Broadband and telecom

The Internet: Convergence and Self-Governance


The Internet: Convergence and Self-Governance

OECD/OSIPP (Osaka University) Workshop


Record of the workshop

The OECD and OSIPP (Osaka University), organised a Workshop on "The Internet: Convergence and Self-Governance", on 9 - 10 June 1998, with financial support from the Telecommunications Advancement Foundation (TAF) of Japan, Research Institute of Telecommunications and Economics (RITE) and NIFTY Corporation.

Its aim was to examine issues related to new Internet services in order to promote harmonious development at international level and it brought together experts from business, academia and government.

The OECD had already held a number of workshops on telecommunications, (e.g. the Athens Workshop on the "Benefits of Telecommunications Infrastructure Competition" in 1994 and the Dublin Workshop on "Access and Pricing for Information Infrastructure Services: Communication Tariffication, Regulation and the Internet" in 1996). These workshops explored new policy issues in the communications field many of which later were the object of analytical work.

The Osaka Workshop was relevant to ongoing OECD work on access to information infrastructures and convergence. Work in these areas will feed into the work on electronic commerce which depends on the availability of high-speed interactive information infrastructures, so that communication policy must ensure access to information infrastructures by service providers and consumers.

Tuesday, 9 June and Wednesday, 10 June 1998 Senri Life Science Centre, Osaka, Japan

Barbara A. Dooley, Executive Director, Commercial Internet eXchange

Barbara Dooley is executive director of the Commercial Internet eXchange Association, an international trade association of Internet Service Providers headquartered in Herndon, Virginia. Previously, she was the managing editor and publisher of the ISP industry newsletter, CIX.tra, and a strategic business consultant specializing in ISP interconnection for Dimension Enterprises, Herndon, Virginia. From 1992-5 she worked in voice operations at Sprint International (now Global One).

From 1986-1992 Ms. Dooley worked as a business and research consultant specializing in Germany and Eastern Europe. During this time she performed consulting services for such clients as the US Embassy in East Berlin and US-based telecommunications companies.

During her academic career she was awarded fellowships and scholarships from the the Fulbright program, the University of Kansas, the German government, and Radio Free Europe. She received her B.A. from Brown University, an M.A. in Soviet Studies from the University of Kansas, and is currently completing a master's in business.

Dai Davies, General Manager, DANTE

Dai Davies is General Manager of Delivery of Advanced Network Technology to Europe Ltd (DANTE). DANTE was established by the University Networks in Western Europe to organise the 91ision of International Networking services on their behalf. Its principal activity is TEN-34, the pan-European research Internet. In addition DANTE is now working on the QUANTUM project which will 91ide in 1998 the next generation of European research Internet which will incorporate Quality of Service capabilities.

Dai Davies has degrees in Engineering and Computer Science from the University of Cambridge and twenty five years of technical and commercial experience in the telecommunications sector working at BT, Deutsche Bundespost Telekom and the UK Department of Trade and Industry.

Yoshikazu Ikeda, Director, Multimedia Business Department, KDD, and President, Japan Internet Exchange Co. Ltd.

Mr.Ikeda received B.E. and M.E. from the University of Tokyo in 1969 and 1971, respectively. He is currently in charge of Internet related services in KDD and also appointed as President of Japan Internet Exchange Co., Ltd. (JPIX), which is a leading commercial IX in Japan and established in July 1997. He was Director of KDD Geneva Office in Switzerland during 1992 and 1996 for the ITU relations. He had been working for the development of ISDN switching systems and its signaling system SS No.7. He was a special reporter of SS No.7 network structure in former CCITT. He wrote several books e.g. " ISDN illustrated" (1989) and " ISDN Applications illustrated" (1992). He was elected an IEEE Fellow in 1992.

Hajime Oniki, Professor, Osaka-Gakuin University and Professor Emeritus of Osaka University

Professor Hajime Oniki was born in 1933, Tokyo, Japan. He was given BA and MA from University of Tokyo, Japan, and Ph.D. (Economics, 1968) from Stanford University, USA.

He is currently professor at Department of Economics, Osaka-Gakuin University, Osaka, Japan. He conducts his research mainly at Osaka University, Japan, where he is affiliated as professor emeritus and a visiting professor at Cooperative Research Center for Advanced Science and Technology, and also at Kansai University, where he is partially affiliated as visiting professor, Graduate School of Informatics. His academic appointments in the past include professor at Department of Economics, Chukyo University, Nagoya, Japan (1994-1996), professor at Institute of Social and Economic Research, Osaka University (1979-1994; director: 1986-1988 and 1992-1994), assistant and associate professor at Queen's University, Canada (1972-1979), assistant professor at Harvard University, USA (1969-1972), and assistant professor at Tohoku University, Japan (1966-1969).

He served as editor of International Economic Review (1985-1990); he has been an associate editor of Information Economics and Policy since 1984 and a member of the editorial board, Economics of Innovation and New Technology, since 1989. Professor Oniki writes mainly in economics of information and communication.

His publications include "The Cost of Communication in Economic Organization," "Effects of New Information Technology on Market Organization (in Japanese)," "New Information Technology and the Growth of the Japanese Economy: 1974-1985," "NTT's Productivity Performance and the Effect of Competition," "Economics of BISDN in Japan," etc. A book in Japanese entitled "Economics of Constructing Information Highways in Japan" came out recently.

He can be reached at his e-mail address , postal address: CRCAST, Osaka University, 2-1 Yamadaoka, Suita, Osaka 565-0871, JAPAN; or by phone/facsimile (office): (+81) 6-876-4512; phone (home): (+81) 6-835-4417. His website is:

C. Jeffrey Kraft, Senior Consultant, LECG .

C. Jeffrey Kraft is a Senior Consultant at LECG Inc., working on telecommunications and public policy issues such as US antitrust policy, issues surrounding the implementation of the US Telecommunications Act of 1996 including Interconnection between incumbent local telephone companies and wireless companies and competitive local entrants. He has consulted on public policy, antitrust, and litigation issues across a wide range of communications sectors: outside plant equipment manufacturing, interactive television, cable television and local telephone competition. Mr. Kraft holds a Master of Public Policy degree from the University of California at Berkeley and an undergraduate degree from Tufts University. Mr. Kraft recently co-authored an analysis of the US Telecom Act of 1996 and local telephone competition which appeared in the Fall 1997 issue of the Journal of Economic Perspectives titled "Meddling Through: Regulating Local Telephone Competition in the United States."

Tuesday, 9 June and Wednesday, 10 June 1998
Senri Life Science Centre, Osaka, Japan

Workshop Coordinators: Masatsugu Tsuji, OSIPP Osaka University and Shigeyoshi Wakabayashi, OECD

Tuesday, 9 June 1998

9:00 Registration

9:30-10:50 Welcome and overview of issues

Opening remarks: Mitsuru Kurosawa, Dean, OSIPP , Osaka University

Session 1: Overview of issues

The Internet is growing dramatically, and, owing to the emergence of new services and capabilities, it is expected to become an essential part of electronic commerce, including electronic payment systems. However, many policy issues are being raised, and it is essential to address these issues in order to eliminate potential obstacles to development of the Internet. This session surveys the main policy issues for communication infrastructure and the Internet. It also explores how governments can best provide frameworks to promote appropriate infrastructure development for electronic commerce.

Chair: Toshihiko Hayashi, OSIPP , Osaka University


Shoichiro Asano, NACSIS and Vice-Chairman of ICCP Committee (slides)
Robert M. Pepper, Chief, Office of Plans and Policy, FCC (slides)
Sam Paltridge, OECD (slides)

10:50-11:10 Coffee break

11:10-13:00 Session 2: Webcasting and convergence

Convergence of telecommunication and broadcasting infrastructures and services is increasingly challenging regulatory frameworks. A leading example, born of convergence in the communication sector, is the emergence of services known as webcasting. These services use the Internet to deliver content to users in ways that sometimes closely resemble traditional communication services such as broadcasting. As some webcasting services are regarded by some policy makers as "like services", there is a tendency to regulate them according to criteria stemming from broadcasting and telecommunications. At the same time, there is growing recognition that inappropriate regulation of such services could have a detrimental impact far beyond the communication sector itself and act as a barrier to applications in areas such as electronic commerce. This session explores how policy makers might approach regulation of these services as compared to regulation of traditional services and what new issues are being generated.

Chair: Deborah Howard, MPH, Executive Director, Internet Service Providers' Consortium (ISP/C)


Hisashi Kasahara, Research Group Leader, Human Interface Laboratories, NTT (slides)
Keiichiro Seki, Senior Advisor, Communications Policy Bureau, Ministry of Posts and Telecommunications, Japan
Gilbert Cattoire, Director Business Development, Global Theatre Network and Chairman, French Chapter, International Webcasting Association (slides)

13:00-14:30 Lunch

14:30-16:20 Session 3: Internet service providers and telecommunication regulations

There is increasing tension between Internet service providers (ISPs), which have expanded and developed in an unregulated environment, and facilities-based telecommunication operators, which are often subject to detailed regulatory requirements and obligations. It arises from ISPs' increasing demands for access to network resources on the same terms and conditions as telecommunication operators so that they can meet the increasing demands of their customers. Such requests for access are often not granted, at least on a non-discriminatory basis, on the grounds that ISPs are not subject to the same regulatory requirements.. To what extent should ISPs obtain co-location or unbundling of network elements from incumbents to ensure non-discriminatory access to essential facilities? It has been argued that this should only be allowed if ISPs are subject to the same regulatory oversight as telecommunication operators. For many industry analysts, regulation of ISPs would have significant negative consequences for the continued growth of the Internet. This session focuses on cross-platform interconnection issues -- the question of how to adapt safeguards and privileges accorded to the interconnection of "like networks" to alternative communication infrastructures (i.e. different platforms such as the Internet) -- and the importance of ensuring continued Internet growth.

Chair: Lee Jong-Soon, Executive Director, Asia-Pacific Telecommunity


Richard Cawley, European Commission DG XIII (slides)
Barbara Dooley, Executive Director, Commercial Internet eXchange (slides)
Jim Dixon, President, EuroISPA (slides)
Dai Davies, General Manager, DANTE (speech) (slides)
16:20-16:40 Coffee break

16:40-18:30 Session 4: National and international Internet traffic exchange

Traditionally, ISPs have exchanged traffic using a different model from PTOs. Instead of using the system of settlements sometimes known as the accounting rate system, which was developed for PSTN traffic, large ISPs have exchanged traffic under a system known as "peering". While ISPs also use other methods of interconnection payment, peering accounts for the bulk of traffic exchange. Today, new arrangements for traffic exchange on a national and international basis are emerging. This session aims to explore the implications of current and emerging traffic exchange arrangements for infrastructure development. Issues for consideration are whether they are non-discriminatory, transparent, and provide incentives for infrastructure development and open markets. A better understanding of this subject could help to head off a potential point of international friction.

Chair: Barry Raveendran Greene, Cisco


Yoshikazu Ikeda, Director, Multimedia Business Department, KDD, and President, Japan Internet Exchange Co. Ltd. (slides)
John Hibbard, Telstra (slides)
Roger Hicks, Director and Vice Chair, Asia & Pacific Internet Association (slides)
Laina Raveendran Greene, Chair of the Singapore PECC Telecom and Information Industry Task Force; Managing Director, GetIT Pte Ltd. (slides)
18:30 Reception

Wednesday, 10 June 1998

9:00-10:50 Session 5: Internet Self-governance

It is increasingly recognised that self-regulation is the most appropriate way to govern and foster Internet infrastructure development. This session examines current initiatives to shift from government oversight of core Internet infrastructure functions to frameworks involving greater self-governance and initiates discussion on emerging areas that may be best served by self-regulatory approaches. It also raises the question of whether certain areas still require traditional regulatory approaches to communications markets, such as competition policy for essential facilities. The session will also examine the main principles guiding the new Clinton Administration plan to phase out its management of the Internet Domain Name System and transition DNS functions to the private sector.

Chair: Dimitri Ypsilanti, OECD


Paul Twomey, CEO of the National Office for the Information Economy , Australia (slides)
Christopher Kelly, Senior Counsel for Intellectual Property, Antitrust Division, US Department of Justice
Toru Takahashi, Chair, Internet Association of Japan
Tomoo Okada, President NIFTY Corporation, a corporate member of Internet Law & Policy Forum (slides) (speech)

10:50-11:10 Coffee break

11:10-13:00 Session 6: Internet domain names and IP addresses

In the transition to a competitive and commercial market, what safeguards are needed in order to ensure non-discriminatory and transparent practices for Internet domain names and IP addresses? To date, most discussion has focused on the resolution of issues concerning generic top level domains, while domain name administration at the national level has received little attention. The first part of this session aims to discuss the policies and practices of national registries in OECD countries and ask whether reform needs to be initiated to eliminate barriers to electronic commerce. The second part of the session looks at the administration of IP addresses and Autonomous System Numbers and will include discussion on the evolving self-governance in this area.

Chair: Roger Hicks, Director and Vice Chair, Asia & Pacific Internet Association


Naomasa Maruyama, Vice President, Japan Network Information Center (slides) (speech)
Peter Gerrand, CEO, Melbourne IT, Australia (Administrator of (speech)
David Conrad, Executive Director, Internet Software Consortium (slides)
13:00-14:30 Lunch

14:30-16:20 Session 7: Measuring Internet performance

As the Internet develops and becomes a platform for electronic commerce, it will become important to assess performance and quality as well as other economic indicators which can assist policy makers in their decisions. This session reviews existing performance indicators and asks what new indicators can be developed.

Chair: Hajime Oniki, Professor, Osaka-Gakuin University and Professor Emeritus of Osaka University


John Leong, Chief Technical Officer, Inverse (slides)
Barry Raveendran Greene, Cisco (slides)
Jeff Kraft, Senior Consultant, LECG (slides)

16:20-16:40 Coffee break

16:40-18:00 Session 8: Roundtable: Implications for e-commerce and policy

Owing to its rapid growth and utility, the Internet is expected to play a fundamental role in the future development of electronic payments and commerce. However, many issues must be resolved so that there is a firm basis for promoting electronic commerce on the Internet. These include ensuring access to infrastructure, pricing, and capacity. It is also important to ensure international co-operation among countries. What are the main policy issues requiring international co-operation? What are the appropriate mechanisms for such co-operation?

Chair: Michael Tiger, Industry Canada and Chairman of OECD Working Party on Telecommunication and Information Service Policies


APEC representative (report submitted)
Robert Cohen, Adjunct Fellow, Economic Strategy Institute
Dai Davies, General Manager, DANTE
Toshihiko Hayashi, OSIPP , Osaka University
Deborah Howard, MPH, Executive Director, Internet Service Providers' Consortium (ISP/C) (slides)
Paul Twomey, CEO of the National Office for the Information Economy , Australia
Closing remarks: Shoichiro Asano, NACSIS and Vice-Chairman of ICCP Committee

Working languages: English and Japanese.

Internet Traffic Exchange: Developments ans Policy, OECD, 1998;

Webcasting and convergence: Policy implications, OECD, 1997;

Internet domain names: Allocation policies, OECD, 1997;

Dismantling the barriers of Global Electronic Commerce, OECD, 1997.


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