lessons from japan’s municipal wi-fi projects

LessonsfromJapan’smunicipalWi-FiprojectsBusinessModelandEmergencyControl

ToshiyaJITSUZUMI,D.Sc.,[email protected]

T.JITSUZUMI@2016ITSTaiwan(Taipei,ROC,June26–29,2016) 1

Purposeandagenda RecentlyinJapan,manymunicipalgovernmentshavebeenworkinghardtoinstallmunicipalWi-Fisystems.

 ThepurposesofthisstudyaretofocusonthefourmostimportantissuesintheJapanese

muniWi-Fiprojects,analyzethemmostlyfromaneconomicperspecYve,andproposeaworkableplanfor(oradirecYoninwhichweshouldlookfor)soluYons.


Agenda

1.  MuniWi-Fianddigitaldivide

2.  Japan’suniquesituaYon

3.  Issuesonthetable

I.  EconomicjusYficaYon

II.  Securityandtraceability

III.  Neutralityconcern

IV.  Disasterresponse

4.  SummaryandpolicyrecommendaYons

MiniWi-Fiasatooltocloseadigitaldivide AsmoreandmoresocioeconomicacYviYesarebecomingpossibleincyberspace,manygovernmentshavestartedtorealizethatbroadbandaccessisanecessityforboosYngeconomicacYvity.◦  AccordingtotheanalysisoftheWorldBank(2009),every10%increaseinbroadbandsubscripYoncangenerate1.21%growthofGDPforhigh-incomecountriesand1.38%growthforlow-andmiddle-incomecountries.


“Digitaldivide,mobileBB WirelinebroadbandintheUS

 BecauseoftheposiYveexternalityofsuchbroadbanddeployment,directinvolvementbypublicbodieshaslongbeenconsideredappropriateandnecessary.

 WirelesstechnologyprovidesanefficientopYoninfulfillingsuchneeds.◦  Itcanminimizecostlycivilengineering.◦  AddiYonally,itcaneliminatethecostandYmeneededtoobtainaspectrumlicense.

Source:hip://www.adweek.com/socialYmes/files/2014/11/wifi.jpg

Japan’smoYvaYonisdifferent


Source:hip://todo-ran.com/t/kiji/10775Broadbandcontractsper100inhabitants

 InJapan,ubiquitousbroadbandavailabilitywasachievedin2010,thankstotheeffortsofprivatecarriersandtheMIC.

 TheobjecYvesofmuniWi-Fiare,inmostcases;a)toimproveJapan’svalueasaninboundtouristdesYnaYon,b)upgradeitspreparednessfornaturaldisasters,and/orc)improvetheefficiencyandqualityofmunicipaloperaYons.

100%• 99.2%forfixed





92.7% 97.3%• 96.5%forfixed

99.4%• 97.5%forfixed

99.9%• 98.7%forfixed

99.98%• 99.0%forfixed

FTTH,cable(≧ 30Mbps),FWA(≧ 30Mbps),BWA(≧ 30Mbps),LTE

FTTH,cable,FWA,satellite,BWA,LTE,3.5G

Mar.2011 Mar.2012 Mar.2013 Mar.2014 Mar.2015

Source:Createdbyauthorfromdatainhttp://www.soumu.go.jp/main_content/000371278.pdf

UnfulfilledWi-Fidemandofinboundtourists

20.0%

21.5%

49.3%

42.7%

45.5%

70.4%

0% 20% 40% 60% 80% 100%

Singapore

Korea

France

U.K.

U.S.

Japan

UseoffreepublicWi-FiatpublicortouristfaciliYes

Always Usually SomeYmes Rarely Never


Source:CreatedbyauthorfromdatainMIC(2014)

 AccordingtotheJTA’ssurvey(Oct.2011):◦  AmongforeigntouristswhovisitedtouristinformaYoncenters,36.7%experiencedtroubleinaccessingfreepublicWi-Fi.

◦  ThemostrequestedinformaYonattouristinformaYoncentersistheonerelatedtofreepublicWi-Fi.

◦  ThesituaYonwassimilarforforeigntouristswhodidnotvisittouristinformaYoncenters:32.2%experiencedtroubleinaccessingfreepublicWi-Fi.AndinformaYonrelatedtofreepublicWi-Fiwasingreatdemand.

 TheseareinlinewiththeagendaofthenaYonalgovernment,whichemphasizestheimportanceofthetourismindustry—especiallyinanYcipaYonofthecomingTokyoOlympicsin2020—andofbeingpreparedforthenextgreatearthquake.

PoliciesthatpromotefreepublicWi-FiinJapan


JapanRevitalizaYonStrategy[Revisedin2014](pp.84–85)4)PreparingofthefreepublicwirelessLANenvironmentasinfrastructurefornewinnovaYons

Source:Extracted/translatedfromhips://www.kantei.go.jp/jp/singi/keizaisaisei/pdf/honbunEN.pdf,hips://www.kantei.go.jp/jp/singi/keizaisaisei/pdf/dai2_3en.pdf,hip://japan.kantei.go.jp/policy/it/20140624_decraYon.pdf,andhip://www.mlit.go.jp/common/001046636.pdf

JapanRevitalizaYonStrategy[Revisedin2015](pp.82–83)[3]PromoYngthedevelopmentoffreepublicwirelessLANenvironmentsthroughoutJapan

DeclaraYontobetheWorld’sMostAdvancedITNaYon[RevisedonJune24,2014](p.16)(6)PresenYng“Omotenashi”usingmostadvancedITattheopportunityofTokyoOlympicsandParalympics,2020andthelike.

AcYonProgramtowardtheRealizaYonofJapanasaTourism-orientedCountry(Jun.17,2014)(extractedfromp.23andp.26)5.ImprovementofinboundtouristaccommodaYon(2)ImprovementofcommunicaYonscondiYonforinboundtourists,suchasfreepublicwirelessLAN

Policypapers

1.  “Disaster-PrevenYonInformaYonStaYon”ImprovementProject(FY2013)

2.  “Tourism-oriented”and“disaster-prevenYon”Wi-FistaYonsImprovementProject(FY2014-)

3.  MobilePhoneCoverageImprovementProject(FY2016)

1.  InboundTourismFaciliYesImprovementProject

◦  PartofthebudgetisusedtosubsidizetheinstallmentofhotelWi-Fi,airportWi-Fi,andstaYonWi-Fi.

Subsidies

MuniWi-FiinJapan


Source:hip://www.soumu.go.jp/main_sosiki/joho_tsusin/top/local_support/ict/musenlan.html

408systemsoutof1,718municipaliYesasofMay2015

FourissuesintheJapanesemuniWi-Fiprojects


EconomicjusYficaYon• Levelofinvolvement

Securityandtraceabilityvs.

Usability

Neutralityconcern Realperformanceindisasterresponse

Issue#1:EconomicjusYficaYonformuniWi-Fi


CAPEXfor

installingtheWi-Fi

PrivatebenefitfortheWi-Fi

operator

SpilloverbenefitoftheWi-Fi

OPEXfortheWi-Fi

Time

C

A

B

Allthebenefitsarecapturedbytheoperator.

Benefitsareenjoyedbythirdpartiesbutcanbepartiallycapturedthroughtax.

Benefitsareenjoyedbythirdpartiesandaredifficulttobecaptured.

Noexternality Smallexternality Largeexternality

Source:CreatedbyauthorfrominformationinAPPLIC(2015)

Ordinarytimes

Emergency

Targetedusers

Municipalgov. Localutilityproviders Localresidents/business Tourists

Officeuse

Facilitymonitoring

Urbandevelopment

Communityservice Service

fortourists

Backupofficenetworkinanemergency

Backupinternetaccess

Disasterinformationservice

MainlyforthepureInternetaccess

Usedasanintegratedpartofasystemorapplications

Whenthefollowingconditionsatisfies,thisWi-Fiprojectissociallyworthwhilebutcannotberealizedduetodynamicexternalities.

P.V.ofB P.V.ofC P.V.ofA P.V.ofB+<<

Possiblereasonformunicipalinvestments

Ontheotherhand,ifthefollowingconditionismet,itmustbea“profitable”privateproject.

P.V.ofC P.V.ofB<

InthecaseofFukuokaCityWi-Fi FukuokaCityWi-FihasgeneratedaposiYvereturnsformtheperspecYveoftheoverallcity◦  AccordingtotheesYmaYonmadein2015bytheNomuraResearchInsYtute,between2012and2014,theCityWi-Fiairacted2,584moreinboundtouristsandbroughtJPY124millionofaddiYonalconsumpYontothecity.

◦  Ontheotherhand,theCAPEXandOPEXofthesystemintheseyearswasJPY86.4million.


Source:hip://www.soumu.go.jp/main_content/000354251.pdf,hip://canalcity.co.jp/staYc/detail/concept,hip://images.keizai.biz/hakata_keizai/headline/1342146230_photo.jpg,hip://www.yell-tour.com/yt/kys/images/keshiki/fuk/nakaasuyatai.jpg

2012 2013 2014 TOTAL

Benefit Increasedvisitors 585 1,999 2,584

Increasedspending 28.07Myen 95.9Myen 123.97Myen

Cost 37.1Myen 26Myen 23.3Myen 86.4Myen

Netbenefit -37.1Myen +2.07Myen +72.6Myen +37.57Myen

Itseemsthatbenefitfiguresdonotreflectservicecoststhatneedtoaccommodatetheseincreasedvisitors.Therefore,wehavetobeverycarefulininterpreYng

thistable.Thankyou,Prof.Yoo,foryour

valuablecomment.

Issue#1’:Levelofmunicipalinvolvement TominimizepossibleconflictswithprivateiniYaYves,itwouldbebeneficialtomakeuseofpublic–privatecooperaYon,orpublic–privatepartnership(PPP),toexpandmuniWi-Ficoverage.◦ WhileexternalityexistsandpublicintervenYonimprovesefficiency,“itisworthwhiletoconsiderwhetheralowerlevelofinvolvementmightofferthebenefitsofpromoYngwideravailabilityofimprovedbroadbandaccess,whileimposingareducedburdenonlocalgovernmentresources”(Lehretal.,2006,pp.442–443).


 TwoschemesinFukuokaCityWi-Fi:

1.  InstallsWi-Firoutersbycitybudget

2.  Partnershipwithprivatefacilityowners

Source:hip://www.applic.or.jp/pdf/futuer_18/03/3-4.pdf

FukuokaCityhasinstalledWi-Firoutersonlyincity-controlledareas;otherplacesarecoveredonthebasisofindividualagreementswithfacilityowners.

Betterusability

Moreusers

Betterchanceofbusiness

Morevarietyofcontents

BetterperformanceofmuniWi-Fi

Issue#2:Securityandtraceability

 InordertorealizethepotenYalofmuniWi-Fi,riskfactorsfromtheconsumerviewpointmustbeminimized.◦  TheeconomicpotenYaloftourism-orientedmuniWi-FicomesfromtheplazormfuncYon.


De-factostandardprocessforauthenYcaYon


Source:CreatedbyauthorfrominformaYoninhip://www.city.fukuoka.lg.jp/wi-fi/

BeforeApr.1,2016

StricterprocessofKyotoWi-FiandunansweredquesYons ThisprocesswasbasedonaninformalnegoYaYonbetweenKyotoCityandKyotoPrefecturalPolice.

 UnansweredquesYonsincludethefollowing:1.  Towhatdegreewasusabilityexpectedto

declinebythisnewprocess?◦  HowdidtheytakeintoconsideraYontheimpactofdecliningusability?

2.  WhatkindsofalternaYvesweretakenintoconsideraYon?◦  Didtheyconsultsufficientlywiththeengineeringcommunity?

3.  Whatleveloftraceabilitydoesthisprocessaimtoachieve,andinwhatYmeframe?


Source:hip://kanko.city.kyoto.lg.jp/wifi/en/

Issue#3:Neutralityconcern SomemuniWi-Fitrytopromotelocalbusinessesviatheirportalpage.

 SincetheseadverYsementscannotcoverallthelocalbusinesses,theycanbeseenasbearinganYcompeYYveconnotaYons,fromtheviewpointoflocalshopsthatarenotlistedtherein.


Userswillbedirectlytransferred

to“HiroshimaNavigator”

Source:Createdbyauthorfrominformationinhttp://www.hiroshima-navi.or.jp/en/

 AsmuniWi-Fisystemsarepubliclyfinanced,itisimportanttomaintaincompeYYveneutrality,atleastwithinthelocalbusinesscontext.◦  Transparency◦  Accountability

Issue#4:Disasterresponse AlmostallmuniWi-Fisystemsaredesignedtocontributetothedisaster-prevenYoninformaYonsystemonceanemergencyoccurs.

 However,theredoesnotseemtoexistsufficientdiscussionastowhethermuniWi-FisystemsaretrulyworkableinemergencysituaYons.


Source:CreatedbyauthorfrominformaYoninAPPLIC(2015)

Fortourism

Forpublicservices

FordisasterprevenYonanddamagereducYon

UsualcondiYon

Timeofdisaster

Caseofthe“2016KumamotoEarthquakes” Foreshock◦  Amagnitude6.2at21:26JST(12:26UTC)onApril14,2016,atadepthofabout11km(6.8mi).

 Mainshock◦  Amagnitude7.0at01:25JSTonApril16,2016(16:25UTConApril15)beneathKumamotoCityofKumamotoPrefectureinKyushuRegion,Japan,atadepthofabout10km(6.2mi)


KumamotoFreeWi-Fi


NoauthenYcaYonisrequiredduetoasevere

naturaldisaster

Disasterresponsemechanismofmobilecarrier'sWi-Fi


InanormalYme,subscriberofcarrierAcanconnecttothecarrierA’sWi-FiAP.

Inanemergency,anyonecanconnecttothecarrierA’sWi-FiAPviaacommonSSID“00000JAPAN”.

Source:CreatedbyauthorfrominformaYoninhip://www.wlan-business.org/customer/introducYon/feature/00000japan

00000JAPAN

Othersystemcanhavesimilarmechanism.


10

100

1,000

10,000

100,000

10 100 1,000 10,000 100,000

Upload(kbp

s)

Download(kbps)

Measuredthrouputs(normaltime)

SSID:.FREE_Wi-Fi_PASSPORT SSID:00000JAPAN SSID:0002softbank

SSID:DoSPOT-FREE SSID:'freespot'=SecurityPassword(AES) SSID:HANABISHI_FBWIFI

SSID:kumamoto-free-wifi SSID:Taketa_Free_WiFi(g) SSID:wifi_square

SoftbankLTE

10

100

1,000

10,000

100,000

10 100 1,000 10,000 100,000

Upload(kbp

s)

Download(kbps)

Measuredthrouputs (postdisaster)

SSID:.FREE_Wi-Fi_PASSPORT SSID:00000JAPAN SSID:0002softbankSSID:DoSPOT-FREE SSID:'freespot'=SecurityPassword(AES) SSID:HANABISHI_FBWIFISSID:kumamoto-free-wifi SSID:Taketa_Free_WiFi(g) SSID:wifi_squareSoftbankLTE

LessconcernfortheQoS


LTEofSo�bank

KumamotoFreeWi-Fi

00000JAPAN

LTEofSo�bank

KumamotoFreeWi-Fi

ConnecYvityisaconcernPostdisaster(measuredonApr.25,29,and30;May8and22,2016) NormalYme(measuredonJun.12,2016)

Download(Mbps)Upload(Mbps)Connected% N Download Upload Connected% NPublicfacility

00000JAPAN 7.05 5.36 100% 36FreeWi-Fi 19.45 29.29 100% 20muniWi-Fi 14.78 26.90 86% 36

So�bankLTE 13.54 5.13 100% 36Shoppingarea

00000JAPAN 9.87 10.16 89% 244 1.09 3.27 100% 5carrierWi-Fi 9.51 3.31 100% 8FreeWi-Fi 7.69 9.86 81% 26 5.65 7.66 100% 41muniWi-Fi 11.07 5.02 24% 283 2.22 0.28 72% 129

So�bankLTE 28.56 16.35 100% 112 31.13 15.25 100% 27StaLon

00000JAPAN 6.63 2.12 82% 22muniWi-Fi 0% 5

So�bankLTE 15.71 18.32 100% 15Airport

FreeWi-Fi 14.74 14.01 57% 23muniWi-Fi 14.36 13.19 89% 27

So�bankLTE 25.92 10.65 100% 12

T.JITSUZUMI,KyusyuUniversity([email protected]) 22

AddiYonalconcernforworkability1.  Disaster-resistantWi-Fiisnothingbutoneofthenecessarycomponentsofdisaster-resistant

broadband.

2.  Thepowersupplyneedstobemaintainedforeveryindividualhandset.

3.  PrioriYzaYoncontrolisamust.


Source:http://www.mullumwifi.com/images/slide_antennae.jpg

InternetcloudBackboneline

EarthquakeEarlyWarning Golden72Hours After72Hours

Prioritizedflow 1. Informationprovidedtotouristsandlocalresidents• Onearthquakes• Onlocationofshelters• Ontrafficflow,etc.

1. Firstresponders’use2. Usageofpublicauthorities3. UsageofNPOs, NGOs,and

othervolunteerorganizations

1. Usageofpublicauthorities2. UsageofNPOs, NGOs,and

othervolunteerorganizations

Best effort Privateuse Privateuse Privateuse

Earthquake

Broadbandisnotalwaysthemostusefulmedia


Source:MIC(2012)

Summary

◦  Sincetourism-orientedfreeWi-FiisexpectedtogenerateaposiYveexternalitythatcanaccommodatestrongmarketdemand,itwillnotbedifficulttoeconomicallyjusYfythemunicipaliniYaYves.

◦  TorealizethepotenYalofmuniWi-Fi,weneedtoreducetheriskinvolved;however,toomuchcontrolinthisregardmayhampersystemusability.

◦  ThefactthatsomemunicipaliYespromotelocalbusinessesviatheirWi-Fiportalpagemayraiseneutralityconcerns.

◦  AlmostallmuniWi-FispotsaredesignedtoprovidespecialservicesinYmesofadisaster,buttheirworkabilityremainsuncertain.


Ø SYll,tominimizepossibleconflictswithprivateiniYaYves,itisimportanttocarefullydesignpublic–privatepartnerships.

Ø WeneedtoevaluatetheimpactoftheKyotosystemanddeterminethebestbalancebetweenaccessibilityandcontrol.

Ø Inordertokeepthesystemneutral,itisimportantthatserviceproviderskeeptheirlevelsoftransparencyandaccountabilityashighaspossible.

Ø Itisimportanttotakeintoaccountthe“actual”workabilityofmuniWi-FisystemsandprepareaprioriYzaYonplanbeforethenextdisaster.

Source:hips://wifinowevents.com/europe/wp-content/uploads/CityWiFi.jpg

InJapan,whereubiquitousbroadbandcoveragehasestablished,muniWi-Fihasbeenintroducedmainlyfortourismanddisaster-prevenYonpurposes.

ReferencesAssociaYonforPromoYonofPublicLocalInformaYonandCommunicaYon(APPLIC).(2015).Wi-FiuYlizaYonguidebookformunicipal

governments.Retrievedfromhip://www.applic.or.jp/infra/2014/wifi_guidebook20150520.zip

Lehr,W.,Sirbu,M.,andGillei,S.(2006).Wirelessischangingthepolicycalculusformunicipalbroadband.GovernmentInforma-onQuarterly,

23(3-4),435-453.

MinistryofInternalAffairsandCommunicaYons.(2012).Informa-onandCommunica-onsinJapanWhitePaper2012.Retrievedfromhip://

www.soumu.go.jp/johotsusintokei/whitepaper/eng/WP2012/2012-index.html

MinistryofInternalAffairsandCommunicaYons.(2014).Informa-onandCommunica-onsinJapanWhitePaper2014.Retrievedfromhip://

www.soumu.go.jp/johotsusintokei/whitepaper/eng/WP2015/2015-index.html

MinistryofInternalAffairsandCommunicaYons.(2014).Communica-onsUsageTrendSurvey2014.Retrievedfromhip://www.soumu.go.jp/

johotsusintokei/whitepaper/eng/WP2014/2014-index.html

WorldBank.(2009).Informa-onandCommunica-onsforDevelopment2009:ExtendingReachandIncreasingImpact.Retrievedfromhip://

web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/EXTIC4D/0,,contentMDK:

22229759~menuPK:5870649~pagePK:64168445~piPK:64168309~theSitePK:5870636,00.html


LessonsfromJapan’smunicipalWi-FiprojectsBusinessModelandEmergencyControl

ToshiyaJITSUZUMI,D.Sc.,KyushuUniversity

[email protected]
