How Telecommunication Regulations Can Contribute to the Alleviation of Traffic Explosion in the Japanese NGN

20 Pages Posted: 29 Jul 2019

See all articles by Masatsugu Tsuji

Masatsugu Tsuji

Kobe International University

Sobee Shinohara

KDDI Research, Inc.

Date Written: July 26, 2019


Internet traffic is increasing explosively throughout the world, causing congestion. This study aims to find policy solutions for carriers and ISPs in Japan. In 2008, to cope with expected increasing traffic, richer contents, and to meet the various needs of content providers, NTT locals initiated an NGN (Next Generation Network) service, which enables rapid and large-volume data transmission. QoS can also be guaranteed. Four categories of connections, according to service quality, have been put into operation, these being (i) videophones, (ii) broadcasting, including 4K and 8K, (iii) VoIP, and (iv) ordinal best-effort type Internet access. Most of the traffic over NGN is (iv) best-effort type. NTT locals prepared two types of connection to NGN; PPPoE (Point-to-Point protocol over Ethernet) and IPoE (IP over Ethernet). The former is mainly used by small local ISPs, whereas the latter is used by VNEs (Virtual Network Enablers) and large ISPs. The point of connection to NGN is thought to be a cause of congestion. For ISPs to connect to NGN, they must accept the rules set by NTT locals. Accordingly, smooth access for IPSs to the NGN network became matters of policy. This study proposes (i) fair rules for ISPs to connect to NGN; and (ii) a scheme of connection charges based on service quality. NGN should be for all entities to access and utilize for various applications leading to new economies. This study proposes how NGN can avoid congestion and be utilized fully and wisely as the age of IoT and 5G approaches.

Keywords: IPS, VNE, PPPoE, IPoE, connection rules, openness

JEL Classification: L96, L51, L22

Suggested Citation

Tsuji, Masatsugu and Shinohara, Sobee, How Telecommunication Regulations Can Contribute to the Alleviation of Traffic Explosion in the Japanese NGN (July 26, 2019). Available at SSRN: or

Masatsugu Tsuji (Contact Author)

Kobe International University ( email )

9-1-6 Koyocho-naka, Higashinada-ku
Kobe, Hyogo 658-0032
+81-78-845-3418 (Phone)
+81-78-845-3418 (Fax)

Sobee Shinohara

KDDI Research, Inc. ( email )

3-10-10, Iidabashi
Tokyo, 102-8460

Register to save articles to
your library


Paper statistics

Abstract Views
PlumX Metrics