Status report and trends of the ISPs in Japan

1. Status report and trends of the ISPs in Japan 2002.4.12 Takashi Arano Chair of IPv6 Deployment Committee,IAJapan Steering Committee member of JANOG

2. Agenda • Introduction • Broadband Services • Rapid growing. Why? • Consequence • IPv6 • IPv6 status in Japanese ISPs • Other promotive activities • Technical issues identified

3. Introduction – General Information -

4. The Number of Internet Users in Japan Note: it was a little bit old, though.

5. Most of Internet Users are “i-mode” Users • i-mode is an Internet service provided by NTT-Docomo’s mobile phone. • E-mail • Web • Java running • Everywhere • Chatting with friends via i-mode in trains • Recently, gaming is also popular.

6. Connections among ISPs • Several big ISPs are peering with each other via “private peering” • Most ISPs are peering in public, i.e. via IX. • Various peering policies • Free peering policy v.s. more strict one • “Peering war” has happened. • Some of big ISPs refuse peering with small ISPs.

7. IXs in Japan • NSPIXP2 • IX operated by WIDE project • For R&D use in a formal sense, but commercial traffic are exchanged practically • JPIX • First commercial IX in Japan • 92 ISPs join, including foreign carriers (SingTel and Deutch Telecom) • Recent topic • Multiple locations in Tokyo area • New site in Osaka area • IPv6 commercial service • JPNAP: a new IX invested by NTT and IIJ

8. Broadband Services

9. ADSL Bursting! • 30 million Dialup users, so far • Rapid Growth of ADSL • 1.5 million users in Dec. 2001 • 2 million users in Mar. 2002 • Rapid move from Dialup to ADSL • Why is this big movement happening? • The answer is simple…Price!

10. Before ADSL • Before the year 2000, the Internet service price was… • Dial-up • 2,000-5,000 Yen + Telephone Charge, depending on connection time • CATV for 256-768kbps • 5,000-6,000 Yen (incl. access line) • Leased line for 128kbps • 30,000-200,000 Yen (incl. access lines) • Note: Taiwan$ 1 = 3.6 Yen or so

11. ADSL price • Yahoo Broad Band service started to provide surprising price! • 2,500 Yen flat for everything (Internet and access line) • 8 Mbps as downstream bandwidth • All other ISPs have followed Yahoo. • 2,000-5,000 Yen • 1.5Mbps or 8Mbps • Now the price level may be cheaper than that of U.S. and Korea.

12. Consequences • Users are very happy • ISP, too competitive!? • New applications appear • New requirements to the network • New technologies and business model for contents delivery

13. Users are very happy • Speed • More than 10 times faster • From 56k-64kbps to 500-2,000 kbps (effective speed) • Same price as dial-up • Fixed price for always-on • Fixed price removes mental barrier to connect and keep connecting the Internet • Users change the way of using the Internet • Downloading big files • New applications: streaming and games

14. ISP, too competitive!? • Not profitable any more for these prices • Small ISPs will not survive?? • ISPs have requested International gateway ISPs to reduce upstream charge, which have been actually reduced dramatically in these few years, from 1,000,000 Yen to 50,000-100,000 Yen for T1. • International gateway ISPs will not survive, too??

15. ISP, too competitive!? (cont.) • Increasing access speed 10-20 times results in 10-20 times broader backbone in ISP required. • The number of ADSL users will be expected to be 20M in two years. It is 10 times than now. • AGC’s case: • The largest customer: 1Gbps -> 10Gbps in two years? • US-Japan backbone capacity: 3.7Gbps -> 37Gbps ? • Will we be able to handle such huge traffic then?

16. New applications appear • Streaming • Gaming • Role playing game • ex. Square’s “Final Fantasy XI” • Teaming with remote, even unknown people

17. New requirements to the network • These new applications adds new requirements about Quality to the Internet • Latency: 10ms – 50ms • Packet Loss: no • Without quality, you can’t play game. • Broadband services affect not only network bandwidth but many aspects of the network

18. New technologies and business model for contents delivery • Intensive study and field trials on CDN (Contents Delivery Network) technologies • New type of IX for contents delivery • BBX (BroadBand Exchange) • Some ISPs provide contents service for their subscribers only • Quality is more achievable • USEN broadband, NEC, … many

19. IPv6

20. Basic Pieces Ready! • Router vendors are providing commercial versions • Hitachi, NEC, Fujitsu, Furukawa, Yamaha, more.. • JPNIC/APNIC are allocating sTLAs on request. • Government is supporting • Basic pieces have become ready.

21. JPNIC • JPNIC has provided IPv6 allocation service since Jan. 2000. (agent service from APNIC) RIPE/NCC Japan APNIC others ARIN Number of sTLA allocated (4th April)

22. Government has been supporting IPv6 • Formal announce to support IPv6 in the “eJapan Initiative” plan, 2000 • IPv6 Promotion Council of Japan has been established based on the fund of 8B Yen (=80M Euro) for IPv6 R&D and experiments., 2001- • Tax incentive program, 2002-3 • ISP can get reduction of corporate tax and fixed property tax for newly acquired IPv6 ready routers.

23. IIJ • 1999.8: first IPv6 service (tunnel) • Services • over-v4 Tunnel, Native: Free of charge • Access line charged by local carrier • Dual stack: 117k Yen/mo for T1 • Data Center service: estimation basis • Solution Service: estimation basis • Consultation • Total number of customers: more than 100

24. NTTCom • 2001.4: first charged commercial IPv6 service • Services • over-v4 Tunnel: 2,500 Yen/mo on 128k IPv4 service • More than 200 customers who pays (at least) 2,500 Yen • Native: 980k Yen/mo for T1 • Global activities • global backbone with Verio, Inc. • Commercial/trial service in Europe, Hong Kong and Australia

25. Major Nation-wide ISPs Follow • Powered Com: commercial • Tunnel: 23,000 Yen (option to IPv4 service) • Hybrid over Ether: 97,000 Yen including v4 and v6 • Japan Telecom: Tunneling service quite similar to NTT Com’s • NEC, Fujitsu, Sony, Panasonic, Cannon, Mitsubishi, DTI, MEX, … Customer Site IPv4/IPv6 Powered Com IPv4 CPE IPv6 CPE

26. Others • Global Crossing • Announced global IPv6 services within 2002 and started it first in Japan in Dec. 2001. • Chita Medias (Local CATV network in Aichi pref.) • Started trial IPv6 service in Oct. 2001 • Live streaming experiment for H-IIA rocket launch • MIS • IPv6 hot spot trial in Kyoto

27. JGN (Japan Gigabit Network) • Native IPv6 network • All Commercial ISPs are using IPv6-over-IPv4 tunnel for their backbones • IPv6 over ATM • 622Mbps (MAX) • 45 Access Point in Japan

28. IXs • NSPIXP6 • Around 40 ISPs and organizations there • sTLA, pTLA, NLA… • Operated by WIDE project • 180Mbps recorded as a peak of 10min-average • JPIX • Commercial IX started providing IPv6 IX trial.

29. IPv6 Promotion Council of Japan • Initiated by Ministry of Public Management, Home Affairs, Posts and Telecommunications • Chair: Jun Murai • Not only router vendors and service providers, but home appliance developers, broadcasting companies, etc. are involved • TAO (Telecommunications Advancement Organization of Japan) conducts a nation-wide IPv6 experiment, using budget of 8.05 billion Yen (= $ 80M).

30. Scope of IPv6 Promotion Council of Japan Applications アプリケーション E-Government E-Learning Platform プラットフォーム Bring-up Engineers Community Medical Welfare Evaluation Authorization Metropolitan Countryside Standards Base Strategy 基本戦略 (Domestic/Intn’l) （国内・国外） Address Admin Security Legislation Shopping Intelligent Traffic System Base system Infrastructure Logistics Communication Finance Collaboration of cros-Industries＋Government support

31. IPv6 Deployment Committee • Established in Apr.2001 under Internet Association Japan • Promote Japanese IPv6 Deployment in Industry • hold IPv6 conferences for enlightenment and education such as “IPv6 Summits” • study issues which need to be solved for deployment; IPv6 Operation Study Group • publish IPv6-related articles in IAJapan Review, etc. • Play a role of a liaison to IPv6 organization and conferences in other countries such as IPv6 Forum • In a more bottom-up fashion than IPv6 PC/J

32. Global IPv6 Summit in Yokohama, 2001 • 2nd IPv6 Summit in Japan • 750 participants, 100 more than the last Summit • Discussed more real issues, while the last Summit focused on how to make people recognize IPv6 • Keynotes from Jun Murai (WIDE) and Jawad Khaki (VP, MS) • Three successful panels • Enterprise Network, Home Network, Societal Impact • More than 60 IPv6 PCs observed in the conference site network • 3rd Summit will be held at Yokohama again.

33. Publications • IPv6 Journal • First Journal in the world regarding IPv6 • Four issues were already published. • Issued by RIIS and now transferred to Impress. • http://www.riis.ad.jp/ipv6/ • IPv6 experts from both industry and academy plan each issue. • Examples of contents: • NAT: Pros and Cons • All about Global Address (address policy tutorial, why we need global address, current situation of IPv4 allocation, etc.) • Recent Discussion regarding DNS • Internet Car Research • European activities (Euro6IX, etc.) • Company & Product Status Reports • Conference reports (Summits, IETF, APNIC, IPv6 TF meeting) • v6start • Nikkei-BP, one of major publishers, is providing educational web pages • http://v6start.net/

34. Key technical issues identified • More standardization • Plug and Play (IETF) • Address Policy (RIRs) • Minimum specification, etc… • DNS deployment • Operation experiences & technologies • ISP • Enterprise network

35. IPv6 Address Policy • Current policy in effective • A provisional policy which RIR decided based on RFC2374 in 1999. • No consideration for IPv6 merits • ex.) Subsequent criteria = 80% • Many undefined parts • Insufficient for commercial ISP • Short history • Two proposals came out from JP and RIRs and were merged into one proposal (Aug. 2000) • Discussed a lot in RIR meetings and the mailing list since then. • Draft published (Dec. 2001) • Amendment was agreed in public in APNIC(Mar. 2002) • It is expected to reach consensus in ARIN and RIPE meeting in April 2002. • Now it’s almost at the final stage…

36. IPv6 Operation Study Group • Over 70 ISP operators and/or JANOG members are discussing from a “real operational” point of view • Subsidized by IPv6 Deployment Committee • Example topics to be discussed • Address Policy • Routing • Enterprise Network • Any missing pieces to deploy IPv6 just like IPv4? • Network monitoring, DNS, Renumbering, Transition tools…

37. Routing Issues • Much Much bigger address spaces • Potential number of external routes in future • Transition from 6bone-type routing to commercial-type one • Multi-homing • No PI(Provider Independent) address for enterprises • Punching hole allowed? Any criteria? • Aggregation • /48 static assignment per a customer needs special design consideration about aggregation in ISP internal networks. • How can address policy supports this? • Traffic engineering • Less external routes to be announced make TE harder.

38. Enterprise Network Design & Operation • A new firewall model should be established. • Network manager v.s. end user who uses IPSec • Managers want to know users’ behaviors • IPSec hides users’ behaviors even for network managers. • How to reconcile between traditional IPv4 firewall model and end-to-end model which IPv6 supports with IPSEC. • Protection function against attacks from the outside is always necessary • Do IPv6 firewall need transparency and bi-directional communication? • The receiver can know the PC vendor the sender is using by EUI-64. • Needs more security for each individual PC if every PC has a global address. Some central management system would be useful.

39. More Collaboration needed • IPv6 operation study group can lower ISP’s entry barrier by discussing, finding out and sharing how to operate IPv6 network, together among many ISPs. • It’s like early era of the IPv4 Internet! • Why not do this in Asia as well !