The Unbundling of Network Elements: Japan's Experience

[Dave Farber <dave () farber net>]

Delivered-To: dfarber+ () ux13 sp cs cmu edu
Date: Thu, 13 Nov 2003 02:42:21 +0900
From: IKEDA Nobuo <ikeda-nobuo () rieti go jp>
Subject: The Unbundling of Network Elements: Japan's Experience
To: Dave Farber <dave () farber net>

This is my detailed report on "Japan's miracle" in broadband. I think
you are interested in it.

http://www.rieti.go.jp/jp/publications/summary/03110001.html

> With the advent of the Internet, the emphasis of communication policies
> has moved from the regulation of telephone networks to the unbundling
> regulation to enforce sharing of network elements. Since unbundling is
> often impeded by the renegotiation by incumbents over the control of
> essential facilities, it would be advisable to separate the company that
> owns local loop (LoopCo). Recently the number of subscribers of DSL in
> Japan has grown phenomenally due to the unbundling regulation. This
> suggests that unbundling can accelerate the proliferation of broadband,
> but this lesson cannot be easily generalized to other countries, because
> the success depends on the special conditions such as extremely low
> pricing of entrants and strategic mistakes of NTT that neglected DSL. If
> the unbundling regulation succeeds in increasing competition, the
> telecommunications industry in the narrow sense will shrink, making the
> universal services of telephone network increasingly difficult.


--
Ikeda, Nobuo
Research Institute of Economy, Trade and Industry (RIETI)
http://www.rieti.go.jp/it/index.e.html

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