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.
1
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
(T1, TTC, ETSI)
4. Conclusion
2
1. Introduction
Purpose of this study

To analyze the Japanese system of
standardization of telecommunications in the
context of “institutional change ” in
international standardization of
telecommunication
3
1. Introduction
Views of this study

This study analyze the Japanese
standardization activities comparing major
regional standardization organization created
along with change of environment around
international standardization.

The definition of institution in this study is
based on “neo institutional economics”
approach.
4
1. Introduction
Structure of this study

1st part
–

To analyze meaning of creation of regional
standardization organizations in the context of
historical change of institution of international
telecommunications
2nd part
–
To analyze major regional standardization
organizations in Japan, US, and EU, and evaluate
how they respond new environment of international
standardization.
5
1. Introduction
More attention standardization
issues in Japan




“Report of R & D and standardization toward
building -up competitiveness in the informationtechnology area” ２００３．３．２７
e-Japan strategy
Nippon Keidanren published an position paper
“strategic international standardization”2004.1
Cooperation with other Asian countries
ASTAP(Asia Standard Program)1997
6
1. Introduction
Japan can contribute more to
international standardization

Japanese main contributions to international
standards
–
–
FAX
MPEG
7
1. Introduction
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
8
2. Theoretical review
Two different approaches to “institution” in
neo institutional economics
Both explain institutions by relations between players and institutions, but the emphasis is different.
Institutional
evolutionary approach
“ Institution qua equilibrium of the
game ”(Aoki 2001;26):
<Players influence institutions>
 Institutional design approach
“Institutions are the rules of the
game” (North 1990;3-4,23)
<Institutions influence players>
play
er
play
er
institutions
play
er
play
er
play
er
play
er
institutions
play
er
play
er
9
2. Theoretical review
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.
Process of institutional change
Formation
Stability
Change
10
2. Theoretical review
Model of institutional change
This is the model of institutional change based evolutionary approach
Institution
Institution
Factors to foster
institutional change
Gaps between shared
beliefs and reality among
players
Environmental change
Factors to
stabilize
institution
Needs of co-evolution of related
institution
Path dependency （history matters）
11
2. Theoretical review
What is “sｔａｎｄａｒｄｉｚａｔｉｏｎ” ?

Institution of decision-making activities to
choose what most members can agree
–
–
Activities to promote economic efficiency on
innovation
Strategic activities for certain members (countries/
firms) to promote their own ideas in the given
markets
12
Evolution of institution of
international standardization of
telecommunications ?
3. Analysis
The institution of int’l standardization seems to have experienced the life cycle?

Birth of ITU
1865: 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 ITU
1947:ITU becomes a Specialized Agency of the United Nations

Toward diversification of institution Regional standard organizations created
1984: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 institutions
ITU/ICANN cooperation
13
3. Analysis
More players, more diversified
after mid of 1980s
Diversification was resulted by both factors to foster institutional change and to stabilize institution
Birth of ITU
Growth of ITU
Stabilization of ITU
Needs of co-evolution of related institution
Toward cooperation
As a part of UN, less flexibility to transform itself
(Factors to stabilize institution)
T1
IETF
(1984)
International
Telegraph
Union (1865)
20 European
member
states (1965)
Toward diversification
International
Telecommuni
cation Union
(1932)
International
Radiotelegraph
Convention
(1906)
Gaps between shared beliefs and
reality among players (Factors
to foster institutional change)
Environmental Change
Became a
specialized Agency
of the UN
(1947)
Big increase of
member states
TTC
(1985)
ETSI
(1988)
ARIB
Reform
(1992)
forum
forum
(1995)
State member 189
Sector member 635
(2004)
forum
Swifter decision reflecting wider range of players with
the limited resource
Needs to pay
attention to
development
issues
De-regulation of telecom
More competition in global markets
Attention to users/markets
Shortened innovation cycle
14
3. Analysis
Those regional organization were
sprung in the new environment.
New environment
Gaps with existing system
More operators in one country
More paid attention to users/markets
Shortened innovation cycle
More competition in global markets
Swifter
decision
reflecting
wider
range of
players
with the
limited
resource
Response
T1
(1984)
TTC
(1985)
ARIB
(1995)
ETSI
(1988)
15
3. Analysis
Different decision-making structure
(before)
ITU
Member
state
Member
state
Member
state
National
Operator
National
Operator
National
Operator
Manufacturers Manufacturers Manufacturers
Manufacturers Manufacturers Manufacturers
16
3. Analysis
Different decision-making structure
(current)
ITU
Regional
organization
Member
state
Sector member
(Operator)
Sector member
(Manufacturers)
Member
state
National
Operator
Member
state
Regional (national)
organization
National
Operator
Manufacturers
Manufacturers
Manufacturers
Manufacturers
17
3. Analysis
How well do they live in the
changing environment?
Swifter
decision
reflecting
wider
range of
players
with the
limited
resource
Do they represent many
voting parties (countries)?
Do they represent users
(operators, manufactures,
end-users)?
T1
(1984)
TTC
(1985)
ARIB
(1995)
ETSI
Do they input their ideas in
good timings?
(not dealt in this study)
(1988)
18
3. Analysis
Japanese system
ICT council mainly prepares contributions
ITU
ITU-T
Down-stream
ITU-R
Up-stream
MPHPT
Non-governmental
TTC ARIB JCTA
ICT sub- council
ITU-T ITU-R
SG
SG
Other
committees
Technical
regulations
Recommen
dations
HATS
Recommen
dations
Recommen
dations
Cable Labo
Telecom companies, broadcasters, manufacturers, universities
Source: MPHPT materials
19
3. Analysis
Major standardization
organizations in Japan


MPHPT(Ministry of Public Management, Home Affairs,
Posts and Telecommunications)
TTC(The Telecommunication Technology Committee)
–

ARIB(Association of Radio Industries and Business)
–


Created along with deregulation of telecom market in 1985
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
20
3. Analysis
EU system
Each member country prepares contributions based on ETSI decision
ITU
ITU-R
ITU-T
Up-stream
Down-stream
ETSI
National
standardization
organization
EC
National
government
Telecom companies, broadcasters, manufacturers, universities
Source: MPHPT materials
21
3. Analysis
US system
Each member country prepares contributions based on ETSI decision
ITU
ITU-R
ITU-T
Up-stream
ContributionDown-stream
ITAC
Government agencies
FCC,NTIA
(Int’l telecommunications advisory committee:state department)
Contribution
ANSI
T1
(network interface etc.)
TIA
(Telecommunications industry association)
(terminal equipments,
mobile,etc.)
IEEe
(LAN etc.)
forumforum
Telecom companies, broadcasters, manufacturers, universities
Source: MPHPT materials
22
3. Analysis
Comparison of three regional
organizations
Compared to US and EU, government takes more leadership to contributions to ITU in Japan
Name
T1
TTC
ETSI
(Committee T1 --
(The Telecommunication
(European Telecommunications
Telecommunications)
Technology Committee)
standards Institute)
Country/region
U.S.
Japan
EU
Year of
establishment
Reasons to
establishment
Membership
1994
1995
1992
Divestiture of AT&T
Privatization of NTT
Unification of EU
US organizations
Japanese organizations
Open to other country, but
official members are
limited to inside of EU
97(2002.3)
135(2004.7)
580 (inside EU)
768 (including
EU) 2002.11
Number of
Members
council
Contribution to Through ITAC prepares ICT
contributions to ITU
prepares
ITU
outside
mainly Each member country
prepares
contributions
based on ETSI decision
23
4. Conclusion
Conclusion




The institution of Int’l standardization has developed with ITU.
ITU has been stabilized since it became an specialized agency of
the UN.
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
24
4. Conclusion
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
25