# 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 2007) in the ICT sector. The purposes of 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 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 development of market environment aimed at revitalizing the mobile business.

### C. Development of an environment for the realization of IP communications terminals

Since November 2007, discussions from various perspectives have been conducted on future visions, functions and necessary measures to promote the broad and smooth utilization of IP communications terminals by establishing the Development and Promotion Working Group and Responsibility Sharing Model Working Group under the IP Terminal Group of the Next Generation IP Network Promotion Forum, which comprises industry, academia and government. Furthermore, the MIC established the Panel on the Telecommunications Service Users in April 2008 and a report was prepared in February 2009.

### D. 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 ordinances concerning the modification of the cost accounting method (above (2)) in May 2009.

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

The MIC established the Working Group on Network Neutrality in December 2006 in order to deliberate the “neutrality” of networks as IP networks proliferate, such as fairness of network use and fairness of the cost burden of networks, and the final report was released in September 2007.

Furthermore, the MIC established the Panel on Internet Policy in February 2008, in order to extract and summarize policy issues and to organize the directions of future policy for securing network neutrality and the sound development of the Internet from the various viewpoints of the stakeholders, and a report was compiled in January 2009.