April 22, 2008

Ideals for Universal Service Fund System

Consultation with Telecommunications Council
Today, the Ministry of Internal Affairs and Communications (MIC) consulted the Telecommunications Council (Chair: SHOYAMA Etsuhiko, Chairman of Board, Hitachi, Ltd.) on ideals for the Universal Service Fund System.

Background
The Universal Service Fund System currently in place was implemented in fiscal 2006.
The market environment surrounding the system has since been rapidly and significantly changing. Particularly notable is migration from circuit switching networks to IP networks. With the advancement of broadband networks, subscribers to IP telephony have sharply increased while subscribers to subscriber telephone services have been decreasing.

Under these circumstances, MIC stated in its New Competition Promotion Program 2010 (released on September 19, 2006; revised on October 23, 2007) that, amid the drastic changes in the market, such as penetration of broadband services, the Program should be reviewed by stages; and that MIC would consider the report from the Study Group on Future Images of Universal Service Fund System (released in December 2007) and consult the Telecommunications Council on review of the Universal Service Fund System for IP networks by around April 2008 so that the Council would deliberate the issue and reach a conclusion by the end of the year.

In line with the Program and in consideration of consistency with related systems, MIC consulted the Council on ideals for the Universal Service Fund System, including the scope of the system, the method to calculate maintenance cost of the system, and the method to share the cost.

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International Policy Division,
International Affairs Department
Telecommunications Bureau, MIC
TEL: +81 3 5253 5920 / FAX: +81 3 5253 5924