The Japanese Ministry of Information and Communication has recently published a report on Network Neutrality, which notes that simply increasing the number of Internet exchanges may not be enough to address Internet traffic flow problems.

In Japan, Internet exchange (IX) points  for ISP peering are concentrated in Tokyo and Osaka areas, with only a few IXs in local regions. In most cases, the local ISP routes its traffic through an IX located in Tokyo or Osaka. However, lines have a high cost burden (even when they are shared among multiple ISPs) and supply on backbone infrastructure is extremely tight.

In order to improve information traffic flow, increasing the number of local IXs in itself would not solve the network traffic problems: "In addition, it is necessary to respond to increases in cost burden and insufficient capacity on the relay backbone. One important measure is to equip local IXs with cache servers for information aggregation. Fetching information from a local cache would ease network pressure and improve the Internet usage environment for all local users. Therefore, from the viewpoint of cache aggregation on local servers, it is appropriate for administrative authorities to support cooperation between related operators and to take necessary measures (for example, by considering how the system should deal with issues such as copyright protection)" (page 29).

For more information, please see here.