KDDI will use the trials to establish the appropriate services, technology and business model for the service.

The Japanese government's 'e-Japan' strategy is forecasting that by the year 2005, 30 million homes will use high-speed internet access^*1, while 10 million families will use super high-speed internet connections.

Broadband connections not only offer super high-speed internet access, but will also allow the widespread transmission of high-quality movie pictures and other high-quality applications.

The provision of cheap, high-speed communication infrastructure will not only allow the creation of new communication services, but will also allow companies to create wholly new corporate structures based around high-speed communication connections.

To promote the adoption of broadband, KDDI offers, as part of its 'Broadband DION' service, ADSL, fiber optic, and streaming services^*2. KDDI also has a broadband-related website -- http://bb.dion.ne.jp, provides live broadcasting services, and offers customers easy access to broadband services at its SHIBUYA@FUTURE internet caf.

From now on KDDI aims to provide customers with a low-cost, broadband services using fiber to the home, mobile phones and Intelligent Transport Systems^*3, and taking advantage of the most appropriate content from its business partners and content providers

The main features of the service will include an IP telephone that replaces the conventional telephone, and a super high-speed internet environment. By working with the leading companies from a number of industries, KDDI also aims to provide the following:

	Movies that, with cooperation from movie companies, are of a better quality than DVDs.
	High-quality, interactive picture transmission services.
	Education services set up in conjunction with the education industry
	Music and karaoke services complete with videos
	Lifestyle services including public administration, welfare, area information and support services.
	Security services

The mobile service will be set up so that the contents, platforms and applications will work closely and conveniently together, and so it will not matter where or what terminal users are utilizing.

KDDI is also planning to construct an HGW (Home GateWay^*4) network for the home, which will offer services using IPv6 ^*5 internet protocol, which is suitable for consumer lifestyles.

The non-PC user^*6 will also be catered for with the STB (Set Top Box^*7). This will enable simple internet access using the television screen and the remote control, with particular attention paid to user interface and ease of use.

To offer these services, KDDI will create the high-speed backbone and customer management and payment functions it offers as a communication provider. KDDI will also create a secure 'quality of service'^*8 IP backbone that guarantees authentication, advertising distribution and copyright protection.

KDDI will also build basic applications such as VOD^*9, develop new applications using imaging, offer new terminals such as set top boxes, and build portal sites^*10 that are user-friendly, and which consolidate business developments and offer a place for users and content providers to communicate.

Trials will start before the development of the broadband project to ascertain the appropriate service and technology, and to establish a business model in readiness for the actual start of operations. This trial will include the areas mentioned above, and is the first time FTTH and mobile services will work together and use consumer electronics. The trial will be carried out in conjunction with various companies in different industries.

The trial will last from March to August 2002, and will include 300 families in the Bunkyo and Shinjuku wards of Tokyo, using FTTH with cables owned by Tokyo Cable Network. There will also be a trial with 200 families in Toyoda-shi using FTTH and cables owned by Himawari Network Co.

The lines will have a maximum speed of 100 Mbps and will be free for the duration of the trial period, with questionnaire forms provided for those undertaking the trials.

The devices on offer will include the HGW(HomeGateWay),STB, RGW(ResidentialGateWay^*11), telephones, cameras, microphones and consumer electronics.

SERVICE MENU

SERVICE SUMMARY OF SERVICE IP Telephone Telephone service using VoIP*12 which can be used just like any fixed line telephone Internet service Super high-speed internet connection of up to 100 Mbps Video stream High-quality, on-demand images such as video Video contact High-quality, interactive services such as video chat Au cooperation service Sharing the portal and contents with au Lifestyle Navi service Information and lifestyle support services using consumer electronics as media Music service Music services including music distribution, music videos and karaoke. Security service Home security

The Broadband show room will be set up in the KDDI Shinjuku Building in December 2001 to obtain opinions from various industries regarding the FTTH broadband project before the trial begins.

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