Appeal for Opinions on Draft “Basic Thinking when Designating Telecommunications Businesses (Telecommunications Businesses Dominating Markets in Mobile Communications Field) to Receive Application of Restrictions for Prohibited Conduct, etc. based on Regulations in Article 30, Clause 1 of Telecommunications Business Act”

1. Background

　In cases where the last year's earnings of a telecommunications business installing Type 2 telecommunications equipment exceeds 25% of the market, and it is deemed necessary to ensure reasonable competitive relationships with other telecommunications businesses, taking into account any changes in this ratio and other circumstances, the Ministry of Internal Affairs and Communications (MIC) by means of regulations in Article 30, Clause 1 of the Telecommunications Business Act (Act No. 86 of 1984)* can designate this business to receive application of restrictions in Clauses 3 to 5 of the same Article. In view of this, a decision was reached regarding thinking in relation to such designations (“Basic Thinking when Designating Type 1 Telecommunications Businesses (Telecommunications Businesses Dominating Markets in Mobile Communications Field) to Receive Application of Restrictions for Prohibited Conduct, etc. based on Regulations in Article 37, Clause 2.1 of Telecommunications Business Act”; hereinafter referred to as “Guidelines”), and a system restricting prohibited conduct regulated by Article 30 of the Telecommunications Business Act has been applied since its official announcement on April 16, 2002.

　An inquiry concerning the “State of Environmental Maintenance for Promotion of Broadband Diffusion” has now been submitted to the Information and Communications Council (Chairman: Takuma Otoshi, Chairman of IBM Japan), and a reply was received stating that for promotion of competition in the mobile market it would be beneficial to clarify standards by arranging and rationalizing, etc. the regulations of the Guidelines while retaining the basic thinking regarding subjects for application of prohibited conduct restrictions, and confirming the need for revision of the Guidelines.

　This draft has been drawn up to review the Guidelines based on the above reply, and updates the basic thinking when making designations.

*The same regulations were prescribed in Article 37, Clause 2.1 of the Telecommunications Business Act at the time of deciding on and officially announcing the Guidelines in 2002. However, these were moved to Article 30, Clause 1 of the same Act due to legal reforms carried out in 2003.

2. Outline of appeal for opinions

Subject of appeal for opinions: “Basic Thinking when Designating Telecommunications Businesses (Telecommunications Businesses Dominating Markets in Mobile Communications Field) to Receive Application of Regulations for Prohibited Conduct, etc. based on Regulations in Article 30, Clause 1 of Telecommunications Business Act” (draft)

Deadline for submission of opinions: must arrive by 17:00 on March 23 (Fri), 2012 (mailed submissions must also arrive by this date)

　Please note that this draft can be inspected at the contact address provided at the end of this document, and will also be published in the “Reports and documents” area of the Ministry of Internal Affairs and Communications (MIC) website (http://www.soumu.go.jp) as well as in the “Public comment” field of e-Gov (http://www.e-gov.go.jp), the electronic coordinated government contact website.

3. Schedule

　Guidelines will promptly be decided on and officially announced based on results from the appeal for opinions.

Related reports and documents, etc.