Standardization Policy in the Information and Communications Field to investigate and examine this issue.

## (5) Promotion of regional stimulation through the use and application of ICT

The Ministry of Internal Affairs and Communications began meetings of the Regional ICT Activation Panel in February 2011 to examine approaches to regional stimulation through ICT. The panel looked at regional frameworks for promoting the use and application of ICT and policies for promoting user-oriented (i.e., regional residents) ICT usage in key fields such as farming, fishing, and forestry as well as medicine, nursing, and education. The panel compiled and released its recommendations in July 2011.

### 3. Promotion of reform in the communications and broadcasting fields

As a means of organizing and streamlining systems in response to the digital migration in the communications and broadcasting field, the Ministry of Internal Affairs and Communications overhauled the legal systems overseeing communications and broadcasting for the first time in 60 years, with the systems governing various types of broadcast formats integrated into a comprehensive system and the system governing radio station licensing and accreditation of other broadcasting services given increased flexibility. The revisions went into full force on June 30, 2011.

### 4. ICT productivity acceleration program

In addition to being a resource-starved country with a declining birth rate and an aging population, Japan faces the pressing challenge of stimulating economic growth. For this reason, we must take advantage of our world-leading broadband infrastructure and work actively to raise productivity through the application of ICT.

As a means of boosting productivity levels with ICT, the Ministry of Internal Affairs and Communications is working in partnership with related organizations to promote the widespread uptake of ASP and SaaS and providing support so that venture businesses can accelerate the bringing of new ICT systems to market.

### 5. Support for creation and fostering of ICT venture businesses

ICT ventures that create new businesses through original, cutting-edge technology and business models are expected to be the prime movers of innovation that will drive our ICT industry's development in the midst of increasing global competition. The Ministry of Internal Affairs and Communications, in cooperation with other ministries and agencies, assists the creation and growth of ICT ventures in various ways, including financing, hiring and training of workers, and information provision.

Section 2

# Development of Information and Communications Policies 1. Development of telecommunications policy

## (1) Establishment of fair competition rules

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

The Ministry of Internal Affairs and Communications conducted hearings with mobile carriers in April 2010 on how to deal with SIM locks on mobile handsets. The parties reached a consensus on a policy that would see carriers unlocking handsets on a voluntary basis to address user demands. In June 2010, the Ministry drew up the Guideline for SIM Unlocking on the expectation that carriers will voluntarily unlock handsets in the interest of responding to user demands.

### B. Review of the Universal Service System

Based on the May 2010 report, Realizing the New Broadband Super Highway (Hikari-no-michi) Plan: Basic directions, and other materials, the Ministry of Internal Affairs and Communications submitted an inquiry to the Information and Communications Council in July 2010 concerning how to deal with the Universal Service System during the transition period to universal broadband service availability. The Information and Communications Council gave its reply in December 2010. In receipt of the Council's report, the Ministry amended related ministerial ordinances (partial amendment of the Regulations for Enforcement of the Telecommunications Business Act and other ordinances) and put the amended ministerial ordinances into force in April 2011.

### C. Assessment of competition in the telecommunications sector

In order to correctly ascertain the status of competition in the increasingly complex telecommunications sector and reflect this understanding in government policy, the Ministry of Internal Affairs and Communications has been issuing the annual Competition Assessment of the Telecommunications Industry since FY 2003. In January 2011, the Ministry issued Topics for the 2010 Competition Assessment of the Telecommunications Industry and is currently examining how best to make future market demarcations while assessing the status of competition in FY 2010.