2GHz and 2.5GHz bands, for mobile communication systems.

In response, MIC considered the use of frequencies in the 1.7GHz and 2GHz bands which was made newly available for cellular phones, based on the opinions exchanged at “the Study Group on the Expansion of Spectrum Uses for Cellular Phones” and comments from the public, and set up the licensing policy in August 2004, which stipulated the number of operators who would use the allocated frequencies and examination standards for the 1.7GHz and 2GHz bands.

Furthermore, MIC formulated “the Action Plan for Frequency Reallocation” which was an action plans to follow up frequency reallocation smoothly and surely on August 2004. This Action Plan is to be sequentially reviewed based on the evaluation results of an annual survey on radio spectrum usage and the changes in the environment for radio spectrum usage. In response to the evaluation result of the annual survey on radio spectrum usage of FY 2004 (published on April 13, 2005), the Ministry revised and published the Action Plan in October 2005.

## (3) Efforts for timely radio spectrum reallocation

By the amendment to the Radio Law in 2004, a scheme was adopted to compensate existing radio spectrum users whose periods of frequency use are shortened for costs uncollected by shortening of the period of frequency use for facilitating timely reallocation of radio spectrum.

By utilizing this scheme, in the 4.9-5.0 GHz band (which is used by fixed stations for telecommunications business), the termination date of the existing radio stations, which had been set at the end of November 2007, was brought forward by two years, and thus the usable radio spectrum was ensured, in order to provide an environment to use freely High Power Wireless LAN in the metropolitan areas of Kanto, Tokai and Kinki.

In response, the Radio Station Registration system was introduced in the metropolitan areas above for the wireless access system in the 4.9-5.0 GHz band on December 1, 2005.

## (4) Drastic review of Spectrum User Fee System

It has been more than 13 years since the introduction of the spectrum user fee system and the situation surrounding spectrum user fees has drastically changed, represented by the growth of businesses using radio spectrums, such as cellular phone service and wireless LAN service. Thus, MIC had considered on the review of spectrum user fee system at “the Study Group on Policies for Effective Radio Spectrum Use.” Based on the result of study made by the Study Group in October 2004, MIC submitted the legislation for “the partial amendment to the Radio Law and the Broadcast Law” in September 2005, which was then promulgated in November 2005.

## (5) Promotion of wireless broadband

MIC held “the Study Group for Wireless Broadband Promotion” from November 2004, and considered specific measures to realize wireless broadband system which was the key to establish ubiquitous network society in Japan.

The Study Group conducted active discussions widely and openly by cooperation between industry, academia and government, including call for proposals on wireless broadband systems to be introduced in the future (72 system proposals from 44 parties), and compiled a specific introduction scenario, promotion measures, and specific measures for frequency reallocation based on “the Guidelines for Spectrum Reallocation” (Final Report: published in December 2005).