Summary of Meeting of the Radio Regulatory Council (No. 901)



1. Date and Time
  November 9, 2005 (Wednesday)
16:02 to 18:13
2. Location
  Meeting Room of MIC (Ministry of Internal Affairs and Communications)
(Meeting Room No. 1002 on the10th floor)
3. Attendees (Honorifics omitted)
(1) Members of the Radio Regulatory Council
  Yasuhiko Yasuda (Chairperson), Junichi Hamada, Kashiko Kodate
(2) Hearing Examiner of the Radio Regulatory Council
  Shuichi Tanaka
(3) Secretary
  Ikko Mitsui (Deputy Director of the General Affairs Division, Telecommunications Bureau)
(4) MIC (Ministry of Internal Affairs and Communications)
  Takenaka (Minister of Internal Affairs and Communications), Suda (Director-General of the Telecommunications Bureau), Sakurai (Director-General of the Radio Department), Shimizu (Director-General for Policy Planning), Kouno (Deputy Director-General of the Minister's Secretariat), and others

4. Minutes of the Meeting
(1) Regarding the draft ministerial ordinance that partially amends the Regulations for Enforcement of the Radio Law, the Rules for Radio Equipment, and the Regulations Concerning Technical Standards Compliance Certification etc. of Specified Radio Equipment
(Consultation No. 30 of September 14, 2005)
     Having deliberated this draft ministerial ordinance for developing draft technical standards and the like for the 7 GHz band IMT-2000 (FDD method) and 2 GHz band IMT-2000 (TDD method) based on the written opinion and protocol submitted by the examiner who presided over procedures for inviting public comments (refer to the post-hearing opinion from the 407th Radio Regulatory Council’s written opinions), the Council concluded that the draft was acceptable and returned an affirmative reply.

(2) About the draft ministerial ordinance that partially amends the Regulations for Enforcement of the Radio Law and the Rules for Radio Equipment
(Consultation No. 37)
  The Ministry of Internal Affairs and Communications (hereinafter, “MIC”) explained the draft ministerial ordinance in the title concerning the sophistication of high-power 950 MHz band passive tag systems and the deployment of low-power 950 MHz band passive tag systems and held a questions-and-answers session.
Note that as Article 99-12 (1) of the Radio Law required that MIC hear public comments on this matter, MIC appointed ShuichiiTanaka as the examiner who would preside over procedures for inviting public comments.

a. Explanation by MIC
  This consults the Council about establishing the technical standards for UHF band electronic tag systems.
Electronic tag systems have been already deployed in the range of 135 kHz or less and in the 13.56 MHz and 2.45 GHz bands. However, these only provide short communication distances of a few centimeters to tens of centimeters. In contrast, as the communication distances for 950 MHz band electronic tags can be extended from a few meters to approximately 10 meters, they are expected to be used in various application forms, including international logistics management.
The 950 MHz band electronic tags have two types, namely, a high-power type and low-power type, the former was authorized for on-site radio stations in April 2005. Concerning the consultation on the high-power type, one of the considerations is the addition of frequency sharing technology, such as carrier sensing, which enables multiple systems to be used in high density. Another consideration is that as such radio stations meet the requirements of the registration system if they are equipped with a frequency sharing technology, some existing on-site radio stations could become new candidates for registered radio stations.
With regard to the lower-power type of 950 MHz band electronic tags, as the technical conditions for the lower-power types whose power is 10 mW or less were established in some reports by the Telecommunications Council, they must be authorized with the technical requirements established for them as specified low-power radio stations that require no license.
Note that while the high-power types use frequencies in the 2 MHz band between 952 and 954 MHz, the low-power types use the 3 MHz band. This is because the lower-power types can use wider frequencies than those of the high-power types due to the fact that the former have smaller transmission power and lax interference conditions in relation to 2G cellular phones that use adjacent frequency bands.
Finally, as to how to treat existing high-power systems to which licenses were granted since April 2005, as MIC believes that it would be harsh to impose on them the condition that they must re-equip with new, additional sharing technology, we agree that they can operate as current on-site radio stations without any sharing technology before their licenses expire.

b. Major questions and answers
  - The following question was asked:
Will the new type of high-power systems that include a carrier sensing function soon appear once the regulations for them are properly established?
MIC answered as follows:
MIC hears that new high-power systems are being developed, expecting that the reply for this inquiry will be completed on schedule and in that sense, the fact is that there are some users awaiting the appearance of new type systems.

(3) About the proposed change to a part of the frequency assignment plan
(Consultation No. 38)
  MIC explained the proposed change to a part of the frequency assignment plan in the wake of developing arrangements for 950 MHz band electronic tag systems and held a questions-and-answers session.
Note that as this matter did not require any public hearing procedures but had close relations with Consultation No. 34, MIC decided to invite public comments in conjunction with Consultation No. 34 and appointed Shuichi Tanaka as the examiner who would preside over procedures for inviting public comments.

a. Explanation by MIC
  This will change a part of the frequency assignment plan related to the arrangements proposed for the 950 MHz band electronic tag systems in Consultation No. 37.
This arrangement covers two topics: the sophistication of high-power types of passive tag systems, and the deployment of low-power types of passive tag systems. As the high-power types were addressed in terms of the frequency assignment plan when developing the arrangement for electronic tag systems in April 2005, this change to the frequency assignment plan is intended for the low-power types that do not require licenses.
As the 3 MHz band between 952 and 955 MHz is intended for low power business use with low-power types, the center frequency 953.5 MHz will be newly assigned to low power business applications.

b. Major questions and answers
  - The following question was asked:
I believe that the spectrum reallocation plan is under way. Will the 950 MHz band remain as it is?
MIC answered as follows:
Although MIC has to consider the situation of the reallocation of the 800 MHz band used by cellular phones and the 700 MHz band used by broadcasting, MIC still understands that the frequency band used by electronic tags will be excluded from the spectrum reallocation plan.
- The following question was asked:
How much expectation is placed on electronic tag systems and how much progress is being made concerning them outside Japan?
MIC answered as follows:
Internationally, electronic tag systems are mostly used with common frequencies, but the 950 MHz band will be used in global logistic management applications. Consequently, this frequency band could be used anywhere globally. In that sense, there is a significant global expectation concerning the 950 MHz band and various types of electronic tag systems are already commercially available in Europe, USA, and Korea.

(4) Regarding preliminary licenses for terrestrial digital broadcasting stations
(Consultation No. 39)
  MIC explained the preliminary licenses for terrestrial digital broadcasting stations and provided a questions-and-answers session. The Council deliberated this matter and indicated that the Council regarded it as acceptable.

a. Explanation by MIC
  In this Consultation, MIC consults the Council about the preliminary licenses for a total of 78 broadcasting stations: 16 stations from NHK, 1 station from the University of the Air Foundation, and 61 stations from private broadcasters. This will grant a preliminary license to all 171 key stations for terrestrial digital broadcasting stations, and all the key stations are scheduled to start operating on December 1, 2006.
With regard to the desired frequencies and antenna powers, all of the 78 stations wish to have those specified in the Plan for the Available Frequencies Allocated for Broadcasting. Among them, 3 NHK stations and 13 commercial TV stations desire a gradual increase of antenna power in line with the progress of reception measures and others at transitional stages in the process of reaching the rated power.
As an outline of the broadcasting services that they will provide, services center around the simulcasting of current analog broadcasts with HDTV from the very beginning of digital broadcasting. In addition, they plan to offer data services, such as news programs or weather information that leverages the characteristics of digital technologies. They also plan to provide other programs such as multi-channel broadcasts through SDTV and interactive programs as soon as the environments have been developed.
MIC believes that the applications examined for the preliminary licenses should be regarded as conforming to the Radio Law, the Essential Standards for Establishment of Broadcasting Stations, the Examination Standards Concerning the Radio Law, and the standards specified in the License Policies for Terrestrial Digital Television Broadcast Stations.
MIC also believes that the 16 stations that plan to gradually increase antenna power will be granted a specified set of antenna powers at once so that they can gradually increase the antenna power without difficulty. As the Regulations for Procedure for Obtaining a Radio Station License requires that a single antenna power must be specified, however, MIC wants to specify each antenna power in the set for a definite period. When they gradually increase antenna power, MIC wants to set up a licensing condition that they must submit a document that describes their test radio wave emission plan before they increase antenna power.

b. Major questions and answers
  - The following question was asked:
Does MIC know of anyone that plans to set up a new key station for digital broadcasting from scratch, rather than upgrading analog to digital broadcasting?
MIC answered as follows:
MIC does not deny the possibility that someone may make such a plan if circumstances require. For the time being, MIC has not heard of such plans, perhaps because the frequency environment will stay tight until the transitional period in 2011.

(5) Regarding authorizing the Japan Broadcasting Corporation to conduct business for leasing repeaters for BSAT-1b and BS-3N
(Consultation No. 40)

(6) Regarding authorizing the Japan Broadcasting Corporation to lease its own broadcasting equipment
(Consultation No. 41)
 
With regard to authorizing the Japan Broadcasting Corporation (NHK) to conduct business for leasing the repeaters of broadcasting satellites BSAT-1b and BS-3N and to lease its own broadcasting equipment, MIC explained the two cases together and provided a questions-and-answers session as follows. The Council deliberated the cases and replied indicating that the Council regarded them as acceptable.

a. Explanation by MIC
  This deals with two cases where NHK applied for approval to lease some BSAT repeaters owned by NHK to Broadcasting Satellite System Corporation (hereinafter, “B-SAT Corp.”) and to make the leasing operation a part of NHK’s business.
Currently, there are six commercial TV stations and NHK providing digital broadcasts. Standby satellite BSAT-2a for backing up the broadcasts suffered a failure in its command receivers in August 2005. B-SAT Corp. planned to launch satellite BSAT-3a to replace BSAT-2a in 2007. In the meantime, the company wants to share part of a standby satellite as a filler being used for analog broadcasting with digital broadcasting. For this reason, B-SAT Corp. applied for a lease contract to allow them to use 2 repeater systems of the backup 1b satellite for analog services and 2 repeater systems of the 3N satellite for the purpose of backing up digital broadcasting services against the unexpected.
After the application has been approved, the four repeaters will be shared among analog and digital services. If the analog part of satellite 1b should suffer a failure, the two shared repeaters would be preferentially interrupted as backups for analog broadcasting because they are originally owned by NHK for backups for analog services. This is one of the conditions that the application assumes.
MIC believes that it is appropriate to accept the application in consideration of the environment after it is approved because the business is necessary for the stable continuation of BS digital broadcasting, the application assumes the condition that the repeaters would be preferentially used for analog broadcasting due to the fact that they are standby equipment for NHK analog broadcasting, and the business will not cause competition with other companies. MIC thinks that their cost estimates were properly calculated based on depreciation costs, maintenance and running costs, and general administration costs considered over the design life of the satellites.

b. Major questions and answers
  - The following question was asked:
Has MIC already considered specific measures in the event that any one of the satellites suffers a failure in the future?
MIC answered as follows:
As analog broadcasting is transitioning to digital broadcasting, several standby satellites have been launched and satellite launch programs will be developed while watching the design life of each existing satellite. MIC clearly understands the path to the 2007 launch.
- The following question was asked:
Do we have to pay the lease fees of each of standby satellites although its corresponding active satellite is working normally?
MIC answered as follows:
The lease contract is subject to a suspended condition that payment will be made only if a problem occurs.

(7) Concerning approval for the establishment plan for specified base stations for telecommunications activity (mobile radio communications)
(Consultation No. 42)
 
MIC explained the approval for the establishment plan of base stations covering cellular phones that use the 1.7 GHz or 2 GHz band and provided a questions-and-answers session. The Council deliberated this matter and replied indicating that the Council regarded it as acceptable.

a. Explanation of MIC
  This consults the Council regarding approval for the establishment plan of base stations covering cellular phones that use new frequencies in the 1.7 GHz band and the like.
MIC established the Policy for Establishment of Specified Base Stations on August 11, 2005, and accepted applications for approval of the establishment plan from those who wanted to newly enter the cellular phone market from August 22 to September 30. As a result, MIC received applications from 3 companies and examined their applications in the light of the Policy and the applicable laws and regulations.
The overview of the establishment plans from the 3 companies is as follows: As to the 1.7 GHz band, two companies, BB Mobile Corp. and EMOBILE Ltd., applied for approval.
The two companies plan to use the W-CDMA method, an ITU standard, to provide voice and data transmission services across the country. At the same time, as to the 2 GHz band, one company, IPMobile Incorporated, applied for approval. The company plans to use the TD-CDMA method, another ITU standard, to provide data transmission services on a national basis.
Based on the examined items in Article 27-13 Paragraph 4 Particulars 1 to 3 of the Radio Law, MIC examined whether the establishment plans were appropriate in the light of the Establishment Policy, whether they would be feasible, and whether assignment of the frequencies was possible. Note that MIC omitted a comparative examination because the number of applicants did not exceed the maximum number of applicants specified in the Policy, and simply examined whether each application per se met the requirements.
In examining the application from BB Mobile, the examined items covering specified base stations, included a decision as to whether or not their method conformed to the international standard method specified by ITU, whether or not they would use the frequencies or their service would cover the whole Japan as specified in the Policy, whether or not they would start to offer their services within two years, whether or not the coverage rate of their base stations would reach 50% or more within five years, and so forth. The examination process proved that each examined item satisfied the corresponding requirement(s).
As to whether the company had sufficient technical capabilities to fulfill their plans, and whether their development plan was reasonable and specific, MIC judged that the company had developed an efficient operational system and had garnered technical know-how through prior experimental experience. With regard to the construction of their base stations and the development and procurement of terminals, the application stated that they had already obtained informal consent from the owners of the property concerning the installation of their base stations. In terms of their financial base, the profits for the term would move into the black within 5 years. MIC also recognized that their estimates for revenue and costs were in a reasonable range considering market trends and comparing them with those of other existing carriers. They planned to procure required funds through the vendor financing and the like.
As to crosstalk countermeasures, the company said that they would naturally take appropriate measures when they deployed their own stations and if the measures were not good enough, they would take additional ones, such as installing a reception filter in the radio station of the other party if necessary, after consultations with the licensee of the other party.
As explained so far, with regard to the likelihood of reliable implementation of the establishment plan, MIC accepted that the company was very likely to carry it out. MIC also judged that the frequency assignment was feasible and their plan was reasonable in this respect.
As stated above, MIC found that BB Mobile was sufficient in every respect for our examination.
Next, MIC found that EMOBILE was basically the same as BB Mobile. MIC thought that their technical capabilities were acceptable because they also had past experimental experience, and base station installation appeared to cause no problems for them because they had already started to negotiate with the owners of property about this matter.
In terms of their financial base, the company developed a plan for raising funds through loans and so forth.
For IPMobile, MIC judged that the company was basically the same as the other two companies. In terms of technology, TD-CDMA will be introduced for the first time in Japan. But, as the company had been testing the technology for more than two years and therefore garnered technical know-how, and Europe, USA, and other regions have launched commercial services using TD-CDMA, MIC concluded that adopting the method would not cause any problems from the technical viewpoint. In addition, in terms of the financial base, the company would not face any difficulties because they planned to raise the funds through leasing and so forth.

b. Major questions and answers
  - The following question was asked:
I believe that the TD-CDMA method adopted by IPMobile excludes voice transmission although the international method includes it. I am wondering if MIC’s judgment that the company’s plan intending data transmission only is reasonable.
MIC answered as follows:
The company said that they intended to concentrate on data transmission because voice transmission required a substantial amount of funds, including facility investment and development of a new type of data communication in their own right, and they believed that a wide variety of data communication services were not being offered in Japan. For this reason, MIC could not properly object to their plans.
- The following question was asked:
What measures will MIC take if some serious problems occur at the operational stage?
MIC answered as follows:
When MIC authorizes a company to use a frequency, it means that the frequency is denied to other companies and exclusively used for a certain period of time. Consequently, if the company should delay its plan without a cogent reason, it is naturally required that the Minister of Internal Affairs and Communications take stringent measures, such as withdrawal of authorization.
- The following question was asked:
What criteria were used when MIC looked at the fund raising scenarios?
MIC answered as follows:
MIC concluded that the fund raising plans in the applications from each of the companies were compelling to a certain degree from the viewpoint of relations with investors, etc.
- The following question was asked:
What if it turns out later that information included in the applications is false?
MIC answered as follows:
The authorizations would be withdrawn if it turns out that gross false information had been included in their applications.

(The Radio Regulatory Council Secretariat is responsible for the wording of this document.)