1. Japan’s strategy to combat spam Toshihiko SHIBUYA Deputy Director, Telecommunications Consumer Policy Division, Telecommunications Bureau, Ministry of Internal Affairs and Communications (MIC), Japan 4 May, 2005

2. Characteristics of spam in Japan are … (1) Mobiles (2) Dating Sites

3. 2 Characteristics of spam in Japan １. Media ２. Content of spam Source: Survey by Japan Computer Communications Association, the first half of FY 2004 Sent “to mobiles” 73% Sent “to PCs”27% Advertisements for matchmaking (dating) sites 80% 80%10%Others10% Adult sites

4. What is “Mobile spam” in Japan? Sender Receiver Internet i From ： XXX@XXX To ： XXX@XXX Re: …………………. From ： XXX@XXX To ： XXX@XXX Re: …………………. SMS (in mobile carrier network) The word “Mobile spam” includes not only SMS, but also e-mails sent to mobiles by means of the Internet.

5. 4 Mobile Usage in Japan ・ Calling ・ Taking Pictures ・ Playing Games ・ Web browsing ・ Sending/Receiving e-mails Most Japanese (particularly youngsters) use mobiles as mailing tools rather than phones mainly because sending an e-mail is cheaper than making a call. ex) NTT DoCoMo Calling rates: 90 yen （ about $0.82 ） for 3 minutes Sending e-mail rates: 4.2 yen （ about $0.04 ） for 250 Japanese characters

6. 5 1999.3 2000.3 2001.3 2002.3 2003.3 2004.3 3,457 750 5,114 6,094 5,193 6,912 Number of mobile phone subscribers includes Mobile Internet subscribers 4,153 5 6,973 8,152 6,246 7,565 8000 7000 6000 5000 4000 3000 2000 1000 0 （ 10 thousand contracts ） Transition in Mobile phone use and Mobile Internet Subscribers

7. 6 ◇ The number of mobile Internet contracts has jumped to more than 67 million in only 4.5 years. ◇ Internet compatibility with mobile phones in Japan stands at 80%. The world leader in this area. Mobile phone Internet compatibility rate in the main countries (as of September 2002) (Ratio of mobile Internet contracts as a percentage of total mobile telephone contracts). Created by documents from Baskerville Communications MCI Survey Number 1 in the world for Internet compatibility with mobile phones (%) Japan Currently Enjoys a Major Lead in Mobile Internet Changes in the number of mobile phone subscribers

8. 7 History of spam in Japan (1) 2001 Spam sent “to mobiles” significantly increased → Self-regulation by mobile operators → Self-regulation by mobile operators Administrative guidance by Government to implement new measures Administrative guidance by Government to implement new measures 2002 Two Laws were enacted → The Law on Regulation of Transmission of Specified Electronic Mail (Anti- → The Law on Regulation of Transmission of Specified Electronic Mail (Anti- spam Law) & Specified Commercial Transactions Law (For PC spam as well as Mobile spam) spam Law) & Specified Commercial Transactions Law (For PC spam as well as Mobile spam) 2003 Spread of Domain-Designation Service Block PC spam) 2003 Spread of Domain-Designation Service (to Block PC spam) Spam sent “from mobiles” increased Spam sent “from mobiles” increased → Self-regulation (e.g. suspension of service for spammers) by mobile operators → Self-regulation (e.g. suspension of service for spammers) by mobile operators Promotion of self-regulation by Government ( ・・・ and decreased ) Promotion of self-regulation by Government ( ・・・ and decreased )

9. 8 History of spam in Japan (2) 2004 Spam (mainly sent “from PCs” to mobiles) is still a serious problem → Spam from overseas is increasing (from US, China, Korea, etc.) → Spam from overseas is increasing (from US, China, Korea, etc.) → Anti-Spam Law stipulates that the Government have to consider whether it → Anti-Spam Law stipulates that the Government have to consider whether it should be amended or not within three years of its enforcement ( → by the should be amended or not within three years of its enforcement ( → by the end of June 2005). end of June 2005). → MIC set up a Study Group on a framework to handle spam on October 7, 2004. → MIC set up a Study Group on a framework to handle spam on October 7, 2004. 2005 Amendment of Anti-Spam Law is discussed → On the basis of discussions during the Study Group, an amendment bill to the → On the basis of discussions during the Study Group, an amendment bill to the Anti-Spam Law including the introduction of direct penalties was submitted to Anti-Spam Law including the introduction of direct penalties was submitted to the Diet in March 2005. the Diet in March 2005.

10. 9 Five points discussed during Study Group meeting 1. Effective enforcement by Government 2. Self-regulation by the private sector 3. Developing technologies 4. Enhancing awareness 5. Seeking international cooperation Japan’s strategy to combat spam

11. 10 1. Effective enforcement by Government

12. 11 Outline of “ The Law on Regulation of Transmission of Specified Electronic Mail ” （ Anti-spam Law ） Labeling obligations for senders of specified electronic mail ① Identified as specified electronic mail （ Label ” 未承諾広告※ ” ） ② Sender’s Name/address ③ Sender’s E-mail Address ④ Opt-out E-mail Address Labeling obligations for senders of specified electronic mail ① Identified as specified electronic mail （ Label ” 未承諾広告※ ” ） ② Sender’s Name/address ③ Sender’s E-mail Address ④ Opt-out E-mail Address ・ Administrative Orders by Minister to uphold the law ・ Fines up to 500,000 yen ($5,000) assessed on failure to observe Administrative Orders ・ Administrative Orders by Minister to uphold the law ・ Fines up to 500,000 yen ($5,000) assessed on failure to observe Administrative Orders Labeling Transmission of specified electronic mail (unsolicited advertisement mail) to a person who has indicated he/she does not wish to receive such mail is prohibited. Opt-out Penalties ・ Prohibition of mail transmission utilizing any program that generates random fictitious e- mail addresses ・ Telecommunications carriers are authorized not to provide e-mail transmission services if the e-mails include random fictitious addresses. ・ Prohibition of mail transmission utilizing any program that generates random fictitious e- mail addresses ・ Telecommunications carriers are authorized not to provide e-mail transmission services if the e-mails include random fictitious addresses. Others

13. 12 Possible amendment of Anti-spam Law discussed during Study Group meeting Possible amendment of Anti-spam Law discussed during Study Group meeting 1. Expanding the areas covered by the Anti-Spam Law - Currently, e-mails only sent to private-use addresses are covered by law. => Include e-mails sent to business-use addresses 2. Widening the scope of prohibited areas to fictitious addresses - Currently, sending only “advertisement” e-mails to fictitious addresses is banned. => Include blank e-mails which attempt to obtain active addresses or disguised e- mails, such as apparently from friends 3. Introduction of Direct Penalties on malicious spammers - Currently, we adopt a “two-step punishment” for illegal spammers. The first step is an “Administrative Order” by the Minister and the second step is the imposition of a fine. => Direct penalties (fine of up to one million-yen or one year imprisonment) on malicious spammers who disguise their information such as e-mail addresses

14. 13 2. Self-regulation by private sector (…and Government’s promotion)

15. 14 Promotion of self-regulation in 2003 ～ November 2003 Establishment of “Working Group against Spam” composed of all mobile operators in Japan (6 groups) and MIC 1. Suspension of service for spammers ２. Limitation on the number of e-mails from mobiles ‐ Making mobile users more aware of spam issues in collaboration with WG members Request that all mobile operators adopt uniform countermeasures to shut out spammers (sent “from Mobiles”)

16. 15 Data on countermeasures taken by mobile operators Number of suspended lines NTT DoCoMo 3,536 as of 2 Mar, 2005 KDDI (au)41,600 as of 31 Mar, 2005 Vodafone20,200 as of 2 Mar, 2005 Limitation on the number of e-mails sent from mobiles NTT DoCoMoThe number of e-mails that can be sent per line per day is limited to less than 1,000. （ 20 October, 2003 ） → Limited to less than 200 （ 8 January, 2004 ） KDDI (au)Suspension of services for senders （ lines ） who send more than 1,000 mails a day. （ 18 September, 2003 ） The number of e-mails that can be sent per line per day is limited to less than 1,000. （ 23 August, 2004 ） VodafoneThe number of e-mails that can be sent per three hours is limited to less than 120. （ 22 December, 2003 ）

17. 16 Suspension of service for “spammers” What is a “spammer” (for mobile operators) ? Illegal sender (e.g. Violation of labeling obligation) Legislation of anti-spam law facilitated Mobile operators’ self-regulation.

18. 17 Trend in the amount of spam sent “ from mobiles ” 2003 Source: Survey by Japan Computer Communications Association (Sample – based survey using monitoring terminals) 2004 2005 Dramatically decreased due to the cooperation of Mobile Operators and Government

19. 18 Trend in number of reports to Research and Consulting Center for Spam 2003 ※ Research and Consulting Center for Spam was established by the Japan Computer Communications Association on 10 July 2002. 2004 2005 Spam is still a serious problem!! >>> Next target is ISPs!!

20. 19 With respect to mobile spam, in particular sent from mobiles, a joint initiative of the government and mobile operators to combat mobile spam has succeeded. The next step is how Governments and ISPs can cooperate to combat spam!!

21. 20 ISPs Spam Blocking Support Project Schedule February 2005 Test May 2005 Actual Start-up Schedule February 2005 Test May 2005 Actual Start-up spammer MIC ③ Confirm illegality ③ Confirm illegality 4. Provide information on illegal spam 2. Report spam 5. Suspension 1. Analyse headers of spam received by monitor terminals and detect ISPs that spammers used Japan Computer Communications Association Monitors

22. 21 3. Developing Technologies

23. 22 Mail server Disguised mail Legitimate mail Inquires whether senders ID is genuine or not Receive only legitimate mail Authentication server From:xxx@yahoo.j p To:xxx@xx.jp From:xx@nifty.co m To:xxx@xx.jp nifty.co m disguise ！ Image of Authentication Mail server

24. 23 Impossible to disguise (No function to change sender’s name) Mobile operators do not need to adopt Authentication technology as “senders”, but they need to do so as “receivers” of disguised spam ! Easy to disguise Mobile and Authentication technology

25. 24 > Promotion of Filtering Services > Introduction of Authentication Technology > Port 25 blocking … MIC needs to clarify the legality of the above in relation to Secrecy of Communications (privacy), freedom of expressions, etc. provided in the Telecommunications Business Law. (and encourage technological solutions)

26. 25 4. Enhancing Awareness

27. 26 Understandable, Multi-sided and Effective “Awareness” is truly important. > Pamphlet, Website, etc. by many participants

28. 27 5. Seeking International Cooperation

29. 28 Spam is borderless. First of all, “national legislation” is essential. Then, “International Cooperation” is necessary to combat spam.

30. 29  OECD (Spam Task Force, London Action Plan, etc.)  ITU (WSIS)  ASEM (“Joint statement on International Anti-Spam Cooperation, February 2005)  “Seoul-Melbourne Multilateral MoU”  MIC holds several bilateral meetings with EU, UK, France, Germany, Italy, etc.

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