10n 0f 11ne5 and term1n~5. Qu~Raf1ve 6enef1t5 are the 15DN ~ Japan: P van der 5~aL V 6 ~ m u c k and K Hatta enhanced 4Ua11tyand decrea5ed err0r rate 0f C0mmUn1Cat10n. 15DN Can 6e C1a5~f1ed 1nt0 narr0W6and and 6r0ad6and, and 1nt0 d0me5t1C and 1nternat10nN, netW0rk5. N a r r 0 w 6 a n d 1nte9rated 5erv1ce5 D191ta1 N e t w 0 r k ( N-15 D N) N45DN 9 an enhanced d191tN 5er~ce 6a5ed 0n the e ~ 9 dua1-5trand c0pper w1re ~ p h 0 n e 11ne5 ~ the ~ca1 ~0p. N45DN 15 6a5ed 0n 5ynchr0n0u5 ~an5~r m0de (57M). C0nne~10n re4~re5 0n1y a c0mpa~ N91ta1 5er~ce uNt (D5U). 5evern carf1e~ 0ffer d0me5t1c and 1nternat10na1 15DN 5er~ce5. N71" ha5 the ~r9e~ N45DN 5erv~e 1n Japan, ca11ed 1 n f 0 r m ~ n Netw0rk 5y~em 0N5-N~). 1 N ~ N ~ 15 6a5ed 0n CC177 81ue 800k ~c0mmendat10n5 and d0me5t~ 7 d e c 0 m m u ~ c ~ n 5 7echn0109y C0unc11 (77C) 5tandard5. 1N5-NN N~w5 c0mmuNc~10n 1n three m0de5, an ana109 m0de (f0r auN0, Nc51m1~ and m0dem d a t ~ , a ~rc~65wRched d191tN m0de (f0r d~a, au~0 and 1ma9e) and a packe65w1mhed m0de. 1N5-N~ ha5 tw0 verf10n5: 1N5-N~ 64 and 1N5-N~ 1500. 64. 7h~ ~ N ~ 8af1c Rate 1mer~ce (8R1) 5erv1ce, ~ n ~ 0f tw0 64 k6p5 6earer (•8•) channe15 and 0ne 16 k6p5 de~a (•D•) channe1.7he 0 p ~ n N ~an5m~f10n ~ e e d ~ r 0ne channd ~ 64 k 6 ~ ; 1n ~ ~ 9 m0de the ma~mum 15 144 k6p5.7he 8 channe15 are u5ed ~ r v0~e 0r d ~ a , the D channe1 ~ r 5~nN~9 and/0r X.25 packet n~w0r~n9. Up t0 e19ht ~rm~N5 can c0nnect t0 a 51n~e 15DN 11ne ~ t h 6u5 w~n9, up t0 1000 ~rm~N5 ~ t h P8X w1r1n9. 7 e r m ~ N a d a p ~ (7A5) are nece55ary t0 ~ r h ~ n0~15DN ~ r ~ 1 e4u1p~nt. 1 N ~ N ~ 64 0 ~ r 5 the ~ 0 ~ 5erv~e5: ~-~t • V01ce and au~0: 8a5~ 15DN v01ce te1eph0ne5 ~111 ut1~2e a 6and~ d t h 0f 3.4 k H 2 . 7 h e 5~na1 can 6e ~ d e d t0 ~ 5 ~ t 7 kH2 ~ r ~9~4uNRy 50und. 1 N ~ N ~ 15 c0nne~ed t0 the ana~9 pu6f1c ~ph0ne ~ k , 50 u5er5 can c 0 m m u n ~ e ~ t h n0m1N5 5u65cr16er5 1n v01ce m0de. • Data: 7he data ~ ~ 1 ~ 5erv~e, 1N~P, ha5 packet ~n~h5 0f 1 2 ~ % 0cte~. 11 1 N ~ N ~ 15 N50 c0nnected t0 the packe6 5wRched data n~w0rk5 DDX-P 0f N ~ and Venu~P 0f KDD. • 1ma9e5:~de0 ~ph0ny ~ c ~ 5 are rem0~ m 0 ~ f 1 n 9 , ~ ~ ~ ~ ~7e~M 2000 •13. F-Net ~ a d e ~ c ~ e d h x ~ 5 ~ and ~0ra9e netw0rk. ~ ~ 4 ~ the 15DN v e ~ n ~ ~ e u ~ u ~ 5 ~ 1 anN09 f1de~ex ~ e m C a ~ n . 1N5-Net 1500. 7h15 5y~em u5e5 f1n~e-m0de 0pt~N-f16re ca6~ and ~1~0C0m Re5ea~h 1nc ~ a ~ and ~ ~ ~ ~n 70ky0 (1992) ~A v~e0 ~rm1n~. ~3A ~an5fer 5y~em f0r ph~09~Ph5 0n mem0~ c~d5. ~4H~h 5peed and re501u#0n- C h a ~ e r ~d ~ n ~ A ~ 5 1 ~ Ne~ ~5Dempa Pu~a~0n5 1nc ~ m ~1 ~ ~ (1991) 30 ~M~ ~ ~ 5 ~ ~n, ~ ~r 1 ~ 70ky0 (199~ 10 D5U t0 pr0~de the pr1mary rate 1nterface (PR1). ~5 7he f16re 11ne5 are d1~ded 1nt0 channe15 0f 64 k6p5.7here are tw0 ver~0n5:24 8 channe15 0n1y 0r 23 8 channe~ w1th a D channe1.8 channe~ can 6e 60nded 1nt0 a H0 channe1, c0m61n1n9 6 8 channe15 f0r 384 k6p5, and an H1 channe1, c0m61n1n9 24 8 channe15 f0r 1.536 M6p5.16 Packet-5w1~hed ~an5m~510n at 64 k6p5 15 p05f161e v1a 8 and D channd5. 1N5-Net 1500 ~ c0mpat16~ w1th and pr0~de5 ~1 the 5erv1ce5 0f 1N5-Net 64, p1u5 d191ta1 c0mmun~at10n at the h~her 5peed5 0f the H channd5. 1N5-Net 1500 ~ m~n1y u5ed f0r d191ta1 P8X and f0r VPN5. V1a the h19h-capadty channd5, ~de0c0nferen~n9 at nea~7V 4uahty 15 p05f161e. 533 ~DN ~ Japan: P van der 5maL V 6r~5m~k and K Hatta D0me5t1C 15DN 0ffered 6y ~ e NCC5. 1nterC0nneCf10n5 6etWeen N77•5 n~W0rk5 and the new ~n~d15tanCe Carr1er5 Were e5ta6f15hed 1n J ~ y 1990. CUrrent1y the NCC5 0 ~ y pr0V1de ~ n ~ a n C e 15DN V0~e 5erV~e5 0Ver the1r 0Wn ~Unk 1~e5. L0C~ C0nneCt10n5 are 5t111 a m0n0p~y 0f N 7 7 . 7 0 prevent Cream-5~mm1n9, NCC5 are a110Wed0n~ 0ne p~nt 0f ~ f f a c e (P0D per p r e ~ u r e . V ~ e ra~5 fr0m the P0110 any u5er w1th1n the 5erv~e area are the 5ame r e 9 a r d ~ 0f ~ a n c e . R~e5 f0r d ~ a c0mmun~at10n5 are under n e 9 0 t 1 ~ n . ~7 D0me5t~ NCC5 pr0~d~9 15DN 5erv~e5 2re D ~ Denden (DDD, Japan 7e1ec0m (J7) and 7e~way Japan (7WJ). 1n~rna~0na1 N-15DN. KDD•5 15DN c0nf1~5 0f 0ne ~andard 2 8 + D 8R1 and tw0 type5 0f PR1, 0ne 0f 22/23 8 channe~ 0f 1.5 M6p5 and 0ne 0f 30 8 channd5 0f 2 M6p5, 60th w1th 0ne D 519na111n9 channe1 (64 k6p5). 1nternat10n~ 15DN ut1f12e5 the 7e~ph0ne U5er Part (7UP). D0me5tk 519naf1n9 5er~ce5 cann0t ~way5 6e u5ed. F0r c0nnect10n5 6etween Japan and A7•7•5 Accunet, app1kat10n5 mu~ 6e a61e t0 5w~ch 6etween 56 and 64 k6p5. 15DN 1nterc0nnecf10n exper1ment5 6etween Japan and the EC are 0n901n9.~8 KDD 0ffer5 f1e-f1ne c0ntract5 f0r cu~0mer5 w1th h19h 0ver5ea5 ~an5m~f10n v01ume5 and 11nk5 wRh KDD ~ a pr1vate 1ea5ed 6rcu1~. 5w1tched acce55 c0ntract5 are ava11a6~ f0r u5er5 w1th re1atNe~ 10w ~an5m15510n v01ume5 and f1nk5 w1th 1N5-Net. AvaHa61e 5er~ce5 are: ~4 k6p5 d191t~ drcu1t-5w1~hed ~an5m15510n, te~ph0ne, 1ea5ed f1ne5, facf1m11e (F-P0~), Venu~P, e-m~1 (Me55a~a) and, exdu~ve~ f0r f1e-f1ne c0ntract5, 1ea5ed-drcu~ 5ervke5 (H~h-61t L1nk) and the h19h-5peed packet~w1tched 5erv1ce Venu~LP. A5 0f 1990 the m05t fre4uent1y u5ed 1nternat10na15er~ce5 were ~de0c0nferendn9, 64 fac51m11eand c0mputer f11e ~an5fe~. 15DN 15 a150 u5ed a5 6ack-up f0r 1nternat10na1 1ea5ed d~cu~5 and VPN5. N77 u5e5 KDD•5 1nternaf10n~ exchan9e f0r c0nnect10n 0f ~5 0wn 1N5-Net t0 1nternat10n~ 15DN 5er•ce5. 17J u5e5 N77•5 1N5-Net and 0ver5ea5 15DN netw0rk5.~9 1DC 0ffer5 a 5u65cr1pt10n c0ntract f0r u5er5 w1th h~h 0ve~ea5 traff1c v01ume5 and f1nk56y pr1vate 1ea5ed f1ne5 and a u5er c0ntract f0r 5u65cr16er5 0f 1N5-Net. ~ 1ntec 1nc ha5 an 15DNc0mpaf161e d191t~ netw0rk, Ace A1net: Ace A1te1 ~ a re9u1ar te~ph0ne, Ace V1p5 15 a mu1t1med1a VPN and Ace 1n5 ~ an 15DN w1th 64 fax, V1de0 7ech 5erv~e (1ma9e data6a5e), 7V c0nferendn9, h19h-5peed data (e9 P05), e-m~1, LAN c0nne~10n, V01cem~1 and Mu1t1t~k (te~ph0ne c0nferendn9). ~ 8r0ad6and 15DN (8-15DN) 8-15DN w1H 6e 6a5ed 0n a new netw0rk c0nf15f1n9 0f 0pf1c~ f16re5 and packet 5w1tc~n9 f0r v01ce, 1ma9e5 and data. 1n R5 rec0mmendat10n5 f0r 845DN, the CC177 5pedf1e5 the u5e 0f the A7M 5 w 1 ~ n 9 meth0d and ~ e w 1 e w w1~ N77•5 15DN D1v15~n, 12 u5er netw0rk 1nterface5 0f 155-622 M6p5. 7~5 w0uM a110w f0r June 1993. c0mpre~ed re~-t1me HD7V ~an5m~f10n. R w111re4~re a trunk 1~e ~MP7New5 (199~ 4 (1) ~ernat10n~ 7~ec0m Japan 1nc, PR 5peed 0f up t0 2.4 76p5. ~ Current1y 5peed5 0f up t0 10 66p5 0n 9ra~ent m~ed~, 1993. f16er5 are p 0 5 ~ e . 8y the 6e~nn1n9 0f the next century N 7 7 ~m5 at 2°1~emat10n~ D~1~1 C0mmun~at10n5 tera6R c0mmunkaf10n 5peed5. ~ N71••5 A7M 5y~em w1H c 0 n ~ 0f the 1nc, PR m~ed~, 1993. A7M N0de 5y~em f0r exchan9e funct10n5 and the A7M L1nk 5y~em ~1~ec 1nc, PR m~ed~, 1993. ~Dempa 0p c1t R~ 15, 30, 38 f0r ~an5m~5~n funct10n5. An ~ r n a t 1 v e pr0t0c~, Frame R d a y (FR), ~N77 ~H~pmn~0wm~n9u~, PR m~ed~ 15 n0w 6ec0m1n9 p0pu1ar 1n Japan. FR 5w1~he5 are ~ready 0n the ~r C0mmun~at10n~70ky0 (199~ mark~. ~ ~N1kke1 Week1y28 June 1993 534 ~ D N ~ Japan: P van der 5 m ~ V 6 r ~ 5 m u ~ and K H a ~ N71••5 ~5er~Ce ~ 0 n ~ f0r 8 ~ 5 D N 15 expre55ed 6y the a~0nym •V1•P•. ~V15U~ re~r5 t0 a p ~ a t 1 0 n 5 hke ~9h-re5~Ut~n 3D 1ma9e5, Ca61e HD7V, m d t 1 ~ e e n 1ma9e5, 1ma9e data6a5e5, ~ - m 0 n ~ 0 f 1 n 9 5y~em5 and 5upe~Capt~n. ~ ~1nte~9ent~ ~ c ~ e 5 5er~Ce5 5UCh a5 aut0mat1C v0~e reC09n1t~n, n~Ur~ 1an9Ua9e tran~at10n and 5ynthe~5 (7ran~at1n9 7deph0ne). ~Pe~0n~ re~r5 t0 f 1 e ~ e , Cu~0m12a6~, m0611e C0mmU~Cat10n5, a ~ r m ~ 4 n d e p e n d e n t p e ~ 0 n ~ ~ent1f1Cat10n num6er, 1C~ard5 and ~91t~ p0Ck~ ~ p h 0 n e 5 . 0ther ment10ned 8 4 5 D N ~rv~e5 are: aU~09rap~C ~ C 0 n ~ n ~ 1n9,~ an HD7V m~f1me~a ed1t1n9 5y~em; an 1ma9e data h19h-5peed f11~9 5y5tem; ~ pU61~ ~ p h 0 n e mdt1fUnCf10n~ ~rm1na15; an ~ t d h 9ent 5er~ce c0ntr01 p0~t; ~ fu11-m0t10n ~de0 te1eph0ne5; v1de0-0rder 5h0p~n9; te1ep~f1n9 0f c0mputer 9ame5; 7eamW0rk5~t~n. ~ 1n 0 ~ 0 6 e r 1992 N71" 0pened the N77 M e ~ a La6 t0 pr0m0te deve~pment 0f new app11cat10n5 f0r mu1t1me~a and 6r0ad6and c0mmu~c~n5. D~cu55~n 1n the 0n901n9 de6ate a60ut the future ~ c 0 m m u ~ c ~ n 5 1and5cape, N-15DN ~ perc~ved 6y 50me a5 an ~ r m e ~ e ~chn0~9y 6etween ana~9 ~ p h 0 n e netw0rk and 845DN. Nh5DN advance5 the ~91t12~ t ~ n 0f the netw0rk and the ~ a r ~ n 9 curve w1th ~91ta1 e4~pment and 50~ware. ~ 50me expre55 d0u6t whether N45DN w1H fu1f111 the h~h 0r1~n~ expe~at10n5 that were h e ~ f0r ~, and whether 1ndu~ry 5h0u1d n0t have ~apf099ed 0ver ~ d1rect1y t0 8-15DN. 3~ 0 t h e ~ 5ee the 11m1t5 0f the e ~ 1 n 9 c0pper wffe and c0ax1a1 ca~e netw0rk a5 expanda~e 6y c0mpre5~0n, m0re 1ntdf19ent 50~ware and new ~ a n 5 m ~ 0 n meth0d5, t0 ~ w f0r the 5ame 5erv~e5 that are n0w 0ffered 0n 15DN. ~ 7he re1at1ve~ ~ w acceptance 0f N45DN ah0 make5 ~ 4ue5t10na6~ whether the future demand f0r a fu~f1ed9ed 8 ~ 5 D N t0 every h0me wf11 6e there at ~1. 33 1mp~mentaf10n and uf1H2af10n ~E~ended ~de0 ~th HD7V ~ 1 h m ~ 1ma9e5. ~C0m~n~9 ~5~ay 1ma9e5and ~ , and ~ 9 1n p ~ . ~w5 retdeva10f 1ma9ed~a 5t0red 1n 0~ca1 ma55 ~ 0 ~ e 5y~em5. ~A m ~ m m e that pm~de5 data6a5e5 and ~ k c0n~01. 29N~, PR m ~ , 1993. ~N0am, E11•15DN 1np e ~ p e ~ 1n: 1n0ue ~ aL ~ n ~ ~ ~ ~ 1~e~e~ Ch~a90 (199~ 7 3~Mr 02awa ~0m 1~0C0m en~0ned N15DN a5 a ~ep t0wa~5 ~15DN, 6~ 5~d 64 K6p5 ~ ~0 much - 16 0r 8 K6p5 w0u1d have 6een en0u9h. ~Ne9mP0~e, N~h~a5 ~ d J u ~ 1993 ~e~ew wffh 1~0C0m Re5ea~h, D~ cem6er 199~ ~Fmn5man, Ma~n ~C0~r~d c0mp~F ~0n 1n ~e Japane5e ~ 0 m m u n ~ 5 e4~pme~ ~ d u ~ 1n: A ~ 0 n ~ C (ed) ~ e Ec0n0m1c5 0f ~rmat10n Netw0rk5 Am~e~am (1992) 3~N~ ~ e ~ e ~ 6 Decem6er 1993. H15t0ry 0 f 1 5 D N 1n Japan 7here were d1~ta1 pu6f1c netw0rk5 6ef0re 15DN: DDX-C and DDX-P (D191t~ Data exchan9e, C1rcu1t and Packet 5w1tched). 1n Japan, re5earch 0n the d1~t~ data 5wRch 5tarted 1n 1973, p0~p0n1n9 d1~t~ te~ph0ne 5w1tch1n9.1n 1977 N 7 7 and the •N24" Fam11y• re5umed j01nt re5earch 0n d191t~ 5w1tch1n9.~ 7he 4uant1tat1ve h1~0ry 0f 1N5-Net 15 5h0wn 1n F19ure 1. 35 7he te5t-run 0f the 1N5 M0dd 5y5tem 5tarted 1n 1984 1n MRaka near 70ky0. 1990 u5er5 were 0ffered a c0m61nat10n 0f te~ph0ne, fax, data, •de0tex, te1ewr1t1n9 and ~de0c0nferendn9, t0 6e u5ed f0r teL5h0pp1n9, te~w0rk1n9 and te~re4ue5~ f0r 0ff1d~ d0cument5. 7he exper1ment wa5 5h0wca5ed at Exp0 •85 1n 75uku6a. 7 h h pha5e wa5 f0H0wed 6y exten5Ne f1e1d tr1~5 fr0m 1986 t0 1988 6etween 70ky0, Na90ya, 05aka and 75uku6a. N7-1" 1aunched the c0mmerd~ 1N5-Net 64 5erv~e 0n 19 Apr11 1988 1n 70ky0, 05aka and Na90ya w1th 114 11ne5 and n1ne cu~0mer5. 1n June 1989 1N5-Net 1500 5tarted. 1n June 1990 a packet m0de, 1N5-P, wa5 added. 1n March 1990 N 7 7 6e9an t0 1 n ~ 1 pu611c 15DN payph0ne5 and w1th1n a year 1000 were 0perat10n~ nat10nw1de. 8y March 1991 a11 demand f0r 15DN c0u1d 6e c0vered and 535 15DN 1n Japan: P van der 5taaL V 6ra55muck and K Hatta a~0000 ~ ~ ~ 1 ~ 01m 3 ~ 9 u ~ 1.7he h1~0~ ~ the deve~p ment 0f N77•5 15DN. ~ ~ ~ ~ . 6 9 ~ 3 6 ........ 9 + ~ ~564 3 ~ -~ 9 ~$P64 91 3 -*--7~ 6 9 ~- ~ 3 ~ 8 5~ 9 + ~ 1N$~ 3 6 5(~ + 9 ~ ~ 1 ~ 3 6 9 area5 ] 39% 0f N1 exchan9e5 had d191ta1 5w1tch1n9 term1nM5.36 1n 5eptem6er 1992 60th 1N5-Net5 were ava11a61e 1n 2170 5erv1ce area5, c0ver1n9 50% 0f Japan•5 area, 100% 0f dr1e5 and 86% 0f the p0pu1at10n. 1n 0ct06er 1992 6r0up 5ecur1ty 5erv~e 5tarted f0r CU65, and 1n Fe6ruary 1993 Free D1N 5erv1ce, a d191tN rever5e 61ff1n9 m0de, wa5 1ntr0duced. 1n Au9u~ 1991 N7-1" cu~a11ed 1t5 1nve5tment5 1n expand1n9 15DN 5erv~e5 1n fav0r 0f updat1n9 ex15t1n9 exchan9e5. ~ 1t cut 15DN~e1ated 1nve5tment 1n FY 1993 t0 ¥30 611f10n, d0wn fr0m ¥52 611110n 1n FY 1992.1n 1993 N4•7 v1rtua11y ~0pped extend1n9 R5 15DN 5y~em t0 new re~0n5. Appf1cant5 ~0m 0ther area5 were rec0mmended t0 u5e packet 5w1tch1n9 0r 1ea5ed drcuR5 1n~ead. 38 0ver 1992 and 1993 the 9r0wth 0f 1N5-Net 64 wa5 f1near at ar0und 65% per year, repre5ent1n9 the h19he~ 9r0wth rate 0f a11 tdec0mmun1cat10n5 med1a. H0wever, hnea: extrap01at10n 0f th15 9r0wth re5u1~ 1n merdy 1.7 m11f10n f1ne5 6y the tar9et year 2015. 7h15 15 5t111 0n1y a fract10n 0f the m0re than 58 m11~0n pre5ent te~ph0ne f1ne5.1n 1994 the 9r0wth acce1erated ~19ht~ a9Nn. ~ 7h15 5eem5 due t0 a w1der ch01ce 0f e4u1pment, mak1n9 m0re app11cat10n5 ava11a61e t0 u5er5, 4° 5erv1ce 0n 1nternat10nN 15DN f1ne5 5tarted 1n June 1989, a5 a j01nt deve10pment 0f KDD w1th A 7 • 7 and 87.51nce Decem6er 1992 NCC5 have M50 0ffered 1nternat10nN 15DN 5erv1ce5.~A5 0f Ju1y 1993 15DN 5erv1ce5 had 6een extended t0 a t0tM 0f 19 c0untr1e5. 3~1nf0C0m 0p c1t Ref 11, 12 3~161d ~N1kke1 Week1y 1 March 1993 ~A5 0f 5eptem6er 1994, 1N5-Net 64 had 280 551 ~ne5. ~°7e1ec0mF0rum 1994 (11 ) "4nf0C0m 0p c1t Ref 6, 73 ~2Kawauch1, 7ake5~ •N77•5 15DN ch~1en9e• 1n 1n0ue et a~ 0p c1t Ref 30, 14 ~Kawa5ak1, 7at5u0 •7he Japane5e 15DN market• 1n 161d38 ~MP7 C0mmun1cat10n5 ~ Japan, Wh1te Paper 1989 70ky0 (1989) 11 536 Ut1~0n 1n the ~ 0 d u ~ 0 ~ pha5e 15DN wa5 m ~ n ~ u5ed 6y m a n u ~ u r e r 5 f0r ~n9 and ~ m 0 n 5 t r ~ 15DN e4u~mem. N ~ ~ t 1 ~ y mark~ed 15DN a5 6ac~up ~ r ~ t ~ c0rp0r~e c0mmun~af10n5 f1ne5, and ~ r ~a5e~1~e u5er5 a5 an e c 0 n 0 ~ c ~ r n ~ N e . 42 0 r 1 ~ n ~ 95% 0f the 1 N ~ N ~ f1ne5 were 1ndeed u5ed ~ r 6ack-up 0f ~a5ed f1ne5, a9~n~ 18% n0W0 ~ 8y the end 0f 1988, 181 f1rm5, m 0 ~ y 1n the f1nand~, m a n u ~ u r 1 n 9 0r 0 n ~ r m ~ 0 n ) 5er•ce 5ect0r, 5u65cr16ed t0 877 15DN drcu~5, 5pread 0ver 28 re~0n5 n ~ 0 n w ~ e . ~4 1n 1990 a ~ n ~ e cu~0mer - the c0nve~- 15DN 1n Japan: P van der 5taa1, V 6r~5muck and K Hatta 11 ~9Ure 2. App11Cat10n pe~en~9e5 0f 15DN f0r 1992 and 1993 (a5 ma1n rea50n f0r 5U65Cr1pt10n). data p6x fax 1ma9e mumm0de v~ce c0nf. ~81N564-199281N,~4-199~=1N5~500-1992 ~'1N515C0-1993] ence 5t0re cha1n 5even-E~ven - tr199ered an 1n1t1~ 600~, f1nk1n9 4400 5t0re5 and ~5 head4ua~e~ nat10nw1de. ~ Fr0m 1991 the re~0na1 market 5tarted t0 p1ck up 1n re5p0n5e t0 the exten510n 0f 5erv1ce area5. Later 1n the year med1um-512ed 10ca1 6uf1ne55e5 ~arted w1th 6 4 fax and PC 7A5. 51n91e-c1rcuR u5er5 acce5f1n9 netw0rk5 5uch a5 PC VAN (Pe~0na1 C0mputer V ~ue Added Netw0rk), 6 4 fax and e-ma11 1ncrea5ed. A60ut 80% 0f the ~rcu1~ were 0wned 6y pr1vate netw0rk 0perat0r5, the re5t 6y f1n91e-f1ne u5er5.1n term5 0f u5er5, 90% had 0n1y 0ne 11ne.46 Ref1denf1~ u5e acc0unted f0r 0n1y 1.2%.47 A much h19her percenta9e ~ unhke1y un1e55 f19n1f1cant1y cheaper e4u1pment and/0r new 5erv1ce5 make 1N5 aaracf1ve t0 a ma55 c0n5umer market. 7he ~r0n9e~ ec0n0m~ d0m~n5 0f app11cat10n5 are the manufa~u~ 1n9, d1~r16uf10n5 and 5erv1ce 5ect0r5. A5 f0r the med1a, pr0f11e5 0f the m ~ n rea50n5 f0r u5e 1n 1992 and 1993 and 60th 1N5-Net5 are pre5ented 1n F19ure 2. 1N5-Net 64 15 m~n1y u5ed f0r data c0mmun~at10n5, 1N5-Net 1500 6y c0rp0rat10n5 w1th numer0u5 te1eph0ne51n P8X5. M05t 1nternat10n~ 15DN c0nnect10n5 are u5ed f0r 6 4 fax and te1ec0nferen~ 1n9. A60ut 33% 0f 1N5 u5er5 are new 5u65cr16er5, 5h1ft1n9 0ver fr0m phy5~a1 f0rm5 0f 1nf0rmat10n ~an5p0~. U5er5 wh0 5w1tched 0ver ~0m ~a5ed 11ne5 t0 15DN am0unt t0 0n1y 0.5%, 1mp1y1n9 that 60th 5erv1ce5 can c0ex1~. 48 A 9reat 5h1ft ~0m DDX wa5 065erved 1n the ea~y 5ta9e 0f 15DN pr0v1f10n. H0wever, a5 1N5-P, 1n p1ace 0f DDX-P, wa5 1ater f0und t0 6e 0f p00r 4 u ~ y , th15 5h1ft ~0wed d0wn. ~ C05t5 a n d 6enef1~ 45Kawauc~ ~ ~t Ref 42, 15 4~Kawa5a~ ~ ~ Ref 43, 33 ff ~Den~ ~uu5h~ ~1n~ 1993 ~ 4~Kawa5a~ ~ ~ Ref 43, 45 ~9N1kke1 C0mmun1cat10n5 1 June 1992 (12~ 5°F~y05~, N ~ ~ ~ d e n n0 K060 (198~ ~ 2 1 0 7he m05t marked ec0n0m1c feature 0f 15DN ~ a cheap m0nth~ f1xed char9e. New 5u65cr16er5 have t0 pay f1tf1e t0 5w1tch fr0m te~ph0ne t0 1N5-Net 64. 7he 6a~c c0nne~10n char9e5 are 1 d e n t ~ f0r th05e f0r an~09 te1eph0ne c ~ . 7he 6a~c rate f0r an 1N5-Net c0nne~10n w1th tw0 8-channe~ ~ 1denf1c~ t0 that 0f tw0 an~09 f1ne5.1f the f1ne ~ n0t u5ed, n0th1n9 w1H 6e char9ed. 7he m0nth1y char9e5 f0r PR1 are 10wer than a c0mpara61e 5er~ce 0n the an~09 te~ph0ne netw0rk. 15DN u5a9e can ~50 6e 5h0wn t0 6e much cheaper than DDX. 5° 7he m0nth~ char9e5 f0r 1N5-P are appr0~m at e~ 0ne-5eventh 0f th05e f0r DDX-P. A5 a market1n9 t001, N 7 7 a 5 ~ 5 cu~0mer5 w1th c0mparat1ve c05t6enef1t an~y~5 0f 15DN. A5 the menu 0f c0mmun1cat10n 5erv~e5 ~ 537 ~ D N ~ Japan: P van der 5taaL V 6r~5muck and K Hatta 9r0w1n9, 1t 6ec0me5 1ncrea~n~y d1ff1cu1t t0 te11 wh~h are cheaper 6ecau5e m05t 0f the new 5er~ce5 ~ve 50me f0rm 0f d15c0unt and 6enef1~. 70 c0ndude whether 15DN ~ c0mparat1vdy cheaper, 0ne mum 6e ~pedf1c a60ut the 1nd1v1duM cu~0mer~5 c0mmun~af10n5 need5. Rea50m ~ r ~ w d1f~510n ~ e ~ . ~ m ~ t0 a h~her ~ 5 ~ n rate 0f 15DN are the Market uncerta1n~. A fundamentN fact0r N the va9ue 1ma9e 0f the 15DN 5er•ce. N dt her pr0v1de~ n0r u5er5 are yet fam111ar w1th k5 appt1cat10n5. 1t ~ the 5et 0f 5erv~e5, n0t any 5pe~f1c 0ne, that 15 5upp1~d thr0u9h the 15DN netw0rk. 7here ~ n0 5erv1ce that 15 ent1re~ new and part1cu1ar t0 15DN. M0~ are Nready ava11a6~ w1th0ut u~n9 15DN, and the pr0v1510n 0f 15DN 5erv~e5 ret1e5 ~ r 9 d y 0n the ex15t1n9 netw0rk5. 7he d1fference 15 that 15DN pr0v1de5 a w1de ch0Ke 0f c0mmun1cat10n5 med1a f0r 9enera1 u5e and char9e5 acc0rd1n9 t0 u5a9e. 1t 0ffe~ h19h-4ua11ty c0mmun1cat10n5 at aff0rda6~ pr1ce5 f0r u5e~ wh0 are t00 5m~1 t0 6uy ~a5ed drcu~5. H0wever, k 6ecame 06~0u5 after the M~aka p110t exper1ment that the 15DN 5er•ce wa5 n0t 5u1ta6~ f0r h0me u5e. 7here 15 a ~r0n9 d0u6t a60ut whether an avera9e re51dent1~ u5er w0u1d pay an add1t10nM am0unt f0r a ~0ph1~at ed te~ph0ne 0r mu1f1m0de c0mmun~af10n5 e4u1pment, and d~ta c0mmun1cat10n5 1n h0me5 w111 n0t 6ec0me an a~racf1ve 6u51ne55 any t1me 500n. 7hu5 demand f0r 15DN 5eem5 t0 6e t1mked t0 6u~ne~ cu5t0mer5. 15DN u5e~ have t0 dedde 0n the1r 0wn 5erv~e menu, c0m61n1n9 h~h~peed, h19h-4uat1ty mu1t1p1e 5 e r ~ e 5 wkh var10u5 ~upp1ementary 5erv~e5. Unt11 60th cu~0mer5 and pr0v1de~ are c e ~ n 0f what the t y p ~ u5e5 0f 15DN are, 4u~k d1ffu510n cann0t 6e expemed. A5 we have n0ted, when 5erv~e 6e9an 1n 1988, 95% 0f the 15DN t1ne5 were u5ed f0r 6ack-up 0f 1ea5ed c1rcu1t5~1 m~n1y 6ecau5e the m0nth1y f1xed char9e wa5 far 10wer and p a ~ 6ecau5e cu~0mer5 were pr0mpted 6y N 7 7 t0 u5e the new 5er~ce 1n th15 way. 7h15 1nd1cate5 that N 7 7 1t5eff d1d n0t yet have a dear p1~ure 0f ~5 0wn 5er•ce5.1t wa5 N77•5 ta5k t0 pr0m0te demand, 6ut t00 much ~ r e ~ wa5 put 0n techn0109y and n0t 0n app1~at10n5 0r u5er 5upp0~. 7he undedy1n9 cau5e m~ht have 6een that N71•, w1th k5 h1~0ry a5 a pu6t1c c0rp0rat10n, n e ~ e ~ e d market1n9 a~1v1f1e5, 1e a110cat1n9 and pr0m0t1n9 demand ~ r a t e 9 ~ . ~ Den~ 75uu5h~ 1994 (~ ~N1kke1 C0mmun1cat10n5 1994 (17~ 538 Lack 0f 1n~rc0nnect1v1ty. Even th0u9h 1t ~ a pu6hc netw0rk, d1fferent 5u65cr16er5 t0 N 4 5 D N are n0t aut0mat1cM~ a6~ t0 c0mmun~ate, un~55 they 5u65cr16e c011ect1ve~ w1th c0nnecta61e term1na15. 5evenE ~ ve n ha5 5ucce55fu1~ 1ntr0duced N45DN, 6ut u5e5 k ~ n u M ~ a5 a nat10nw1de pr1vate netw0~k. A5 a hr9e and p0werfu1 c0mpany, k wa5 1n a p051t10n t0 pe~uade 1t5 6uf1ne~ p a ~ n e ~ t0 emp10y e4u1pment w1th the 5ame 5tandard5, 50ftware and pr0t0c0~. 7here 15 a m0vement t0ward5 ~andard12at10n. H-pr0t0c01, deve10ped 6y the Japan Ch~n~0re A~0dat10n, ha5 made c0mmun1cat10n5 50ftware ava11a6~ 5uka6~ f0r 5ma11 6uf1ne~e5 f0r p e ~ 0 n ~ c0mputer5. 7h~ ena6~5 them t0 u5e h ~ h ~ p e e d data ~an5m~f10n at a rea50na6~ pr1ce. Netw0rk 5erv~e5 5upp0rt1n9 H-pr0t0c01 are ~50 appear1n9 fr0m N 7 7 and V A N 5 . 8 u t 5ever~ d1fferent pr0t0c015 cu~ent1y c0ex1~. ~ 70 pr0m0te d0me5t1c 1nterc0nne~1v1ty and p0~a6~ky 0f term1na15, a ~andard~af10n p011cy c~1ed H A 7 5 (Harm0n12at10n 0f Advanced 7 d e - 15DN ~ Japan: P van der 5taaL V 6r~5muck and K Hatta C0mmUn1Cat10n5 5y5tem5) Wa5 e~a6f15hed Under the aU5p1Ce5 0f the MP7 W1th the pan10pat10n 0f C0mm0n Carr1er5, manUfa~Ure~, ~andard12at10n 1n5t1tute5 and u5er5. 1nterc0nne~1f1ty c0nf1rmat10n te5~ have 6een carr1ed 0ut per10d1c~ 51nce 1989. 53 H0wever, 1he pr061em 0f 1nterc0nnect1v1ty and p0~a611~y ~111 hamper5 1nternat10n~ 15DN ~aff1c. ~ Each c0untry 15 f1ee t0 pr0v1de 5pedf1c 5erv~e5, and 5pe0f1cat10n5 are 0pen t0 1nterpretat10n. Even 1f e4u1pment w0rk5 w1th a netw0rk a6r0ad, ~ ha5 t0 06ta1n h0m0109at10n, 0r re9u1at0ry appr0v~ f0r 5afety and c0mp11ance, 60th 0f wh1ch are t1me-c0n5um1n9 and expen~ve pr0cedure5. 7e~ph0ne e4u1pment 1n N0~h Amer1ca and Japan u5e5 ~-1aw enc0d1n9 f0r A/D c0nveN1n9, wherea5 the re5t 0f the w0dd u5e5 A4aw. PHce 0 f e 4 u ~ m e n ~ 7he 1ack 0f 1nte~0nne~1v1~ and the fu22y 15DN 1ma9e are d05dy c0nnected wRh the h19h pr1ce5 0f n~w0rk expanf10n and hence f0r the ~Me 0f pr0duct10n and 5Me5 0f per1phera1 e4u~ment. 8ecau5e 0f the u n c e ~ n ~ , manufa~ure~ are una6~ t0 f0cu5 0n any 5pedf1c ~ n d 0f e4~pment. 7hey cann0t ant1dpme a ma55 market ~ke thm f0r facf1mf1e. 7he mark~ f0r pef1pherM e4~pment ~ ~a9men~d 1nt0 re1at1ve~ 5mM1 5u6-marke~, each ~m~ed t0 a 5pe~f1c type 0f 6u51ne55 u5er5, 50 a dramm~ pr1ce reduct10n ~ n0t t0 6e expe~ed. 7he h0ped-f0r demand f0r 15DN e4u~ment ha5 n0t mmer1ah2ed. 7he num6er 0f 5u65cr16er5 ~ 50 10w that pr0f1de~ 0f ~rm~M5 cann0t ach1eve ec0n0m~5 0f 5ca~ and 6r1n9 d0wn thdr pr1ce5 fa5t en0u9h. And the hm1ted num6er 0f p0~nt1M c0mmun~at10n p a ~ n e ~ 15 M50 1mpe~n9 the a~ract10n 0f m0re 5u65cr16e~. 7~5 ~ n u M ~ d05e5 the tr1p1e f1~0u5 ~ r d e 15DN 15 ~ . ~M~un~ 7ada5~ ~ e ~ m ~ e4~pme~ 0 ~ 5 ~ 1n 1n0ue ~ aL ~ ~ R~ 30, 64 ~N0~ J e ~ •A 9106~ rev01uf10n• ~ ~1PDEC ~ a ~ ~ ~ J1PDEC (199~ 57 ~6N~ ~ e ~ 6 Decem6er 1993. 7 h e r a ~ 5~ucture. N71" and the MP7 had a 10n9 d15pute 0ver the rate 5tructure f0r the 15DN 5erv~e. N77 fav0red c05~6a5ed rate5, wh~h were much h19her than the pre5ent ~ve1, wherea5 the MP7 1 n ~ e d 0n a rate 5tructure that c0u1d enc0ura9e rap1d d1ffu510n. 7he MP7•5 5tance wa5 1nf1uenced 6y the Eur0pean p01Ly 0f keep1n9 15DN u5a9e char9e5 at the ~ve1 0f the 6a~c te~ph0ne 5erv1ce. 1n add1t10n, the c0ncept 0f 15DN wa5 0f191n~1y adv0cated 6y Japan 1n 1978, 50 there wa5 900d rea50n t0 6ef1eve that Japan w0u1d 6e ahead 1n the w0f1d race. 1n the c0ur5e 0f ne90t1at10n, N77 wa5 f0rced t0 cut d0wn the m0nth~ f1xed char9e 0f 1N5-Net 64 5ever~ t1me5, t0 0n1y tw~e the char9e f0r 6a~c te1eph0ne. 15DN wa5 5upp05ed 10 d0m1nate, f0r 1n~ance, DDX; th15 even made N 7 7 fear that a ru5h t0ward the new 5erv1ce m19ht cau5e 5er10u5 d15rupt10n t0 0ther ex15t1n9 5erv1ce5. And f0r the f1r5t few year5 ~nce 1988, there actu~1y wa5 exce55 demand f0r 15DN 5u65cr1pt10n5 ~th0u9h 95% were 1ntended f0r 6ack-up5. P a r a d 0 x ~ 1 y , the rate 5tructure wh~h wa5 1ntended t0 pr0m0te demand may 6e 1mped1n9 the 9r0wth 0f 15DN. A1th0u9h 1N5-Net 5erv~e5 are expand1n9, the pr061em 15 that the char9e5 are 6~0w c05t5. N77 rep0rted a recurr1n9 def1dt 0n 15DN 0f ¥47 6f1f10n 0n an 1nc0me 0f ¥17 611110n f0r f15c~ 1992. 55 7he def1dt 0n t0t~ d1~t~ c0mmun~at10n5 wa5 ¥52.5 611f10n 0n t0t~ earn1n95 0f ¥39.5 611110n.56 N71••5 re5p0n5e ha5 6een t0 ne90t1ate w1th the new carr1er5 0n h19h acce55 char9e5 and ff the ne90t1at10n5 f~1 t0 a5k the MP7 t0 5upp0~ the5e char9e5. N0w, kn0w1n9 that 15DN cann0t 9enerate en0u9h demand even at th15 10w pr1ce, few 0ther 0perat0r5 5eem t0 fancy enter1n9 the market. 7here 5eem t0 6e m0re 1ucrat1ve market5 d5ewhere. 539 ~DN ~ Japan: P van der 5~aL V 6r~5muck and K Hatta C0mpet1n9 5erV1Ce. 7W0 ~r0n9 C0mpet1n9 5erV1Ce5 are 6e1n9 1n~0dUCed the Frame Re1ay 5erV1Ce and the V1~Ua1 Pr1Vate NetW0rk (VPN). FR 15 a h19h~peed data ~ a n 5 m ~ 0 n 5erV1Ce, ~mf1ar t0 packet eXChan9e 6Ut Cheaper (a60Ut 10%). h ~ 5U1ta61e f0r th05e Wh0 need h19her ~an5m1~ ~0n 5peed5 than 15DN, 6Ut 15 t00 5m~1 f0r 1ea5ed drCU1~. 7he FR market p0tent1~ 15 eXpeCted t0 6eC0me 4U1te 1ar9e. N77 1aUnChed 1t5 FR 5erV~e 1n JU1y 1994. VPN ha5 6een aVa11a6~ 51nCe the m1d-19805 thr0U9h VAN5. N 7 7 ~50 5tarted VPN 5erv1Ce5 a5 pa~ 0f the 6a~C te1eph0ne 5erV~e 1n Fe6rUary 1994.1n 60th Ca5e5 NCC5 have ne90t1ated W1th N71" f0r yea~5 0n 1nterC0nneCt10n C0nd1t10n5.0n1y af1er appe~5 t0 the MP7 and 100m1n9 0r aCtU~ r1nk-Up 0~de~ We~e a9reement5 0Ver r1nk-Up C0nd~10n5 reached. M0re0Ver, new aff0rda61e and C0nVen~nt h19h~peed m0dem5 keep appear1n9. 7hey Ut11~e the e ~ 1 n 9 te~ph0ne netW0rk and/0r an~09 1ea5ed drCU1~ and are rep1adn9 h19h-5peed d191t~ drCU1~ and 15DN 1n~d 6etWeen 6U~ne55 0ff1Ce5 f0r data C0mmUn1Cat10n5. - Pe~p~f1v~ ~ r 15DN ~ ~ n ~ ~ ~ N N ~ 0f1~naHy ~anned t0 1aunch 8 - ~ D N d ~ a ~ a n 5 m ~ 0 n ~ r ~ c e ~ r c0rp0r~e cu~0m~5 1n 1993 and c0mmerd~ pu6hc netw0rk 5er•ce 1n 1995 and 1ntended t0 0 ~ r 8 ~ 5 D N t0 the 9ener~ p u ~ c eve~ua~y. 1n 1994 ~ 9 ~ 2 ~ 0f ~ y 5 ~ e 4 u ~ m e ~ and ~ t ~ n 0f 0pf1c~ f16er5 1n the m~n trunk netw0rk5 w0~d 6e c0m~e~d. 1n 1997 ~1 6ranch exchan9~ w0~d 6e ~ t ~ e d and 8 ~ 5 D N v ~ u ~ y extended acr055 the n ~ n . 8y 2005 0 n ~ t ~ r d 0f the n~w0rk5 w0~d 6e c0nverted t0 8-15DN and 0 ~ f16er5 w0u~ 6e ~ a ~ e t0 h0me5 ~ m~0r dt1e5. 7he tar9et year f0r ~ ~ a d n 9 the an~09 ~ p h 0 n e netw0rk w1th 8 ~ 5 D N ~ 5 f16er5 wa5 2015. ~ 7h15 ~ h e d u ~ wa5 1ater re9arded 6y N ~ a5 t00 0 ~ c . 8y 1992 N ~ 0ff1~5 ~ a ~ d th~ ~e f 1 6 ~ A ~ e ~ 0 m e ( ~ ~0n h~ 6een a6and0ned. 1n Au9u~ 1993 the p0~p0neme~ 0f 8 ~ 5 D N wa5 ann0unced. 8 ~ 5 D N w0~d 6e 0 ~ r e d 6y N ~ t0 c0rp0rate cu~0m~5 6y 1995. H0me u5e w0~d 5tart 1n 1998, three year5 1ater than 0f1~na~y p1anned. 7he tar9et c 0 m ~ n date ~ m ~ n e d 2015.7he rea50n5 ~ven ~ r the p0~p0neme~ were ~0we~tha~expe~ed ~ c r 1 ~ ~r N~5DN and u n c e ~ n f f a60ut the 9 r 0 ~ h p~ent1~ 0f 845DN. ~ ~ ~N1kke1 Week1y28 June 1993 ~N1kke1 Week1y30 Au9u~ 1993 ~ 0 0 0 m 0p c1t Ref 11, 132 ~MP7 New5 3 (3) 540 ~ ~ 1n Apr11 1992 the MP7 ~ t ~ the demand ~ r 845DN. 7he p e n ~ r ~ n 0f 8 4 5 D N 1n 2015 wa5 expe~ed t0 ran9e 6etween 0n~ 12% ff there were f1m~ed 6enef1~ and 77% ff there were ~ a ~ N e ~ c ~ , extended 5erv1ce area5 and reduced ~ t 1 ~ and 0perat10na1 c0~5. 7he ~ t ~ mark~ f12e ~ r 8 4 5 D N 1n 2015 wa5 ¥ 1 ~ 3 3 ~ h 0 n , 0f w~ch ¥ 1 ~ 2 9 tf1H10n were ~ r 5er~ce5 and ¥4 tr1~0n ~ r ~mmu~c~ e 4 ~ p m e ~ . ~ A ~ 0 r ~ n 9 t0 ~ e MP7, 6u~n~5 h ~ h~h expe~at10n5 6ut n0 dear ~ a 9 e 0f ~ e ~nct10~ ~ 845DN. Japan 15 at the ~ 0 m 0f R•D 1n 6af1c ~ c h n 0 ~ e 5 , 6ut weak ~ ~ t10n5.1t 15 ~c0mmended ~ 8 ~ 5 D N mu~ 6e made ~ d e ~ and d e a d y unde~t00d 6y p r 0 m ~ 9 f1e1d tf1~ ~ ~ 5 and ~ W~e~. ~ 8~9 a ~ta1 ~0~c netw0rk ~ the hr9e~ ~ v ~ t m e m pr09ram ever hced 6y the ~ ~ c 0 m p a ~ . 7he a ~ u m d ~ e d c a ~ ~ D N ~ Japan: P van der 5~aL V 6 r ~ 5 m u ~ and K Hatta eXpend1tUre5 f0r 8 4 5 D N Were e5t1m~ed at ¥10 tr11f10nf0r Uan5mN~0n and ¥23 tr1~0n f0r the 5U65Cr16er 5y~em, Wh~h W0UN Create added reVenUe 0f ¥67 tr11f10n f0r the tdeC0mmUNCaf10n5 1ndU5try.~ MP7 ackn0W1ed9ed that the C0mm0n Carr1er5 Cann0t aff0rd the 1nve5tment 0n thNr 0Wn and are ~ need 0f pU611C fUnd1n9.~ V1510n~ reC0mmendat10n5 and p 0 1 1 ~ 7he ~ 0 n 0f Japan tUrNn9 ~t0 a ~11fe~e 5Uperp0Wer• Wa5 f0rmM~ed 1n the p0~-6U66~ era a~er 1990. An 1mpr0Ved 1nf0rmat10n ~ffa~rU~ tUre Wa5 perC~Ved a5 h19h~ 1n9rUmentN f0r deVd0Nn9 Japan 1nt0 a pr0-C0n5Umer 506ety, W1th an empha~5 0n 50dN, en~r0nmentN and 11V1n9 C0nd1t10n5. 1n part1CUNr ~5UN ~f0~0mmUNCat~n5 Were 5Nd t0 6e ~ N 5 p e n ~ a61e t0 aCNe~n9 a m0re enr1Ched 11fe~.~7N5 p01~y Wa5 ref1ected 1n the 5UpNementary 6Ud9et f0r FY 1993. F0r ~ a n C e , ¥90 N ~ 0 n Wa5 re5erved f0r a pr0ject Under M171•5 new V15UN 1ndU~ry D 1 ~ 0 n , t0 5et Up a m~f1me~a Center, 0pen f0r U5e 6y C 0 r p 0 r ~ n 5 and ~N~dUN5. ~ 7he 7e~C0mmUn~at10n5 7eChn0~9y C0Und1 rep09ed that the demand f0r advanced 1ma9e med1a wa5 5t1rred 6y ~chnN0NcN pr09re55 and ~ v e r ~ 9 50dN need5, and that n0taNy 8 d 5 D N w0~d enaNe ~an5mN~0n 0f ~ 9 r ~ e d ~ f 0 r m ~ n . ~ 7he acc0rNnNy amended R•D 6 ~ d d ~ e 5 f0r 7e~c0mmun~at10n5 c0ntNned a c0ncrete p1an t0 pr0m0te R•D 0n advanced 1maNn9 ~chn0~Ne5 and 5y~em5 apN1~ a61e t0 m e ~ a fu~0n. ~ 7he MP7 1dent1f1ed a5 pr06~m5 f0r the future ~f0~0mmu~cat10n5 ~ffa5~u~ure: the exten~ve t1me and fun~n9 needed f0r 1t5 1mp1ementat10n, unce~Nnty 0f 4uant~y and t1m1n9 0f demand, the r01e5 0f pu6f1c and pr1v~e 5ect0r5 ~ the c0n5Uuct10n, and the m~cNn9 0f 5y~em5 w1th the 1ate5t mchn0~NcN ~n0vat10n5. ~ A5ked f0r adv~e, the 7 e ~ c 0 m m u n ~ n 5 C0und1 ment10ned 1n thN re9ard a5 ur9ent pNnt5: pr0m0t10n 0f 50~ware app11cat10n5, ~91tN 1maNn9 ~chn0~9y, human re50u~e deve~pment, ~ r n ~ n N exchan9e and the 1aunch 0f a •New 6enerat10n 1nf0-C0mmuNcat~n5 N~w0rk P110t Pr~ect~. ~ 7h~ p r ~ e ~ 5tarted ~ 5pr1n9 1994, under the au5Nce5 0f the MP7, w1th c00perat10n fr0m c0ncerned ~du5tf1e5. 1t5 mNn 90a15 are t0 c0n5truct an F 7 7 H 5y~em 6etween 5evern hundred h0me5 and 0ff1ce5 1n Kan5N 5dence C1ff, p r 0 ~ n 9 5erv1ce5 5uch a5 ~de0-0n-demand (V0D) and 7V 9ame5, t0 deve10p new a p N ~ n 5 f0r the ~Mu1t1me~a 5 0 d ~ and t0 exam~e pM1cy 155ue5 11ke fu5~n 0f ~ c 0 m m u N c ~ n 5 and 6r0adca5t1n9, and 1 n t d ~ u N pr0pe~y r19ht5.~ 1n m1d-1993 the MP7•5 N~w0rk 7echn0~9y C0und1 5tated that ~N1kke1 Week1y 28 June 1993 repNdn9 ex15t1n9 5u65cr16er 11ne5 w1th 0pt1ca1 f16er5 15 e~ent1N t0 ~J1PDEC 0p c1t Ref 55, 53 maNn9 h~h~peed, 6r0ad6and netw0rk5 a rea11ff. C0nfu~0n remNned 53Mp7 0p c1t Ref 16 a5 t0 wh1ch 0pt1cN 5u65cr16er 1~e netw0rk 15 m05t 5u1taNe, ~nce 1t wf11 ~N1kke1 Week1y 22 N0vem6er 1993 ~7~ec0mmun~at10n5 7echn0109y C0un- • f f e r acc0rd1n9 t0 the 5erv~e5 and ~an5m9~0n 5y~em u5ed. 7° 7he ~ D191ta11ma9e 7echn01091e5 70ward the C0un~1 5tre55ed the 1mp0aance 0f dar1f1cat10n 0f the 5erv1ce5 1n 21~ Centu~7~1-F (25 Janua~ 199~ re1at10n t0 the dynam1~ 0f the future mark~ and mchn0~NcN ~MP7New5 (199~ 3 (2~; 4 (1~ deve10pment5. 71 ~ M P 7 New5 (199~ 4 (2) ~7~ec0mmu~cat10n5 C0un~1 Rec0mF0~0w~9 rec0mmendat10n5 0f the 7e~c0mmun~at10n5 C0unc11 1n mendat10n 0n C0n5truct10n 0f an ~ January 1994, the MP7 ann0unced 1mp0~ant mea5ure5 f0r the creat10n C0mmun1cat10n5 ~fra5truc~re 7~ec0m0f a New 1nf0~0mmuNcat10n5 1nffa~ru~ure (N11). 7he Nm 15t0 create mun~at10n5 C0un~1 ~0 Au9u~ 199~ ~ M P 7 New5 (199~ 4 (11) 2.4 m1~0n j065 and a new ¥56 tr11f10n mark~ 6y the year 2010 ~ a the ~°MP7 New5 (199~ 4 (~ e 5 m ~ h m e n t 0f a n ~ n w ~ e f16e~0pt~ n~w0rk. 7he t0tN mMt1me~a ~ MP7 New5 (199~ 4 (11) mark~ 6y then 15 e5f1m~ed t0 6e ¥123. 72 6Nen a p 0 p M ~ n 0f 122 72Mp7 New5 21 Janua~ 1994 541 15DN ~ Japan: P van der 5maL V 6 m ~ m u ~ and K Hatta m1~10n and the much 5mN~r pre5ent ~2e5 0f ~ad1n9 1ndu~r1e5, the5e tar9e~ have natura11y met w1th c0n~dera61e 5kept1c15m fr0m 1ndependent an~y5t5. 1n re5p0n5e t0 the C0und1•5 9u1dance, N77 ha5 recent~ ann0unced a p1an t0 c0mp1ete 1t5 f16ev0pt~ c0mmun~at10n trunk netw0rk 6y the 5u99e~ed year 2010. 7he p1an ca115 f0r exten510n t0 h0u5eh01d5 1n the f0H0w1n9 f1ve year5.7he c0mpany 1ntend5 t0 rep1ace 30-40% 0f ex15t1n9 f1ne5 w1th 0pt1cN f16er5 1n prefe~ur~ cap1t~5 and dr1e5 0ver 500 000 1nha6Rant5 6y the year 2000. ~ 7he netw0rk w1115erve a5 the f0undat10n f0r the 1nteract1ve mu1t1med1a market, 6ut 8 4 5 D N 15 n0t ment10ned 1n th15 re9ard. 51nce the C0undF5 rec0mmendat10n, n0t much ha5 6een heard a60ut 15DN. 0pt1ca1 f16er5, F•14•H, N11 • 611 (Nat10n~ and 6106N 1nf0rmat10n 1nfa~ru~ure) are n0w the 6u22w0rd5. 1 5 D N ve~u5 0 ~ me~a Cu~ent deve~pmen~ 1n ~ c 0 m m u N c ~ n 5 p01nt t0ward5 6r0ad6and d191tN netw0rk5 c a ~ n 9 a mMt1mde 0f 1n~rmaf10n ~rm5 (te~, 9 a p N ~ , 5t~1 1ma9~, ~11 m m ~ n v1de0 and 50und) and med1a (d~a, ca61e ~ N 0 n , te1eph0ne and 5ateH~e n~w0rk~. 8r0adca5t1n9, tdec0mmuNcat10n5 and ( d e ~ r 0 N ~ mN1 can 1n pr1ndp~ take Nace 0ver the 5ame n~w0rk5. 7hu5 t0 ~f1m~e the chance5 0f 15DN 1n thN m~r1meNa ~ m r e , the 5u65t~ut1n9, 5upNement1n9 0r 5upp0rt1n9 p0tent1N 0f N ~ r n ~ N e c0mmuNcat10n5 carr1er5 and 5er•ce5 mu5t 6e c0n59 dered, 7he 7dec0mmu~cat10n5 C0und1 15 w~cNn9 c 0 m p ~ R ~ n am0n9 and 6etween the 6r0adca~1n9 and ~ c 0 m m u n ~ a t 1 0 n 5 1nfra5tructure5 6ecau5e ~ f 1 ~ , CA7V, and 8~5DN each have m m ~ k a 6 ~ capa611N~, and they are mumN~ c0mpet1t1ve. 7 h ~ e ~ , ~ 15 Nff1cu~ t0 5e1ect a 5pedf1c ffpe 0f 1 n f a ~ r u ~ u ~ , 5uch a5 8-15DN, ~ r p ~ m t1a1 pr0mm~n. ~74 ~Japan 71me56 Decem6er 1994, 10 ~7~ec0mmun~at10n5 C0un~1 7e~c0mmun1cat10n5 Advancement V1510nRep0~ 7~ec0mmun~a~0n5 C0und1 ~une 199~ ~N1kke1 Week1y20 Decem6er 1993 ~N1kke1 Week1y13 Decem6er 1993 2~N1kke1Week1y8 N0vem6er 1993 542 Ca61e te1ev~10n (CA 7V). CA7V 1n Japan 15 re1at1vdy underdeve10ped. 0n1y 1 630 000 h0me5 are ca6~d. M05t 0f the 56 400 CA7V 0perat0~ are t1ny c0mpan1e5, 5erv1n9 ~01ated rurN area5.1n ur6an area5 0n1y 3% 0f h0u5eh01d5 5u65cr16e and ar0und 80% 0f the 123 Nr9er 0perat0~ are 1n the red. 75 1n the h0pe that CA7V w1H 9reat~ c0ntr16ute t0 the c0n~ru~10n 0f the future c0mmun1cat10n5 1nfa~ru~ure, the MP7 ~ keen t0 enc0ura9e CA7V c0mpan1e5 t0 6ec0me m0re act1ve. 1n Decem6er 1993 the MP7 ea5ed re9u1at10n5 0n the CA7V 1ndu5try t0 5t1mu1ate 1t5 9r0wth and t0 6005t the mu1t1med1a market. 1t re1axed the 6an 0n mu1t1p~ and 1nte~10cN 0wner5h1p, and 0n m0re than 20% f0re~n 0wner5h1p, 0f CA7V c0mpan1e5. ~ 7he MP7 N50 dedded t0 take a f1eN61e 5tance t0ward the c0nver9ence 0f te~c0mmun1caf10n5 and 6r0adca5t1n9. 8ut there 15 5t111 c0nfu510n a60ut h0w the MP7 5h0u1d app1y the ex15t1n9 d1fferent 1aw5 acc0rd1n9 t0 the 5erv1ce cate90r1e5. 7~ec0mmun1cat10n5 5er~ce5 f1a the 7V ca61e w0u1d 9reat~ he1p t0 ~1mu1ate the ~u9~5h CA7V 1ndu~ry. C0n~rNn~ are the MP7•5 ur9e t0 mNnta1n c0ntr01 0ver the 1ndu~ry, and the 100m1n9 pre5ence 0f N77. 0n1y ~nce N0vem6er 1994 have Japane5e CA7V c0mpan1e5 6een N10wed t0 app1y f0r a 1~en5e t0 pr0~de te~ph0ne 5er~ce5. LCV C0rp, the f1r5t Japane5e CA7V c0mpany w1th a te~c0mmun~at10n5 5erf1ce5 f1cen5e, w111 exper1menta11y 1n5taH 100 km 0f f16er5 t0 e~ht 0f 1t5 emp10yee5• h0me5. ~ A j01nt venture 6etween 70men and Nynex 1ntend5 t0 pr0v1de te~c0mmun1cat10n5 5erv~e5 0n 7V ca6~5 1n 5pr1n9 ~ D N ~ Japan: P van ~ r 5m~ V 6m~muck and K Hatta 1995 and h0pe5 t0 11nk them e v e n t U ~ W1th N4-4••5 d~U~5. ~ R 15 n0t y ~ dear Wh~her N 7 7 W1116e a110Wed 10 pr0f1de CA7V. 1t 15 feared that ~ W0~d d0m1na~ C0mpet1t10n 51nCe ~ a1ready ha5 a netW0rk ~ p1aCe.~ A1th0U9h N77•5 0wner5h1p 0f a 6 r 0 a d c a ~ 9 C0mpany ~ f1m1~d t0 3%, 1here ~ n0 ~ w t0 pr0h161t N 7 7 fr0m 6r0adCa5t1n91ma9e5 0n ~5 f16e~0pf1C netw0rk. 5a~111te5. 5~df1~5 have a c0mparat1ve advanta9e 1n ma55 6r0adca5t1n9, channe1 f1e~6111ty and w1de~rea c0vera9e. Japan ha5 a num6er 0f 5~df1~5 f0r 6r0adca5t1n9 (855); and c 0 m m u n ~ n 5 (C55) 1n 0r6R. 5~e~5 are p0tent1~ c 0 m p ~ 0 ~ 1n the mark~ f0r m 0 ~ c0mmun1cat10n5 and 1ma9e ~an5m15510n. D~ect 8r0adca5t1n9 5ate1f1te (D85) t0day 15 a 0ne-way 5erv~e. Re5earch 1nd1cate5 that w 1 r e ~ 1nteract1ve 7 V m~ht 6ec0me p0551~e, h0wever. 1nte9r~ed 5erv~e5 D1~t~ 8r0adca5t1n9 0 5 D 8 ) ~ a c0ncept u51n9 21 6 H 2 6r0ad6and 5~df1~ 6r0adca~1n9 f0r a ~ a n 5 m 1 ~ n rate 0f 70-140 M6p5. M0611e Meph0ne5. Japan pu~ a c0nt1nu1n9 empha5~ 0n 5ate~ke and ceHu1ar 5y~em5 f0r m061~ te~ph0ne5. 7w0 an~09 cd1u~r te~ph0ne c0mpan~5 ~ready e ~ 1n each d1~f1~ 1n Japan. 1n anf1dpat10n 0f a rap1d expan~0n 1n demand, the next m0ve 1n 1994 wa5 t0ward5 d191t~ ceHu1ar 5erv~e5. A new d191ta1 m061~ te1eph0ne 5y~em, P e ~ 0 n ~ Handy Ph0ne (PHP), wa5 5chedu1ed t0 6e 1aunched 1n m1d-1995. F0r pr0v1~0n 0f th15 5erv1ce, N 7 7 w1H ut11~e 1t5 1N5-Net 64. U~n9 th~ e~5t1n9 1n~a5~u~ure 15 5upp05ed t0 make the new 5erv1ce very cheap. 7he c ~ 5 10caf10n w1H 6e ~an5m1tted 0ver the D chann~. PHP 15 ~50 de5~ned t0 5u1t PDA ( P e ~ 0 n ~ Data A 5 ~ a n c e ) u5e. 7hree NCC5 w1H depend 0n N77•5 15DN f0r the~ PHP 5erv~e5. 7he MP7 expe~5 the num6er 0f 5u65cr16er5 t0 reach 38 000 000 1n 15 year5. 1f that c0me5 true, then there w1H 6e p1enty 0f demand f0r 15DN. 1n~rne~ 1nternet c0mputer c 0 m m u ~ c ~ n 5 m~ht ~50 pr0f1t fr0m 15DN 6ecau5e 0f the ten t1me5 h~her 5peed 0f end-u5er 11ne5. A re4~rement 15 ~wer pr1ce5 f0r e4~pment. New 9enerm~n5 0f c0mputer5, e4u1pped w1th D5P ch1p5, w1~ 0 ~ y need a f1mp~ 15DN c 0 n n e ~ n adapter. 0ther 06~ade5 are the 9re~ expen5e 0f Japan•5 1ea5ed 11ne5 f0r c0nnect10n5 6etween h0~5, the re~f1ct10n5 0n the type 0f 1n5t1tut~n5 a d m ~ d and the ~ e v ~ a 6 ~ 1an9ua9e 6arr1er. 7he 5~ent1f1c c0mmunRy ha5 6een ~0w t0 ad0pt c0mputer netw0r~n9 and even N471" ~ n0t appr0ac~n9 1t very act1ve~. ~ ( H D 7 V ) . 8 4 5 D N w111 have the capadty t0 ~an5m1t h19h-re501ut10n v1de0 1ma9e5. N1pp0n H050 Ky0kN (NHK) ~ a ~ e d t0 devd0p a N9h-def1n1t10n 7V ~chnM09y, H1-V1510n, 1n 1974. 8y 1984 the MU5E 5y~em t0 c0mpre~ the H1-V1f10n f19na1 had 6een deve~ped t0 f1t ~ 1nt0 5ateH~e channe1 6andw1dth. DN1y 0ne-h0ur 6r0adca~5 ~ a ~ e d 1n June 1989 u~n9 D85. Daffy 6r0adca~1n9 0f e~ht h0ur5 f1a 85-36 ~ a ~ e d 1n N0vem6er 1991.8y the end 0f 1994, 50 000 h0u5ehMd5 wete expe~ed t0 0wn an H D 7 V 5et. H0wever, the 4ua11ff 0f NHK•5 H D 7 V pr09ramm~9 15 jud9ed t0 6e ~n0t0r10u5~ 61an~. Fu~herm0re, 11tt1e50~wate N ava11a6~ and the Naye~ are expen51ve, m F1nN~, the future 0f H1-V1~0n 6ecame unce~Nn a~er the ann0uncement 6y the M P 7 ~ 1994 that the anM09 H1-V1f10n had t0 6e reNaced 6y a NNtN 5y~em. H19h-def1n1t10n ~ v ~ n ~N1kke1 Week1y22 N0vem6er 1993 ~N1kke1 Week1y20 Decem6er 1993 ~Na~re 1993 365 (199) ~N1kke1 Week/y 20 Decem6er 1993 543 ~ D N ~ Japan: P van der 5maL V 6 r ~ 5 m ~ k and K Hatm C0nc1u510n5 7he Japane5e ~ c 0 m m u ~ c a t 1 0 n 5 and 7E 1ndu~ry and the 90vernment heav11y pr0m0ted 15DN, 9N~9 1t 1~ 5er•ce a5 we11 a5 ~ve5t1n9 1n 0 p t ~ netw0rk5 and ~91t~ 5w1~he5, pr0du~n9 ~ r m ~ e4u~ment and fun~n9 R•D 1n 15DN~d~ed ~chn~09y. A~er an 1~f1~ exp0nent1~ 9r0wth and ea9er ad0pt~n 0f 15DN 6y 6u51ne55, the acce~r~ t10n decrea5ed t0 a re1at1ve~ 10w ~ffu510n rate and 15DN 15 n0w 9r0w1n9 at a pace that f0rce5 the a6and0nment 0f ~1t1~ e x p e ~ n 5 that there w0u1d 6e 15DN 1n every pf1va~ h0me 6y 2015. 5ever~ 1mpe~n9 f a ~ 0 ~ can 6e ~ent1f1ed. A ~ru~ura1 ~n5~n e ~ 5 6etween the pe~eNed need t0 deve~p a nat10nw1de 15DN 1nfra5tructure w1th u~ver5~ e4u~ acce55, and the 1ntere5t5 0f a d e r e 9 ~ e d , d e m 0 n 0 p ~ e d and c0mpet1tNe ~ c 0 m m u ~ c ~ n 5 mark~. Carf1e~ are nct ~10wed 6y the MP7 0r ena6~d 6y the c0mp~1f10n t0 5et 5er~ce char9e5 w~ch c0ver the1r c05t5 and thu5 they f1nd 1t ~ff1cdt t0 ju5t1fy the1r ~ve5tment5. 7he archdect5 0f 15PN f0cu5ed m0re 0n ~5 ~ c h ~ c ~ appea1 than 0n ~5 u5efu~e~ f0r the pu6~c. 7he 15DN ~andard 5eem5 t00 ve~af1~ f0r avera9e u5er5, wh0 1n 9ener~ have a fu22y 1ma9e 0f 1t. 1t ha5 t00 ~ w un14ue 5erv~e ~ u r e 5 t0 attract p0~nf1~ cu~0mer5. 7h~ h01d5 e5pe~ f0r the ma~ mark~5 0f h0u5eh~d5. 1n~rc0nnect1~ff pr061em5 f1m1t the num6er 0f p0tenf1~ c0mmu~cat10n pa~ne~, w~ch fu~her weaken5 the pr05pe~ 0f ~ a c t 1 n 9 m0re 5u65cr16er5. 7he ~u9~5h demand 15 a p00r 1ncent1ve f0r the ~ c 0 m m u n ~ n 5 1ndu~ try. E4~pment pr0~de~ cann0t ant1~p~e 1ar9e en0u9h mark~5 t0 reach ec0n0m~5 0f ~ e and 6r1n9 d0wn the1r pr1ce5 ~0n9 the ~ a r n ~ 9 ~urve. Pr1ce5 ~f e4~pment rem~n t00 h~h t0 re~ch the m~55 mark~ and t0 ~ a ~ en0u9h cu~0mer5.7~5 v 1 ~ u ~ d05e5 the v1c10u5 ~ r d e 1n w~ch 15DN 15 cau9ht. 15DN 5eem5 t0 6e 0utd~ed 6ef0re 1t ha5 reached m~uf1ff. P a ~ a5 a 5~n-0ff fr0m 15DN, 0ther ~ c h n 0 ~ e 5 , 5uch a5 data c0mpre5f10n and 50~ware, are appear1n9 that 5eem t0 make the netw0rk ~0w, the u5e 0f 6andw~th5 1neff1dent and the hardware 5tandard ~f1e~6~. A d d t10na11y, 15DN 15 c h ~ n 9 e d 6y c0mpet1n9 m e ~ a and 5er•ce5. 1n the meant1me the auenf10n 0f the ~ c 0 m m u n ~ a t 1 0 n 5 ~ d u ~ r y ~ d~tra~ed ~0m 15DN and d1re~ed at the hera~ed mu1t1me~a era. 1t 5eem5 t h ~ 15DN a5 a 5tanda~d f0r a u n N e ~ n~w0~k w111nct m ~ e r 1 ~ e . 0 n the p0f1tNe 51de we can 5ee that 15DN 1n Japan ha5 90t a f00th0~ 1n the c0rp0r~e ~ c 0 m m u ~ c a f 1 0 n 5 mark~ and ~ e a f 1 n ~ y 1n the 5m~1 and me~um 6u51ne55 5ect0r, ~th0u9h 1t ha5 n0t 6een acepted 6y the ma55 c0n5umer mark~ at ~1. 7h15 1a5t ~ep m19ht 6e taken ff the entert~nment 1ndu5try 0ffe~ v1de0 0n demand, 9ame5 and er0t~ 5er~ce5. At pre5ent Japan 15 w1tne551n9 a 1e55 am61t10u5, ~0wer deve~pment 0f 15DN than wa5 0 r 1 ~ n ~ expe~ed, f1m1~d t0 e~5t1n9 5er~ce area5, uf1n9 hy6r1d netw0rk5 and 0r1ented m ~ n ~ t0 6uf1ne55 u5e. 15DN 1n Japan 15 n0 ~n9er perce1ved a5 a 90~ 1n 1~eff, 6ut a5 ju~ 0ne 11nk t0 a fu11y ~ t ~ and mu1t1me~a netw0rk, a c 0 n ~ t ~ n f0r an eff1~ent n ~ n ~ ~f0~0mmun~af10n5 1n~a~ru~ure 1n 1he anf1dp~ed ~ f 0 r m ~ t10n 50dety. 544