Japan introduced the principles of market competition into all areas of the telecommunications market as of April 1985, in addition to privatizing Nippon Telegraph and Telephone Public Corp. (NTT PC). Today, more than 12,000 new telecommunications carriers have entered the market. Also, along with the enforcement of the Administrative Procedures Law, measures -- disclosed in October 1994 -- were taken on the examination standards for permission, authorization, etc. regarding the telecommunications business and the standard processing period.
Following up on such activities, this booklet is published in accordance with the “Deregulation Action Program,” as decided upon by the Cabinet on March 31, 1996, in an attempt to extend further the transparency of Japan’s regulatory system. In accordance with the drastically amended Telecommunications Business Law that came into force on April 1, 2004, this booklet summarizes the procedures, documents to be submitted and relevant laws required for entry into the field of Japanese telecommunications business, concomitant to the abolition of the business classification of Type I telecommunications carriers and Type II telecommunications carriers.
Although the documents and excerpts of related laws such as the Telecommunications Business Law are attached for reference purposes, please refer to the English version of the Telecommunications Business Law, the Radio Law (the two preceding laws being available for perusal over the Internet) and the related examination standards issued by the "Ministry of Internal Affairs and Communications (MIC)" for further details.
MIC has been furnishing information on the current status of Japanese telecommunications market and the policy trends in English under its own initiative. The “MIC Communications News,” which introduces MIC’s policy trends, is being published bi-weekly, while information is provided on the Internet at:
http://www.soumu.go.jp/
In addition, MIC since December 1999 has been publishing the “Manual for Establishing Telecommunications Networks” in order to provide an in-depth understanding on Japan’s telecommunications legislation and examples of how telecommunications carriers establish their networks.
This booklet is provided to help promote the understanding of Japan’s regulatory frameworks.
Note: This booklet was edited in May 2004 and published in October 2004. During the period between May and October 2004, the name of the "Ministry of Public Management, Home Affairs, Posts and Telecommunications (MPHPT)" was changed to the "Ministry of Internal Affairs and Communications (MIC)." Thus, in this booklet, the "Ministry of Internal Affairs and Communications (MIC)" is used.
Unless otherwise expressly indicated, the term "the Minister" means "the Minister for Internal Affairs and Communications" in this booklet.
1) Telecommunications Business Law
In April 1985, the Telecommunications Business Law, for regulation of the telecommunications business, came into effect upon Japan's introduction of the principles of market competition into all areas of the telecommunications market.
Under the Telecommunications Business Law, regulations have been put in place to govern such items as entry and withdrawal regarding the telecommunications business, telecommunications facilities, rights-of-way, etc.
2) Radio Law
For construction of a network using radio equipment by a telecommunications carrier, in addition to the regulations as set forth in 1) under the Telecommunications Business Law, the telecommunications carrier shall abide by other regulations concerning radio station license, radio equipment, radio operator and operations of a radio station, etc. under the Radio Law.
Upon launching a telecommunications business, with respect to a person (a telecommunications carrier) installing large-scale telecommunications circuit facilities, the person shall be registered by the Minister. In cases of a person (a telecommunications carrier) installing no or only small-scale telecommunications circuit facilities, the person shall submit a notification with the Minister.
Whether the person should take procedures for registration or notification depends upon the following standard:
i) With regard to telecommunications circuit facilities to be installed, a person who meets the following two requirements shall submit a "notification":
a) Terminal system transmission line facilities remain within areas in one city, town or village (in cases of special wards and designated cities under the Local Autonomy Law, within one ward).
b) Transit system transmission line facilities remain within areas in one prefecture.
ii) A person who intends to conduct a telecommunications business by installing telecommunications circuit facilities that would surpass either one of the scale stipulated under the preceding requirement a) or b) shall register with the Minister.
Upon launching a telecommunications business, the procedures illustrated in Fig. 1 shall be taken (the procedures stipulated in the Radio Law shall be limited to cases where conducting a telecommunications business by means of radio communications.).
Of persons intending to conduct a telecommunications business by installing telecommunications circuit facilities, those who intend to exercise the right-of-way (so-called public utility privilege) for installing transmission lines may, separately from telecommunications business entry procedures such as the registration or notification, be granted the public utility privilege for all or part of its telecommunications business by obtaining approval from the Minister.