KDD, taking up the controversial issue of cost sharing of international Internet backbone between the United States and Asia-Pacific countries, and of the connection with the U. S. Internet network, signed , together with seven telecommunications operators in Asia (note), today, a joint statement asking U. S. telecommunications operators to equitably share these costs based on certain factors such as the volume of usage, and addressed it to the organizations concerned including U.S. telecommunications operators and regulatory bodies. The outline of the joint statement and the addressee organizations are given in attachments 1 and 2 respectively.

With the conventional services (i.e. IDD and international leased circuit), the cost of the network linking two countries are equitably shared by telecommunications operators in both countries. On the other hand, with the Internet, the telecommunications operators on the Asian side are at present bearing the entire costs of the connection with the U. S. Internet network as well as of the circuits to the United State.

With the expansion of circuit facilities to cope with the increased Internet traffic between Asian countries and the United States, the cost borne by KDD and other telecommunications operators in Asia for the U.S. operators have steadily been increasing. Recently, more and more Internet users in the United States connect with the networks in Asian countries. Unless the current practice is rectified, it is feared that this state of affairs may prevent sound development of use of the Internet in Asia.

KDD has so far tackled to resolve such an undesirable circumstance through various actions including the proposal to ITU (International Telecommunication Union) to formulate the rules for the cost sharing between member countries. KDD is determined to make, taking every opportunity, strenuous efforts so that a fair cost sharing between the countries concerned may be implemented for the benefit of the Internet users still continuing on the increase.

(Note) CAT (Thailand), Chunghua Telecom (Taiwan), INDOSAT (Indonesia), PLDT (Philippines), Korea Telecom, Singapore Telecom, and Telekom Malaysia.

- To request the U. S. telecommunications operators and Internet service providers (ISPs), to share the cost of international Internet backbone between the U.S. and the Asia Pacific region according to their usage or benefits;

- To propose the U. S. operators and ISPs to discuss and build up with telecommunications operators in Asia an appropriate cost sharing scheme of Internet interconnection link between the U.S. and the Asia Pacific region;

- To invite the Asia Pacific and other regionﾕs operators and / or ISPs including operators in Japan to joint in this resolution;

- To urge every operator and / or ISP via various activities including ITU to study appropriate mechanisms to measure the actual traffic as the basis of usage-based or cost-oriented charging and settlement arrangements.

1. U.S. Internet Providers

AT&T
Cable and Wireless
PSI Net
Sprint
UUNet

2. Regulatory Bodies and International Organizations

APEC (Asia-Pacific Economic Cooperation)
FCC (Federal Communications Committee)
ITU (International Telecommunication Union)
OECD (Organization for Economic and Development)

3. Organizations Involved in Internet

APIA (Asia & Pacific Internet Association Ltd.), APNIC (Asia Pacific Network Information Center)

-Trade body for the promotion and development of the Internet in the Asia Pacific region;

APNG (Asia Pacific Networking Group)

- Subordinate organ of IEPG that provides a forum for exchanging information on the operation of the Internet in the Asia Pacific region;

APPLE (Asia Pacific Policy and Legal Forum)

- Mailing list containing a lot of Asian people interested in the Internet governance, etc.;

IANA (Internet Assigned Numbers Authority)

- Organization for worldwide administration of Internet addresses;

IEPG (The Internet Engineering and Planing Group)

- Conference of the learned organized with the objective of achieving smooth operation of the Internet;

InterNIC (Internet Network Information Center)

- Organization that registers domain names mainly in the U. S.;

JPNIC (Japan Network Information Center)

- Origination that assigns Internet addresses in Japan;

LINX (The London Internet Exchange Ltd.)

- U.K. industry entity of ISP providing IX service in London;

RIPE (Reseaux IP Europeans)

- Research Institute in Europe, its subordinate organ, RIPE NCC assigns IP addresses, etc.