Question:
Congratulations on getting listed on the Tokyo Stock Exchange MOTHERS (Market Of The High-growth and EmeRging Stocks) list! It seems that everyone is focusing on the Internet with great expectations now. What is your assessment of the current Internet
Fujiwara: The current Internet is in it's the third generation. The first generation did not have a commercial mission; in the second generation, Internet Service Providers (ISP) became commercialized. Now major communications carriers are starting ISP businesses. This third generation represents the real start of an infrastructure business. The current infrastructure is already at its limit. As long as we keep using telephone lines, problems like slow speed and high cost will not be solved. The same situation exists in the U.S. In response to this problem, a carrier like QUEST, who is specializing in Internet Protocol (IP), appears.
Two technologies are supporting this change. One is the development of a backbone technology: Dense Wavelength Division Multiplexing (DWDM) enables the multiplexing of optical waveforms and is creating a four-fold increase in transmission capacity each year. The second is the development of network accessibility. Optical technology is one method, but it may be 5 years away and that is a distant future in the Internet world.
There are three currently hot technologies that are attracting the attention of the Internet industry. The first hot technology, as you may know well, is Asymmetric Digital Subscriber Line (ADSL) and the second is wireless Internet Protocol (IP). IMT2000 (International Mobile Telecommunications-year 2000), will be started in March 2001. I think the technology to connect homes instantly by wireless will spread rapidly. The third hot technology is Cable TV. Major companies in this field are already consolidating and expect the benefits of scale through consolidation, joint venture, or large-scale investment. The age of network access by circuit switching will be over and the age of the IP carrier will take its place, enabling high-speed connection at anytime without dial up.
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