# Section 2 Development of Information and Communications Policies

### 1. Development of telecommunications

## (1) Establishment of fair competition rules

### A. New competition promotion program 2010

The Ministry of Internal Affairs and Communications has hosted meetings of the Study Group on a Framework for Competition Rules to Address Progress in the Move to IP since its onset in October 2005 in order to discuss the basic concepts for key elements of competition rules in preparation for the coming era of full-scale IP services at the beginning of 2010 and to clarify the direction of discussions on policies for connections and tariffs. This Study Group summarized the details into a report in September 2006.

Based on this report, the Ministry of Internal Affairs and Communications formulated the “New Competition Promotion Program 2010” in the same month, documenting the plan to establish fair competition rules by the beginning of 2010. This program includes a wide range of actions to be conducted: promotion of facility competition, review on assigned telecommunication systems (Dominant restriction), promotion of competitiveness in the mobile communications market, review on the universal service system, and evaluation on network neutrality.

### B. Evaluation of competition in the telecommunications field

The Ministry of Internal Affairs and Communications has made efforts to evaluate the state of competition in the telecommunications field (hereinafter called “competition evaluation”) since fiscal 2003 so that the current state of competition between telecommunications operators, which has become increasingly complicated along with the advancement in IP and broadband services, can be understood and then reflected in policymaking. In October 2006, the Guidelines Concerning Competition Review in the Telecommunications Business Field 2006 ~ 2008 was formulated as a mid-term policy for competition evaluation and “Detailed Items for Implementation of Competition Review in the Telecommunications Business Field 2006” was announced in November as a year plan.

Basically, a strategic evaluation focusing on specific themes as well as periodical evaluation is supposed to be executed.

Based on the Basic Policy and Detailed Items, The Ministry of Internal Affairs and Communications collected information from the supply-side and demand-side and announced “FY2006 Market Definition in the Telecommunications Business Field”, describing detailed evaluation items. Evaluation results are to be announced by July 2007.

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

Mobile Number Portability (MNP) is the ability to take an existing mobile phone number assigned by a mobile phone carrier and reassign it to another mobile phone carrier, allowing the subscriber to retain the same number. The Ministry of Internal Affairs and Communications conducted deliberations at the Study Group on Mobile Number Portability since November 2003. As a result, a report was finalized in April 2004 which recommended the items to be considered at the time of introduction, and commented that MNP should be introduced at the earliest possible time in fiscal 2006.

In response to the report, the Ministry of Internal Affairs and Communications compiled and issued Guidelines on Number Portability for Mobile Phones in May 2003 which stipulated specific items to be considered for introduction by mobile phone service providers and other telecommunications service providers, including the forms of introduction, timing of introduction, methods of introduction, cost sharing system, and usage procedures, and so forth. Furthermore, partial amendment of regulations was made in February 2006 to stipulate that telecommunications service providers (mobile phone service providers) should take necessary measures to enable the portability of numbers from November 2006. Based on this, telecommunications service providers just started the number portability service of cell phones on October 24, 2006.

### D. Ensuring Universal Services

The universal service system is a system wherein the involved telecommunication service providers share the fee required to ensure provision of the “Basic