Problems in and among industries for the prompt realization of IoT
draft-baba-iot-problems-00

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IRTF                                                          H. Baba
Internet Draft                                 The University of Tokyo
Intended status: Informational                              Y. Ishida
Expires: April 16, 2016              Japan Internet Exchange, Co. Ltd.
                                                            T. Amatsu
                                          Tokyo Electric Power Company
                                                          K. Kunitake
                                                  BroadBand Tower, Inc
                                                             K. Maeda
                                                      Lepidum Co. Ltd.
                                                          OCT 16, 2015

     Problems in and among industries for the prompt realization of IoT
                      draft-baba-iot-problems-00.txt

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Abstract

   This document is a summary of the results of meetings with actual
   manufacturers of industrial products, companies that establish and
   run social infrastructures (hereafter referred to as "Things
   companies"), and ICT enterprises about the challenges they face in
   realizing IoT. These meetings revealed that the Things companies are
   troubled by such as the vast gap between the product lifetimes of
   their company products and the pace at which generation changes occur
   in ICT technologies, the difference between the actual values and
   catalog values of the wave traveling ranges, and the enormous number
   of sensors that need to be installed. In order to deploy about IoT,

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   we believe that the solutions to these primitive issues must be
   promoted in tandem with a service-oriented approach that places an
   emphasis on the effects.

Table of Contents

   1. Introduction ................................................ 4
   2. Technical challenges......................................... 5
      2.1. Security and Privacy                                    .................................... 5
         2.1.1. Security .......................................... 5
         2.1.2. Privacy in acquiring data .......................... 5
      2.2. Challenges posed by data acquisition, data distribution, data
      management and data quantity                                       ................................. 6
         2.2.1. Traffic patterns                                     ................................... 6
         2.2.2. Acquired mass data                                       ................................. 6
         2.2.3. Explosive increase and diversity of data ........... 7
      2.3. Mapping of the physical world and the virtual world                                                                  ...... 7
         2.3.1. Physically handling acquired data .................. 7
         2.3.2. Data calibration                                     ................................... 7
      2.4. Product lifetime, generation management, and the cost of
      equipment updates ........................................... 8
         2.4.1. Product lifetime                                     ................................... 8
         2.4.2. Introducing IoT equipment into commodity equipment                                                                      .. 8
      2.5. Too many related standards and the speed of standardization8
         2.5.1. Too many related standards ......................... 8
         2.5.2. Speed of standardization                                             ........................... 9
      2.6. Interoperability, fault isolation, and total quality
      assurance ................................................... 9
         2.6.1. Interoperability                                     ................................... 9
         2.6.2. Fault isolation                                    ................................... 10
         2.6.3. Quality assurance                                      ................................. 10
      2.7. Product design policy                                     .................................. 10
         2.7.1. Changes in design policy                                             .......................... 10
      2.8. Various technology restrictions within actual usage                                                                  ..... 11
         2.8.1. Using radio waves                                      ................................. 11
         2.8.2. Batteries ........................................ 11
         2.8.3. Wiring ........................................... 11
         2.8.4. Being open........................................ 12
   3. Non-technical challenges                                   .................................... 12
      3.1. Changing the product paradigm                                             .......................... 12
         3.1.1. Ecosystems........................................ 12
         3.1.2. Coordination and significant changes in strategy                                                                    ... 12
         3.1.3. Competition with existing industries .............. 13
      3.2. Benefits .............................................. 13
         3.2.1. Rising costs and monetization ..................... 13
      3.3. Security and privacy of social systems ................. 13

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         3.3.1. Classification of ownership, location, and the usage of
         data .................................................... 13
      3.4. Disclosure of data                                  ..................................... 14
         3.4.1. Side effects and malicious use potentially caused by the
         disclosure of data                                ....................................... 14
      3.5. Preparing social support                                        ............................... 14
         3.5.1. Regulations                                ....................................... 14
         3.5.2. Corporate social responsibility ................... 14
         3.5.3. Customization for individual customers ............ 14
         3.5.4. IoT literacy of the users ......................... 15
         3.5.5. Individual vs family                                         .............................. 15
   4. Security Considerations                                  ..................................... 15
   5. Privacy Considerations                                 ...................................... 15
   6. Acknowledgments ............................................ 16

1. Introduction

   Many activities are progressing in various fields, such as the
   proposal of standards for creating an IoT world. There are also many
   reports that analyze and predict the benefits that IoT can bring to
   the economy and society. These developments remind us of the end of
   the 20th century, when the effect and impact of the Internet was
   actively debated.

   The authors tried using the following approach to clarify the issues
   for the prompt realization of IoT. First, the players were
   conveniently divided into two groups: ICT industry players and Things
   industry players. Next, we met major players in the ICT industry and
   Things industry and asked about the challenges they faced and the
   challenges the other side faced in creating IoT.

   The ICT industry players mentioned here include communication
   carriers, ICT equipment vendors, the Internet service providers,
   application vendors, and software houses. The Things industry players
   include home and housing equipment manufacturers, infrastructure
   providers such as railways companies and power companies, and
   manufacturers of home appliances such as air conditioners and
   refrigerators, which are also the ICT users.

   This paper is a summary of the meetings results, and a presentation
   of the micro case studies about the challenges for realizing IoT
   services. It is not an overview of the IoT world or a macro-proposal
   intended to promote the benefits of IoT.

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2. Technical challenges

2.1. Security and Privacy

2.1.1. Security

   We have confirmed two viewpoints regarding the security of services
   using IoT equipment and devices. The first is tangible security
   involving the critical infrastructure. The second concerns the
   security of individuals and homes.

   In regards to security involving the critical infrastructure, the
   basic policy in the past was to stay physically disconnected from an
   external network, such as the Internet, to ensure security. However,
   because of the advance in the systems from proprietary communication
   protocols to open IP protocols to detect symptoms of problems and to
   remotely maintain a large number of facilities spread over a wide
   area, connecting to an external network will become unavoidable to
   achieve various goals. In addition, it is clear that isolated
   networks are also subject to the same kind of risks, even though it
   is not directly connected to the outside. There is no major
   difference in the security risks because isolated networks are
   already the target of international cyber terrorism, with internal
   crimes and targeted attacks occurring more frequently. Based on these
   reasons, the ICT security of the social infrastructure requires an
   extremely high level of security.

   Looking at the security of micro units, such as individuals and homes,
   the improved convenience provided by the introduction of IoT will
   lead to greater risks. For example, there is a product available for
   connecting the entrance door to the network. In ICT security
   technology, increasing the key length of the encryption makes it much
   harder to break. But even if the latest security technology is used
   when it is installed, the security technology will become obsolete
   and even pose a risk about halfway through the twenty- to thirty-year
   lifetime of the entrance door. As has been explained in other items,
   the ICT sense of time is completely different from that of Things.

2.1.2. Privacy in acquiring data

   The problem of privacy in handling acquired data is a huge challenge
   for companies promoting IoT. In addition, the ownership of this data
   poses yet another challenge.

   For example, railway companies have installed many cameras for
   station security and for marketing beverage vending machines. This
   creates problems for personal identification and privacy. At the

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   present time, the companies are processing the images in real time
   and do not store the images to avoid the problems.

   Another huge challenge is the ownership of data. Up until now, there
   has been a divided debate on whether data belonged to the company or
   to the users. Likewise, the relationship inside a small user group is
   also extremely diverse and complicated. One specific example is of a
   company that had obtained permission from the head of the household
   to use the data when it carried out an HEMS trial. Later on, the
   spouse of the head of the household disagreed and as a result
   permission to use the data was withdrawn.

2.2. Challenges posed by data acquisition, data distribution, data
   management and data quantity

2.2.1. Traffic patterns

   The manner in which data is acquired from and distributed to IoT
   equipment/devices differs immensely from the traffic patterns of the
   present Internet. The present form of the Internet focuses on
   distributing information, and its systems focus on effectively
   delivering contents to the users. On the other hand, routinely or
   temporarily sending or receiving data through a huge number of
   various sensors and devices presents a very different kind of
   Internet traffic. However, questions such as how much traffic will
   come from what kind of Things, and how will they superimpose each
   other have not been sufficiently studied. There is no concrete
   explanation about the backbone design and operation of traffic, and
   there have been many cases in which the unclear specifications for
   IoT traffic made the design difficult on the communication company
   side. There are many challenges related to the set up and management
   of IoT equipment. We have heard from the construction companies that
   the configuration of IoT equipment with a large number of sensors
   involves a lot of hard work.

2.2.2. Acquired mass data

   It is necessary to develop a management method to reuse acquired data
   safely and effectively. Even now, there are occasional instances of
   the theft and leakage of social data (such as IDs) that can be used
   to identify individuals. In the IoT era, there will be mass data that
   can lead to Things, and the Things in turn will lead to individuals.
   There are IoT industry players who do not invest as much in ICT
   systems as government agencies and large companies do, and thus a
   management system to safely and effectively reuse the acquired data
   needs to be developed. The laws and regulations related to ID
   management differ vastly by country and region. These issues related

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   to society and individuals are largely affected by differences in
   common sense, and therefore need to be localized.

2.2.3. Explosive increase and diversity of data

   In the future IoT era, there are concerns about the explosive
   increase in data quantity and the diversity of data sent from sensors
   and IoT equipment. On the other hand, M2M communication does not
   require mass data like images, and an extraordinary increase in
   traffic will be unlikely despite the increase in the number of
   sensors.

   If data is sent from all Things, there will be an infinite number of
   different kinds of data. In addition, with the present form of
   Internet traffic, data is received by people, and most of it consists
   of video or image downloads. The download traffic is several times
   greater than that of the upload traffic. If there is a tremendous
   increase in the use of IoT, such as M2M communication, the difference
   between upload and download traffic will probably not be that much.
   It might be necessary to fundamentally review the network and in
   particular the last mile characteristics. The importance of this
   issue is not yet widely recognized.

2.3. Mapping of the physical world and the virtual world

2.3.1. Physically handling acquired data

   The acquired data simply represents certain kinds of digital value,
   and it is important to uncover the meaning of this data. As described
   previously, configuration of IoT equipment, such as the large number
   of installed sensors, requires a lot of hard work. An even greater
   amount of effort will be needed to determine the meaning of the data
   and connect it to the physical world.

   In energy management experiments, data is mapped manually. This is a
   time consuming process, and one that is prone to human error. Cases
   that rely on the use of human hands require the configuration of
   automated setting systems to reduce labor, costs, and human errors to
   introduce IoT

2.3.2. Data calibration

   Another important thing is calibration. This involves properly
   linking the data sent from Things to the Things concerned, and
   correctly indicating the operating conditions.

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   It may be necessary to have a tool to treat this problem concerning
   continuation of operation and the one pertaining to introduction of
   IoT described previously as a package.

2.4. Product lifetime, generation management, and the cost of equipment
   updates

2.4.1. Product lifetime

   The life of most ICT equipment is about 5 years or less, while the
   life of IoT equipment and devices is at least 10 years. There is a
   clear gap between these two types of equipment.

   In the example of the entrance door connected to the network
   mentioned earlier, the door is often used for about twenty to thirty
   years after installed. If is connected to a network, the
   communication technology and communication service will most likely
   have undergone numerous generation changes in that twenty- to thirty-
   year time span. This presents a large gap between the ICT industry
   and the Things industry.

   A solution to this problem that was reached during the meeting with
   the housing equipment manufacturers is that with the automatic
   control of multiple shutters in a building, the portion between the
   controller and the multiple shutters, the so-called mature technology,
   can be placed under the control of the shutter manufacturers, while
   the controller connected to the network will deal with the generation
   changes of the communication service.

2.4.2. Introducing IoT equipment into commodity equipment

   It costs a lot to make the many different types of commodity
   equipment popular around the world usable as IoT equipment and
   devices. There are two ways to change commodity equipment into IoT
   equipment. One way is to convert it to IoT compatible equipment. The
   other way involves adding devices to commodity equipment. There are
   costs in both cases, and it will take a long time to introduce IoT
   unless different incentives are offered to help to overcome the
   burden of cost.

2.5. Too many related standards and the speed of standardization

2.5.1. Too many related standards

   There are many standards related to IoT equipment and devices. There
   are multiple standards, technologies and services for communication

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   technology, such as Bluetooth, Wi-Fi, NFC, and LTE, and it is
   difficult to choose which to apply.

   The Things industry players do not always have the communication
   technology professionals needed for IoT. In the meeting, we learned
   that many companies were uncertain and hesitant about fields outside
   their own area of expertise. On the other hand, technological
   competition will improve quality as well as the level of completion,
   and thus will be beneficial for users.

   In the future, a consulting business for clarifying ICT technology
   for the Things industry players may emerge. If there is a system that
   can interconnect multiple standards, it will accelerate the Things
   industry to enter IoT

2.5.2. Speed of standardization

   The concept of product life in ICT industry is completely different
   from that of the Things industry, and as a result the concept of
   standardization also varies greatly. Before standardization occurs in
   the ICT industry, many different proposals are made, from which the
   best are selected. The final decision often changes, and products
   have to be updated in order to follow the changes in standards. But
   in the Things industry, the standards have to remain unchanged for as
   long as possible because of the long product lifetimes. Therefore, it
   takes a long time to determine when a particular standard has become
   obsolete. When the Things industry goes to implement a standard from
   the ICT industry, it feels that the standard is incredibly fluid and
   seemingly undecided. Furthermore, the standardization process of the
   two industries is very different, and making it difficult to work on
   the other side when trying to determine a standard.

2.6. Interoperability, fault isolation, and total quality assurance

2.6.1. Interoperability

   The verification of interoperability poses a major challenge because
   of the configuration used by multi-vendors. In addition to
   interoperability between equipment, the ability to ensure backward
   compatibility is also important for bringing about the IoT world.

     If these capabilities cannot be provided, it will be very difficult
   to create an IoT world in which past products can function.

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2.6.2. Fault isolation

   The method for fault isolation that may occur presents another
   challenge.

   Many PC users have experienced various kinds of problems. When their
   PC experiences a problem, they have to isolate the faults by
   themselves, with no one available to lend a helping hand.

    In the IoT world, these issues become more difficult and complicated.
   For example, a smart home is equipped with air conditioners, kitchen
   supplies, and doors connected to the Internet. A problem that occurs
   in the smart home poses a much more serious problem to end users than
   an e-mail failure or problem with a PC.

     If users are left to isolate the fault on their own, they may not
   know which manufacturer they contact for repairs if they are unable
   to isolate the fault on their own, or the manufacturer may refuse to
   perform repairs because they fall outside the scope of their
   responsibility. As can be seen, the issue is an important challenge
   that will determine whether the B2C specific IoT world can be
   established.

2.6.3. Quality assurance

   The quality assurance of individual pieces of IoT equipment does not
   guarantee the total quality of IoT. Since IoT involves connecting
   multiple Things and communication, it is natural to assume that the
   total service quality will depend on the quality of the IoT equipment
   and devices, which can sometimes become bottleneck. However, users
   are not aware of this.

   As was mentioned previously in 2.6.2, issues that are not directly
   related to the quality of an individual component can be important
   factors in determining the quality of the service. In this way, the
   quality of IoT is not decided by each individual Thing, but needs to
   be considered as a service spread across the network.

2.7. Product design policy

2.7.1. Changes in design policy

   The design policy has to be changed from placing emphasis on the high
   functionality of a single product to stressing the singular function
   of individual products as well as how they work in coordination with
   other products. For many years, the Things industry has focused on
   producing high functionality products with added value. But in the

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   IoT era, the implicit assumption is to confine Things to their basic
   function and enhance the level of coordination between Things, rather
   than focusing on the added value. Simplified Things must be able to
   be controlled with an external application that can also be used by
   the Things of cross manufacturers.

   Given this situation, the Things industry faces the challenge of
   adopting a completely different policy. During the meeting with the
   manufacturing industries, we could sense their difficulty in
   understanding and recognizing the need to change the policy.

2.8. Various technology restrictions within actual usage

2.8.1. Using radio waves

   There are many cases that have provided us with insight about issues
   related to the use of radio waves in IoT (such as the wave traveling
   range and whether or not it travels further than stated in
   assumptions available). The suppliers or providers who configure IoT
   are not always wave communication technology experts. People who are
   unfamiliar with radio waves seem to think that waves travel from
   antenna to antenna in a straight line, and that they can be blocked
   by obstacles. As a result, they often ask questions about how many
   meters radio waves can travel or whether radio waves can actually
   travel. Few people understand the fact that the emitted radio waves
   are reflected from various locations and are superimposed at the
   reception point where they are received, or that depending on how
   waves are reflected a change in the reception signal intensity,
   called fading, may occur. The lack of engineers who can advise on
   specialized matters such as these poses a major obstacle.

2.8.2. Batteries

   The power capacity and lifetime of batteries represent another set of
   challenges similar in nature to the issue of radio waves traveling
   distance. There are questions such as the difference between the real
   and catalog specifications, as well as factors that affect the
   battery power capacity. The IoT providers, who are also users of IoT,
   have to solve these issues, while these are difficult problems even
   for experts.

2.8.3. Wiring

   The incredible amount of wiring and its complexity (power lines and
   communication lines) pose major challenges. The complexity of wiring-

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   such as the large number of sensors and equipment, the power lines
   that drive them, and the communication lines that connect them to the
   network for acquiring information-is to the point that people doing
   IoT installation work will start wishing for a wire harness. In
   addition, the installation of cables and electric work are often done
   by different engineers. This make the issue even more complicated.

2.8.4. Being open

   A single company alone cannot make all the commodities for IoT. The
   IoT world needs to be open, and this can only be achieved with the
   cooperation of many different industries. Up until now, companies in
   the Things industry have developed products in a closed loop process,
   seeking to capture users with their company's own products. For this
   reason, they lack an open design concept of interoperability. Today,
   an entirely new design concept is needed to design products that can
   interconnect with the products of other companies.

3. Non-technical challenges

3.1. Changing the product paradigm

3.1.1. Ecosystems

   While the goal of setting up IoT is to generate new value, it may
   actually lead to the destruction of the ecosystems in which
   industries operate. In the IoT era, the traditional vertically
   integrated way of producing Things in manufacturing industries will
   consume too much time and cost. This approach also makes it difficult
   to incorporate the ideas of other cultures. The need for paradigm
   shift is easy to understand, but difficult to implement. Promoting
   this shift will pose a management challenge that requires a
   considerable amount of skill and effort to overcome.

3.1.2. Coordination and significant changes in strategy

   It will become necessary to run businesses jointly with new partners,
   as well as cooperate and work in coordination with other industries
   and competitors. This issue-even when it is fully understood-will be
   very difficult to address and put into practice.

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   We have seen instances in which only a limited amount of information
   was given when parties exchanged opinions. There have also been
   instances in which communication was difficult because of differences
   in terminology and culture.

3.1.3. Competition with existing industries

   The issue of competition with existing industries often arises when
   attempts are made to change or reform a business model change or
   reform. This issue can also be viewed as the reorganization of
   industries, rather than competition between existing industries.
   However, this realignment of industries is difficult to move forward
   in the absence of supervisors.

3.2. Benefits

3.2.1. Rising costs and monetization

   Introducing IoT within products will cause costs to go up, and yet
   the benefits it provides are unclear. There is no specific killer
   application available, and the number of users will not rise
   immediately. Therefore, finding a way to make the business profitable
   will be very difficult. This issue is especially difficult for
   businesses and products that rely on cost reductions to deliver low
   prices that make them competitive.

3.3. Security and privacy of social systems

3.3.1. Classification of ownership, location, and the usage of data

   There are many questions regarding the wide variety of data gathered
   from IoT equipment, including questions related to ownership, storage
   location, and the authorization to grant a license to use data. These
   need to be addressed so that the system and equipment can be accepted
   by society.

    For example, if a company installs a door in a house that gathers
   data on the opening and closing of the door, questions about the data
   will arise. Does it belong to the users or the company? Can another
   company use this data?

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3.4. Disclosure of data

3.4.1. Side effects and malicious use potentially caused by the
   disclosure of data

   The disclosure of data can expose individuals and society to risks.
   For example, it has been shown that the electricity smart meter can
   lead to burglary because it shows when electricity is used and not
   used, providing an indication of the time when no one is home. This
   particular example demonstrates the importance of ensuring security
   and privacy.

3.5. Preparing social support

3.5.1. Regulations

   Systems of laws and regulations are important for ensuring the safety
   of the conventional products, but they can also be a barrier for
   innovation.

   IoT can be affected by laws and regulations at home and abroad, and
   can also be influenced by regulations that extend across multiple
   countries. Regulatory authorities need to monitor IoT carefully and
   adjust the regulations and laws they oversee in a way that does not
   negatively impact the global competition environment.

3.5.2. Corporate social responsibility

   In addition to pursuing profit, companies that promote IoT also need
   to improve the benefits offered to users and society

3.5.3. Customization for individual customers

   There is an ongoing shift in demand away from general products to
   customized products for individual customers. This could also be
   viewed as a shift away from manufacturing businesses to service
   businesses. IoT will play an important role in this shift.

   Instead of manufacturing Things through mass production, it will be
   easier to customize a product by moving some of the functions to an
   application. Likewise, the manufacturing business also needs to move
   forward with the previously mentioned paradigm shift in order to
   achieve customization

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3.5.4. IoT literacy of the users

   Because Things are connected to the network, apps will need to be
   created. Some of these will serve as the interface with which people
   interact with IoT.

   In the IoT era of the future, users will need to possess a certain
   amount of knowledge about IoT apps

3.5.5. Individual vs family

   The issue of whether the data of Things in the house belongs to the
   family or the individual will largely affect data analysis and the
   handling of privacy.

   As was mentioned in 2.1.2, the spouse could later object to the head
   of the household granting authorization to use data.

4. Security Considerations

   Meetings with the players in various IoT fields provided insight into
   security issues. These issues are described in the following sections.

     * 2.1.1 Physical damper of devices

     * 2.1.1 Product lifetime and encryption strength

   For details, please see the corresponding text.

5. Privacy Considerations

   Similarly, issues regarding privacy are described in the following
   sections.

     * 2.1.1, 3.3.1 Ownership of the data

     * 3.4.1, 3.4.2 Data disclosure and malicious use

     * 3.5.5 Individual vs family

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   For details, please see the corresponding text.

6. Acknowledgments

   The foundation of for the promotion of industrial science funds
   research group for IoT issues named RC-88. The RC-88 consists of both
   ICT enterprises and manufacturers as follows;

   - Nippon Telegraph and Telephone Corporation

   - Nippon Telegraph and Telephone East Corporation

   - LIXIL Corporation

   - Intel K.K.

   - Japan Internet Exchange, Co. Ltd.

   - Lepidum, Co. Ltd.

   - BroadBand Tower,Inc.

   - KOZO KEIKAKU ENGINEERING Inc.

   - Tokyo Electric Power Company

   - Toshiba Corporation

   - MITSUBISHI ELECTRIC CORPORATION

   - Sharp Corporation

   - Hitachi Ltd.

   - Panasonic Corporation

   - The University of Tokyo

   We thank companies such as railway company, electric power company,
   ICT chip vender, medical equipment vender, etc. that answered our
   questions willingly. We also thank Ministry of Internal Affairs and
   Communications for their cooperation.

   This document was prepared using 2-Word-v2.0.template.dot.

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Authors' Addresses

   Hiroyuki Baba
   Institute of Industrial Science, The University of Tokyo
   4-6-1 Komaba, Meguro-ku, Tokyo 153-8505, Japan
   Email: hbaba@iis.u-tokyo.ac.jp

   Yoshiki Ishida
   Japan Internet Exchange, Co., Ltd.
   19F KDDI Otemachi Bldg.
   1-8-1 Otemachi, Chiyoda-ku, Tokyo, 100-0004, Japan
   Email: ishida@jpix.ad.jp

   Takayuki Amatsu
   Tokyo Electric Power Company, Inc.
   1-1-3 Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-8560, Japan
   Email: amatsu.t@tepco.co.jp

   Koichi Kunitake
   BroadBand Tower,Inc.
   Uchisaiwaicho Tokyu Bldg.7F,
   1-3-2 Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-0011, Japan
   Email: kokunitake@bbtower.co.jp

   Kaoru Maeda
   Lepidum Co. Ltd.
   #602 village Sasazuka 3
   1-30-3 Sasazuka, Shibuya-ku, Tokyo 151-0073 Japan
   Email: maeda@lepidum.co.jp

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