Summary of Meeting of the Radio Regulatory Council (No. 905)



1. Date and Time
  March 15, 2006 (Wednesday)
15:00 to 17:00
2. Location
  Meeting Room of MIC (Ministry of Internal Affairs and Communications)
(Meeting Room No. 1002 on the 10th floor)
3. Attendees (Honorifics omitted)
(1) Members of the Radio Regulatory Council
  Mitsutoshi Hatori (Chairperson), Takeo Inokuchi (Vice-Chairperson), 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)
  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) Draft of MIC ordinance to amend portion of Regulations for Enforcement of the Radio Law
(Consultation No. 1 of January 11, 2006)
    
 The council deliberated a partial amendment to the Regulations for Enforcement of the Radio Law, pertaining to cancellation of radio station licenses for radio equipment that are only used inside of shielded testing equipment or a living body with an electric field strength not exceeding the tolerated value for extremely low power radio stations outside the said testing equipment or living body. Deliberation was made based on submissions, which are written opinions and written statements (cf. No. 410: Written Opinion from Hearing on Opinions from the Radio Regulatory Council), from the hearing examiner, who presided over the opinion hearing procedure. Based on the deliberation, the council reported the draft as appropriate.

(2) Draft for MIC ordinance to amend respective portions of Regulations for Enforcement of the Radio Law, Regulations for Procedure for Obtaining a Radio Station License, Regulations for Radio Equipment and Ordinance Concerning Technical Regulations Conformity Certification, etc. of Specified Radio Equipment
(Consultation No. 3)
 
 The MIC explained the ordinance draft described in the title, and a Q&A session took place. The ordinance draft pertains to introduction of the Ka-band VSAT system, upgrading of radio equipment for the INMARSAT F System (ship-earth station), and the abolition of the INMARSAT E System (the Emergency Position Indicating Radio Beacon using the INMARSAT satellite).

 Moreover, Article 99-12-(1) of the Radio Law stipulates the hearing of opinions concerning this issue. Shuichi Tanaka was assigned as the hearing examiner to preside over the opinion hearing procedure.

a. Explanation by MIC
 
 There are basically three issues concerning Consultation 17. The first concerns the introduction of the Ka-band VSAT system.

 VSAT is an earth station with a very small antenna, and the control earth station, which is the master station, controls the transmission timing, etc. of the VSAT earth station as a slave station. The simplicity and inexpensiveness of the VSAT antenna has been essential in widening the scope of utilizing satellite telecommunications.

 Within our country, currently, there are about 7,500 VSTAT stations for the Ku-band. They are used for relay broadcasting that links a site to the television broadcasting station; or an earth station in the hazard prevention network of a local authority.

 The new Ka-band VSAT system that is planned to be introduced assures a wide band use with the 30 GHz band for uplink and the 20 GHz band for downlink. Additionally, with the antenna size being very small, it can be easily installed in general homes. Thus, expectation is high in the area of Internet service provision.

 The purpose of this amendment is to meet such needs. The amendment will stipulate the technical regulations and organize related regulations so as to include the system into the scope of the Technical Regulations Conformity Certification and blanket license.

 The second issue concerning this consultation is the upgrading of the INMARSAT F System.

 The INMARSAT system is a global system that utilizes a number of geostationary satellites over the equator, thus enabling telecommunication (e.g. telephone, facsimile) in almost all areas on the globe excluding the Arctic and Antarctic regions. Although it was initially an analogue service, performance had been enhanced by digitalization and speed increase. Moreover, the application scope was enlarged step-by-step, with the original scope including only ships. Now the scope includes onshore and aircraft.

 In Japan, the INMARSAT F system started from 2002, as a system that enables data transmission of Internet data, etc. on ships, at a transmission speed of 64 kbps. The said amendment aims to amend the Regulations for Radio Equipment so that a system with a maximum transmission speed of 128 kbps can be introduced, in order to respond to the recent demand for high-speed data transmission.

 The third issue is concerning the INMARSAT E system.

 The INMARSAT E system is a telecommunications system that automatically emits radio waves when a ship encounters a marine accident to notify location information for search and rescue. Although the service became available from 1993, there was no case of the INMARSAT E system being introduced into Japan. This was because the COPAS SARSAT system had already been introduced from 1985, and popularly adopted as a telecommunications system for search and rescue.

 Therefore, in December 2004, the Maritime Safety Committee of the International Maritime Organization decided to terminate the service on December 1, 2006; and it was decided that Inmarsat plc. will terminate all services. Corresponding to this situation, stipulations on technical standards related to the INMARSAT E system shall be excluded from the Regulations for Enforcement of the Radio Law and Regulations for Radio Equipment.

b. Main contents of the Q&A session
 
- Hearing that the Ka-band VSAT system is very inexpensive, the council asked the extent of this inexpensiveness, compared to the current status. The MIC answered that although VSAT earth stations are installed and operated at a cost of a few million yen, costs for other earth stations, in some cases, are hundreds of times higher. MIC concluded that, from the installation cost aspect, less expensive systems, such as VSAT, are essential.

- The council questioned why the Ka-band VSAT system is being introduced at this point. The MIC explained that the MIC judges this timing to be appropriate for institutionalization because the Broadband Internet Service via Satellite (BBISS) is launching its Wideband InterNetworking engineering test and Demonstration Satellite (WINDS) in 2008, and is planning to start a broadband service business for rural areas that is mostly hoped for as a means of utilizing the Ka-band VSAT system.

- The council asked if the concrete needs of the Ka-band VSAT have already been estimated. MIC answered that BBISS estimates that, five years after the start of service, there will be 200 thousand subscribers.

(3) Blanket license of specified radio stations belonging to the Local Authorities Satellite Communications Organization (LASCOM)
(Consultation No. 4)
 
 This consultation is concerning application by the Local Authorities Satellite Communications Organization (LASCOM for blanket licensing, pertaining to changing VSAT earth station licensees. The MIC gave the explanation below, and a Q&A session took place. After deliberation, the council reported the survey as appropriate.

a. Explanation by MIC
 
 This consultation is concerning application for blanket licenses by LASCOM to change the licensees of VSAT earth stations for the Regional Satellite Telecommunication Network that is used for disaster prevention by local authorities and other organizations.

 LASCOM started the said network operation from 1991 for disaster prevention. The network consists of SUPERBIRD satellites of the Space Communications Corporation (SCC) and 4,700 earth stations, including 4,500 VSAT earth stations installed at local authorities nationwide. Although LASCOM, which is the subject that controls and manages the network, and installs and manages the control station that controls all earth stations, other earth stations are installed and managed by the users who are local authorities (such as prefectural, city, and town governments).

 On the other hand, in regard to the satellite telecommunication service, the conventional system stipulates that a licensee of an earth station must be the licensee of an artificial satellite station, or a Type I Telecommunication Carrier that has concluded an operating agreement with an artificial satellite station licensee based on approval by the Minister of Internal Affairs and Communications. Therefore, the SCC is the licensee of the earth stations.

 In 2004, in response to the revision of the screening standards related to the Radio Law, it became possible for LASCOM to be an earth station licensee, provided that it becomes a telecommunication carrier and concludes a wholesale electrical telecommunications service provision contract with an artificial satellite licensee.

 From LASCOM’s viewpoint, if it can become a licensee of earth stations, it can centralize control and management of the network, and reduce business operation expenses. This background led the organization to apply for the blanket licensing of VSTAT earth stations.

 Reflecting the fact that even the same VSAT earth stations have different radio wave types and characteristics, the blanket license application is such that it is divided into three classifications – for 1st generation systems, 2nd generation systems, and systems conforming to mixed generation systems. However, the contents are the same with the applicant being LASCOM, the purpose being the telecommunications business, the reason for establishment being the opening of VSAT earth stations, the counterpart for telecommunication being artificial satellites for space telecommunications, and the planned due date for the start of operation being April 2006.

 The difference among the three applications is the maximum number of VSAT earth stations to be operated during the five year licensing period. The number is 4,300 for 1st generation systems, 500 for 2nd generation systems, and 700 for systems conforming to mixed generation systems.

 The application content – possibility of frequency allocation, four matters regarding fundamental standards for establishing the specified radio stations, and the maximum number in operation – was examined and the application was concluded as appropriate and in conformance to the regulations.

b. Main contents of the Q&A session
 
- The council asserted that the reason for the complex classification (1st generation, 2nd generation, mixed generation) is caused by the fact that the stations voluntarily established by the local authority have not reached the end of their product life. Although further discussions will not be in time for the settlement of this consultation, the council suggested the possibility of rental, etc. of stations, or other means to avoid ownership. MIC explained that the actual status is such that all local authorities, such as prefectural governments, compulsorily purchase VSAT earth stations. Mid-term renewal is difficult since there are the basic precondition that the stations shall be operated up to the end of their service life, together with the severe financial status of local authorities. Nevertheless, MIC has been seeing problems in this area. With rapid technological developments in this area, MIC does think that it is preferable to renew stations by introducing a rental or leasing system. Meanwhile, with regard to the digital image signal receiver mounted onto VSAT earth stations, a new procurement method is being introduced. From fiscal 2006 there is a plan for LASCOM to procure the receivers, and to start a business to lease the receivers to local authorities, such as prefectural, city and village governments. MIC answered that they intend to make further efforts to select flexible forms of procurement.

(4) Accreditation of the plan to establish specified radio stations using frequencies in the 1.7 GHz band
(Consultation No. 5)
 
 In regard to accreditation of the plan to establish base stations pertaining to mobile phones using frequencies in the 1.7 GHz band, the MIC gave the explanation below, and after deliberation, the council reported the accreditation as appropriate.

- Explanation by MIC
   This consultation is concerning application by three NTT DoCoMo group companies for accreditation of the plan to establish specified base stations using frequencies in the 1.7 GHz band.

 The purpose of the system is to permit only operators with an establishment plan that has been certified in advance. This is because it is necessary in businesses such as the mobile phone business to establish large numbers of base stations in an extensive area.

 Third generation mobile phones have mainly used frequencies in the 2 GHz band up to the present. The 1.7 GHz band was used for purposes other than mobile phones. However, it has become possible to allocate this frequency band to 3rd generation phones by moving the existing radio stations using the 1.7 GHz band to other frequency bands. This has led to the creation of establishment guidelines for the 1.7 GHz band in August 2005.

 The width of the 1.7 GHz band is 35 MHz, and this includes the 15 MHz width of the Nationwide Band. It has now become available for new entry operators and applications for new establishment plans are being accepted for accreditation. In November 2005, a bandwidth of 5 MHz has been allocated to each of two companies, which are BB Mobile Corp. and EMOBILE Ltd. On the other hand, bandwidth in the “Tokyo-Nagoya-Osaka” Regional Band with a width of 20 MHz is planned to be allocated to new entrants or incumbents in 5 MHz widths, in accordance with the increase in the number of subscribers.

Mobile phone operators are required to make quarterly reports to the MIC on the number of subscribers to their company. The frequency allocation method is such that, when the number of subscribers satisfies the establishment guidelines requirements, the operator may apply for accreditation of their establishment plan. The establishment guidelines require operators with a large number of assigned frequencies to accept a larger number of subscribers, from the standpoint of promoting effective use of the frequencies. When the assigned frequency is 15 MHz or under, the guidelines require accommodation of 500 thousand subscribers per 1 MHz. Similarly, for operators with an assigned frequency of 25 MHz or under, the requirement is 750 thousand subscribers; and for operators with an assigned frequency exceeding 25 MHz, the requirement is one million subscribers.
 
 In the case of NTT DoCoMo, Inc. that is applying for the said accreditation, approx. 20 MHz from the 2 GHz band is being allocated. With the number of 3rd generation system subscribers being 16.77 million at the end of September 2005, the operator satisfies the requirement.

 The schedule of accreditation is as follows. MIC was notified that the number of DoCoMo group subscribers exceeded the establishment guidelines on October 21, 2005, and MIC waited to apply for accreditation of their establishment plan from January 27, 2006 to February 27, 2006. Three companies in the NTT DoCoMo group applied for certification on February 20, and the MIC examined the case. Certification of the establishment plan is planned for April 1, 2006 or after. April 1, 2006 is when the existing radio station frequencies will be changed.

 As for the examination procedure, since the three companies, NTT DoCoMo, Inc., NTT DoCoMo TOKAI and NTT DoCoMo Kansai, Inc., are collaborating with their operations, MIC will treat the applications as one single application.

 The provided telecommunication service includes voice transmission and data transmission, adopting the W-CDMA method. The specified base station types are base stations and land mobile relay stations. Additionally, estimations for the next five years predict that the total number of specified base stations will be 3,475 for the said three companies, and the subscriber total will be 55.2 million for the entire group.

 The planned date for the start of operation should be within two years from the date of accreditation. Nevertheless, since the supply-demand situation for frequencies is serious, operation is planned to start from June 1, 2006.

 Moreover, the establishment guidelines require operators to establish base stations, so that the rate of population coverage will become 50% or over within the operator’s jurisdiction within three years. DoCoMo plans to achieve this in fiscal 2008.

 This application will be considered by checking conformance to the requirements of Article 27-13-(4) of the Radio Law. This application specifies that its radio equipment will be based on the W-CDMA technology which is ITU’s international standard. It also specifies that the frequency used will be in accordance with the establishment standards, and that the location and establishment date of specified base stations will meet the requirements. Furthermore, to ease the establishment of specified base stations and to enable them to operate smoothly, all requirements are met with sufficient technical capabilities, financial foundation, and systems for maintaining and controlling the equipment. Taking these conditions into consideration, this application is judged to be appropriate.

 For frequency allocation, since the radio stations that currently use this spectrum will change their frequency to another frequency band by the end of March 2006, frequency allocation will be possible from April.

 As referred to above, application details conform to the stipulations of the Radio Law. Therefore, MIC concludes that the establishment plan will be certified.

(5) Draft to amend part of the Plan for Available Frequencies Allocated to Broadcasting
(Consultation No. 6)
 
 In regard to the draft to amend part of the Plan for Available Frequencies Allocated to Broadcasting pertaining to the termination of BS (broadcasting satellite) analog Hi-Vision broadcasting and the clarification of the starting date for new digital broadcasting, the MIC gave the explanation below. After deliberation, the council reported the draft as appropriate.

- Explanation by MIC
 
 In relation to the Basic Plan for Broadcast Dissemination, the Hi-Vision broadcasting aired by NHK on Channel BS 9 is planned to be terminated in 2007. In the meantime, from 2007, digital broadcasting will increase the number of frequencies in use from four to five.

 Based on this, in December 2005, the Radio Regulatory Council asked for submission of a report on accreditation from the three new digital broadcasting operators. As a result of adjustment among the related operators, they submitted a request for the operation start date to be December 1, 2007. All parties reached an agreement with NHK requesting the analog Hi-Vision broadcasting to end on November 30, 2007 or before.

 Public comments were invited on this issue. The MIC received opinion for approval on clarifying the due date, thus it was decided to amend parts of the Plan for Available Frequencies Allocated to Broadcasting.

(6) Draft to amend part of the Basic Plan for Broadcast Dissemination
(Consultation No. 7)
 
 In regard to the draft to amend part of the Basic Plan for Broadcast Dissemination, pertaining to satellite supplementary broadcasting in the 2.6 GHz band for satellite digital sound broadcasting, the MIC gave the explanation below, and a Q&A session took place. After deliberation, the council reported the draft as appropriate.

a. Explanation by MIC
 
 Mobile broadcasting has already started from October 20, 2004. In relation to this, the Basic Plan for Broadcast Dissemination urges the “start of digital FM broadcasting at the earliest possible time.” However, since this sentence was written before the start of broadcasting, the said sentence shall be revised. Moreover, the sentence requiring “assurance, etc. of a good reception environment during in-transit reception shall be achieved at the best possible level” shall be changed. This is because mobile broadcasting shall not limit the assurance of stable reception only for the in-transit status. Stable reception shall be assured also in the non-transit status at various locations (e.g. inside tunnels, on the subway, inside public buildings). Otherwise it will not offer improved convenience for listeners. It has been decided that mobile broadcasting will transmit satellite supplementary broadcasts to enable reception under such situations. The wording “during in-transit reception” will be deleted.

 MIC invited public opinions on these issues prior to this consultation. Although some opinions asserted that satellite supplementary broadcasting may cause problems such as congestion, MIC judged that congestion can be prevented by installing facilities, etc. or revising technical standards, etc. MIC concluded that this decision will contribute to improved convenience for listeners and sound development of broadcasting.

b. Main contents of the Q&A session
 
- The council questioned if the broadcasting referred to in this consultation responds to disaster and emergency situations. MIC explained that, at the time of the Niigata earthquake, this broadcasting system worked well with reception being good. Moreover, since the significance of this broadcasting lays in the availability of reception in all areas within Japan, the MIC answered that the change in the Basic Plan is based on the original goal of improved convenience for listeners by making reception available in all areas.

(7) Accreditation on contribution to the Broadcasting Programming Center of Japan from Japan Broadcasting Corp. (hereinafter referred to as NHK)
(Consultation No. 8)
 
 In regard to accreditation on donations to the Broadcasting Programming Center of Japan from NHK, the MIC gave the explanation below. After deliberation, the council reported the survey as appropriate.

-Explanation by MIC
 
 NHK applied for accreditation for contributing 100 million yen in response to a request from the Broadcasting Programming Center of Japan.

 The Broadcasting Programming Center of Japan operates two businesses. They are: the general operation of purchasing educational and cultural programs from key stations and NHK to distribute to local stations, and the library operation of the systematic archiving of valuable broadcasting programs based on the Broadcasting Law.

 In the past, the 100 million yen contribution was used entirely for general operations, and the library operation was run by investment profits from the broadcasting operators’ fund. Nevertheless, the need for general operations has been downsized, and with the trend towards lowered interest rates in the background, it has become difficult to run the library based on investment profits. In order to take up the request from the Broadcasting Programming Center of Japan to use part of the contribution for the library operation, NHK requested to divide the purpose for which the 100 million yen will used – 30 million yen for general operations and the remaining 70 million yen for library operations. Other commercial based broadcasting operators are planning to act in line with NHK, to respond to the request from the Broadcasting Programming Center of Japan.

 MIC considers this accreditation as adequate, based on the fact that this business operation is highly public and meaningful in the sense that it will contribute to the upgrading of our country’s broadcasting culture, and based on the Diet’s approval for the 100 million yen contribution in fiscal 2005.

(8) Accreditation on contribution to the Broadcasting Programming Center of Japan from Japan Broadcasting Corp. (hereinafter referred to as NHK)
(Consultation No. 9)
 
 In regard to accreditation on changes to the Rules on Receiving Broadcasts by NHK, the MIC gave the explanation below, and a Q&A session took place. After deliberation, the council reported the survey as appropriate.

a. Explanation by MIC
 
 This consultation is concerning an application from NHK on accreditation on changes to the Rules on Receiving Broadcasts by NHK. The change pertains to changes in the payment method, etc. for NHK’s broadcast reception fee.

 There are basically three points regarding this change. The first point is to provide a wider choice in the payment method for the fee, similar to public utility charges, by enabling regular payments using credit cards. The second point is to introduce credit card payments for regular payment by bank transfer. The third point is to introduce the so-called family discount system, which gives a 33% discount to a family member not living in the main family household for reasons such as study or for job purposes.

 Implementation date is planned for April 1, 2006 for regular payment by credit cards; June 1, 2006 for credit card payment for regular payment by bank transfer; and December 1, 2006 for the family discount.

 The reasons for changes to the rules are as follows. Regular payment by credit cards has already been introduced as a method of paying public utility charges. Change from door-to-door bill collection to this payment method will not only contribute to increased profits from broadcast receiving contracts, but also make things more convenient for payers of the broadcast reception fee.

 The second point is meant to meet the needs of payers of the broadcast reception fee that normally pay using transfer sheets at convenient stores or banking institutions. This change will enable them to occasionally pay via the Internet using a credit card, when there is a need. This will make it easier to pay the broadcast reception fee.

 The third change introduced will contribute to reducing the cost of payment, and will solve the problem of people not having contracts. People who receive NHK broadcasts without a contract total to about 52% of students and 40% of single business people. A household containing multiple payers of the fee who are students and workers not living together with their families, can be objectively identified by student identification cards or health insurance ID cards. This change will be meaningful in the sense that it will be the first step towards correcting the sense of unfairness.

 Since all changes will require investment for purposes such as improving the system, it will be difficult to balance income and expenditures in the first fiscal year. However, the system ensures that a balance will be achieved in the long run, and the MIC judges that this will not be a serious problem.

b.Main contents of the Q&A session
 
-The council agreed that the discount system is preferable, yet the council also asked about the possibility of increasing the fee collection cost, as the costs of checking each payer’s status may be considerable. MIC answered that the system will not significantly increase costs. The explanation given was that although checking by door-to-door visits will be costly, it is feasible to check the payer’s status efficiently by having them send copies of their student identification card or health insurance ID card when they apply for the contract via the Internet, etc.

- The council suggested the possibility of new contract troubles. MIC answered that NHK insists that it will allocate time and effort to familiarization and PR. MIC thinks that NHK will use the media, including television, to make the PR effective.

- The council commented that MIC’s explanation does not give sufficient reassurance on the effectiveness of matching the payer's status with the documentation. MIC commented that to complete the procedure for this system, the system will require students and single workers to certify their status, and also require certification of payment of the broadcast reception fee by the family, by bank transfer, etc. Taking these into consideration, MIC answered that there are no problems.

- The council commented that according to explanation by MIC, the family discount will apply only to students and single business persons. The council asked if this will apply in cases where a person says that they have two “homes”. The MIC answered that the said changes to the Rules on Receiving Broadcasts of NHK will initially apply to students and single business persons for whom objective identification is possible. However, for example, in cases where a person owns a holiday cottage or the like and concludes two or more contracts, it becomes difficult to keep track of the person’s status of residency. This will probably become a future issue for NHK, in relation to what extent the status of residency can be checked.

- The council asked what the situation will be for houses that watch television using a personal computer. The MIC commented that if one contract is concluded for one household, there will be no problem for a family member to view television using a personal computer or mobile phone at home, or take a personal computer on a business trip to watch television. Nevertheless, MIC answered that if a person only watches television using a personal computer at a work location they are transferred to, it will be interpreted as installation of a receiver, and that the person must pay the reception fee.

- The council asked about the contract status for legal entities such as universities. MIC explained that institutions must conclude multiple contracts, if there is a receiver per individual section. The MIC commented that since there is no discount system, a review of some kind will be necessary. MIC answered that NHK have also made it clear that it will carefully study the situation, and intends to review the broadcast reception fee system, including discounts for institutions, in fiscal 2007.

(9) Fiscal 2006 Order to Conduct International Broadcasting to be issued to Japan Broadcasting Corp. (hereinafter referred to as NHK)
(Consultation No. 10)
 
 In regard to the Fiscal 2006 Order to Conduct International Broadcasting to be issued to NHK, the MIC gave the explanation below, and a Q&A session took place. After deliberation, the council reported each issue as appropriate.

a. Explanation by MIC
 
 This consultation is concerning the order to NHK to conduct international broadcasting with designating contents, as stipulated in Article 33 of the Broadcast Law.

 Current shortwave broadcasts extend worldwide in 22 languages for a total of 65 hours in one day. A similar order is planned to be issued for fiscal 2006, in compliance with this regulation. In compliance with the Broadcast Law, and aiming at improving the effects of international broadcasting, NHK will broadcast internationally in parallel with NHK's short-wave international broadcasting, which NHK has been conducting on a voluntary basis.

 The content of the broadcasts shall also be according to custom, and include current events, important national policies, governmental outlook, etc. National cost burden shall be about 2,256 million yen, a reduction of 17 million yen.

b. Main contents of the Q&A session
 
-The council questioned the broadcast reception fee for people who are stationed abroad and receiving NHK’s international broadcasts. The MIC answered that such persons do not need to pay the broadcast reception fee, because Japanese Law does not apply to persons who do not reside in Japan.

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