Unofficial and tentative translation For Achieving Globalization of an "Intellectually Creative Society" Interim Report January 23, 1995 Communications Policy Committee Telecommunications Council Ministry of Posts and Telecommunications, Japan This paper is a presentation by item of the main points expressed by members of the Communications Policy Committee at the 33rd-41st meetings of the Telecommunications Council, an advisory body to the Minister of Posts and Telecommunications, after an inquiry was made on October 13, 1994, to Council No. 109 as to what measures should be taken to establish an advanced info-communications infrastructure for the 21st century together with other nations. Further discussions on this subject will be held in the Communications Policy Committee of the Telecommunications Council, and a final report submitted in May 1995. Copies of this interim report may be obtained from the International Policy Division, International Affairs Department, Ministry of Posts and Telecommunications, 1-3-2 Kasumigaseki, Chiyoda-ku, Tokyo, 100-90 Japan or through Internet (MPT home page:http://mpt.go.jp/ ). Any comments or suggestions on the content would be welcomed (address: gii@mpt.go.jp) and those comments would be considered for the final report of the Telecommunications Council. TABLE OF CONTENTS Outline of Interim Report Section 1: Transition to globalization of an "Intellectually Creative Society" 1. Global socio-economic issues 2. Establishment of an info-communications infrastructure on a global base 3. Concept of Global Info-communications infrastructure 1) The structure of info-communications infrastructure and examples of the major issues in a global info-communications infrastructure 2) Discussions on global info-communications infrastructure Section 2: Necessity of developing advanced info-communications infrastructure 1. Promotion of public and / or private investment 2. Establishment of a fair and competitive market structure 3. Definition of the appropriate regulatory framework based on technological innovation 4. Provision of open access to networks 5. Development of open and well-balanced global info-communications infrastructure Section 3: Ensuring equal opportunities for everyone 1. Ensuring right of access to information 2. Consensus on a new "universal service" 3. Protection of intellectual property rights 4. Respect for privacy, safeguarding of data security Section 4: Respect for cultural and social diversity 1. Respect for cultural and social identity of each country and stimulation of diversity 2. Transition to new life styles and work styles Section 5: Promotion of global coordination and cooperation 1. Establishment of a "Global Vision" 2. Coordination with international organizations concerned 3. Exchange and sharing of information on a cooperative basis Section 6: Policy measures I. Co-foster networks and applications 1. Vision toward globalization of an intellectually creative society 2. Establishment of a fair and competitive policy for the international info- communications system 3. Development of applications such as high-speed and high- performance test beds 1) Promotion of joint R&D of international applications 2) Implementation of a network access environment that does not depend on location 4. Promotion of inter-connectivity and inter-operability 1)Promotion of effective coexistence of de jure standards and de facto standards 2)Standardization and intellectual property rights 3) International collaboration II. Guarantee protection and rights 1. New framework of intellectual property rights 2. Protection of privacy, personal data, reliability and security of data / system III. Stimulate diversified intellectually creative activities 1. Free flow of "visual information" on a global base 2. Measures for job creation 3. Cultivating "information literacy" IV. Encourage international coordination and cooperation 1. Promotion of international R&D activities 2. Allocation of ODA giving priority to the info-communications fields 3. Contribution to the activities of international organizations Annex : Communications Policy Committee members Annex COMMUNICATIONS POLICY COMMITTEE MEMBERS Isamu Miyazaki, Chairperson of the Communications Policy Committee, Chairman, Daiwa Institute of Research, Ltd. Kazuo Horiuchi, Vice Chairperson of the Communications Policy Committee, Professor, School of Science & Engineering, Waseda University Akira Arai, Chairman of the Board, Nihon Keizai Shimbun, Inc. Teruhiko Ena, Executive Vice President, Space Communications Corporation Morimasa Goto, President and Representative Director, Philips Medical Systems Corporation Ken Ichiriki, Chairman, Telecom Services Association of Japan Kazunori Ishiguro, Professor, The Faculty of Law, The University of Tokyo Mitsuharu Ito, Professor Emeritus, Kyoto University Yasuo Iwayama, Vice President, Japanese Trade Union Confederation (JTUC-RENGO) Naoki Koizumi, Associate Professor, Faculty of Law, Kobe University Naoyuki Kono, Executive Managing Director, NHK (Japan Broadcasting Corporation) Katsushige Mita, Chairman of the Board, Hitachi, Ltd. Yoshinobu Mitomi, Advisor, AT&T Global Information Solution Japan, Ltd. Noboru Miyawaki, Executive Vice President, Nippon Telegraph and Telephone Corporation Yukio Mizuno, Executive Advisor, NEC Corporation Masaaki Morita, Director, Sales Department, Deutsche Telekom K.K Ritsuko Nagao, Executive Director, Japanese National Council of Social Welfare Kazuya Nagasawa, Managing Director, Mitsubishi Electric Corporation Michio Naruto, Executive Director, Fujitsu Ltd. Tadashi Nishimoto, Executive Vice President, Kokusai Denshin Denwa Co., Ltd. Seiichi Ohteru, General Manager, Databank Bureau, Nihon Keizai Shimbun, Inc. Tomoo Okada, President, NIFTY Corporation Kenzo Oshima, Managing Director, General Affairs Department, Japan International Cooperation Agency (JICA) Tadao Saito, Professor , The Faculty of Engineering, The University of Tokyo Hideo Sakamaki, President & Chief Executive Officer, The Nomura Securities Co., Ltd. Sachio Semmoto, Senior Vice President, DDI Corporation Eiichi Shimizu, Vice President, AT&T Japan Ltd. Shigeko Shinohara, President, Modern Information Research Institute Bunzou Shirakawa, Senior Executive Director, Fuji Television Network, Inc. Homare Takenaka, Vice President of External Relations, IBM Japan, Ltd. Yoshio Tsukio, Professor, The Faculty of Engineering, The University of Tokyo Yasuhiko Yasuda, Professor, School of Science & Engineering, Waseda University Section 1 Transition to globalization of an "Intellectually Creative Society" 1. Global socio-economic issues a. It is said that today's world economy is, as a whole, in an expansionary stage. The new industrializing economies in east Asia are growing phenomenally, as is the case with some countries in Central and South America, Eastern Europe and the rest of Asia, most notably Vietnam and India where the economic growth is accelerating. On the other hand, unemployment is high in developed countries despite economic expansion. b. Some of the major problems the world faces are how to sustain economic growth, create sufficient employment in developed countries and at the same time preserve the environment. 2. Establishment of an info-communications infrastructure on a global base a. At present, developed countries in particular are in the process of becoming intellectually creative societies in which information and knowledge have greater social and economic value in accordance with the transition to more service-oriented industries. b. The intellectually creative society will be borderless, with companies and individuals able to do business beyond national boundaries. This social environment is referred to as "Globalization of an intellectually creative society". c. Definition of the "Globalization of an intellectually creative society" : -- A society in which the benefits of use of the resources can be enjoyed equally by all people of the world. -- A society that encourages individuals to freely conduct a diversity of intellectually creative activities. -- A society of peace and harmony based on mutual understanding and respect. d. The conventional route of industrialization will not be able to provide fundamental solutions to such issues as how to deal with aging population, global environmental preservation, etc. Therefore a new approach which utilizes information and knowledge to the full is necessary. The evolution toward globalization of an intellectually creative society will possibly create jobs, provide sustainable economic growth and give birth to a new welfare state, etc. e. An info-communications infrastructure spanning the globe will have profound and far-reaching consequences. Internet, which originally began as a research network in the United States, now links more than 150 countries including Japan and is used extensively for the exchange of research information and access to databases. The establishment of an info-communications infrastructure on a global base will further clarify the intellectually creative society. f. In order to realize globalization of an intellectually creative society, an info-communications infrastructure should be established to circulate a wide variety of information for diverse applications. It is necessary to use effectively such technological innovations as broadband, digitalization, interactivity, high-quality and high-reliability. It is also important to adopt a flexible framework that can accept cultural and social diversity in order for individuals to be able to freely conduct creative activities. g. An info-communications infrastructure should be considered the most important social capital in achieving globalization of an intellectually creative society, as we prepare for the paradigm shift from mass consumption to qualitative improvement in individual life styles. The change will be effected by applying information and knowledge to creation and consumption, in tandem with advances in science and technology. h. An info-communications infrastructure provides the means for the effective use of human and material resources by accurately assessing a supply and demand balance, while it also improves the productivity of existing industries. The new infrastructure will also be an important tool in solving environmental problems. Some of its current functions in this capacity are environmental monitoring through a remote sensing system, and the evolution to a paperless society through such means as electronic newspap ers. 3. Concept of Global Info-communications infrastructure 1) The structure of info-communications infrastructure and examples of the major issues in a global info-communications infrastructure Layer of Info-Communications Infrastructure Examples of the Major Issues Level 4 Value Legal framework Life styles Work styles Cultural and social evolution Protection of intellectual property rights Privacy and data security Current status of other nations Level 3 Informatization of education, medical care, government services and industry Applied databases Applications Development and introduction of applications International coordination and cooperation Level 2 Information circulation system Information processing and transceiving devices standardization (between networks and terminals), inter-connectivity, inter-operability Level 1 Information transmission system Physical transmission media Universal service Standardization (between networks) Establishment of infrastructure 2) Discussions on global info-communications infrastructure a. A wide variety of issues have been discussed concerning the establishment of a global info-communications infrastructure on several occasions since the first proposal to create a GII (Global Information Infrastructure) was made at the ITU World Telecommunications Development Conference in March 1994. In Japan, there were two notable conferences on this subject in September 1994. ITU Plenipotentiary Conference in Kyoto: Proposal and setting up of the World Telecommunications Policy Forum Ministerial Meeting on Global Telecommunications: Adoption of the Kyoto Declaration At these conferences, Japan had the opportunity to host discussions with many countries from both the developed and developing countries. Section 2 Necessity of developing advanced info-communications infrastructure 1. Promotion of public and / or private investment a. The technological possibilities point to a bright future for the info-communications field, and a diverse range of services are already being introduced. The steps taken to introduce services, however, vary widely from one country to another. There are still many nations that do not have even a basic telephone service in place. b. In order to realize globalization of an intellectually creative society, an info-communications infrastructure must be systematically established, covering networks, applications and content. The growth in related industries is expected to be seen in this process. c. The private sector is the key to the establishment of a global info-communications infrastructure. At the moment, however, there is a certain amount of reluctance to invest in an area where future demand is unclear. d. At the national government level, particularly in developed countries, there are several core issues: To stimulate demand by the development of basic, multi-purpose technologies and practical applications, To cooperate with other nations in harmonizing their legal systems to allow unrestricted development of services and to promote mutual recognition of type approvals. e. From the global viewpoint, it should be noted that some developing nations wish to foster info-communications as a key domestic industry instead of relying on other nations for the provision of services. f. In order to promote private investment, governments should assist the private sector through legal and financial systems including tax exemption measures. 2. Establishment of a fair and competitive market structure a. It is vital to maintain a viable market environment to actively encourage private sector investment. In recent years, developed countries have experienced the creation of new markets and the growth of existing ones following technological innovation and the expansion of services. Many of these nations are also tending to privatize public monopolies. b. International oligopolies such as the global alliances of dominant carriers present a problem which cannot be dealt with by antitrust policies within individual countries. How these carriers should be prevented from taking advantage of their dominant positions in the international market needs to be addressed in terms of tariffs, restriction of network inter-connections, etc.. 3. Definition of the appropriate regulatory framework based on technological innovation a. Need to set up an appropriate regulatory framework to keep pace with technological innovation in broadband, interactivity, digitalization and the development of services. b. Adequate response must be made to the advances in technology: Review of the regulatory framework for the convergence of communications and broadcasting in the future Coordination / harmonization of legal systems governing each country in order to deal with cross-border services. c. Market needs as well as technological innovation must be reflected in a regulatory framework. 4. Provision of open access to networks a. In order to realize the benefits of advanced communications on a global base, info-communications infrastructure, including not only networks but also applications and content, must be open to users and service providers. b. It is premature at this point to set rules on the establishment of a global info-communications infrastructure, as current progress in infrastructure development differs greatly between developed and developing countries. We can hardly ask countries that do not have even a basic telephone system in place to guarantee open access to their info-communications infrastructures. 5. Development of open and well-balanced global info- communications infrastructure a. There must be an international consensus in establishing a global info-communications infrastructure taking into consideration such things as the degree of info-communications infrastructure development within each country as well as between countries, regional characteristics in the area, etc. Example 1: Type A: Large-capacity fiber-optics communications network + Microwave communications network + Mobile communications network + Satellite communications system Type B: Microwave communications network + Wireless access line network + Mobile communications network (cellular phone, Personal Handyphone System (PHS), etc.) + Satellite communications system Type C: Such satellite communications systems as GEO (geo- stationary earth orbital satellite) and LEO (low earth orbital satellite) + Wireless access line network Example 2: The social and geographical conditions of the Asia Pacific region are very diverse. Above all, as the area contains many seas and islands, the most convenient and economical means of establishing an info- communications infrastructure would be by satellite communications. b. Networks should be the appropriate combination of satellite, cable and microwave communications systems. If establishing an info-communications infrastructure depends on the use of existing systems, some say the Internet should be at the core. c. It appears feasible to reduce the time required to establish networks in developing countries through the use of satellites. In this case, not only separate satellite systems but also INTELSAT for domestic use are expected to contribute to the establishment of an info-communications infrastructure. This must allow both developed and developing countries to enjoy the merits of advanced info-communications infrastructure at a similar pace. d. An info-communications infrastructure that uses a satellite communications system can provide both domestic and international services. Some countries will need to review their legal systems. Section 3 Ensuring equal opportunities for everyone 1. Ensuring right of access to information a. Right of access to information must be guaranteed for everyone through universal services and by promotion of access to education though info-communications infrastructure. b. The info-communications society carries a new basic human right: equal access to networks. To secure this right, services must be provided to everyone at an affordable price taking into consideration the elimination of regional disparity and the impartiality of the burden among users. c. Encouragement of development of various information services will provide greater opportunities for the individual user. In this context, the user focus will shift from a passive to an active attitude. 2. Consensus on a new "universal service" a. Technological innovation has brought about interactive, visual communications and teletext, which could be offered as a universal service to benefit the hearing-impaired. While an expansion of the universal service will broaden the market, it may impose a greater burden on telecommunications carriers. Discussions are needed to redefine the scope of such a universal service taking into consideration these aspects. b. Universal service has been provided by cross-subsidization within the accounts of a telecommunications carrier. This raises the issue of how such a service can be guaranteed in a competitive market. Some key issues are: - Who assumes the cost burden? - Who receives the benefits and in what manner? - Who takes responsibility for providing a universal service? - How should the tariff system and rates be restructured? - What should be the industry structure and what measures should be taken in terms of competition? - How will freedom of speech, privacy and other human rights be protected? c. Some have pointed out that the use of separate satellite systems will have an adverse effect on INTELSAT services. Consideration must be given as to whether or not the provision of a universal service will become difficult, and unprofitable regions will be neglected as a result of "cream skimming" on a global base. d. When establishing an infrastructure in developing countries, cultural traditions and regional characteristics must be respected to avoid damaging national interests and the sovereignty of communications. Furthermore, especially in those areas where network installation is in the rudimentary stage, consideration should be taken to providing the universal service without the risk of "cream skimming," 3. Protection of intellectual property rights a. The design and application of intellectual property rights must be coordinated with the social benefits. Research should be conducted on an ideal method of handling intellectual property rights in the multimedia society. In the process, we must study the various experiences of other countries in handling intellectual property rights. b. A large amount of information travels interactively in the multimedia society. This raises concerns about how difficult it will be to technically prevent intellectual property rights from being violated in the flow of information. c. The handling of intellectual property rights under GATT/TRIPS (Agreement on Trade-Related Aspects of Intellectual Property Rights) serves as the guiding standard for each country to eliminate barriers in international commerce. Devising an ideal method of handling intellectual property rights in the upcoming multimedia society remains to be solved. To facilitate the development of the info-communications infrastructure, policies must be examined to balance the free circulation of information and protec tion of intellectual property rights. d. A smooth flow of information is imperative. However, the owners of intellectual property rights should be identified so that they can protect their own rights. e. Frequent international lawsuits for infringement of intellectual property rights will impair expansion of applications and content. Some form of international cooperation will be necessary to supplement the existing legal systems governing intellectual property rights. 4. Respect for privacy, safeguarding of data security a. Even if an info-communications infrastructure were established at an early stage, it would not be utilized without sufficient guarantees of privacy and data security. b. Storing large amounts of data on credit card transactions has the potential to expose the preferences, ideas and behavior patterns of users. Therefore, the development of a high-speed network may create a society in which individual privacy can be easily violated. c. The protection of privacy and data security within a framework must be ensured, that not only targets telecommunications carriers but also service providers through an info-communications infrastructure and its users. d. When a network problem occurs, claims will not be adequately dealt with through the usual means of lawsuits or liability insurance systems. A new framework must be examined both domestically and internationally Section 4 Respect for cultural and social diversity 1. Respect for cultural and social identity of each country and stimulation of diversity a. A global info-communications infrastructure stimulates the exchange of information throughout the world and enables cultural exchanges which were not possible before. For example, the AsiaSat broadcasts TV programs throughout Asia thereby promoting a new type of cultural exchange in Asia. b. Some argue that one influential culture may dominate, leading to the loss of cultural diversity in each country as an info-communications infrastructure spreads. The influx of a new international flow of information may affect the political and social system as it is said that the structural changes in the former Soviet Union and Eastern Europe were caused by the influence of satellite information. As a result, some say that the unique cultural and social identity of each country must be protected from a free flow of information. c. Accessing data networks which is contrary to public order and standards of decency in some nations may result in serious problems because legality may differ from country to country. An info-communications network which purports to promote common understanding among people in the world may be the cause of conflict. d. In order to respect cultural and social diversity, it is necessary to promote free flow of information in coping with the far-reaching social impact of the info-communications infrastructure. 2. Transition to new life styles and work styles a. Even in industrialized countries, there are significant differences in how well the info-communications infrastructure has been widely utilized. The United States, for example, is now a highly computerized society as can be seen in the diffusion of electronic mail since the late 1970s. Computerization in Japan, on the other hand, is still evolving in such areas as standardized usage of computers in business. This difference is affecting the productivity of white collar workers in both countries. b. Unemployment is a political issue for developed countries. Establishment of a global info-communications infrastructure will improve the efficiency of existing industries while creating new ones. This means that new employment opportunities will arise while a new industry may replace an old one and an industry's efficiency can be improved. We must, therefore, create a new leading industry which can cope with these social changes and seek a new employment structure such as telecommuting using an info-co mmunications infrastructure. c. In the G-7 Jobs Conference held in Detroit in March 1994, the prevailing opinion was that information technology will create new jobs. The communique issued at the G-7 Summit in Naples in July 1994 mentioned the potential for creating new jobs through a global info-communications infrastructure. d. Examples of analysis concerning the creation of new jobs by establishing an info-communications infrastructure: - Japan: Telecommunications Council Report [May 1994] 2.43 million new jobs directly and indirectly created as a result of the ripple effect of establishing fiber-optic networks in Japan. - United States: Council of Economic Advisers (CEA) Report [June 1994] As U.S. industries improve economically and plant investment in the communications field increases, 1.4 million new jobs will arise in the communications service industry creating an employment shift from other industries. - France: Information Highway (Thery Report) [October 1994] Assuming the smooth establishment of the information superhighway, there will be 300,000 new jobs by 2005 in telecommunications hardware and software. Section 5 Promotion of global coordination and cooperation 1. Establishment of a "Global Vision" a. Some countries have already established a national policy on a domestic info-communications infrastructure. Furthermore, specific actions in each country should reflect the concept of the global info-communications infrastructure in order to promote its smooth development. It is necessary, therefore, to get a global consensus on what goals, timetable and policies are required to establish a global info-communications infrastructure. Each country should then strive to formulate its own policy based on this global consensus. b. Examples of national policies on an info-communications infrastructure - Singapore: A Vision of an Intelligent Island (The IT 2000 Report) [March 1992] - United States: The NII: Agenda for Action [September 1993] - Korea: Initiative for Building the Korea Information Infrastructure [April 1994] - EU: Europe and the Global Information Society (Bangemann Report) [May 1994] - Japan: Telecommunications Council Report [May 1994] - France: Information Highway (Thery Report) [October 1994] c. An info-communications infrastructure significantly influences not only developed countries but developing countries as well. Establishing an info-communications infrastructure helps to meet basic human needs such as communications in a disaster, and the improvement of living standards in developing countries. d. Establishment of an info-communications infrastructure improves the productivity of existing industries and promotes effective utilization of human and physical resources by precisely analyzing the specific demands and needs. It also helps developing countries by generating new info-communications related industries. e. Sustainable economic growth, preservation of the environment and closing the gap between developed and developing countries are common problems that need to be solved in both developed and developing countries. The development and diffusion of info-communications play a significant role in solving these problems. The establishment of an info-communications infrastructure in developed countries will not be enough to cope with these problems. All nations should coordinate and cooperate with one another toward the establishment of a well-balanced global info-communications infrastructure. f. With rapid technological advances in info-communications, it is now possible to provide basic and advanced services simultaneously using fiber optics and PHS (Personal Handyphone System). This sophisticated infrastructure can now be put into place very quickly in any region lacking basic telecommunications services such as telephones. g. The rapid technological revolution may increase the differences between developed and developing countries. In this sense, global cooperation is mandatory. 2. Coordination with international organizations concerned The development of a balanced info-communications infrastructure requires international policy coordination and joint R&D. Such international organizations as ITU and APT (Asia-Pacific Telecommunity) must evaluate and promote the examination of these issues. 3. Exchange and sharing of information on a cooperative basis a. To implement international policy coordination, it is necessary to establish a system to coordinate national policies by utilizing and coordinating international organizations. b. To globally promote policy coordination and cooperation, it is necessary to establish a system which enables the exchange of information regarding policy and technology of an info-communications infrastructure, and the utilization of the information in each country so that each can implement cooperative efforts and policies. Section 6 Policy measures I. Co-foster networks and applications 1. Vision toward globalization of an intellectually creative society a. It is necessary to push strongly for a global consensus on the goals and time schedule required to establish an info-communications infrastructure, including applications. b. In setting the goals and time schedule for establishing an info-communications infrastructure, the possibility of setting goals and time schedules for each category of service should be examined, taking into consideration global and national harmonization. c. Examples of national goals in establishing an infrastructure United States: By 2000, all schools, libraries and hospitals will be connected by NII. (Speech by Vice President Gore, January 11, 1994) Korea: By 2015, the Korea Information Infrastructure will allow mass data exchange, including voice, data and images. (Initiative for Building the Korea Information infrastructure, April 1994) 2. Establishment of a fair and competitive policy for the international info-communications system a. INTELSAT and INMARSAT have played a significant role in implementing a global info-communications infrastructure using satellites in accordance with the articles of the Convention. They have been providing global universal services utilizing the most up-to-date satellite communication technology for the benefit of all nations and people at the same price. To achieve the goal of implementing a global info-communications infrastructure, however, it is necessary to reevaluate the role of these existing int ernational organizations taking into account the advent of separate satellite systems. b. International oligopolies such as the global alliances of dominant carriers present a problem which cannot be dealt with by antitrust policies within individual countries. How these carriers should be prevented from taking advantage of their dominant positions in the international market needs to be solved in terms of tariffs, restriction of network inter-connections, etc.. 3. Development of applications such as high-speed and high-performance test beds 1) Promotion of joint R&D of international applications a. It is necessary to promote both basic and general technology R&D and leading edge technologies such as network technology and network utilization technology, which can be commonly used for various applications in order to promote development, improvement and a reduction in prices. Some examples include multimedia electronic newspapers and extremely high resolution video technology needed for high-quality education designed for those in isolated locations. Implementing global applications necessitates the breaking down of language barriers. One needed solution is automatic translation technology. b. It is necessary to promote development and implementation of applications using satellitesor radio wave that have flexibility in establishing communication lines covering wide areas and are not dependent on location. Some examples are an ATM-LAN connection experiment using high- speed digital satellite communications and an international joint experiment to develop a satellite application to exchange scholarly information. c. One example of a joint experiment with international applications in medicine is teleradiology (remote diagnostics) using image communication. d. Connections should be expanded among universities and research facilities in nations around the world for lectures and conferences, and in this respect, neither time nor distance is a factor. e. The following applications are expected to be examples of international applications including test beds. Global inventory Education system using international satellite communications Television conference system Global weather information network Global volunteer information network Global scene camera network "World TV" channel Library system through an international network Health care system through an international network Environmental safety management system through a satellite network f. The concept of "an information hub" is important. As with a database, it is expected to have areas of specialization and skill, and develop some projects of a public non-profit nature which could be applied internationally such as automatic translation project. 2) Implementation of a network access environment that does not depend on location a. The basic concept underlying the application of a global info-communications infrastructure is as follows: databases exist in many nations and anyone can access any database in any nation from anywhere rather than having a concentration of databases in a certain country. Implementing a network access environment that does not depend on location further promotes the globalization of info-communications services. For example, joint R&D efforts internationally on security technology for info-communications (e.g., encoding and validation technologies) and an electronic payment system may increase the number of applications such as international on-line shopping application, EC (Electronic Commerce) application, EDI (Electronic Data Interchange) application, CALS (Continuous Acquisition and Life-cycle Support) application. b. If a certain application is expected to be profitable, the application development vendor may not want to open the know-how or technology to the public for economic reasons. However, because vendors have accumulated resources and know-how (human resources, an information network, database, news gathering capability, etc.) over a long period and because such resources cannot be copied, their products are not easily put in jeopardy. It follows, then, that even if their products such as applications becom e openly available, others cannot easily compete. As a result, it is necessary to further develop and implement new applications using these same resources and know-how. c. The tariff of telecommunications services must be reasonable. When the private sector begins a project, it must always think about profitability. d. A critical problem arises whenever a new application is implemented. Related laws such as those of intellectual property rights sometimes differ by country. Coordinating these differences is crucial to the development of new applications. 4. Promotion of inter-connectivity and inter-operability 1) Promotion of effective coexistence of de jure standards and de facto standards a. While it is first necessary to utilize existing de jure standards, it is also necessary to utilize de facto standards as needed to promote effective coexistence of those standards. b. The technical specifications and content of de facto standards are not always open, and development and modification processes are not always clear. It is therefore necessary to establish rules for the revision and maintenance process of de facto standards in order to guarantee openness and stability. There are some who believe a third monitoring organization is necessary to control de facto standards. For items that should be standardized by ITU, two aspects should be seriously considered; private sec tor forums which voluntarily establish standards and new technology development. c. An info-communications infrastructure consists of networks, hardware, and applications. The following describes how these are standardized: Networks As networks are a fundamental component of an info-communications infrastructure, it is vital to ensure the inter-connectivity and inter- operability of networks. Standards must therefore be global and stable. ITU, the only international standardization organization in the telecommunications field, must take the lead in standardization. Hardware (Transmitter/receiver/data distributor) It is necessary to urge the international standardization organizations to accelerate their standardization work. As for de facto standards, we also need to look carefully at the possibility of acceptance of these standards as international standards. Application It is unnecessary to standardize all application fields, but for systems in which inter-operability and useability are critical, standardization efforts should be made. 2) Standardization and intellectual property rights a. De jure standards, crucial to network inter-connectivity and inter-operability, have strong overtones of public property. Therefore, the intellectual property rights for those standards have been regarded as non-discriminatory and non-exclusive while guaranteeing usage for free of charge or at appropriate cost. This attitude should be maintained and enforced. b. De facto standards should basically be set in an environment of free competition. However, we should examine the possibility of accepting some de facto standards, which are widely used and are influential, as de jure standards. c. It is necessary to establish a system of multilateral negotiation so that we can prevent certain companies from abusing their dominant positions, and promote entry of manufacturers from various countries into the market by defining appropriate levels and means of exercising international property rights which are included in the standards. d. It is necessary to establish open and reasonable rules for intellectual property rights. 3) International collaboration a. In order to promote smooth standardization procedures, international cooperation is necessary from the developmental stages of a new technology. b. The diffusion rate of telecommunications service differs significantly among nations. The range of universal service has a close relationship with the range of services where standardization is needed. c. It is also important to take into account the activity of regional standardization organizations such as ETSI (European Telecommunication Standards Institute). d. The following are examples for ensuring inter-connectivity and inter-operability: Promotion of mutual recognition of type approvals Such implementations as international joint tests of inter-connectivity Inter-connection and operational tests of test beds in each country Joint experiments on communication terminal technology e. Users must have more and more opportunities to express their opinions so that their views can be expressed in the final standardization process. II. Guarantee protection and rights 1. New framework of intellectual property rights a. The design and application of intellectual property rights must be coordinated with the social benefits. Research should be conducted on an ideal method of handling intellectual property rights in the multimedia society. In the process, the various situations of other countries in handling intellectual property rights must be studied. b. The handling of intellectual property rights under GATT/TRIPS (Agreement on Trade-Related Aspects of Intellectual Property Rights) serves as the guiding standard for each country to eliminate barriers in international commerce. Devising an ideal method of handling intellectual property rights in the upcoming multimedia society remains to be solved. To facilitate the development of an info-communications infrastructure, policies must be examined to balance the free circulation of information and protect ion of intellectual property rights. c. Frequent international lawsuits for infringement of intellectual property rights will impair expansion of infrastructure application, so some form of international cooperation is necessary to supplement the existing legal systems governing intellectual property rights. d. One suggestion is to establish an organization that collects Intellectual property right charges instead of relying on individual contracts or lawsuits. Any individual who wants to use a copyrighted item pays a fee to an organization, and the organization coordinates collection and distribution internationally. e. In a multimedia society, intellectual property right laws need to be evaluated from the viewpoint of the intellectual property right holder and the user. f. As digitization of content progresses and information exchange becomes more international, domestic laws and regulations need to be coordinated from the international point of view through multilateral discussion. g. It is necessary to help developing countries establish and promote domestic intellectual property right laws and regulations. h. To protect copyrighted items, related technology should also be developed in addition to the establishment of new related laws and regulations. For example, to prohibit illegal copying, anti-copy technology should be developed. 2. Protection of privacy, personal data, reliability and security of data /system a. Even if an advanced network were established at an early stage, it would not be utilized if privacy and data security are not sufficiently guaranteed. These issues need to be evaluated from a global point of view. b. It is necessary to coordinate the laws and regulations of the nations of the world. For example, privacy and data security cease to have any meaning if a certain country has relatively lax laws and regulations. It is also necessary to evaluate privacy and data security in computer networks such as Internet. c. Storing large amounts of credit card transaction data has the potential to expose the preferences, ideas and behavior patterns of people. Therefore, the development of a high-speed network may create a society in which individual privacy can be easily violated. Privacy and data security must be protected by the framework that not only targets telecommunications carriers but also service providers through an info-communications infrastructure and users of the infrastructure. d. It is necessary to establish guidelines when making a user's data public, when using data for unintended purposes, for commercialization that tramples on the rights of the individual etc. e. When a network problem occurs, claims will not be adequately dealt with through the usual means of lawsuits or liability insurance systems. A new framework must be examined both domestically and internationally. f. It is necessary to educate the public and increase recognition of privacy and data security. This can also be implemented in primary education. In addition, the user's responsibility needs to be clarified. g. Network vendors and users must be involved in the effort to improve system reliability and safety. h. In the area of encoding, it is necessary to take the appropriate steps urgently in the technical and standardization areas. We should discuss this issue from the regulatory viewpoint in addition to the technical viewpoint. i. When the NII (National Information Infrastructure) concept is expanded to GII (Global Information Infrastructure), national security must be carefully evaluated. Encoding technology has limitations and there is debate as to whether national security data could be circulated on networks. j. As technology advances, there is a danger that user responsibility for increasing system reliability and safety may decrease. k. Hardware and software are more and more indistinguishable. Therefore, not only the system, but reliability, security and data safety itself needs to be protected. l. Encoding techniques must be upgraded to protect privacy. However, it should be noted that the development of these techniques may lead to an increase in communication by criminal organizations or terrorists. III. Stimulate diversified intellectually creative activities 1. Free flow of "visual information" on a global base a. To respect and protect the diverse cultures to be found around the world, it is necessary to offer whatever assistance and cooperation is required to countries or regions so that diffusion of information can be strengthened rather than having a situation whereby the free flow of information is restricted. b. For free flow of information and protection of rights, The cultures of developing countries, that are sometimes difficult to disseminate on a commercial basis, must be supported through the use of the press and multimedia. Automatic translation technology must be developed to encourage cultural exchange among countries. The initiative should be taken to establish guidelines that promote information flow based on a global info-communications infrastructure. c. In order to establish international guidelines for information in general, a similar approach to that of the APT activities for establishing guidelines for international broadcasting should be taken. 2. Measures for job creation a. To maximize the positive effects on employment opportunities through an info-communications infrastructure, it is necessary to promote the implementation of the infrastructure and, at the same time, coordinate employment supply and demand. Even if society becomes more and more information oriented, new employment opportunities will not be created if there is a lack of capability to access information. It is therefore necessary to take appropriate measures to deal with this new type of unemployment. b. An info-communications infrastructure will be effective in utilizing human resources effectively around the world if it is used for international telecommuting, or exchange of information regarding employment opportunities and the employment market. 3. Cultivating "information literacy" a. If there is not enough education or training on how to use info-communications devices, networks will not be effectively utilized. Information access must be equal to everyone. It is a must for every country to provide education and training for access to information. This will serve to solve the problem of impartiality of opportunity in utilizing information. b. Information education opportunities for everyone are important to ensure they have the knowledge required to access information. In addition, it is necessary to develop information devices that can be easily used by the elderly and the handicapped. c. In developing countries, rapid industrialization and increase of vehicles without necessary conscious to its result could jeopardize living environment of residents. To minimize the adverse effects, people should be educated about the environment through exchange of data and analysis based on an info-communications infrastructure. People will then be able to obtain precise data and have the opportunity to recognize the problems--energy consumption, environment preservation. IV. Encourage international coordination and cooperation 1. Promotion of international R&D activities a. Developed countries must assume leadership in the following two areas to implement a global info-communication infrastructure: i) Developed countries should demonstrate the benefits of an info- communications infrastructure by developing international joint project. ii) Developed countries should actively provide developing countries with technology and know-how on an info-communications infrastructure to foster human resources in the area of telecommunications. In addition, developed countries should take the lead in R&D making use of their capability for technological development. b. To implement a global info-communications infrastructure, a first step would be to start up a project, such as a project on inter-connection of test beds, with the active participation of as many countries as possible. 2. Allocation of ODA giving priority to the info-communications fields a. ODA (Official Development Assistance) is the main element of government-base international cooperation. ODA consists of a) grants, b) loans, c) technical assistance and d) contributions to international organizations. A breakdown of the figures in Japan for 1993 is as follows: Grants: 6.1% (17.8 billion Yen) Loans: 5.6% (155.7 billion Yen) b. Developed countries are expected to expand assistance to developing countries, in terms of technology and finance, in the area of info-communications infrastructure. c. As for technological assistance to developing countries, the needs of these nations must first be assessed and then, the required technology should be transferred in a step by step approach. It is necessary to provide education and training in the latest technologies. Giving assistance on info-communication policy, management, application technologies, etc. in line with requests from these countries is also expected. Assistance such as receiving trainees into middle income countries better-provided wi th training and education facilities than developing countries, will be possible. d. In terms of funding assistance, the info-communication ratio of ODA is decreasing every year. The reasons for this are that, in developing countries, telecommunication entities are increasingly being privatized and private sector funding is being used. Also, ISDN and portable communication systems are viewed as luxury items not in keeping with the usage and purpose of ODA. One more point is that info-communications items did not rate highly on the list of ODA priority requirements. e. Developed countries must recognize that establishment of an info-communications infrastructure in developing countries will have a major impact and is a very effective way of helping countries develop and find solutions to their problems. Moreover, they should actively encourage developing countries and international organizations, such as the World Bank and the Asia Development Bank, to recognize the effectiveness of info-communication and raise the profile and priority accordingly. 3. Contribution to the activities of international organizations a. ITU's World Telecommunications Policy Forum has been established to obtain a consensus on subjects that require global policy coordination. This forum should be further utilized to work toward a unified global policy. b. It is necessary to support the Buenos Aires Action Plan which was adopted in the World Telecommunications Development Conference held in Buenos Aires in March 1994, and promote global collaboration. c. As for an info-communications infrastructure, smooth globalization begins at a stage where regional users can actively use info-communications. Based on this concept, the AII (Asia-Pacific Information Infrastructure) concept was proposed in APT and has been promoted for the Asia-Pacific region. This was followed by APII proposal of Korea at APEC in 1994. Japan has been creating an info-communications infrastructure and has been providing the required technology and know-how through AIC (Asian ISDN Council). These efforts should actively be continued . {PAGE 25} ransition to globalization of an "Intellectually Creative Society" Vision of the " Information Society" 1. Global socio-economic issues a) Sustainable economic growth worldwide b) Job creation c) Preservation of the environment 2. Establishment of an info-communications infrastructure on a global base a) Globalization of an Intellectually Creative Society b) New social & economic infrastructure c) Improvement of the quality of life d) Effective use of resources Definition of "Globalization of an Intellectually Creative Society" - A society in which the benefits of use of the resources can be enjoyed equally by all people of the world - A society that encourages individuals to freely conduct a diversity of intellectually creative activities - A society of peace and harmony based on mutual understanding and respect 3. Concept of Global Info-communications Infrastructure The approach is based on the 4-layer concept: Level 4 Life styles, Work styles (Social framework) Level 3 Applications (Content) Level 2 Information processing and transceiving devices (Distribution) Level 1 Network infrastructure (Platform) Outline of Interim Report For Achieving Globalization of an "Intellectually Creative Society" January 23, 1995 Communications Policy Committee, Telecommunications Council, Japan Policy Measures 1 Co-foster networks and applications 1. Vision toward globalization of an intellectually creative society 2. Establishment of a fair and competitive policy for the international info-communications system 3. Development of applications such as high-speed and high-performance (150Mbps) test beds 4. Promotion of inter-connectivity and inter-operability 2 Guarantee protection and rights 1. New framework of intellectual property rights 2. Protection of privacy, personal data, reliability and security of data / system 3 Stimulate diversified intellectually creative activities 1. Free flow of "visual information" on a lobal base 2. Measures for job creation 3. Cultivating "information literacy" 4 Encourage international coordination and cooperation 1. Promotion of international R&D activities 2. Allocation of ODA giving priority to the info-communications fields 3. Contribution to the activities of international organizations such as ITU, WTO, WIPO etc. Viewpoints for establishing Global Info-communications Infrastructure 1 We need to develop advanced info-communications Infrastructure. 1. Promotion of public and/or private investment 2. Establishment of a fair and competitive market structure 3. Definition of the appropriate regulatory framework based on technological innovation 4. Provision of open access to networks 5. Development of open and well-balanced global info-communications infrastructure 2 Equal opportunities must be ensured. 1. Ensuring right of access to information 2. Consensus on a new "universal service" 3. Protection of intellectual property rights 4. Respect for privacy, safeguarding of data security 3 Cultural and social diversity must be respected. 1. Respect for cultural and social identity of each country and stimulation of diversity 2. Transition to new life styles and work styles 4 We will promote global coordination and cooperation. 1. Establishment of a "Global Vision" 2. Coordination with international organizations concerned 3. Exchange and sharing of information on a cooperative basis