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WIRED 2.02
Electrosphere
*************

Wiring Japan
^^^^^^^^^^^^

In the first of an exclusive two-part series, WIRED's Japan correspondent
reports from Tokyo on the bitter culture clash that has reduced Japan to a
third-rate power in networking.

By Bob Johnstone


At precisely 8:00 on the evening of Friday, September 17, 1993, Japan's
first commercial Internet packets flashed out of Tokyo and down
Trans-Pacific Cable No. 4, bound for San Jose, California. A new era in
Japanese networking had begun. As befits  the birth of a new business,
cheers went up and toasts were made. But not everybody was rejoicing in
Tokyo that night - for Japan's first commercial Internet packets were sent
by American engineers working for Japanese subsidiaries of the US
corporations InterCon Systems and AT&T. InterCon's first customer was
TWICS, Japan's first public access Internet provider, a small for-profit
firm most of whose 400-odd subscribers are foreigners based in Japan.

Across town, a group of Japanese Internet pioneers were grinding their
teeth in frustration. The company they had set up to provide commercial
Internet services had been denied a license to operate by Japan's Ministry
of Posts and  Telecommunications. Holding up the locals while waving on
the foreigners is not the way business is usually done in Japan. Something
odd is going on.

That something, in essence, is the head-on collision of two cultures: The
freewheeling, democratic style of the Internet has run smack into
traditional Japan at its most authoritarian. On one side, you have the
technology pioneers, young volunteers  who built Japan's largest research
network by their own efforts, without any support from the Japanese
government. They are led by Jun Murai, the man some Americans (like Carl
Malamud and Howard Rheingold) call the Internet samurai.

On the other, you have the officials charged with providing network
services to the Japanese research community. They have tried to ram
unpopular standards and technolo-gy down users' throats - and failed.
Their leader is Hiroshi Inose, arguably  Japan's most powerful technocrat.

The officials resent the pioneers' early successes and are waging a
dirty-tricks campaign to try to regain the upper hand. Through their
arrogant behavior, the pioneers have played into hands of their rivals,
who are masters of the bureaucratic game.

Today, the situation has degenerated into a highly emotional conflict,
with each side hurling accusations and insults at the other. Little TWICS
has been caught in the crossfire. In mid November, the company's
long-standing domestic e-mail  connection via Tokyo University was
suddenly cut off, apparently in retaliation for TWICS having opted to use
a non-Japanese Internet link. Then the company received an intimidating
phone call from a man claiming to represent the computer center at  Tokyo
University.

"Stop doing business in Japan!" the man shouted, "Shut down at once!"
(TWICS has since been reconnected.) "It's one of the trickiest messes I've
seen in years," comments Internet luminary David Farber, a University of
Pennsylvania professor who  tracks developments in Japan. It is also a
mess that matters. For, as Farber points out, what the Japanese do affects
the rest of us. And while Japan may be the world's second-largest economic
power, the Japanese remain dangerously isolated.  Networking has the power
to change that by bringing Japan closer to the international community.
But by the same token, failure to log on to the world's largest network
could leave Japan more isolated than ever.

The massive proliferation of the Internet has left the Japanese far
behind. As of June 1993, Japan had roughly five networks for every 100 in
the United States. Outbound NSFNet traffic from Japan that month was
42,000 Mbytes, roughly the same as  that from Taiwan, a country with one
sixth Japan's population, and less than half that from Australia, the
Pacific Rim's most aggressive network user.

Young Japanese have heard about the Internet and they are eager to get
access to it. The irony is that the very people who should be encouraging
them to log on are instead preventing them.

The best way to reach Jun Murai, associate professor at Keio University,
is, surprisingly, not by e-mail. Instead, you ask one of his acolytes to
track him down for you. Initial contact with Murai - via his car phone -
is encouraging: "You want to  do [the interview] over a beer, or dinner,
or what?" he asks. On meeting Murai, you quickly realize why he is so
popular with his Internet counterparts elsewhere. In a country where most
academics still wear suits, Murai wears an ancient sports  shirt, a beer
gut tumbling over his black jeans. He looks a bit like a bear, an
impression his deep, rumbling voice reinforces. And while vagueness is
regarded as a virtue in Japan, Murai comes straight to the point.

Ten years ago, when Murai was just 28 years old, the Japanese research
community was debating how to take advantage of deregulation to install
communications networks. Discussion centered around which of the proposed
Open Systems Interconnection  architectures to adopt. To Murai, such
meetings were a waste of time: "I was young, and that was boring," he
says. "What I wanted was to have a network, to do actual operation and
development, so that we could find out what the problems related to
computers and communications were, then solve them."

So he and some friends rolled up their sleeves and started laying cable.
Their first effort was the immodestly titled JUNET, a dial-up modem
service offered over public phone lines. It proved immediately popular
with Japanese academics starved for  e-mail, especially after Murai made
it possible for them to enter text using Japanese characters. Encouraged,
Murai went on to launch a more ambitious project in 1987, the Widely
Interconnected Distributed Environment, or WIDE. A backbone network,  WIDE
is based on leased lines that interconnect local area networks. Owning
leased lines is very expensive in Japan, and to pay for them, Murai turned
to commercial firms like Sony and Canon. Once again, the network proved
popular - today, it  connects some 30 research institutes and 40
companies. WIDE also has a link, via the University of Hawaii, to NASA's
Ames Research Center, through which Japanese researchers can communicate
with their US counterparts.

Indeed, WIDE became such a hit that Murai was forced to turn down requests
for connections. A second headache was that companies were not necessarily
confining their use of the network to research, as required under the
Japanese government's  extremely strict definition of appropriate use. An
obvious solution to both problems was to set up a company to offer
commercial Internet services. In December 1992, Murai and some of his
students formed Internet Initiative Japan (IIJ). This is the  company to
which the Ministry of Posts and Telecommunications refuses to grant an
operating license.

Jun Murai's success is a thorn in the flesh of Shoichiro Asano, a former
Tokyo University professor who is in charge of day-to-day operations at
Japan's National Center for Science Information Systems (NACSIS). This
organization was formed to  provide network information services for
university researchers. As an official organization, supported by Japan's
Ministry of Education, Science, and Culture, the Center naturally opted to
use officially sanctioned technology, notably the Open  Systems
Interconnection protocols, which were first proposed in the early 1980s.
Trouble was, it took a lot longer than originally anticipated for the
committees in charge of developing these protocols to come up with the
goods, and even when they  did, many found them cumbersome and needlessly
complex.

Meanwhile, back in the US, an ad hoc set of protocols known as TCP/IP was
spreading like wildfire. Establishment engineers turned up their noses at
these protocols, sniffing that they had been designed by young cowboys and
were too sloppy for any self-respecting network to use. Maybe they were -
and the protocol issue still divides the engineering com-munity  with all
the ferocity ofa religious schism - but by the beginning of this decade,
TCP/IP had become the de facto standard for networking in most of the
world. It now has an installed base three to five orders of magnitude
larger than that of Open  Systems Interconnection. In 1991, realizing that
it had backed the wrong horse, NACSIS at last began to convert its network
to support TCP/IP. By that time, however, WIDE was firmly established in
the eyes of the Internet community as Japan's  front-runner.

That a lowly assistant professor and his rag-tag band of graduate students
should have attained such status seems to have embittered Asano, a
disheveled and shifty-looking individual in his early 50s. Mention Murai
to him and he becomes animated.  "For five years, Jun Murai has done dirty
things to [the Center]," he complains. Many of these "dirty things"
concern Internet Initiative Japan. For example, Asano accuses Murai of
being its "shadow leader." (Japanese academics are not supposed to  sully
their hands through contacts with business.) He also charges that IIJ has
attempted to use American pressure in various forms to force the Ministry
of Posts and Telecommunications to issue the group an operating license.
None of this would  matter much if it were just a case of sour grapes.
Unfortunately, however, Asano has the backing of the director of NACSIS,
Hiroshi Inose; that gives him the power to do Murai - and, by extension,
the spread of Japanese networking - considerable  harm.

In a society that reveres seniority, the 67-year-old Inose is about as
senior as you can get. Back around 1957, as a young electrical engineer
consulting at Bell Laboratories, Inose won a basic patent on time division
multiplexing, a key technology  for combining several calls on the same
line, one which all modern telecommunications switching systems use. This
reflects a caliber of achievement that few Japanese academics can match.
In later life, Inose became dean of Tokyo University's  prestigious
engineering school, taking up his current position as director of NACSIS
upon his retirement from the university. He is a member of the US National
Academy of Sciences, an IEEE fellow, and has a string of other awards and
prizes to his  name. Prime among them is his designation by the Japanese
government as a person of cultural merit, an honor carrying tremendous
status in Japan. Today, Inose chairs many of the key policy committees at
both the ministries of Trade and Industry, and  Posts and
Telecommunications. His former students hold senior positions at leading
Japanese electronics firms. Indeed, it is scarcely an exaggeration to say
that few Japanese involved in information technology are not beholden to
Inose in some way.

Inose was not available to be interviewed for this article: His schedule
was booked up for two months. But most people who have met him are struck
by his charm and gentility. Hell, the man even writes poetry.

But inside the velvet glove is an iron fist. Many Japanese criticize Inose
for throwing his weight around, but few dare to do so openly. One of the
few is technology journalist Yukihiro Furuse. In the November issue of the
monthly magazine Shincho  45, Furuse writes that "probably no one can
criticize [Inose] because he has absolute power and he is senior to
everybody." Furuse recognizes that networking is of crucial importance to
Japan's future. And he is concerned that Inose's  behind-the-scenes style
is not the best way to promote its growth.

One specific charge made by Furuse and others against Inose is that he has
used his influence with the Ministry of Posts and Telecommunications to
prevent IIJ from getting an operating license. Another is that he leaned
on the Ministry of Trade and  Industry to prohibit a new computer research
project it was supporting from using IIJ to provide network services. Why
should Inose care about a bunch of young upstarts like Murai et al?
"Professor Inose represents the old establishment," suggests  one senior
telecommunications executive, "and their idea is that government and
national universities should always stay in the center, delivering and
exchanging information." In the US, the acceptable-use policy for the
Internet was designed to  promote the growth of commercial Internet
services. The Japanese acceptable-use policy seems by contrast aimed at
preventing the growth of Internetworking beyond the ivory towers.

David Farber, who has known Inose for many years, insists that his friend
is acting purely in the national interest and for the benefit of the
education community. Farber says that Inose is worried about IIJ's claims
that it can provide network  services for Japan's university researchers
at an affordable price. In addition to rendering NACSIS superfluous, this
could also lead to the education ministry cutting off much-needed
financial support for networks. An IIJ spokesperson confirms that  the
company had planned to offer an academic discount plan but were told by
the Ministry of Posts and Telecommunications that licensed carriers would
not be allowed to discriminate between different types of customers. IIJ
is currently providing  customers with domestic network service, which it
can do without a special license.

"Inose believes that achieving a successful conclusion is a slow, careful
process that keeps the support of the education ministry," Farber says.
"He gets upset with the cowboy approach" taken by Jun Murai and his
associates at IIJ. Inose is not the  only one upset by IIJ's behavior.
Some of the blame for the current conflict must also go to IIJ's
manage-ment, and in particular, to the company's president and CEO,
Hiroyuki Fukase. Fukase is an engineer by training, not a businessman. He
has  needlessly antagonized potential investors by asking for money, then
neglecting to perform the follow-up visits that Japanese business
etiquette demands. Worse, he has annoyed Hikaru Chono, director of the
Ministry of Posts and Telecommunications'  computer communications
division and the official in charge of issuing the license IIJ needs to
provide international Internet services.

In Japan, it pays to treat bureaucrats with respect. They form, after all,
an elite, and have dedicated themselves to serving their country, working
long hours in overcrowded conditions for low pay. The quid pro quo is
power. Visit a Japanese  government office and you will see a constant
stream of supplicants who come to beg for official favor.

Chono is a prime example of the bureaucratic breed. A graduate of Tokyo
University's law school, he has paid his dues - including a stint as
Japan's representative at the CCITT (the international telephony
committee) in Geneva, and a year as a  postmaster in a remote part of
northern Japan. He has been involved with telecommunications since 1975,
and he is tired of it. In particular, he is fed up with Fukase. "IIJ is a
very difficult company for me to understand," he sighs, "they've done
lots of publicity and marketing, they've published their tariffs in
journals and magazines, but they haven't finished the formalities."

What Chono needs is a letter of guarantee from a financial backer. "If
they complete all the necessary documents," he says, the Ministry of Posts
and Telecommunications will issue a license "within 15 days, maximum."
Fukase claims to have found a  backer, the Industrial Bank of Japan, but
accuses Chono of having warned the bank not to deliver the letter of
guarantee. Such accusations are typical of Fukase's bull-in-a-china-shop
style. In early 1993, he upset the ministry by arranging for a  letter
from a friend in the US National Science Foundation in support of IIJ's
license application to be delivered via the US Embassy in Tokyo. Asano
accuses IIJ of urging US equipment manufacturers to criticize the Ministry
of Posts and  Telecommunications for preventing them from doing business
in Japan. Such heavy-handed attempts to use US  pressure to bully the
ministry into granting a license have had an effect oppo-site to the one
intended. The best thing that Fukase could do at this point would be to go
see Chono and try to pour some oil on troubled waters.

But Fukase has not been to Chono's office in months, while Asano
reportedly visits him regularly. "They're naive guys," comments one
observer of IIJ. "They don't know how to play the game in their own
country." Murai would like to wash his hands of  the conflict and get on
with his research. "I don't want to deal with any of this," he groans,
adding in frustration, "What's wrong with me? I'm providing a better
environment [than NACSIS], producing researchers and good results, and the
com-panies  [that support WIDE] are very happy. The problem is," he
concludes, "I'm too young to deal with this kind of thing."

But much as he might like to, Murai cannot simply walk away from the mess
that surrounds IIJ. Indeed, as Farber points out, much of the current
problem stems from confusion over Murai's dual role as director of an
academic research network and  would-be godfather of a commercial Internet
pro-vider. Carl Malamud, a friend of Murai and author of the technical
travelog, Exploring the Internet, comments that "the real issue in Japan
is the same as in the US. We're moving beyond the myth that  the Internet
is some academic research project."

What then is to be done to sort things out? Nobody in Japan seems to know.
One less-than-optimum solution is simply to let time take its course.
Inose is expected to retire in a couple of years. Following his master's
departure, Asano says he will  probably return to academic life. Well
before then, IIJ will likely bring in new management to run its business,
leaving Murai to get on with his research. For the moment, however, though
a new era has begun, precious time is being lost. And it is  time that
Japan can ill afford to lose.


*******
SIDEBAR
*******

Reasons for Japan's Late Start

>> Dominance of centralized, mainframe-based computing

>> Lack of LANs

>> Proprietary protocols

>> TCP/IP ignored while government and industry pursued OSI

>> Lack of Japanese software and support for routers

>> Over-regulation

>> Difficulty of Japanese text entry

>> Japan a small country dominated by Tokyo

>> Overpriced leased lines


What's Needed for Japan's Catch-Up

>> More support, especially financial, from government and industry

>> Better-educated bureaucrats

>> More coordination between existing networks

>> Elimination of barriers imposed by government between academics and
industry

>> More free-access systems

>> More applications software

>> Faster links

>> Lower tariffs

>> More researchers

>> More links with other Asian countries

                                   * * *

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