Chapter III. Type II Telecommunications Business

(Telecommunications Facilities for Exclusive Use in Transmitting Signals or Images)
Article 33.

As set forth in the ordinance of the Ministry of Posts and Telecommunications referred in Article 21 Paragraph (3) of the Law, the following requirements must be met by these telecommunications facilities:
i)
Telecommunications facilities for transmission below the speed of 9600 bps
ii)
Telecommunications facilities for transmission of content converted to digital signals with control information attached, by selecting one route based on the control information
iii)
Telecommunications facilities for transmission of content converted to digital signals with divided control information attached, by selecting routes based on the control information
iv)
Telecommunications facilities for transmission of content converted to analog or digital signals to terminal equipment for receiving still images in a permanent format
v)
Telecommunications facilities for transmission of content converted to analog or digital signals to terminal equipment for receiving freeze frames of still or moving materials

(Notification of General Type II Telecommunications Business)
Article 33-2.
(1)
A notification of General Type II telecommunications business in accordance with the provision of Article 22 Paragraph (1) of the Law shall be made by attaching documents of Form 25 to notification of Form 24.
(2)

The categories of telecommunications service as referred to in Article 22 Paragraph (2) Item ii) of the Law shall be as defined in the following table:

Type of Service Categories
Voice transmission A telecommunications service other than data transmission service using telecommunications facilities that have switching and transmission functions principally in the 4 kHz band (voice and other sounds). For use in communications with others.
Data transmission A telecommunications service solely for communications using telecommunications facilities that have the switching and transmission functions of data and images. For use in communications with others.
Leased circuit A telecommunications service that allows exclusive use of telecommunications facilities to a specified person

(3)
A notification of changes in matters of Article 22 Paragraph (1) Item i) of the Law as stipulated by the provisions under Paragraph (2) of the same article shall be made by using the notification of Form 26.
(4)
A notification of changes in matters of Article 22 Paragraph (1) Item ii) of the Law as stipulated by the provisions under Paragraph (3) of the same article shall be made by using the notification of Form 27.
(5)
The minor changes as specified under the applicable ministerial ordinance of the Ministry of Public Management, Home Affairs, Posts and Telecommunications in accordance with the proviso of Article 22 Paragraph (3) of the Law shall be the changes in service areas, in descriptions of telecommunications services, where the number of prefectures pertaining to the changes does not exceed five.

(Notification of Inheritance, Etc. of the Status as General Type II Telecommunications Carrier)
Article 34.
(1)
A notification of inheritance of the status pursuant to Article 23 Paragraph (2) of the Law shall be made by using a notification of Form 28.
(2)
A notification of suspension or closure pursuant to Article 23 Paragraph (3) of the Law shall be made by using a notification of Form 29.
(3)
A notification of dissolution pursuant to Article 23 Paragraph (4) of the Law shall be made by using a notification of Form 30.

(Application for Registration of Special Type II Telecommunications Business)
Article 35.
(1)
Form 31 shall be used for an application stipulated in Paragraph (2) of Article 24 of the Law.
(2)

Classification of telecommunications services stipulated in Item ii) of Paragraph (2) of Article 24 of the Law shall be defined in the following table.

Type of Service Categories
Voice transmission A telecommunications service other than data transmission service using telecommunications facilities that have switching and transmission functions principally in the 4 kHz band (voice and other sounds). For use in communications with others.
Data transmission A telecommunications service solely for communications using telecommunications facilities that have the switching and transmission functions of data and images. For use in communications with others.
Leased circuit A telecommunications service that allows exclusive use of telecommunications facilities to a specified person

(3)
Form 32 shall be used for a business plan stipulated in Paragraph (3) of Article 24 of the Law.
(4)
Documents prescribed by the ordinance of the Ministry of Public Management, Home Affairs, Posts and Telecommunications as being referred to in Paragraph (3) of Article 24 of the Law shall be as follows:
i)
The following documents with respect to main telecommunications engineers:
a)
In cases where a person has received a chief telecommunications engineer's license, documents indicating his/her name, classification and number of said license;
b)
In cases where a person does not fall under (a), his/her personal history (resume).
ii)
In cases where an applicant is an existing juridical person, the following documents. However, with respect to a person listed in (b) and (c), it is possible to substitute a document issued by a financial institution which indicates the fund raising capacity of said juridical person or corresponding documents:
a)
A certified copy of the articles of incorporation, the act of endowment and the register;
b)
Balance sheets for recent business years;
c)
A statement of profit and loss for the previous three business years.
iii)
In a case where an applicant intends to establish a juridical person, the following documents:
a)
A certified copy of the articles of incorporation and the act of endowment;
b)
A document issued by a financial institution, which indicates the fund raising capacity of a person who intends to establish said juridical person.
iv)
Form 33 which indicates that the applicant does not fall under any of Items i) through iii) of Paragraph (1) of Article 26 of the Law.

(Registration of Changes, Etc.)
Article 36.
(1)
The minor changes as specified under the applicable ministerial ordinance of the Ministry of Public Management, Home Affairs, Posts and Telecommunications in accordance with the proviso of Paragraph (1) of Article 27 of the Law shall be as follows:
i)
Changes in service areas, among other descriptions of telecommunications services, where the number of prefectures pertaining to the changes does not exceed five
ii)
Changes in telecommunications equipment, where the number of centers newly installed or closed in connection with the changes (meaning a station accommodating line concentration equipment, or switching facilities or quasi switching equipment installed by said Special Type II telecommunications carrier) does not exceed five
(2)
An application for registration of changes as referred to in Article 27 Paragraph (2) of the Law shall be made in accordance with Form 34.
(3)
The documents as specified under the applicable ministerial ordinance of the Ministry of Public Management, Home Affairs, Posts and Telecommunications in accordance with Article 24 Paragraph (3) of the Law, to which the provisions of Article 27 Paragraph (3) of the Law shall apply mutatis mutandis, shall be the documents as specified in Items ii) through iv) of Paragraph (4) of the preceding article (limited to a portion of the documents submitted recently as attachment to the recent registration or registration of changes which has been changed in some details).
(4)
A notification of changes under the provisions of Article 27 Paragraph (4) of the Law shall be made by using a notification of Form 35.

(Notification of Inheritance, Etc. of the Status of Special Type II Telecommunications Carrier)
Article 37.
(1)
A notification of inheritance of the status as stipulated in Article 23 Paragraph (2) of the Law, to which the provisions of Article 30 of the Law shall apply mutatis mutandis, shall be made by using a notification of Form 36.
(2)
A notification of suspension or closure under the provision of Article 23 Paragraph (3), to which the provisions of Article 30 of the Law shall apply mutatis mutandis, shall be made by using a notification of Form 27.
(3)
A notification of dissolution under Article 23 Paragraph (4), to which the provisions of Article 30 of the Law shall apply mutatis mutandis, shall be made by using a notification of Form 38.

(Charges Not Requiring Notification)
Article 38.
Charges as specified under the applicable ministerial ordinance of the Ministry of Public Management, Home Affairs, Posts and Telecommunications in accordance with Article 31-3 Paragraph (1) of the Law shall be handling charges and other low-priced charges, among other charges for telecommunications services (limited to charges of Special Type II telecommunications carriers that provide telecommunications facilities for communications by an unspecified and large number of general subscribers).

(Service Terms and Conditions Not Requiring Notification of Tariffs)
Article 38-2.
Matters as specified under the applicable ministerial ordinance of the Ministry of Public Management, Home Affairs, Posts and Telecommunications in accordance with Article 31-4 Paragraph (9) of the Law shall be as follows:
i)
Among others for offering telecommunications services (except services stipulated in Item ii)), the following matters (limited to those pertaining to Special Type II telecommunications business that provide telecommunications facilities for communication by an unspecified and large number of general subscribers):
a)
Name and description of telecommunications services;
b)
Matters relating to responsibilities of a Type II telecommunications carrier and its users;
c)
Methods for handling essential communications as referred to in Article 8 Paragraph (1) of the Law;
d)
Technical conditions necessary for smoothly offering telecommunications services; and
e)
In addition to the preceding items, items relating to terms and conditions for offering telecommunications services in terms of rights and duties of users.
ii)
Terms and conditions for offering additional functions of telecommunications services. However, terms and conditions of telecommunications services relating to rights and duties of users are excluded.

(Agreement, Etc. with Foreign Government, Etc. of Special Type II Telecommunications Carriers)
Article 39.
Important items referred to in Article 40 of the Law and related to Special Type II telecommunications businesses shall be the following items:
i)
Tie-up (limited to a type where terminal equipment of a user who concludes a contract to subscribe to the following international telecommunications services is connected to telecommunications line facilities for telephone services, etc.) concerning provision of international telecommunications services (limited to operating bodies offering voice communications services using voice transmission and switching facilities without using store function between Japan and foreign points) between a foreign government, person or juridical person who operates telecommunications business
ii)
In addition to the matters in the preceding item, matters to be recognized as matters that significantly affect international telecommunications services

(Application Mutatis Mutandis)
Article 40.
(1)
The provisions under Article 20 (except Item viii)), Article 23-10, Article 23-14, Article 23-15, Article 25, Articles 25-2 through Article 25-4, Articles 25-8 through Article 26, Article 28, and Article 29 shall apply mutatis mutandis for Special Type II telecommunications carriers.
(2)

The provisions under Article 23-14, Article 23-15, Article 25-3, Article 25-4, Article 25-8 and Article 25-9 shall apply mutatis mutandis for General Type II telecommunications carriers.

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