| Telecommunications Business Law (Authorization of Agreements, Etc. with Foreign Governments, Etc.) Article 40. Any telecommunications carrier shall obtain authorization from the Minister before the telecommunications carrier enters into, amends or terminates an agreement or contract with a foreign government, or person or juridical person concerning telecommunications activities and includes important matters specified in the applicable MIC ordinance. (Article 26 of the Regulations for Enforcement of the Telecommunications Business Law (MIC ordinance)) |
1. Procedure for Authorization of Business Agreement
A telecommunications carrier shall obtain authorization from the Minister before said carrier enters into, amends or terminates an agreement, etc. with a foreign government, etc. in relation to telecommunications services.
In filing an application for authorization of a business agreement, Form 20 and the following documents (when the original documents are written in a foreign language, those translated into Japanese are needed) are required:
• A copy of the agreement or contract
• A document describing the details of the method of implementing the agreement
• In cases of application for authorization of changes, a document comparing the agreements before and after the changes
2. Examination
Authorization by the Minister may be granted when the business agreement is recognized to be in conformity with the following examination standards:
1) Examination Standards
i) Foreign governments, etc. are eligible as counterparts of said agreements, etc.
ii) Where a service providers with whom the applicant concludes agreements, etc. is a telecommunications carrier headquartered in a country other than members of the World Trade Organization, the ratio of the amount of money to be paid and received or shared (hereinafter referred to as a "accounting rate") and the ratio of the communications traffic volume shared by the parties shall conform to the following items from a) through c) (hereinafter referred to as a "uniform accounting rate system"). However, in cases of relay circuits via a third country, the system c) shall not apply.
a) Accounting rates and the method to converge yen into any other currency of payment are the same as those under other agreements, etc. with another Japanese telecommunications carrier. However, provided that said other agreements, etc. are scheduled to be changed to the same conditions between carriers involved, this shall not apply.
b) Amounts of accounting rates to be shared are equal for the countries at both ends.
c) Between the countries at both ends, the "ratio of the communications traffic volume outgoing from the applicant to carriers with whom agreements, etc. are to be concluded to the total communications traffic volume incoming to said carrier" is comparable to the "ratio of the communications traffic volume outgoing from said carriers to the applicant to the total communications traffic volume outgoing from said carriers."
iii) In concluding agreements, etc. with carriers headquartered in a country other than members of the World Trade Organization, a telecommunications carrier informs the other party of the uniform accounting rate system with whom agreements, etc. are to be concluded, for making the uniform accounting rate system a prerequisite of an agreement between the parties.
iv) Matters concerning the scope of responsibilities to be assumed between the parties are properly and clearly stipulated.
v) Agreements. etc. include no provisions that unfairly discriminate against one party compared with agreements, etc. the parties have concluded with other carriers.
vi) Security and reliability of communications are ensured.
vii) The parties faithfully perform their duties imposed upon them by international treaties, agreements, etc.
viii) Agreements, etc. have no fear of hindering the promotion of public interest such as hindering fair competition within the telecommunications market.
2) Standard processing period
30 days