Telecommunication Services” (universal services: subscription telephone, public telephone, and emergency telephone), which are indispensable for people's daily lives, throughout the country.

In late August 2006, NTT East and West announced that their universal service revenues for fiscal 2005 were approximately a 51.8 billion yen deficit for total. In response to this result, the government approved a subsidy amount and delivery procedure as well as contribution amount and collection method in November 2006, and conducted the first application of the system.

### E. Ensuring fair and legitimate business operation for telecommunication service providers

In telecommunication service field, the government regulations are repeatedly reduced to shift from the ex-ante regulatory system to the post-check system. During this shift, since business operation of some providers was found out to be inappropriate, recovering reliability in the telecommunication services is an urgent task to be addressed now. In response to the situation, in April 2007, the government amended the requirements for business improvement orders to telecommunication service providers, and submitted a Law Bill to Amend the Broadcast Law to the 166th Diet, including an amendment to Telecommunications Business Law, which regulates government oversight of “sound development of telecommunication services” in addition to the current “user interests”.

## (2) Advancement of Network

### A. Promotion of Network Advancement

The IT New Reform Strategy stipulates that efforts shall be made to transfer the systems to IPv6 in principle by fiscal 2008 in the effort toward realization of the world’s most convenient and effective e-Government, and in preparation for the renewal of information communications equipment for each government agency. Based on this strategy, the Ministry of Internal Affairs and Communications has been sharing/exchanging opinions with other countries regarding migration to IPv6 and making efforts toward introduction of IPv6. Also, to realize a ubiquitous network society, the Ministry of Internal Affairs and Communications has been conducting empirical tests since 2006, ensuring security of the IPv6 network to enable users to leverage its benefits safely and securely without adding a number of devices.

Furthermore, developing the next generation IP network system is essential to realize a ubiquitous network society. The “Next Generation IP Network Promotion Forum” was established in December 2005 for conducting mutual connection tests, evaluating technical aspects including empirical tests as well as setting up technical standards and international standards. The Forum issued a finalized report in 2006, which included evaluation on security and reliability regarding the migration to IP system.

### B. Evaluation on Telecommunication Numbers

The business environment surrounding fixed phone services has been changing largely due to new entry to the market and rapid enlargement of IP phone services. Along with this situation, available telecommunications numbers are now at risk to be used up in the future. Also, the role of telecommunications numbers needs to be reviewed during the process of migration to IP.

Hence, the Ministry of Internal Affairs and Communications hosted meetings of the Study Group on Telecommunications Numbers in the IP Era since December 2004. This study group issued the second report in June 2006, which determined to use 060 number for new services such as Fixed-Mobile Convergence, and 1XY telecommunications numbers for consulting with administrative call centers, etc.

To review requirements for assigning new numbers to the FMC services, service ranges and requirements for current numbers, the Ministry of Internal Affairs and Communications consulted with the Information and Telecommunication Committee for Regulatory Frameworks Pertaining to Telecommunications Numbers for Introducing Fixed-Mobile Convergence (FMC) Services in September 2006, and received a response in March 2007.

### C. Appropriate Management of IP Address and Domain Name

Internet resources such as IP addresses and domain names are managed and controlled by the private nonprofit organization ICANN (Internet Corporation for Assigned Names and Numbers). The Ministry of Internal Affairs and Communications is contributing to establishment of an international cooperative structure as an authorized registered member of the Government Consultative Committee of ICANN (consisting of representatives of respective countries).

### 2. Development of Broadcast Policy

## (1) Broadcast Policy Summary

### A. Reviewing broadcast policy based on the digitization of broadcasting

Toward a smooth conversion to digital broadcasting and development of broadcasting that would accurately meet viewers' needs, the Ministry of Internal Affairs and Communications set up the Study Group for the Development of Digitization and Broadcasting Policy in July 2004. This study group issued a final report in October 2006. This report made proposals on the decentralization principle of mass media, institutionalization of holding companies which own broadcasting companies as subsidiaries, and stipulations of CS broadcasting.

### B. New trend of international broadcasting

Under the Broadcast law, the Minister of Internal Affairs and Communications can order NHK to conduct