Formulation of “Basic Ideas in Designating Telecommunications Carriers (Telecommunications Carriers Dominating Markets in Mobile Communications Field) subject to Provision of Prohibited Acts, etc. based on Provision of Article 30, Paragraph 1 of Telecommunications Business Act

1.Background

  In cases where the ratio of profits in the past one year of any telecommunications carrier that establishes Category II designated telecommunications facilities exceeds 25% of the market, and it is deemed necessary to ensure reasonable competitive relationships with other telecommunications carriers, taking into account any changes in this ratio and other circumstances, the Ministry of Internal Affairs and Communications (MIC) pursuant to the provision of Article 30, Paragraph 1 of the Telecommunications Business Act (Act No. 86 of 1984)* may designate this carrier as a telecommunications carrier subject to the provisions of Paragraph 3 to Paragraph 5 of said Article. In response to this, basic ideas for said designation (“basic ideas in designating telecommunications carriers (telecommunications carriers dominating markets in the mobile communications field) subject to the provision of prohibited acts, etc. based on the provision of Article 37-2, Paragraph 1 of the Telecommunications Business Act, hereinafter “Former Guidelines”) were formulated and announced on April 16, 2002. The system of regulation for prohibited acts prescribed in Article 30 of the Telecommunications Business Act has been operated since then.
  Last year, an inquiry was submitted to the Information and Communications Council (Chairman: Takuma Otoshi, Chairman of Board of Directors at IBM Japan) concerning the “State of Environment Maintenance for Promoting Broadband Dissemination,” and a report was received stating that it is beneficial to clarify the standards by consolidating and rationalizing the provisions of the Former Guidelines and it is appropriate to make necessary reviews on them, while maintaining the basic ideas on the targets subject to the regulation for prohibited acts with regard to the promotion of competition in the mobile market.
  The MIC has reviewed the Former Guidelines based on this report and newly compiled draft basic ideas for designation. Then, an appeal for opinions was held from February 22 to March 23, 2012, and six opinions were submitted in response to this appeal.
  The MIC has formulated the “basic ideas in designating telecommunications carriers (telecommunications carriers dominating markets in the mobile communications field) subject to the provision of prohibited acts, etc. based on the provision of Article 30, Paragraph 1 of the Telecommunications Business Act” (hereinafter “New Guidelines”) based on the submitted opinions, etc., and they are officially announced herein.
 
 *This provision had been prescribed in Article 37-2, Paragraph 1 of the Telecommunications Business Act at the time of formulation and official announcement of the Former Guidelines in 2002. However, it was moved forward to Article 30, Paragraph 1 of the same Act due to its revision in 2003.
 

2.Future plans

  The MIC will start to operate the New Guidelines on April 27, 2012 and abolish the operation of the former guidelines. Also, the MIC will strive to operate the New Guidelines in an appropriate manner in order to implement further environment maintenance of fair competition in the future.