The Telecom Policy for Broadband Diffusion: A Case Study in Japan

  • Koshiro Ota
Part of the Contributions to Economics book series (CE)

Abstract Though the penetration rate of broadband services in Japan is not outstanding, the transmission speed is much faster and the price is lower than in other advanced countries. Moreover, FTTH is now spreading much faster than DSL. There are two aims of this paper: first, to derive the principle and the substance of the recent Japanese telecom policy; and second, to examine the factors that contribute to the diffusion of broadband services. I will focus not only on the level of unbundled local loop rates but also on the rate-setting methodology for group center and zone center interconnections. I will also argue against some conventional views that “telecoms regulators in Japan have tended to take a stronger line with their incumbent than in Western countries.” In my view, the Japanese telecom policy as a whole was not so hard on NTT, rather it supported NTT’s and other carriers’ business development by taking into consideration NTT’s business situation.


Liberal Democratic Party Fiscal Year Digital Subscriber Line Universal Service Broadband Service 
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This paper is based on a presentation at the 18th European Regional ITS Conference, October 2–5, 2007, Istanbul. I would like to thank Professor Hitoshi Mitomo (Waseda University) for his encouragement and assistance. I would also like to thank Dr. Brigitte Preissl (the editor of this book) and Professor Chris Czerkawski (Hiroshima Shudo University) for their invaluable comments.


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Copyright information

© Physica-Verlag Heidelberg 2009

Authors and Affiliations

  • Koshiro Ota
    • 1
  1. 1.Faculty of Economic SciencesHiroshima Shudo UniversityHiroshimaJapan

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