Final Report of the Study Group Concerning Satellite Broadcasting
--The Future Direction of Satellite Broadcasting--




December 25, 2002

Information and Communications Policy Bureau
Ministry of Public Management, Home Affairs, Posts and Telecommunications




Contents

Introductions
1. The Future Satellite Broadcasting Environment
 
(1) Advances in Technology and Changes in Usable Frequencies
(2) Developments in the Supply of Programming
(3) Developments in Viewer Preferences and the Advertising Market
2. The Future Direction of Satellite Broadcasting
 
(1) The Direction of Satellite Broadcasting Development
(2) The Role and Positioning of Satellite Broadcasting
(3) Positioning of Each Satellite Broadcasting Category
3. Issues Affecting the Future Expansion and Development of Satellite Broadcasting
 
(1) Issues Affecting BS Broadcasting
(2) Issues Affecting CS Broadcasting
(3) Issues Affecting 110-degree East Longitude CS Digital Broadcasting
(4) Issues from the Perspective of the Viewing Public
Conclusions - The Roles of The Public and Private Sectors in the Expansion and Development of Satellite Broadcasting
Appendix - Items that can Serve as the Content of Guidelines on the Operations of Platform Operators in Satellite Broadcasting



Introduction
The Study Group Concerning Satellite Broadcasting was established in March of this year with the objective of conducting necessary investigations into the future direction of satellite broadcasting as it enters a new phase with the advent of BS (broadcast satellite) digital broadcasts and 110-degree east longitude CS (communications satellite) digital broadcasts and the coming into force of the Law Concerning Broadcast on Telecommunications Services. The Study Group also investigated the expansion of satellite broadcasting in the near future.After inviting comments from the general public, in July the Study Group prepared an Interim Report on the expansion of satellite broadcasting from the perspective of responding rapidly to changes in the satellite broadcasting environment.
      The Study Group also examined the future direction of satellite broadcasting overall and the positioning of each satellite broadcast category. This Final Report, entitled "The Future Direction of Satellite Broadcasting," focuses on these issues as well as the development of satellite broadcasting in the next five to ten years.
      This Final Report does not cover issues that were dealt with in the Interim Report unless there was some specific need to do so. The Interim Report and the Final Report together may be considered a comprehensive report of the Study Group's investigations and findings.
      The members of the Study Group hope that these reports will provide some perspective on the direction of future satellite broadcasting development and will contribute to the further development and expansion of satellite broadcasting.

1. The Future Satellite Broadcasting Environment
When considering the direction of satellite broadcasting in the next five to ten years, it is necessary first to prepare an overview of the satellite broadcasting environment in the future. In order to address this issue, the Study Group looked at hardware issues affecting satellite broadcasting from the perspective of advances in technology and changes in usable frequencies; software issues from the perspective of developments in the supply of programming; and issues concerning the satellite broadcasting business from the perspective of developments in viewer preferences and the advertising market.

(1) Advances in Technology and Changes in Usable Frequencies Reduction in Technological Differences Between BS and CS
Until recently, there existed certain technological differences between broadcast satellites (BS), which use broadcast frequencies, and communications satellites (CS), which use communications frequencies, such as the output of the satellite transponders. Today, however, the differences, at least from a technological perspective, are narrowing.
Nonetheless, there are instances in which the transmission capacity per transponder or polarization types differ depending on the satellite and in which the modulation protocol or the restricted receiver systems used for customer control differ according to the satellite broadcast. Accordingly, it is necessary to keep in mind that there are operational differences.

Expansion of Digital Broadcasting
As was pointed out in the Interim Report, it is fundamentally possible to accomplish with digital broadcasting all that can be done with analog broadcasting, while digital broadcasting offers the potential to provide a variety of services that are not possible with analog. Consequently, considering the superiority of digital technology compared to analog technology and that digital receivers, which are currently more expensive than analog receivers, are expected to continue falling in price, it must be assumed that in the future an increasing share of satellite broadcasting will be digital and that digital receivers will replace analog receivers.
      It is likely that advanced digital satellite broadcasting will make full use of the unique characteristics of digital technologies and that a broader range of high-quality and varied services will be made available.
In addition, as digital technologies advance even further, effective utilization of bandwidth will similarly advance. It is believed, however, that large-scale increases in utilization efficiency resulting from the transition from analog to digital will be difficult to achieve.

Changes in Usable Frequencies
It is necessary to keep in mind the fact that in the future, frequencies that can actually be utilized for satellite broadcasting will include, in addition to the frequencies used by satellites currently in operation, additional BS channels and frequencies in the 2.6-GHz band (for audio).

Technology Development
Development of technologies related to the utilization of frequencies above the 21 GHz band, which are currently not used for satellite broadcasting, and to phased array antennas, which can improve the reliability of satellite broadcasts, is advancing and application of these technologies is anticipated. Actual application, however, is expected to take place sometime after the five- to ten-year scope covered by the Study Group's investigations.
      In addition, it must be considered that in addition to the geostationary satellite system currently in use, development of quasi-zenithal satellite systems will continue and there is the possibility that broadcasts using these types of new satellite systems will be introduced.

(2) Developments in the Supply of Programming
Programming
Compared to the expansion of transmission channels in satellite broadcasting and other media, the increase in the supply of programming suitable for broadcast is subject to certain limitations.
      As a result, the relationship between supply and demand will likely result in increasing prices for programming that is agreeable to viewers over the short term.
Programming that is agreeable to viewers will likely be put to multiple applications by employing a variety of channels, and the efficient multiple application of programming will require the adoption of certain rules for that purpose. Since the cooperation and agreement of concerned parties will be necessary for the formation of such rules, it should be kept in mind that undertakings in this direction are essential and that a certain amount of time will be necessary.

Key Points concerning the Use of Digital Programming
Digital broadcasting will necessarily require the use of digital programming, and it must be kept in mind that there are significant differences from the use of analog programming such as the calls for strong copy protection with the use of digital programming.
With regard to this point, technical standards for the protection of rights to programming used in digital broadcasting were adopted in June 2002. Since a systematic response is now possible, further actions by broadcasters are expected.

(3) Developments in Viewer Preferences and the Advertising Market Gaining Viewer Preferences Amidst Increases in Media
As the number and types of media increase, the spread of new media will require that such media be distinguished from others. If they do not have some areas of comparative superiority, it will be difficult for them to gain viewer acceptance. The areas of superiority of satellite broadcasting compared to other media include, in particular, the ability to cover the entire nation with a single broadcast and the ability to use a wide bandwidth. The full utilization of these strengths is linked directly to the expansion and widespread use of satellite broadcasting.
      Within the relationship between satellite broadcasting and other media with respect to viewer preferences, the relationship with Internet usage is a focus of attention, but the relationship between the two has both elements of being substitute media and elements of being complementary media, so the relationship is not entirely clear at this stage.

Developments in Viewer Preferences Concerning Free and Fee-Based Broadcasts
Viewer preferences vary depending on whether the programming is free of charge or fee based. With respect to fee-based programming, the number of viewers is limited and there is a limit to the amount that viewers are willing to pay.
      It is believed, however, that the number of viewers with a preference for free programming is higher than the number of viewers with a preference for fee-based programming. In the case of free programming, however, if the initial costs for antenna and receiver installation are high, this will limit the number of potential viewers, although not to the same extent as in the case of fee-based programming.

Developments in the Advertising Market
Free programming is dependent upon advertising for its operating revenues, but the advertising market in Japan grows at essentially the same rate as GDP, so it is necessary to keep in mind that there is a practical limit to the potential scale of the overall advertising market.

Other Developments
When viewers select programming, other factors such as the ease of use of services and terminals, how information necessary for the selection of programming is provided, the ease of subscribing to fee-based services, and the public image of the broadcasting in question all have an impact.
      It must also be considered that there may be some viewers who wish to receive certain programming but are unable to do so because of problems concerning the installation of community reception equipment in apartment and condominium complexes.

2. The Future Direction of Satellite Broadcasting
(1) The Direction of Satellite Broadcasting Development
Key Points Concerning Satellite Broadcasting Development
Based on the discussions in Section 1 above, it must be kept in mind that although improvements in satellite broadcasting services and the acquisition of frequencies necessary for an expansion of services can reasonably be expected, when considering the issues of supply of programming, viewer preference for satellite broadcasting, and the scale of the advertising market for satellite broadcasting, the number of firms that will be able to provide satellite broadcasting services and the number of channels will be limited.
      It must also be considered that, with respect to the provision of services, if satellite broadcasting is not able to differentiate itself from other media, then it will be forced to compete with other media.

The Necessity of Providing Appealing Services
In light of the points raised above, we can conclude that the further expansion and adoption of satellite broadcasting will require further provision of appealing services.
      This will require, fundamentally, the provision of appealing programming, but in addition, the provision of novel and high-quality services through the increased provision of high-definition broadcasts, implementation of collaborative services with other media, flexible use of bandwidths according to the programming, implementation of server-type broadcasting, and so on.
      In addition, as a broadcast media, satellite broadcasting must also continue the heavy emphasis on the reliability and ease of use that viewers of conventional broadcasting services enjoy.

(2) The Role and Positioning of Satellite Broadcasting
The Role Played by Satellite Broadcasting
Japan boasts a world-leading satellite broadcasting penetration rate, and considering the role satellite broadcasting plays in spreading digital television and the competitive edge of Japanese companies with respect to digital television, satellite broadcasting has a large role in the construction of an information technology (IT) society in Japan. Thus, it is necessary for satellite broadcasting to develop as a broadcast media in harmony with terrestrial broadcasting and cable television even as it maintains some degree of competition with them.

The Positioning of Satellite Broadcasting
The positioning of satellite broadcasting within all broadcast media in Japan is as a media with nationwide broadcasting coverage and as quasi-backbone broadcast media or specialized multi-channel media with nationwide coverage at its core that acts as a pioneer in the digitization of broadcasting as a whole. This positioning is not expected to change in the immediate future.

(3) Positioning of Each Satellite Broadcasting Category
Direction in the Immediate Future
With respect to the different categories of satellite broadcasting, with the narrowing of the technological differences between broadcast satellites (BS) and communications satellites (CS), the differences between satellites and reception antennas will likely be eliminated.
      Nonetheless, there are currently specific differences between the two including the shortage of frequencies, the number of existing viewers, and business models for services. During the period of investigation of this Study Group, i.e., the next five to ten years, BS broadcasting will continue to develop as quasi-backbone broadcast media while CS broadcasting will develop in the direction of multi-channel broadcasting.
      Also, from the viewer's perspective, the practical differences between these two categories will be determined largely by the types of services that each offers.
      Premised on these concepts, the Study Group's thinking concerning the positioning of each category of satellite broadcasting is discussed below.

a. BS digital broadcasting
Quasi-Backbone Broadcast Media
BS digital broadcasts will likely develop as a quasi backbone broadcast media, focusing on comprehensive programming broadcast in high-definition. In the future, it is possible that BS digital broadcasts will spread to a majority of households. Also, by utilizing digital technologies to provide highly varied broadcasts, the role of BS broadcasts will be large as a forerunner to the digitization of terrestrial broadcasting.
      As a result, under the dual system consisting of NHK (public) and private broadcasting, NHK will be expected to play a leading role.
        Furthermore, BS analog broadcasting will likely shift to BS digital broadcasting.

b. CS digital broadcasting
Specialized Multi-Channel Broadcast Media
CS digital broadcasting other than 110-degree east longitude CS broadcasting will continue to develop as a specialized multi-channel media, responding to the diverse needs of viewers by providing highly varied programming.
      Accordingly, it is necessary to create an environment in which the smooth replacement of programming and broadcasters is possible and the provision of new services is easily implemented.

c. 110-degree east longitude CS digital broadcasting
Intermediate Characteristics Between BS and CS
110-degree east longitude CS digital broadcasts utilize receivers in common with BS digital broadcasts, and considering that in the future a large number households will have dual-use receivers and that compared to current BS digital broadcasts, the number of useable frequencies is higher and a large number of channels can be provided, 110-degree east longitude CS broadcasting is expected to develop as an intermediate form of broadcasting positioned between BS broadcasting and CS broadcasting.

Relationship with BS Digital Broadcasting
Since 110-degree east longitude CS digital broadcasting share receivers with BS digital broadcasting, basically its expansion is largely dependent upon the expansion of BS digital broadcasting and it will serve to provide added value to BS digital broadcasting.
      Consequently, 110-degree east longitude CS digital broadcasting requires a structure that will enable it to develop in collaboration with BS digital broadcasting.
      This will require the provision of services by 110-degree east longitude CS digital broadcasting in conjunction with BS digital broadcasting. In this case, however, it will be necessary to convey accurately to viewers the unique characteristics of the two types of broadcasting.
      With the start of terrestrial digital broadcasting next year, it is expected that receivers capable of receiving all three types of digital broadcasts (terrestrial, 110-degree east longitude CS, and BS) will proliferate.

Expectations for Development of Varied Services
Compared to BS digital broadcasting, 110-degree east longitude CS digital broadcasting offers more useable frequencies, and there are high expectations for the flexible development of highly varied services. Accordingly, it is necessary to keep in mind the creation of an environment that will facilitate such development.

d. Other Broadcasting
Considering the ease of reception by mobile and other terminals of 2.6-GHz band satellite digital audio broadcasting, we expect that such broadcasts will expand in the future.

3. Issues Affecting the Future Expansion and Development of Satellite Broadcasting
The Study Group's Interim Report (released on July 19, 2002) raised many of the issues affecting the future expansion and development of satellite broadcasting. These issues must continue to be steadily addressed, and some additional issues affecting the future expansion and development of satellite broadcasting that also warrant attention are discussed below.

(1) Issues Affecting BS Broadcasting
Terminating BS Analog Broadcasts
The digitization of broadcasting has many benefits and will greatly increase convenience to viewers. Consequently, in the future expansion and development of "broadcasting," which uses valuable frequencies, all broadcasting will eventually be digitized. We should assume that at some point the current analog broadcasting used for BS broadcasts will be terminated and a shift will be made to digital broadcasts.
      The Basic Broadcasting Plan states the following with respect to the analog high-definition BS broadcast channel (BS channel 9): "Prior to the termination of operation of the broadcast satellite that went into operation in 1997 (its design service life is until 2007), an appropriate termination date will be set based on the status of the shift by viewers of its broadcasts to digital broadcasts and other factors and with due regard for a necessary transition period." However, the procedure for terminating other channels has not been set.
      In light of these circumstances, the smooth transition of BS broadcasting from analog to digital will require the conveyance to the general public of key information concerning the timing of termination of analog broadcasts to enable individuals to replace their television receivers. The Study Group's Interim Report stated with respect to the optimal procedure for terminating analog broadcasts, "Taking into consideration the ideal for satellite broadcasting overall in the future and the wishes of viewers, it is necessary to begin investigations immediately and, upon reaching conclusions, to provide accurate information to the public."Based on the Interim Report, the Study Group examined appropriate means of terminating BS analog broadcasts and came to the following conclusions.
      BS analog broadcasting has spread to more than 15 million households, making it one of the world's most successful media. This is the result of the efforts of the national government, broadcasters, manufacturers, and other parties and the support of the viewing public. We must keep in mind that the termination of BS analog broadcasting, like the termination of terrestrial analog broadcasting, means undertaking a major project that is virtually unprecedented.
      When setting the specific timing for the termination of BS analog broadcasts, the following points must be adequately considered within the overall deliberations.
     ·   Giving due regard to viewers of BS analog broadcasts.
·   Coordinating the progress of the digitization of broadcasting as a whole and contributing to the expansion of digital broadcasting
·   The timing of replacement purchases of television receivers in households.
·   The timing of the termination of operation of the satellite currently used for analog broadcasts (its design service life is until 2007).

      The Study Group considered all of these factors and concluded unanimously that it would be appropriate to terminate the analog high-definition channel (BS channel 9) at the time of the end of the design service life of the satellite used for those analog broadcasts, i.e., 2007. The Study Group further concluded that it would be appropriate for other analog satellite broadcasts-NHK BS-1 (BS channel 7), NHK BS-2 (BS channel 11), and WOWOW (BS channel 5)-to be terminated in conjunction with the termination of terrestrial analog broadcasts by 2011.
      In accordance with these conclusions, among the BS analog broadcasts, the three channels other than the analog high-definition channel will not be terminated at the end of the design service life of the satellite used for those analog broadcasts in 2007, and accordingly, to ensure continued stable broadcasts and to protect the interests of viewers, it will be necessary to launch a new satellite by 2007.
      In order to make a launch by 2007 possible, it is necessary to move forward with investigations on the new satellite and within those investigations to determine the optimal systems to be adopted and applications following the termination of BS analog broadcasts.
      With respect to the applications of a new satellite, formats that will allow for coordination with the termination in 2011 of terrestrial analog broadcasts, which serve as a backbone medium and that will contribute to the digitization of broadcasting are necessary, as is consideration the effective use of satellites
      Consequently, it is appropriate that a new satellite be used for digital broadcasting following the termination of analog broadcasting. Specifically, a new satellite may serve as a successor to the satellite currently used for digital broadcasts (BSAT-2a), which has a design service life to March 2011. Alternatively, it would also be possible to launch a new satellite in 2007 to serve as a main or spare digital broadcast satellite, with the satellite used for analog broadcasts diverted to digital broadcast use.
      Furthermore, since analog high-definition channel will end in 2007, in considering the optimal format of a new satellite, it is also necessary to determine the use of the current analog high-definition channel (BS channel 9) after 2007.
      In this view, since the use of this channel will be concurrent with other analog broadcast channels on the same satellite, and since there is a lack of adequate capacity for data transmissions even as calls are being made for the implementation of varied programming in order to provide highly appealing services, use as a provisional measure is possible for the enhancement of current BS digital broadcasting services. This will serve to enhance the attractiveness of BS digital broadcasting services while promoting the smooth transition in the final stages from BS analog broadcasting to digital broadcasting and thereby contribute to its further spread.
      The most important factor concerning the termination of BS analog broadcasts is the accurate and certain conveyance to consumers and viewers of the timing of the termination and the prevention of unnecessary confusion on the part of consumers and viewers. In order to carry this out, it is necessary for the national government to adopt at the earliest possible date a formal policy setting the timing of BS analog broadcast termination based on the reports of the Study Group and to announce the timing. It is also necessary for the national government and involved parties to notify the public adequately in conjunction with notification concerning the termination of terrestrial analog broadcasting.
      A major issue concerning the termination of BS analog broadcasting is the smooth transition from analog to digital by viewers. In order to ensure that this transition is a smooth one, it is necessary to take effective measures according to the circumstances of the transition. The most fundamental factors are enhancing the appeal of current digital broadcasts, ensuring that viewers understand the benefits of digital broadcasting, and promoting the transition from analog to digital.
      This will require BS digital broadcasters to improve and expand programming that utilizes fully the benefits of digital broadcasting including high-definition programming and interactive programming. There is a strong need for proactive implementation of the measures described in the Study Group's Interim Report and in the action plan for promoting digital broadcasting prepared by the round -table conference on future aspects of broadcasting in the age of broadband and a strong awareness that such measures will be essential for the transition to digital broadcasting is also required.
      It is also necessary to maintain and raise the confidence of viewers in broadcasting as a media as measures are taken by the entire nation to convert from analog to digital based on the formal policy adopted by the national government concerning the timing of BS analog broadcasting termination and this Study Group's reports. From this perspective, it is possible that additional measures will be necessary in the future in order to ensure a smooth transition by viewers from analog to digital, and accordingly, it is essential that investigations be made to ensure that appropriate responses are made.

Development of an Environment to Promote Services that Utilize the Unique Characteristics of Digital Broadcasting
The Study Group pointed out in its Interim Report the necessity of enhancing further the appeal of digital broadcasting by utilizing to the greatest extent possible the unique characteristics of digital broadcasting and providing flexible combinations of varied services to ensure the further expansion and development of BS digital broadcasting.
      In response to the Interim Report, the MPHPT is already performing work on revisions to create a system that will allow for flexible use of transmission capacities in response to programming content and other factors. To follow up on this work, it is necessary to create an environment that will enable the provision of even more diverse services.

(2) Issues Affecting CS Broadcasting
Need for Cooperation between Involved Parties
In the CS digital broadcasting field, a system that divides that hardware and software aspects of broadcasting has been in place to facilitate participation in the industry by the largest possible number of parties. Program-supplying broadcasters and satellite broadcasters on telecommunications service (hereinafter collectively referred to as "program-supplying broadcasters"), platform operators, and satellite communications carriers (hereinafter collectively referred to as "facility-supplying broadcasters and satellite telecommunications carriers") all play essential roles and jointly comprise the industry. Further expansion and development of CS digital broadcasting will lead to benefits for both viewers and involved parties.
      Accordingly, it will be effective for industry participants to engage in cooperative activities related to CS digital broadcasting designed to promote the expansion and development of the medium while maintaining an appropriate degree of competition between businesses. At this time, it is necessary to create a forum where involved parties can create such cooperative relationships.

Actions Required of Platform Operators
In conjunction with the increase in the number of viewers of CS digital broadcasts, the presence of the platform operation business will increase as a business that links efficiently program-supplying broadcasters and satellite communications carriers with viewers, and consequently, the future direction of platform operation business will have a significant influence on viewers of CS digital broadcasts and on program-supplying broadcasters.
      As a result, the following are measures required of platform operators to ensure the expansion and development of CS digital broadcasting:
     (1)   Facilitating the provision of diverse CS broadcasts through implementation of additional suitable services to program-supplying broadcasters;
(2)   Taking actions to ensure that persons who wish to view CS digital broadcasts understand fully and accurately the benefits and features of such broadcasts; and
(3)   Conducting operations in a manner that CS digital broadcast viewers can enjoy its benefits.

      In order to promote these types of activities, guidelines with content such as that indicated in the Appendix can be adopted and announced.

(3) Issues Affecting 110-degree East Longitude CS Digital Broadcasting
Issues affecting 110-degree east longitude CS digital broadcasting other than those discussed above in the section on CS digital broadcasting include the following.

Provision of Easy to Use Services to Viewers
There have been indications that 110-degree east longitude CS digital broadcasts are, generally speaking, a service that viewers find difficult to use and understand. As a result, the expansion and development of 110-degree east longitude CS digital broadcasts requires that service providers make such services as a whole more convenient and understandable to viewers while maintaining competition between service providers.

Actions Taken in Conjunction with BS Digital Broadcasting
The most significant feature of 110-degree east longitude CS digital broadcasts is its ability to share receivers with BS digital broadcasting. 110-degree east longitude CS digital broadcasts also have the characteristic of providing added value to BS digital broadcasting.
      It is necessary, therefore, that BS digital broadcasters, 110-degree east longitude CS digital broadcasters, platform operators, receiver manufacturers, and other involved parties provide information and conduct promotional activities jointly and in collaboration with consumers who wish to receive BS and 110-degree east longitude CS digital broadcasts, keeping in mind the differences between these two different services. As a first step, the involved parties should engage in discussions and exchanges of opinions.

Suitability of Application of the Law Concerning Broadcast on Telecommunications Services
With respect to 110-degree east longitude CS digital broadcasts too, a system that allows for full use of the features of digital broadcasts and for flexible and dynamic provision of services is necessary. From this perspective, application of the Law Concerning Broadcast on Telecommunications Services to 110-degree east longitude CS digital broadcasting should be considered.
      Under the Law Concerning Broadcast on Telecommunications Services, however, application of the system is premised on the existence of conditions that make it possible for telecommunications operators to provide telecommunications services to persons who desire to engage in broadcasting using telecommunications services.
      There is debate on the question of whether such conditions currently exist with respect to 110-degree east longitude CS digital broadcasting, but considering that less than one year has passed since the inception of services, it is necessary to continue investigating the issue of application of the Law Concerning Broadcast on Telecommunications Services to 110-degree east longitude CS digital broadcasting, taking into consideration the future conditions affecting such broadcasting.
      In addition to the question of the application of the Law Concerning Broadcast on Telecommunications Services, it is also necessary to examine the issue of methods of facilitating the provision of flexible and dynamic services.

Left-Hand Circular Polarization of 110-degree East Longitude CS broadcasts
The 110-degree east longitude communications satellite (N-SAT-110) is equipped with right-hand circular polarization transponders that are currently used for east longitude CS digital broadcasts as well as left-hand circular polarization transponders. Left-hand circular polarization is currently used only for communications purposes, but there is debate on its use for broadcasting too.
      Considering that the use of left-hand circular polarization for broadcasting will require development of the reception environment in apartment and condominium complexes, however, a cautious response is called for, and therefore, further investigation is necessary in the future while monitoring the status of resolution of these issues.

(4) Issues from the Perspective of the Viewing Public
It goes without saying that the issues raised in section (1) through (3) above have a close relationship to the viewers of each of these broadcast types, but additional significant issues from the perspective of the viewing public are discussed below.

Thorough Provision of Information Concerning the Termination of BS Analog Broadcasting
As discussed in Section (1) above, the Study Group believes it appropriate to terminate BS analog broadcasting by 2011 in conjunction with the termination of terrestrial analog broadcasting. Thus, it will be necessary to use both terrestrial and satellite broadcasting to inform the viewing public that they will need to replace their analog television receivers with digital receivers by 2011.
      In order to carry this out, the national government and other parties involved in BS broadcasting must provide adequate information to the public concerning the termination of both BS analog broadcasting and terrestrial analog broadcasting.
      Specifically, broadcasters can provide thorough and effective information through their respective media while receiver manufacturers can provide information to consumers seeking to purchase receivers by including information in catalogs and affixing labels to products.
      It is also important that the national government, broadcasters, and receiver manufacturers provide appropriate information concerning the termination of analog broadcasting in response to inquiries from the public and that consumers who wish to purchase receivers be provided accurate information in retail stores. In order to carry this out, broadcasters and receiver manufacturers must work together and provide information to such retail stores.

Improvement of Reception Environments in Apartment and Condominium Complexes
The Study Group pointed out in its Interim Report the need to improve the reception environment for satellite broadcasts in apartment and condominium complexes, and in many instances, residents of such complexes do not know whether satellite broadcasts can be received in their individual units. To promote the efficient expansion of satellite broadcasting, therefore, broadcasters must make it possible for potential viewers to understand their current reception conditions.
      In addition, there are many instances in apartment and condominium complexes where community reception facilities are inadequate and it is difficult for individual households to receive broadcasts independently. In response to this situation, the promotion of wireless community reception facilities with favorable installation sites that will have little detrimental impact on the landscape will be effective, and appropriate measures should be taken immediately.

Provision of Services Agreeable to a Wide Range of Viewers
There are strong expectations that satellite broadcasting will be able to provide even more services that are agreeable to a wide range of viewers including the elderly. Thus, it is necessary for broadcasters to work to improve services with this notion in mind.

Conclusions - The Roles of The Public and Private Sectors in the Expansion and Development of Satellite Broadcasting
In its Interim Report released in July of this year and this Final Report, the Study Group has pointed out and discussed a number of issues affecting the expansion and development of satellite broadcasting. In this final section, we discuss the roles of the public and private sectors in addressing those issues.
      The core roles of the public sector in promoting the expansion and development of satellite broadcasting are promoting the digitization of broadcasting, indicating the proper direction for the termination of analog broadcasts, and developing an environment that allows for use by viewers with a sense of security and for the efficient provision of services. Central to the development of such an environment will be the creation and operation of systems that respond appropriately to advances in technology and other factors. Other roles include conducting cutting-edge research and development and resolving disputes should they arise. In addition, the public sector will also play a significant role in the future in informing the viewing public, in cooperation with the private sector, about issues that have a major impact on the public such as the termination of analog broadcasts.
      The fundamental role of the private sector will be the provision of specific broadcasting services that make ownership of broadcast receivers an attractive prospect to the public. The Study Group has repeatedly pointed out, with respect to the provision of broadcast services, the importance of providing appealing programming and high-quality, diverse services, and with respect to the provision of broadcast receivers, the importance of providing convenient and easy to use receivers at prices acceptable to viewers. Also, as the responsibility to provide information and explanations to viewers increases, the importance of conveying to viewers the specific content of services and products in easy to understand formats will also take on greater importance. Concerning the termination of analog broadcasting, the private sector must cooperate with the public sector to convey information to viewers and consumers receiving services and products.
      The Study Group has strong expectations that these actions will be undertaken proactively by both the private and public sectors and that satellite broadcasting will continue to expand and develop in the future.

Appendix - Items that Can Serve as the Content of Guidelines on the Operations of Platform Operators in Satellite Broadcasting
Items to Ensure the Efficient Implementation of Satellite Broadcasting
1.    Clarification and definition of matters concerning the content of services provided by platform operators to program-supplying broadcasters and broadcasters that use satellite services (hereinafter collectively referred to as "Program-supplying broadcasters") and the conditions and responsibilities related to the provision of such services.

Examples
·    The content of each service provided and the conditions of provision
·    Procedures leading up to the suspension or termination of services and methods of securing payment of fees
·    The roles of platform operators in satellite broadcasting advertising, publicity, and sales promotion
·    The scope of responsibility of platform operators

2.    Ensuring that program-supplying broadcasters are not subject to the imposition of inappropriate obligations and inappropriate discriminatory treatment.

Examples
·    Content and procedures when special burdens are imposed on or special actions are required of program-supplying broadcasters
·    Participation by platform operators and their procedures in the creation, modification, and termination of programming packages for setting fees by program-supplying broadcasters

3.    Ensuring appropriate resolutions in cases of conflicts in the interests of platform operators and program-supplying broadcasters

Examples
·    Procedures for the parties to reach resolutions
·    Methods and procedures for reaching resolutions when it would be difficult for the parties to do so

Items to Ensure Benefits to Viewers (Including Prospective Viewers) of Satellite Broadcasting
1. Ensuring fairness in marketing activities to viewers

Example
·    Content of matters that must be observed when conducting marketing activities to viewers and the means of observing them

2. Clear indication to viewers of the fees for fee-based services, conditions for the provision of such services, and modification of those conditions

Examples
·    Means of indicating clearly conditions for the provision of fee-based services
·    Means of indicating clearly modification of the conditions for the provision of fee-based services

3. Good-faith receipt of complaints and requests from viewers and appropriate responses

Examples
·    The role of platform operators in responding to complaints and requests from viewers
·    Adoption and public announcement of procedures related to responses to complaints and requests from viewers

4. Appropriate handling and protection of viewer personal information

Examples
·    Objectives, scope, and procedures concerning the use or provision of personal information for purposes other than the provision of fee-based broadcasting services
·    Measures for the protection of personal information
·    Procedures for participation by viewers in personal information