Japan Trailing U.S. in Infotech

T O K Y O, Sept. 1 -- Japan is drawing up a five-year plan to surpass theUnited States as an Internet powerhouse through massive investmentin high-speed infrastructure and scuttling laws that inhibite-commerce.

Despite its technological prowess, high costs and a plethora oflegal restrictions have prevented Japan from having its ownInternet revolution — and officials are worried the new economywill pass the nation by.

The government’s IT Strategy Council, which opened this weekunder the leadership of Sony Corp. President Nobuyuki Idei, said ifsteps are taken now the Internet could lead Japan’s bruised economyinto a new era of super-fast expansion.

“Our country must aim to accomplish a new period of rapideconomic growth by stimulating new businesses and existingindustries, and overtaking the United States within five years as amajor high-speed Internet nation,” the council said in a reportposted on the Prime Minister’s office Web site.

The council said it is essential to grid Japan with fiber-opticlines that will permit the high-speed transmission necessary forgrowth of the Internet. It was scathing in its assessment of thecurrent state of Japan’s information technology infrastructure.

“There is hardly any high-speed infrastructure. … Theconnection speed is so slow that using costs are extremely high,”the council said.

“In Japan, the IT industry’s development is being obstructed.… The promotion of infotech has fallen way behind the UnitedStates.”

Hundreds of Legal Impediments Cited

The council cited more than 700 legal impediments to the growthof e-commerce, including the obligatory exchange of paper documentsin Internet transactions.

It highlighted the urgency of immediate steps to jump-startJapan’s laggard information technology industry by recommendingthat laws to deregulate e-commerce be debated during this fall’sspecial session of Parliament.