July 24, 2008

Public Comment Invited on Application of the Competition Safeguard System (FY2008)

Prior to conducting regular verification in accordance with the competition safeguard system for this fiscal year, the Ministry of Internal Affairs and Communications (MIC) will invite public comment on the verification items until August 25, 2008.

1. Outline

Based on the New Competition Promotion Program 2010 (developed in September 2006 and revised in October 2007), MIC has placed in force a competition safeguard system intended to periodically check the validity of the scope of the Designated Telecommunications Facilities System and accumulated fair competition requirements concerning the NTT group (including those related to the Regulatory Frameworks Pertaining to Authorization of Business Activities Using Facilities, Technologies or Staff of NTT East and NTT West) since fiscal 2007.

With regard to the FY2007 verification in accordance with this system, MIC released its "Results of Verification (FY2007) Based on Competition Safeguard System" and requested Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation (NTT East and NTT West) to take necessary measures in light of the results of verification (FY2007) based on the Competition Safeguard System on February 18, 2008. NTT East and NTT West have since taken some measures in response to the request.

MIC revised the Guideline for Application of the Competition Safeguard System (developed and released in April 2007; hereinafter, the "Guideline") in July 2008, based on the March 27, 2008, Telecommunications Council report, "Report on Next-Generation Network Interconnection Rules." The revision added the validity of unbundle function targets to the verification items in accordance with the system.

Prior to conducting verification in accordance with the system for this fiscal year and for reference in the verification efforts, MIC will invite public comment on the validity of applying the system to the verification items specified in the Guideline.

2. Future schedule

MIC will verify the Designated Telecommunications Facilities System and the application of fair competition requirements concerning the NTT group, etc., with reference to received comments.

Prior to conducting the verification, MIC may re-invite public comment on received comments when necessary, based on the results of the present public comment invitation procedure.

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For further information about this press release, please fill in the inquiry form and submit it to MIC on the website
http://www.soumu.go.jp/joho_tsusin/eng/contact.html

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