Policy Alternatives for Better and Wiser Use of the NGN: Competition, Functional Separation, or What?
20 Pages Posted: 3 Apr 2017
Date Written: August 21, 2017
In 2008, to cope with increasing traffic and meeting various ISP services, NTT East and West (NTT locals) initiated an NGN (Next generation network) service, which enables rapid and large-volume data transmission. The NGN is different from FTTH, since not only is it a bandwidth guaranteed network, QoS can also be controlled. It is the most advanced network in the world. The number of subscribers to NTT locals’ NGN amounted to 20 million as of March 2017. However, the NGN seems not to be fully utilized, and the Ministry of Internal Affairs and Communications (MIC) has currently begun to discuss deregulation of the NGN, the aim of which is to use the NGN as the basis for innovation and economic growth. This paper focuses on two major policy objectives, connection charges and openness, which are fundamental problems of the NGN, and facets that were mismanaged at the inception of the NGN. The paper also discusses how to make greater use of the NGN and to prevent the NGN from being infected by the so-called Galapagos syndrome, which destroyed the Japanese 3G mobile phones, formerly the most sophisticated prior to the appearance of smartphones on the market.
Keywords: NGN, unbundling, connection charges, migration
JEL Classification: L43, L51, L97
Suggested Citation: Suggested Citation