Section 4 The Goals for Building Info-Communications Infrastructure This and the following sections summarize the measures which should serve as programs for establishing a high-performance info-communications infrastructure based on the discussions presented in Sections 1 to 3. This section discusses ways to develop info-communications infrastructure in general. We also examine the timetable and the approach to developing applications and networks as a means to upgrade info-communications infrastructure. We also identify specific targets for upgrading. 1. Recommended Approach to Development 1) Overall Development a. Generating consumer demand To date, we have witnessed a number of examples of unsuccess with the so-called "new media" projects. The principal causes for these failures include: The hardware-oriented approach was taken largely from the suppliers' perspective without adequate consideration given to the development of applications, resulting in insufficient demand. The network services focused on in those favoring the telephone, and a new tariff system for "new media" was not introduced to accelerate such services. Experts committed to supporting the operation were insufficient, with insufficient maintenance budgets. For the above reasons, these projects were unable to generate enough consumer demand (critical mass) to justify their establishment as a field of business. It is therefore essential to develop a wide range of measures that concentrate on the inclusion of user interest. Such measures include a new tariff system tailored for the multimedia age, assistance in the initial stages of utilization, protection of information assets, and burden sharing for software, maintenance, hardware and human resources. b. Integrated improvement of info-communications infrastructure Enjoying the maximum benefits of the info-communications infrastructure and solving the problems that confront Japan require the integrated improvement of info-communications infrastructure in each of the fours levels, based on a complete understanding of its layered structure. User-friendly systems as a whole It is important to improve the basic physical transmission media (level 1), to promote the development of applications (level 3) and to complete terminals necessary for the introduction of applications and the theoretical capacity of the network (level 2). To provide workable solutions to social issues, it is important for these systems to be easy to use. Synchronized promotion While improving info-communications infrastructure, each level of the system (levels 1 to 3) should be developed simultaneously by taking the other levels into account. Problem relating to initial demand Unless demand for all levels of the system reaches a given point, costs will not fall sufficiently to guarantee widespread use of the system. The level of difficulty in raising initial demand does not vary between levels 1 to 3. Standardization At levels 1 and 2, standardization is important to reducing costs and improving ease of use. Links among levels 1, 2 and 3 It is necessary to create a system where networks of both levels 1 and 2 can be used in a fair and nondiscriminatory manner so as to take full advantage of business innovation at level 3. Similarly, the physical transmission media of level 1 should be accessible at level 2. Integrating levels 1, 2 and 3 will provide a diverse range of info-communications services. Level 4 reform Improving the info-communications infrastructure at level 4 signifies that the social reforms sought are difficult to obtain and will take an extended period of time to implement. It is necessary to fully consider whether the area under review will function effectively using level 3 systems or whether reform of level 4 systems will be required. The organic functioning of the network infrastructure and its applications as a whole will influence info-communications in the fourth infrastructure level, possibly breaking barriers and leading to positive fundamental social changes. c. Developing Info-Communications Infrastructure on an International Scale We have thus far concentrated our discussion on establishing Japan's domestic info-communications infrastructure. However, as info-communications must comprise extensive global networks, we should promote the building and upgrading of international info-communications infrastructure. There has already been much promotion of upgrading high-speed, large-capacity international communications networks using satellites and fiber optics. We should cooperate with other countries to further advance info-communications systems, improve the international high-speed, large-capacity transmission infrastructure, and promote standardization to assist in establishing borderless multimedia and improving interfaces. In addition, Japan must be active in taking measures so that Japanese legal framework and practices will be in line with international legal framework and practices. 2) Rapid Upgrading a. Developing an intellectually creative society and quickly improving info-communications infrastructure Section 1 stressed that developing an intellectually creative society is becoming an urgent issue as the 21st century approaches. In such a society, info-communications constitutes the most important social infrastructure and must be rapidly improved. b. Differences in Info-communications Trends Between Japan and the United States To create an affluent Japanese society at the outset of the next century, Japan must quickly promote making best use of information and rapidly upgrade its info-communications infrastructure. In this regard, it is noteworthy to focus on the major differences between Japan and other nations, particularly the United States, that can be witnessed in terms of the use of information and its current environment. Examples of Differences in Information Processing between Japan and the United States c. Trends in Other Countries Advanced nations, including the United States, member states of the EU Singapore, South Korea and other Asian countries, are placing increasingly greater emphasis on the role that high-performance info-communications infrastructure will play in the 21st century. These countries have begun to actively upgrade and advance their info-communications infrastructures. The International Telecommunication Union (ITU) has already begun to prepare international standards that are vital for the introduction of info-communications infrastructure on a global scale. Moreover, there have been intensifying demands for international cooperation in technologies, applications and policies for upgrading info-communications infrastructure. Furthermore, upgrading of info-communications infrastructure in countries such as the United States has created business opportunities for Japanese companies. Following this example, Japan must accelerate the speed of its info-communications infrastructure improvement to provide more business opportunities for both Japanese and foreign companies. 2. Setting Goals 1) Implications of Setting Goals To ensure that network hardware is used effectively, it is necessary to establish clear goals and develop a common vision regarding what kind of applications (levels 2 and 3) should be developed and introduced, how the network (level 1) should be built, and when it should be completed. These explicit goals will lead to the motivation of private investment, stimulation of user demand and a changing of people's values (level 4). They will accordingly promote the comprehensive and rapid development of full-functioning info-communications infrastructure. The goals indicated below are based on current conditions, and should be reviewed periodically, depending on such future conditions as the development of technologies, changes in demand, and degree of progress made in info-communications infrastructure development and implementation. 2) Goals for Development and Introduction of Applications a. Important application fields A variety of applications will be developed and introduced in response to technological advances. This will give rise to a diverse range of info-communications capabilities. The following effects will become evident in each of the society-public service, lifestyle-consumption and industry-business sectors. Society-public service sector The applications of this field will contribute to advancements and greater efficiency in public services: Easy and rapid transport Education to meet individual abilities and needs Links between medical institutions, contributions to medical home care systems Qualitative improvement and greater efficiency in administrative services Integrated recycling systems for production, consumption and disposal Lifestyle-consumption sector Applications in this field are designed to produce a better lifestyle and create a qualitatively affluent living environment. A gap must be filled between consumers who have information a lot and have little. Consumers should be able to freely select information and products at their choice. Specific application examples are: Home shopping and home banking Network medical services Quick access to stored and current information at home New styles of art and entertainment based on virtual reality Industry-business Applications in this field are designed to bring market supply and demand closer together by intensifying the information processing and to improve business quality and intellectual productivity. This will lead to create a society that brings more benefits to the consumer. Applications include: Enhanced senior management (quick decision making, and fast and accurate access to and analysis of information from Japanese and international sources) More efficient office work (streamlining in the white collar sector) More productive R&D and establishment of advanced, creative R&D More effective in logistics systems (systems for controlling the entire distribution process from the perspective of management strategies) Renewal of industrial activities International contribution and exchange To ensure the broadest possible success of the applications summarized above, the following examples are particularly important from the perspective of effecting international contribution and promoting international exchange: b. Goals for public applications In particular, the public sector must take the initiative in implementing Japan's socio-economic structural reforms. Public applications must be developed and introduced where info-communications will boost the efficiency of the public service. The public sector can accordingly play a leading role in upgrading info-communications infrastructure by actively developing and implementing these applications. The public sector should strive to identify demand in the private sector and lead it in the full utilization of the applications cited above. In this regard, the North Carolina Information Highway (NCIH) of the United States should be thoroughly evaluated as a trial to prompt initial demand through public applications. The public sector must therefore vigorously pursue research and development of public network applications, and introduce those applications on an experimental basis, with the goal putting them into practical use by 2000. 3) Goals for the Installation of Network Infrastructure The network infrastructure, which serves as the foundation, must be upgraded so that the development and introduction of applications ensures that the functions of info-communications are widely put to use in bettering people's lives and in fostering industrial and economic activities. We set the following timetables for building the fiber-optic networks as the network infrastructure. a. Goals The Clinton-Gore 1992 election commitments designated the year 2015 as the deadline for achieving enhanced information highways. However, for the following reasons, we believe the goal should be advanced to 2010: Around 2010, the Japanese population will peak. After this, Japan will rapidly become an aging society. It is necessary to implement improvements while the overall burden-bearing capacity of the Japanese population is still relatively high. The findings of our interviews conducted with various experts including business, academic, and administrative leaders throughout Japan suggest that there is a consensus for proceeding ahead of the year 2015 in so far as this is feasible. Strong efforts in other countries to upgrade their info-communications infrastructures has accelerated the pace of global advancement. Given the recent technological advances, quicker improvement should be possible. The foregoing factors thus made it possible to set the target date at 2010. b. Timetable On the assumption that nationwide improvements will be in place by 2010, it is essential to set a more specific and detailed enhancement timetable to promote parallel private investment and motivate users to take advantage of the services provided. Views on setting a schedule for upgrading Assuming that the nationwide upgrading of fiber-optic networks will be completed by 2010, the construction schedule must be formulated as a dual aspect policy taking into account both the need for geographical coverage and for giving priority to public services via public institutions. Concerning the former, the period up until 2000 should be considered the preliminary stage, during which time it should be practical to pursue network construction in areas exhibiting the highest concentration of demand such as in large urban centers, and in regions that show a strong interest in becoming on integral part of the new information-oriented society. Starting in 2001, and in response to growing demand, the full-scale development and final expansion of network infrastructure should be promoted toward accomplishment by the year 2010. Fiber-optic cables should be installed at least on feeder lines, up to the distribution points, to promote the creation of a situation where infrastructure can be readily utilized at each stage. (Feeder lines are bundled cables which run from telephone centers or CATV centers to distribution points. From these points, cables are connected to individual subscribers by individual cables or smaller bundles of wires. Concerning the latter, however, the network should be installed as quickly as possible in public institutions throughout the country to ensure the opportunity of fair access to all citizens. It will also have a significant impact in raising demand in other fields. This should motivate nationwide upgrading of geographical coverage. Concept of Fiber-Optic Network Improvement Specific Timetable for the Development We will therefore set the specific timetable goals as follows: Timetable for the Development of Service Areas Year 2000: Main districts of all prefectural capitals, and a portion of the cities designated by the government as "teletopia cities." (Percentage of population covered: 20%) Year 2005: All cities with populations of 100,000 or more, and a portion of the cities designated by the government as "teletopia cities." (Percentage of population covered: 60%) Year 2010: Completion of nationwide networks. (Percentage of population covered: 100%) Timetable for Installation in Public Institutions Year 2000: Fiber-optic cables should be installed for nationwide networks to connect schools, libraries, hospitals, community halls, or other public institutions, with simultaneous development and introduction of public applications.