## Section 2

# Development of Information and Communications Policies

### 1. Development of telecommunications policy

## (1) Establishment of fair competition rules

### A. New competition promotion program 2010

In response to the change in the market environment along with the advancement of broadband and IP networks, the Ministry of Internal Affairs and Communications (MIC) formulated a New Competition Promotion Program 2010 in September 2006, which is a roadmap for the development of rules for fair competition to be implemented by the beginning of the 2010's in the telecommunication field and also a concrete implementation plan for the Process Program for the Reform of the Communications and Broadcasting Field (September 2006) in the ICT sector. The purposes of Program 2010 include promotion of further competition in the telecommunication market and protection of user benefits. Program 2010 was revised in October 2007 and again in June 2009, and MIC is presently committed to its steady promotion.

### B. Promotion of competition in the mobile communications market

The MIC established the Mobile Business Study Group in January 2007, aiming for economic vitalization and for the improvement of user benefits through the growth of new mobile business and the final report was released in September 2007. Based on the final report, the MIC announced the Mobile Business Revitalization Plan in September 2007, which was formulated as a roadmap for programs to be implemented by the target year of 2011.

In addition to formulating the Guidelines for the Operation of the Type II Specified Telecommunications Equipment Systems in March 2010, the MIC held a public hearing in April 2010 with concerned parties on the state of the SIM lock for cellular phone units. Taking user demands into account, cellular phone enterprises came to a reasonable consensus on a policy of releasing SIM locks voluntarily, and the MIC is scheduled to draw up guidelines on the release of SIM locks in the near future.

### C. Review of universal service system

Based on the report of the Study Group of the Future Visions on the Universal Services System compiled in December 2007, with regard to the review of universal systems responding to IP telephony, the MIC made inquiries to the Information and Communications Council in April 2008 and received a report in December 2008.

In order to respond to the issues that may arise with the advancement of IP telephony and in view of achieving stable operation of the system, the report introduced concepts of the institutional review during 2009 and 2011: (1) although it is appropriate to basically continue the operation of the existing systems, (2) cost accounting modification is desirable so as to add the number of lines which have been switched from subscription lines to optical IP phones to the number of subscription lines, while following the existing cost accounting method. Based on this report, the MIC revised government order concerning the modification of the cost accounting method (above (2)) in May 2009.

### D. Consideration for enhancement of platform collaboration

The MIC set up the Study Group on Communications Platform in February 2008 with the aim of considering issues involved in developing a market environment and future visions to enhance collaboration of platform functions essential for smooth distribution of contents applications through the broadband network and to create new business, and a report was compiled in January 2009.

### E. Assessment of competition in the telecommunications Sector

In order to ensure accurate tracking of the status of competition in the increasingly complex telecommunications sector, and reflect this status in policies, the MIC has been implementing the Competition Assessment of the Telecommunications Industry since fiscal 2003.