# Section 2 Development of Information and Communications Policies

### 1. Development of telecommunications

## (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, in September 2006, the Ministry of Internal Affairs and Communications (MIC) formulated a “New competition promotion program 2010 (Program 2010)”, 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 the Program 2010 include promotion of further competition in the telecommunication market and protection of user benefits. The MIC is presently committed to steady promotion of the Program 2010.

### B. Promotion of competitiveness in mobile communications market

The recent rapid advancement of technological innovation, broadband and IP in the mobile communications market brings about business opportunities that go well beyond a conventional market framework, such as integration of fixed and mobile communications markets and penetration of vertically-integrated business models. In response, 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 order (1) to review sales models for the mobile business, (2) to promote new market entry by MVNOs, and (3) to promote dedevelopment of market environment aimed at revitalizing the mobile business.

### C. Review of universal service system

The New Competition Promotion Program 2010 points out that the universal service system should be reviewed in a step-wise manner amidst drastic changes in market conditions, such as the progress of the transition from PSTN to IP networks and further penetration of broadband services. In response, the MIC has convened meetings of the Study Group for the Future Visions on the Universal Service System since January 2007 and the final report was submitted in December 2007.

Based on the final report, the MIC has just consulted the Information and Communications Council concerning a review of the universal service system to respond to the progress in IP, and a conclusion will be reached within 2008 after deliberations by the Council.

### D. Development of environment towards ensuring neutrality of networks

The Ministry of Internal Affairs and Communications (MIC) established the Working Group on Network Neutrality in December 2006 in order to deliberate on the so-called “neutrality” of networks as IP networks proliferate, such as fairness of network use (neutrality of communication layer to other layers) and fairness of the cost burden of networks (neutrality of cost sharing model for enhancement of communication networks), and the final report was released in September 2007.

Furthermore, the MIC has convened meetings of the Panel on Internet Policy since February 2008, in order to extract and summarize policy issues and to organize the directions of future policy for securing network neutrality and sound development of the Internet from the various viewpoints of the stakeholders, and the report is expected to be compiled in December 2008.

## (2) Advancement of network

### A. Promotion of network advancement

In response to recent dramatic changes, such as the advancement of IP networks, home-networks and ubiquitous networks, the Ministry of Internal Affairs and Communications (MIC) had held meetings of the Study Group on Network Architecture since January 2007 with the aim of discussing new networks in view of the “next generation” of the next-generation network and released its report in August 2007.

In response, the MIC has been promoting research and development activities concerning the technology for new generation network infrastructure as a priority