"Study Group on Approaches to Dealing with Malicious Communications" Releases Report

MPHPT has been holding the "Study Group on Approaches to Dealing with Malicious Communications" (Chair: Prof. HORIBE Masao, Faculty of Law, Chuo University) since August 2002 in order to deliberate on necessary countermeasures against malicious communications, including the so-called "wangiri" (one-ring) calls. In October 2002, the Study Group compiled its findings as a report.For further information, please refer to the Japanese website:
http://www.soumu.go.jp/s-news/2002/021007_1.html

[Outline of the report]
1. Current status of malicious calls
(1) Countermeasures against malicious calls
To date, although many and various problems have been caused by malicious/nuisance calls, offending and malicious calls are prevented to some extent by efforts made by telecommunications carriers, including "caller ID service," etc. In addition, as one of countermeasures against unsolicited/nuisance e-mails, the "Law Concerning Adjustment, Etc. of Transmission of Specified Electronic Mail" was enacted in April 2002.

(2) Emergence of new malicious calls, or "one-ring" (wangiri) calls (a massive number of unwanted calls)
a. Emergence of "one-ring" calls
Since around November 2001, a social problem appeared that scams known as "one-ring" calls that originate a massive number of incomplete offensive calls, to lure the called parties into placing calls to a telephone number in the received call history from an unknown telephone number. If the called parties callback the unknown telephone number, the calls are connected to unwanted pay services. According to a telecommunications service monitor survey conducted by MPHPT, 84% of the respondents feel that "one-ring" calls are causing troubles to ordinary consumers. Many consumers are requesting that telecommunications carriers provide well-prepared countermeasures against "one-ring" calls and that the government control and regulate such malicious calls.
Furthermore, in July 2002, "one-ring" scams originated a huge number of incomplete calls on two occasions that caused traffic congestions on networks of Nippon Telegraph and Telephone West Corp. (NTT West), resulting in undue inconvenience and damages on about five million telephone circuits in Osaka Prefecture, etc.

b. Countermeasures to date against "one-ring" calls
In August 2002, NTT East and NTT West changed their tariffs in order to suspend use of telecommunications circuits and terminate contracts, etc. toward persons who willingly transmitted a huge amount of incomplete calls that may cause traffic congestions. After the change of tariffs, NTT East and NTT West have been actually taking actions to suspend use of telecommunications circuits, etc.
Mobile communications carriers are implementing countermeasures such as i) provision of information on self-defense enabling subscribers to set at their terminals ("blocking of specified telephone numbers, "step-tone," etc.), and ii) automatic charging of calls originated from telephone numbers which is registered by victims of "one-ring" calls as malicious content providers.

(3) Steps toward new types of malicious communications
New types of malicious communications, such as unsolicited e-mails and "one-ring" calls, harm ordinary people's day-to-day lives being led in peace. In addition, fears arise that the general public could not use telecommunications services because normal communications has been interfered with by traffic congestions on switches and servers. Of these new types of malicious communications, countermeasures against unsolicited e-mails have been implemented through legislation, etc. Thus, countermeasures against "one-ring" calls shall comprehensively be studied and developed as urgent tasks.

2. Overseas trends in countermeasures against malicious communications
No exclusive regulations on "one-ring" calls have been reported. A considerable amount of regulations are found that regulate acts that automatically transmit voices, etc. using "automatic dialers" (equipment or software that automatically store or generate many telephone numbers and place calls to those numbers).

(1) The U.S.
In November 1991, the Telephone Consumer Protection Act of 1991 (TCPA) was enacted to amend section 227 of the Communications Act of 1934 to prohibit, in principle (except cases where prior consent was obtained, or FCC rules allow such transmission), the use of a messaging system (including automatic dialers as telemarketing equipment or software) capable of providing unsolicited commercial messages, including recorded voices, to residential telephones.

(2) EU
Of the EU Directives, the EU Privacy Protection Directive, etc. stipulate that, upon using automatic means (including automatic dialers) for the purpose of direct marketing, prior consent of recipients shall be required. In compliance with the Directive, etc., the U.K., France and other Member States are preparing domestic regulatory frameworks.

3. Steps for the future
(1) Direction of deliberations
a. Scope of communications to be considered
Generally speaking, "one-ring" call scams mechanically originate calls to many and unspecified called parties using computers, which are connected to circuits and installed software dialers that disconnect circuits from originator sides immediately after ringing tones are confirmed. The three requirements to be recognized as "one-ring" call scams are i) to mechanically originate calls to many and unspecified called parties using computers, ii) to place calls other than for the purpose of communications, and iii) to place calls for the purpose of leaving records in called party's received call history.

b. Concept for developing countermeasures
In order to effectively implement countermeasures against "one-ring" calls, it is vital to comprehensively implement measures applicable to all the networks. Of envisioned measures, available measures shall be introduced as soon as possible, considering their effectiveness.

c. Matters to be noted
It is appropriate to quickly take countermeasures against malicious communications upon occurrence of necessity for social regulations. To this end, this time countermeasures exclusively against "one-ring" calls shall be developed, then, in cases where new problems arise, new countermeasures shall immediately be developed.

(2) Possible countermeasures
a. Measures utilizing tariffs, etc. focusing on the calling party side
Efficiently and effectively utilizing tariffs of NTT East and NTT West after changes, with the viewpoint of preventing occurrence of traffic congestions on networks, there is a need to consider a rule that require persons who intend to connect equipment, which transmit mechanical incomplete calls, with networks to report as such in advance.

b. Measures utilizing tariffs, etc. focusing on the called party side
(a) Technical countermeasures at terminals of the called parties
With the viewpoint of protecting life of peace from "one-ring" calls, terminals of the called party side shall include i) functions of not activating ringing tones when incoming-call durations last for a very short period of time, and ii) functions of clearly displaying incoming-call holding time on the terminal screen. In parallel, consumers shall be well informed of these technological functionalities in an easy-to-understand manner.
(b) Countermeasures utilizing tariffs, etc.
It is vital to consider introduction of methods to have networks blocking calls from circuits with distinct possibility of transmitting "one-ring" calls in response to the explicitly expressed refusal of a called party that said party denies reception of all "one-ring" calls. With respect to methods for specifying circuits to be blocked, it is necessary to consider methods based on the number of complaints, etc. from customers, etc.

c. Charging on "one-ring" calls
Provided that incomplete calls are charged under specific conditions, "one-ring" call scams would see income sources dry up. As mentioned before, with regard to a telephone number as specified by each called party, some mobile communications carriers are planning to introduce measures for charging incomplete calls as complete calls at switches of the called party side. It is recommended that other carriers introduce the same measures.

d. Regulatory measures
(a) Amendment to the "Ordinance Concerning Terminal Facilities, Etc."
It is vital to consider amending the "Ordinance Concerning Terminal Facilities, Etc." so as to regulate connection of equipment, which has functions for transmit more than a specified number of calls to many different called parties, to telecommunications circuits.
(b) Clarification of interpretation of the "Wire Telecommunications Law"
Article 13 of the "Wire Telecommunications Law" provides for that any person who damages any function of wire telecommunications facilities and thereby obstructs wire telecommunications shall be guilty of an offense and liable (obstruction of wire telecommunications).
In an ordinary situation, transmission of a massive number of "one-ring" calls cannot occur for the purpose of placing a telephone call. Should it be willful and wanton negligence, in cases where it is deemed that a person who recognize that "one-ring" calls have possibility to damage functions of wire telecommunications facilities, the penal provision of obstruction of wire telecommunications under the current "Wire Telecommunications Law" would apply to traffic congestions caused by "one-ring" calls. To this end, it is recommended that transmission of "one-ring" calls be explicitly included as one of typical acts of committing a crime under Article 13. There would, however, be a case where intention to commit a crime is not recognized, it shall be noted that Article 13 will not necessarily apply to all traffic congestions caused by "one-ring" calls.
(c) Explicit definition of "obligation to provide service"
In cases where "one-ring" calls are likely to cause network congestions, it is considered that a Type I telecommunications carrier may refuse to provide telecommunications service with "due reason" under Article 34 of the "Telecommunications Business Law." In this case, there is a need to consider explicitly providing for such intention in the Telecommunications Business Law. The effect, however, remains within the confines of support for voluntary measures (amendment to tariffs) taken by telecommunications carriers.
(d) New regulations on "one-ring" calls
Regulations on "one-ring" calls would restrict to some extent the use of telecommunications service and business activities of a person who transmits "one-ring" calls. It can be said that the transmission of "one-ring" calls, however, is originally an act of misleading called parties into paying for an unwanted service. Taking confrontation of interests into consideration, there will be very few problems if regulating the transmission of "one-ring" calls. Moreover, the transmission of "one-ring" calls, which will not only harm each called party's day-to-day life to be led in peace, but also cause traffic congestions on telecommunications networks that are indispensable infrastructures of national daily activities, can be a huge threat to safe as well as smooth operation and maintenance of the infrastructures.
Specifically, it is considered that new regulations apply to i) persons who conduct business for profit, and ii) acts of having many called parties receive a telephone number through methods with the danger of causing a crime of obstruction of communications, including use of equipment that enables automatic transmission of calls to called parties without prior consent and without the purpose of commencing communications. Then, the new regulations will include penal provisions that such persons shall be liable to face penal servitude or a fine.
By such rulemaking, it will be possible to regulate obstruction of communications caused by "one-ring" calls, even in cases where it is difficult to apply the crime of obstruction of wire telecommunications, e.g., where functional faults of telecommunications facilities do not occur or a person lacks awareness thereof.