1 standardization systems of telecommunications in japan 2004 its yoko nishioka infocom research,...

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Standardization systems of telecommunications in Japan

2004 ITS

Yoko Nishioka

InfoCom Research, Inc. /

Keio University

This study is funded by Telecom industry promotion Fund in Japan.

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Roadmap of this presentation

1. Introduction– Outline of this study (purpose, views)– Trends of standardization activities in Japan

2. Theoretical review– Two approaches to “institution”– Model of institutional change

3. Analysis– Historical analysis of int’l standardization institution– Comparison of three regional standardization organizations a

mong Japan, US and EU

4. Conclusion and implication for Japanese system

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Purpose of this study

To analyze the Japanese system of standardization of telecommunications in the context of “institutional change ” in international standardization of telecommunication

1. Introduction

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Views of this study

This study analyze the Japanese standardization system of telecommunications comparing cases of the US and EU along with change of environment around international standardization.

The definition of institution in this study is based on “neo institutional economics” approach.

1. Introduction

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Structure of this study

1st part– To analyze meaning of creation of regional standard

ization organizations in the context of historical change of institution of international telecommunications

2nd part– To analyze major regional standardization organizati

ons in Japan, US, and EU, and evaluate how they respond new environment of international standardization.

1. Introduction

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More attention standardization issues in Japan these days

Cooperation with other Asian countries ASTAP(Asia Standard Program)1998

“Report of R & D and standardization toward building -up competitiveness in the information- technology area” 2004.3

Nippon Keidanren published an position paper “strategic international standardization”2004.1

1. Introduction

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Japan can contribute more to international standardization

The Japanese main contributions to international standards– FAX– MPEG

1. Introduction

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Why not so far?

Communication skill? Cultural difference? Some structural reasons?

This study analyze them from the view of institutional change of international standardization of telecommunications technology

This study analyze them from the view of institutional change of international standardization of telecommunications technology

1. Introduction

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Two different approaches to “institution” in neo institutional economics

Institutional evolutionary approach

“ Institution qua equilibrium of the gam

e ”(Aoki 2001;26):

<Players influence institutions>

Institutional evolutionary approach

“ Institution qua equilibrium of the gam

e ”(Aoki 2001;26):

<Players influence institutions>

player

player

player

player

institutions

player

player

player

player

institutions

Institutional design approach “Institutions are the rules of the

game” (North 1990;3-4,23)

<Institutions influence players>

Institutional design approach “Institutions are the rules of the

game” (North 1990;3-4,23)

<Institutions influence players>

Both explain institutions by relations between players and institutions, but the emphasis is different.

2. Theoretical review

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Stability

Institutional evolutionary approach explains well institutional changes

Evolutionary approach explains institutional changes through change of balance of players.

Rather,design approach is useful to analyze incentive structures given by institutions.

ChangeFormation

Process of institutional change


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Model of institutional change

　　　　　　　 Institution 　　　　 Institution

Path dependency （ history matters）

Gaps between shared beliefs and reality among

players

Needs of co-evolution of related

institution

Factors to stabilize

institution

Factors to foster institutional change

Environmental change

This is the model of institutional change based evolutionary approach


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What is “s ｔａｎｄａｒｄｉｚａｔｉｏｎ” ?

In terms of activities...– Institution of decision-making activities to choose

what most members can agree

In terms of economics..– Activities to promote economic efficiency on

innovation

In terms of players..– Strategic activities for certain members (countries/

firms) to promote their own ideas in the given markets


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Evolution of institution of international standardization of telecommunications ?

Birth of ITU1865: Foundation of the International Telegraph Union

1906:First time of International Radiotelegraph Convention Growth of ITU

1932: Union changes names to International Telecommunication Union along with combining the two organizations

Stabilization of ITU1947:ITU becomes a Specialized Agency of the United Nations

Toward diversification of institution Regional standard organizations created1984:T1in US committee was created with AT&T divestiture

1985:TTC in Japan was created with privatization of NTT

1988:ETSI in EU was created along with EU convergence

1992:Creation of 3 Sectors, ITU-T, ITU-R, ITU-D

1995:ARIB in Japan was created for radio related needs in convergence of telecommunication & broadcasting

Toward cooperation between diversified institutionsITU/ICANN cooperation

The institution of int’l standardization seems to have experienced the life cycle?

3. Analysis

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More players, more diversified after mid of 1980s

International Telegraph

Union (1865)

International Telegraph

Union (1865)

International Radiotelegraph

Convention(1906)

International Radiotelegraph

Convention(1906)

International Telecommunication Union

(1932)

International Telecommunication Union

(1932)

Became a specialized Agency

of the UN(1947)

Became a specialized Agency

of the UN(1947)

TTC(1985)

T1(1984)

ETSI (1988)

forum

forumforum

ARIB (1995)

20 Europeanmember states (1965)

Needs to pay attention to development issues

More players in the markets De-regulations Attention by users/markets More competition in global marketsShortened innovation cycle

Swifter decision reflecting many and wide range of players with the limited resource

Big increase of member states of developing countries

Gaps between shared beliefs and reality among players (Factors to foster institutional change)

Environmental Change

Birth of ITU Growth of ITU Stabilization of ITU Toward diversification

Reform(1992)

Reform(1992)

As a part of UN, less flexibility to transform itself Needs of co-evolution of related institution (Factors to stabilize institution)

Diversification was resulted by both factors to foster institutional change and to stabilize institution

Toward cooperation

IETF

3. Analysis

New membership of sector member

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Players involved in standardization (before 1947)

ITU

Member state

NationalOperator

Manufacturers

Member state

NationalOperator

Manufacturers

Member state

NationalOperator

ManufacturersManufacturers Manufacturers Manufacturers

3. Analysis

Before 1947, ITU was like a “salon” of similar players, who were basically developed countries.

Developed countries More interested in standardization and global competitions

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Players involved in standardization (1947 -1992)

ITU became to have to pay attentions to two different interests which could be contradicted.

ITU

Member state

NationalOperator

Manufacturers

Member state

NationalOperator

ManufacturersManufacturers Manufacturers

3. Analysis

Member state

NationalOperator

Manufacturers

Member state

NationalOperator

ManufacturersManufacturers Manufacturers

Developed countries More interested in standardization and global competitions

Developing countries More interested in development issues

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Players involved in standardization (after 1992)

Regional organizations should work and be expected as an inter-mediators of players and ITU.

ITU

Member state

Sector member(Operator)

Member state


Sector member (Manufacturers)

Member state



Sector member(Manufacturers)



3. Analysis


Sector member(Operator)Sector member

(Operator)

Developed countries

Developing countries

Multi-national corporationsRegional organization

Regional (national)organization

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Telecom companies, broadcasters, manufacturers, universities

TTC ARIB JCTA

Recommendations

ITU-T ITU-R

ITU

Recommendations

Recommendations

Cable LaboHATSTechnical regulations

Non-governmentalMPHPT

ITU-TSG

ITU-RSG

Othercommittees

ICT sub- council

Source: MPHPT materials

Japanese system

Down-stream

Up-stream

ICT council mainly prepares contributions, mainly works on downstream.

3. Analysis

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Major standardization organizations in Japan

MPHPT(Ministry of Public Management, Home Affairs, Posts and Telecommunications)

TTC(The Telecommunication Technology Committee) – Created along with deregulation of telecom market in 1985

ARIB(Association of Radio Industries and Business) – Center for Promotion of Efficient Use of the Radio Spectrum,1995

JCTEA(Japan Cable Television Engineering Association) 1975

HATS(Harmonization of Advanced Telecommunications Systems) 1988

3. Analysis

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EU system

ETSI can grasp many member states and each member country prepares contributions based on ETSI decision

ITU-T ITU-R

ITU

ETSI EC

National standardization

organization

National government

Telecom companies, broadcasters, manufacturers, universities

Down-streamUp-stream


3. Analysis

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US system

US has many sector members and ITAC, a part of state department, takes a strong leadership of US strategy

ITU-T ITU-R

ITU

ITAC(Int’l telecommunications advisory committee:state department)

Government agenciesFCC,NTIA

T1(network interface etc.)

TIA(Telecommunications industry association)

(terminal equipments, mobile,etc.)

Many telecom companies, broadcasters, manufacturers, universities

Down-streamUp-stream

IEEE(LAN etc.)

ANSI

forumforum

Contribution

Contribution


3. Analysis

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Comparison of three regional organizations

Compared to US and EU, government takes more leadership to contributions to ITU in Japan

Name T1 (Committee T1 --

Telecommunications)

TTC (The Telecommunication

Technology Committee)

ETSI (European Telecommunications

standards Institute) Country/region U.S. Japan EU

Year of establishment

1994 1995 1992

Reasons to establishment

Divestiture of AT&T Privatization of NTT Unification of EU

Membership US organizations Japanese organizations Open to other country, but official members are limited to inside of EU

Number of Members

97(2002.3) 135(2004.7) 580 (inside EU) 768 (including outside EU) 2002.11

Contribution to ITU

Through ITAC prepares contributions to ITU

ICT council mainly prepares

Each member country prepares contributions based on ETSI decision

3. Analysis

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Summary and Conclusion

The institution of Int’l standardization has developed with ITU. ITU has been stabilized since it became an specialized agency of

the UN. The number of members expanded at once by joining developing

countries, therefore, they have to pay more attention to developing issues.

Big environmental changes after deregulation of telecom industry in the mid of 1980s created the gap that ITU can not easily respond.

In order to supply the the gap / support the existing system (ITU), regional / national standardization organizations formed. US:T1 committee, Japan:TTC,EU:ETSI

4. Conclusion

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Summary and conclusion 2

Comparing the three organizations, in terms of attracting state member ETSI is doing well. T1 and TTC are not successful to attract other state members In terms of upstream activities, TTC is just participating and not taking a central role.ETSI is facilitating state members upstream activities. T1 takes a leadership in that.

Potential of system improvement in Japan can be follows:– Reform the system in order to invite more active participation of private

sector– Merge the organization that currently divided to many specialized

areas– More cooperation with Asian countries

4. Conclusion

1 standardization systems of telecommunications in japan 2004 its yoko nishioka infocom research,...

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