Special Feature: Keynote Speeches at NTT R&D

Actions to Achieve a New Broadband
Society
Norio Wada, President and CEO, NTT
Abstract
In November 2004, the NTT Group formulated its medium-term
management strategy, which shows what the group intends to achieveby 2010 and thus points to the specific direction in which the group isheading. This article summarizes the keynote speech entitled “Actions
to Achieve a New Broadband Society” given by Norio Wada, NTT
President and CEO, at the NTT R&D Forum 2005 held in February
2005.

1. A time of great transition for information
communication

SBC are considering the full-scale deployment ofbroadband services.

1.1 Full-scale deployment of broadband
networks in the U.S.A.
The information communication industry is undergoing a tremendous transition worldwide. In March
2004, in the U.S.A., President Bush announced an
initiative to provide broadband networks to every
home by 2007. Against this background, Verizon disclosed a plan to provide optical access for 3 million
households by the end of 2005, while SBC plans to
introduce optical access to 18 million homes by 2007.
The U.S. government is pushing for evolution
towards the next-generation network, which is characterized by the full deployment of IP (Internet protocol) and optical technologies. For example, in June
2003 the Department of Defense announced that it
will make all its networks IPv6-based by 2008, and at
the beginning of 2004 it set up an IPv6 Transition
Office. As the move towards next-generation networks accelerates, the competition in providing
broadband services is becoming stronger.

1.3 Reorganization of the information
communication industry in the U.S.A.
As if to symbolize this major transition, SBC
announced its purchase of AT&T, closing the curtain
on AT&T, which has been the history of telephonyitself over a period of 120 years. MCI is also receiving buyout proposals from Qwest and Verizon.
Telecommunication providers, which have beenstrengthened by purchases and mergers, and cableproviders are expected to commence a fierce battlewith each other in providing attractive services.

1.2 Convergence of telecommunications andbroadcasting
In the U.S.A., while cable TV providers have begun
to offer “triple play” services, which bundle telephone, high-speed Internet access, and TV services,
telecommunication providers such as Verizon and
6

1.4 Fixed-mobile convergence (FMC)
There is another type of convergence in progress in
the information communication industry: the convergence of fixed and mobile telephony. This convergence is accelerating. Last year saw the establishmentof a global body called the Fixed-Mobile Convergence Alliance (FMCA), in which NTT Communications, Korea Telecom, BT in the U.K., and othermajor global telecommunication providers are collaborating in developing services that will be madepossible by FMC. Against this background, the NTT
Group has started its onephone Service for corporate
customers, which enables a single terminal to function as a cellular phone terminal (NTT DoCoMo’s
FOMA series terminal), an internal extension phone,
NTT Technical Review

Forum 2005

and a wireless LAN terminal.
1.5 Safety and security
There is also considerable renewed attention to theimportance of safety and security. For example, theU.S. government is advancing its policy of Critical
Infrastructure Protection (CIP). This move started
with a Presidential Executive Order, “Critical Infrastructure Protection” (July 1996) during the Clinton
Administration, which was followed by the establishment of the Department of Homeland Security (January 2003) in the wake of 9/11, and the announcementof the National Strategy to Secure Cyberspace (February 2003) by the Bush Administration. The U.S.A.
sees active efforts by both public and private sectors
towards maintaining information security regarding
important infrastructures, such as finance, oil, andelectricity.

ly important key themes for the future: (1) the expansion of broadband networks through the full deployment of IP and optical technologies, (2) the convergence of telecommunications and broadcasting as
represented by the offering of “triple play” services,and (3) fixed-mobile convergence. Moreover, wemust not forget the need to protect critical infrastructures with regard to safety and security and reduce theenvironmental load by making the most of information communication technology (Fig. 1).
2. NTT Group’s medium-term management
strategy

In the middle of the major transition describedabove, and as we contemplate what the NTT Groupcan do to contribute to the sustained development ofJapan’s economy and respond to customers’ expectations from a medium- to long-term perspective, thegroup has formulated its medium-term management
1.6 Activities aimed at reducing thestrategy with specific targets set for the year 2010.
environmental load
We are hoping to receive opinions from many people
Specific efforts at reducing various types of enviand see widespread discussion of this strategy.
ronmental load are expanding. For example, BT
The important managerial challenge for the future
released its “Results of a Study to Evaluate the Influof the NTT Group is to achieve a smooth migrationence of Information Technology on the Environment”
from the legacy of fixed telephony, metallic access,in October 2004. In that report, BT advocates the use
and second-generation mobile telephony, shown atof videoconferencing, electronic commerce, and telethe bottom left of Fig. 2, to the future lineup of IP,
working to reduce the environmental load. Here in
optical access, and third-generation mobile telephoJapan, as the Kyoto Protocol took effect in February,ny, shown at the top. We believe that this migration
the country is placing increasing importance on facwill strengthen the group’s competitiveness anding the challenge of reducing emissions of carbon
financial base, which in turn will provide the driving
dioxide and other gases.
force for its further development.
To summarize the position outlined above, in the
The next-generation network that we are aiming at
midst of the major transition in the information comwill combine the flexibility, simplicity, and economy
munication industry, we can identify three particularof the Internet with the high quality
and high reliability of conventional
Conversion to broadband (IP-based and optical)
fixed networks. This combination
will provide service diversity, safety,
and security and will enable us toConvergence of telecommunications and broadcasting
apply ourselves fully to reducing
costs in order to be able to lower the
prices we offer to our customers.
FMC (fixed-moblie convergence)
If both metallic and optical accessand both the existing fixed telephone and next-generation networks
Safety and security
were to coexist, the cost of maintaining dual sets of infrastructure
would overwhelm the group’s busiReduced environmental loads
ness management, and, by extension, lead to higher costs for users.
Fig. 1. Key themes for information communication during the transition.
To avoid this, we plan to completely
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Special Feature

convert the fixed telephone network into the nextwork has a relatively simple layout, the use of opticalgeneration network. The first step in this conversion
wavelength division multiplexing (WDM) lets us
will be to promote and expand optical access services
configure the transmission network in the form of aso that they will be used by about 30 million cusmesh. We also aim to make the next-generation nettomers by 2010. We intend to achieve this through awork a common infrastructure for services based on
total capital expenditure of 5 trillion yen, which isFMC. Moreover, the expansion of optical accessroughly the same as the amount we would spend if weshould reduce power consumption. A preliminary
maintained the current level of annual capital outlay.
calculation reveals that it will reduce the total power
At the same time, we will reduce the cost of providconsumed by NTT East, NTT West, and NTT Coming the fixed telephony service by
800 billion yen. The second step isto determine, by 2010, the timing
Migration to IP
Target next-generation networkand specific ways of implementing
network
PromoMigration to fiberthe complete conversion, based ontion of:ServiceNature of
optic accesscharacteristics
the network
the actions and opinions of our cus3G mobile phone
tomers and related providers in the
Diversification
Flexible andintervening period.
Seamlessmigration

2.1 Next-generation network
We aim to make the next-generation network IP-based from end toend, in a way that inherits the advantages of both the fixed telephone
network and the IP network. It willconsist of optical access links, edge
nodes that guarantee quality andsecurity, and an optical-wavelengthrouted mesh-configuration network(Fig. 3). Even if the physical net-

Improveefficiency
of:of services

simple network

Safety andsecurity

Guaranteed quality
and security

Reduced prices

Reduced costs

Strengthening ofcompetitivenessand financial
base

Fixed telephone
Metallic access
2G mobile phone

Fig. 2. Goals of NTT’s medium-term management strategy.

The next-generation network combined with optical fiber access, which will provide users with IP-based connectivity
from equipment installed at customer premises through the entire network (full IP-based connectivity) on an end-toend basis, has the benefits of both PSTN (public switched telephone network) and IP network.
Architecture of the next-generation network
Example of physical configuration
Edge node• Accommodate opticalsubscriber lines• Equipped with functions
to control quality, security
and connectivity• Function for users to
select providers orservices to be studied

Transit node

Local network

Local network

Optical WDM cross connect

Transit
network

Optical wavelength
meshed network• Realize a mesh-network whichassigns a wavelength to each link using WDM technology

WDM path

Fig. 3. Construction of a high-quality, flexible, and security-guaranteed next-generation network.

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NTT Technical Review

Special Featuremunications by approximately 7%, a reduction thatwill help NTT’ efforts to build networks that generate
a lower environmental load.
2.2 Social issues facing Japan
Japan is experiencing a declining birthrate and an
aging population. We expect our next-generation network and the resonant communication environment
operated on it to make a considerable contribution
toward solving the various social problems that Japan
will face (Fig. 4). For example, the number of elderly
people at home in need of nursing care will continue
to increase. The next-generation network will let an
expert in a nursing care center remotely examine thehealth of such people using high-definition video. And
teleworking, made possible by a video collaboration
system, will expand the opportunity for women andsenior citizens to continue to work, thereby alleviating
the problem of a declining working population.
2.3 Various problems associated with thebroadband society
As information communication has become
increasingly broadband, with a greater number ofpeople using broadband networks, various problems

Social Issues• To address declining birthrate
and aging population• To enhance care support• To solve mismatches
between job seekers andemployers• To diversify education
opportunities• To reduce environmental load
• To save energy, etc.

have emerged (Fig. 5). One of the problems relates totraffic control and management in the face of anincreasing traffic volume: specifically, which types oftraffic should be given priority, and how should
unlawful traffic be restricted? The second problem is
how to ensure network security and deal with cyberterrorism. The third is how to prevent the malicious
use of the network, such as unauthorized transactionsor the infringement of privacy in the network byspoofing, or ill-intentioned rumor mongering. Finally, there is the problem of how to cope with physicaldamage to the network in the event of an earthquakeor other large-scale disaster. The tsunami triggered by
the huge earthquake off the island of Sumatra last

Share and
improvement of Customized“personally-owned information
intelligence”
use
Safe
distribution of
Saving ofpersonal andtime and energy
corporate
for “move”
information
Support for
the elderly andweak such as
distant andpreventive
medical care

Support throughresonant communication
environment

Enhancementof working
opportunities
for elderly people
and women Developmentof society
prepared forcrimes anddisasters

Creation of
new business
opportunities
for small andmediumenterprises

Improvementof educational
opportunities
and levels

Change ofbusiness
processes

Ubiquitous broadband service• Fixed-mobile convergence• Utilization of wireless IC chips• Interactive visual communication service• Sophisticated portal service

Fig. 4. Expectation towards solving Japan’s future social issues.

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December caused tremendous damage in Southeast
Asia and other countries bordering the ocean. Last
year also saw many powerful typhoons strike Japanand an earthquake devastate Niigata. These brought
destruction to many parts of Japan and the networks
also suffered damage.
Today, the networks, which provide essential support to society, belong to different providers and areinterconnected across borders in a complicated manner as a result of the rapid expansion of both the Internet and mobile telephony. In the event of catastrophic damage to these intricately interconnected net-

Rapid increase in traffic

works from an major disaster, it is a daunting challenge to restore them. Unless we manage to overcome
these problems, even an excellently designed andbuilt next-generation network will lose its shine. The
NTT Group is determined to put every effort into
solving these problems.
3. Examples of main R&D activities
The above sections have touched on some details of
our medium-term management strategy. The following sections describe related R&D activities, specifically ones concerning optical access,the core network, network security,
video communication and image
processing, and portal technology.
3.1 Optical access
We have developed an improved
optical fiber cord, which promises tofacilitate the installation of opticalfiber in the customer’s home or office(Fig. 6). Since light, by nature, travels in a straight line, it has been a big
technical challenge to get it to go
round corners. When a conventional

Network security and cyberterrorism

Malicious use of networks

Large-scale disasters, such as earthquakes

Fig. 5. Issues in the broadband society.

• A DIY (Do It Yourself) optical fiber cord will enable customers to install optical fibers in their premises themselves.
• We are developing optical fiber cords that can withstand being bent and pulled.

Bending area of wiring

DIY opticalfiber cord
Cord bent at a right angle

Cord bent double

Cord tied in a knot

Cord with connectors

Extra wire housing
Passing
through awall
ONU

ONU: optical network unit

Fig. 6. Development of a DIY optical fiber cord.

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NTT Technical Review

Special Feature• The cost of an optical splitter has been reduced to one-third over the last six years.
• NTT will strive to achieve dramatic reductions in the cost of optical access components to achieve the targetof 30 million customers using optical access by 2010.

Optical splitter

PLC optical splitter
Optical fiber

Fiber components

Customer’s premises
NTT building

OLT

Optical fiber
FTTH service(PON system)

ONU

PLC: planar lightwave circuit
OLT: optical line terminal

PON: passive optical network

Fig. 7. Cost reduction measures for optical access components.

optical fiber is bent with any significant force, it may
break or suffer increased optical loss. NTT has overcome these problems through its R&D and successfully developed an optical fiber cord that can withstand being bent at a right angle, tied in a knot, or
pulled with considerable force. It will let customers
easily install optical fiber within a building by themselves, which in turn will reduce the time and cost of
optical fiber installation and support our efforts tobring optical fiber access to 30 million customers by
2010.
Figure 7 illustrates our R&D on optical components used for optical access. The key to succeedingin having 30 million optical access customers by2010 is to achieve a dramatic reduction in the costs ofthe components used for optical access. For example,
the cost of an optical splitter, used to enable several
users to share a single optical fiber, has been reduced
to one-third of its previous level over the last six
years. Further cost reductions will require improvements in its mass production through further miniaturization and simplified assembly. We are now
focusing on these goals.
3.2 Core network
A conventional switch converts optical signals into
Vol. 3 No. 4 Apr. 2005

electrical signals before it can process packets; thisresults in a large delay in routing (Fig. 8). An opticalrouting switch does not require such optical-to-electrical conversion, so the delay is small and a largescale switch can be constructed. We have been undertaking research to increase the reliability and reduce
the loss and delay of optical routing switches andhave successfully provided prototypes to scientificresearch institutes. Future efforts concerning opticalrouting switches, a solution to the rapid rise in traffic,
and the need to achieve highly reliable communication will aim at further cost reduction and an increasein switching capacity.
3.3 Network security
One problem with the conventional security systems is that the higher the level of security required,the more complicated the user operations, such as
authentication, become (to allow easy access toauthorized users, even when they are away from theiroffices). To solve this problem, we have developed
Secure Enterprise Network Access Control System(SENACS) (Fig. 9). We are currently developing asystem that combines security technology with storage-centric network technology. It was introduced at
the R&D Forum 2004. The aim is to have the operat11

Special Feature

WDM path

Routing based on packet-by-packet handlingselect• Large delay• With jitter• Difficult to expand capacity

WDM

ElectricalswitchWDM = Lanes

WDM pathselection

WDM pathselection switch

Routing based on WDM path
• Small delay• Without jitter• Large capacity

IP packet

Optical switch unit

Development study example

Advantages over conventional systems• High reliability, low loss, and small size

Issues• Further cost reduction and increasein capacity

Fig. 8. Optical wavelength routing.

• Problem: The higher the level of security required, the more complicated the user operations
for authentication become.
• Solution: We are developing a system that combines security technology with storage-centric
network technology.
Secure Enterprise Network Access Control System(SENACS)
Away from office, at home
Authorized user terminal

Storage-centric network
Data center
Common OS,
applications

Authentication key
assigned to each PC
Authentication
andscreening

User A’s data
User B’s data

High-capacity storage

Unauthorized user terminal
Office (in Osaka)

Office (in Tokyo)
CPU
MemoryCPU
MemoryCPU: central processing unit
PC: personal computer

Fig. 9. Enhancement of network security (for corporate users).

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Special Feature

Hollywood-approved “4K digital movie”
Advantages of Digital Cinema• Movies of the same quality as the master can bedelivered to theaters quickly.
• Easy to save degradation-free videos• The use of digital technologies, such as
encryption and watermarking, prevents theunauthorized distribution of movies.

(4K denotes a horizontal resolution of
about 4000 pixels. Total resolution isabout 4000 × 2000 = 8 million pixels)(High-definition TV grade)(Standard-definition TV grade)

How a digital movie is delivered over a network.

8 million pixels
Digitalencoding using
JPEG2000
35-mm
movie film

Optical fiberVideo server

Realtime decoder

Super-high-definition
projector

Fig. 10. Delivery of Hollywood-grade 4K digital movies to theaters over optical fiber.

ing system, applications, and data used by terminals
held in and managed by a data center. This system
will be introduced in the building housing NTT’s
Holding Company in Otemachi, Tokyo.
3.4 Video communication and image processing
Digital Cinema is a technology that can deliver digital video content to movie theaters over a super-highspeed network, such as an optical network, in a very
short time (Fig. 10). In today’s method of movie distribution, a number of copies are produced from amaster reel of film and then distributed. This type of
reproduction is prone to video quality degradation. In
contrast, in Digital Cinema, the video on a master in
Hollywood can be distributed directly to individual
theaters as digital data, enabling rapid distribution to
anywhere in the world with the same quality as theoriginal master. In addition, digital video data can be
more easily stored without risk of degradation overtime, a serious problem for conventional films. The
use of digital technologies, such as encryption andwatermarking, can dramatically increase protection
against unauthorized reproduction or distribution ofmovies. NTT has overcome technical difficulties
associated with image processing and communication processing of Hollywood-grade high-definition
movies. In October 2004, our technology was used atVol. 3 No. 4 Apr. 2005

the Tokyo International Movie Festival, where digitalmovies were played at sites in Tokyo and Osaka toaudiences who highly rated the video quality. For thisexcellent R&D work, NTT had the honor of receivinga technology award from the Digital Media Association on February 3, 2005.
Another key technology is for delivering broadcast
videos over optical fibers. In 2004, Opticast, an affiliate of SKY PefecTV!, launched a service for delivering broadcast videos to condominiums in central
Tokyo and Osaka via NTT’s optical fibers and video
delivery technology. Figure 11 shows the next step:
technology that will provide both super-high-speed
broadband communication and broadcast video
delivery on a single optical fiber extending all theway to the customer premises. We have already completed the technical development. WDM will enablebroadband communication and broadcasting video
delivery to be provided as completely separate services. We expect such a broadcast-grade video delivery service to overcome the problem of poor reception of terrestrial digital broadcasting experienced insome areas.
Video communication services over optical fibers
are beginning to emerge in the market. The following
is an example of the application of video communication technology to telemedicine. Japan has a short13

Special Feature◆ 1-Gbit/s bidirectional communication and delivery of about 100 channels of high-definition
digital video can be provided over a GE-PON.
◆ Using different optical wavelengths, broadband communication and broadcasting video
delivery can be provided as completely separate services.
◆ The provision of broadcast-grade video delivery service for cable TV providers can contributeto the diffusion of terrestrial digital broadcasting.

Wavelength allocation
Upstream Downstream
TV
link
link
program1-Gbit/s bidirectional
communication
Internet
Splitter

1.26 1.36 1.48 1.50 1.55 1.56

Single fiber
Super-high-speed
Internet communication
IP-based communication

WDM
Cable TV
provider(µm)

WDM
Video delivery
Broadcast-grade, high-definition
digital video delivery

Customer

WDM

GE-PON: Gigabit Ethernet passive optical network

Fig. 11. Use of optical fibers for simultaneous broadband communication and broadcast program delivery.

age of pathologists, experts in diagnosing the presence of cancer cells, etc., who account for only 0.7%
of all medical doctors in the country. Consequently,
such experts can be found only in hospitals in big
cities. So, specimens of suspect tissue cells are usually sent by post to a pathologist in a metropolitan city
for examination, which results in diagnosis taking along time. As a solution, some bigger hospitals areusing expensive remote diagnosis systems relying on
still images. However, the information from still
images is too limited for a thorough diagnosis andeven such a system still requires a considerable time
for data transmission. Since November 2004, theNTT Group, in cooperation with Iwate Medical University, has been conducting a trial of a simple andlow-cost remote pathological diagnosis system,
which combines NTT’s general optical access service
B-FLET’S, a high-quality but low-cost video communication service called WarpVision, ordinary personal computers, and microscopes (Fig. 12). This has
dramatically reduced the response time to about onetenth of the time needed with the conventional system. In addition, the doctors involved rated the operability and practicality of the system highly because
it allows them to manipulate and view the high-qual14

ity video from the microscope just as if they werehandling the microscope directly. The big cost reductions that have been achieved make this systemaffordable for many medical institutions now.
3.5 Portal technology
A portal technology, called MultiMedia Meister,
was announced to the press on February 23, 2005
(Fig. 13). Conventional image searching relies on
text-based searching, using, for example, image titles
and title context. With such a method, it takes a lot oftime and effort to find a desired image if the database
contains a large number of diverse images. In contrast, MultiMedia Meister uses images themselves as
search keys. Therefore, it is possible to narrow down
the number of candidates by looking for similar
images. This is much more intuitive than conventional text-only searching. As broadband services
become widespread, more and more items of video
content will be distributed. MultiMedia Meister will
be a great aid by enabling rapid searching for desired
items of content. It is currently available in prototype
form on NTT’s portal Website “goo”, where anyone
can try it out.

NTT Technical Review

Special Feature• Pathorogists can quickly diagnose the presence of cancer cells, etc. from a remote site using
this system, made possible by use of an optical video communication network, which enables
them to feel as if they are actually looking through the microscope at the remote site.
• This simple and affordable system will help medical institutions outside the big cities where nopathorogists are available.
Hospital in a metropolitan city (pathorogist)

Hospital in a smaller city (doctor in attendance)
NTT’s optical service(WarpVision, B-FLET’S)
I don’t need to keep
the patient waiting!
Microscope video(30 frames per second)
Place a specimenon the microscopePC
Microscope
manipulator

Video/sound communication

Control of the microscope

Doctorin attendanceMicroscope

Pathorogist

Stress-free diagnosis
from a remote site

Can be introduced at aremarkably low cost!

Fig. 12. Field trial of remote pathological diagnosis using a realtime video sent over a video communication network.

4. Pursuing solutions tochallenging issues
Before a broadband and ubiquitous communication society can
become a reality, there are various
challenging barriers that must be
overcome. The NTT Group cannot
overcome them all by itself. We will
tackle them one by one in cooperation with various providers, vendors,
national and local governments, universities, and users, in line with ourcommitment to provide more andmore useful services.

http://labs.goo.ne.jp/
Conventional text-based
image searching offers
various images that may
not be closely related.

MultiMedia Meister allows
effective searching, byusing an image as thesearch key.

Fig. 13. New multimedia searching technology: MultiMedia Meister.

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