Summary of Meeting of the Radio Regulatory Council (No. 887)

1.	Date and Time
	September 8, 2004 (Wednesday) 16:00 to 17:46
2.	Location
	Meeting Room of MIC (Ministry of Internal Affairs and Communications) (Meeting Room No. 1002;10th floor)
3.	Attendees (Honorifics omitted)
(1) Members of the Radio Regulatory Council   Yasuhiko Yasuda (Chairperson), Junichi Hamada, and Hatsuko Ukikawa (2) Hearing Examiner of the Radio Regulatory Council   Taku Kiyasu (3) Secretary   Masao Okamoto (Deputy Director of the General Affairs Division, Telecommunications Bureau) (4) MIC (Ministry of Internal Affairs and Communications)   Director-General of the Information and Communications Policy Bureau and others
4.	Minutes of the Meeting
(1) Concerning the draft ministerial ordinance that partially amends the Regulations for Operating Radio Stations (Consultation No. 16 of June 9th 2004)       Having deliberated the draft ministerial ordinance in the title as to rendering unnecessary the notice related to the addition of the Morse code and the operation of special service stations, based on the written opinion and protocol submitted by the hearing examiner who presided over procedures for inviting public comments (refer to the post-hearing opinion from the 392nd Radio Regulatory Council's written opinions), the Council concluded that the draft was correct and returned an affirmative reply. (2) Concerning the draft ministerial ordinance that partially amends the Regulations for Enforcement of the Radio Law and the Rules for Radio Equipment, as well as the proposed change to a part of the frequency assignment plan (Consultation No. 21 and No. 22 of July 14th 2004)    Having deliberated the draft ministerial ordinance and the other in the title as to the introduction of new INMARSAT systems, minor modifications to items in construction designs not requiring permission, the introduction of the W-CDMA systems that are a 3G mobile radio communication system over the 800 MHz band and others, and the termination of aircraft telephone services, based on the written opinion and protocol submitted by the hearing examiner who presided over procedures for inviting public comments (refer to the post-hearing opinion from the 393rd Radio Regulatory Council's written opinions), the Council concluded that they were correct and returned an affirmative reply. (3) Concerning the draft ministerial ordinance that partially amends the Rules Concerning Specific Frequency Change Support Service (Consultation No. 23 of July 14th 2004)    Having deliberated the draft ministerial ordinance in the title as to the grant conditions, the amount of compensation, etc. related to the compensation grant program due to the spectrum refarming introduced by the law (Law No. 47 of 2004) that partially amended the Radio Law and the Wire Telecommunications Law, based on the written opinion and protocol submitted by the hearing examiner who presided over procedures for inviting public comments (refer to the post-hearing opinion from the 394th Radio Regulatory Council's written opinions), the Council concluded that the draft was correct and returned an affirmative reply. (4) Concerning the pre-permit for base stations and blanket license for specified radio stations that belong to Centrair Information & Communications Network Co., Ltd. as well as the blanket license for specified radio stations that belong to AVICOM JAPAN CO., LTD. (Consultation No. 18)    MIC explained the pre-permit for base stations and blanket license specified radio stations that belong to Centrair Information & Communications Network Co., Ltd. as well as the blanket license for specified radio stations that belong to AVICOM JAPAN Co., Ltd., and provided a questions-and-answers session as follows. The Council deliberated these matters and replied indicating that the Council regarded them as acceptable. a. Explanation by MIC    Land mobile radio stations will be used by Tokyo International Airport and Chubu International Airport, both of which will install digital airport radio communication systems. This application asks the Council to deliberate a blanket license for the land mobile radio stations to be used in both airports in conjunction with the pre-permit for radio stations for telecommunication business because a new telecommunication carrier will open them in Chubu International Airport for the first time.  Airport radio services using the MCA (Multi Channel Access) method are being deployed and operated in succession in airports within Japan, including Narita International Airport, as vital communication systems. This consultation intends to deploy digital airport radio communication systems that excel in making effective use of frequencies and make a wide variety of services-such as data communications and image transmission-available in response to the increasing demand for radio communications due to the growth of airport services caused by the recent increase of air transport volume.  As a result of examining the applications for the pre-permit for base stations and the blanket licenses from the two companies based on the radio laws and regulations, MIC recognizes that they conform to the relevant provisions, such as the feasibility of frequency allotment. b. Major questions and answers   - The following question was asked: I believe that AVICOM JAPAN are already providing analog services. What does MIC think about the company's business conditions? MIC answered as follows: MIC believes that there are no problems concerning their financial condition. (5) Concerning authorization for the Japan Broadcasting Corporation to offer programs to MOBILE BROADCASTING CORPORATION on a business basis (Consultation No. 29)    MIC explained the authorization of the Japan Broadcasting Corporation (NHK) offering programs to MOBILE BROADCASTING CORPORATION on a business basis and provided a questions-and-answers session as follows. The Council deliberated this matter and made replied indicating that the Council regarded it as acceptable. a. Explanation by MIC    This deals with the application from NHK that requests MIC to authorize the corporation to provide programs on a business basis to broadcasting services offered by MOBILE BROADCASTING CORPORATION, based on the provision in Article 9 Paragraph 8 of the Broadcast Law. The details of said application are as follows:  MOBILE BROADCASTING CORPORATION is now preparing for this October launch of Japan's first satellite digital broadcasting services for mobile terminals and cellular phones that use the 2.6 GHz band as a sole broadcaster that offers the said services. As the company is starting business from scratch (or without any receivers) and incurs a significant amount of investment in facilities such as gap fillers, it has asked NHK, which has much experience of launching new media operations and digital broadcasting services and the like, to provide NHK's programs to it in conjunction with their experience and know-how.  The business outline is that NHK provides its broadcasts to MOBILE BROADCASTING CORPORATION on a business basis based on requests from the company. The business will be conducted for one year from October 1, 2004, to September 30, 2005. The income and expenditure estimation consists of an income of 250 million yen and an expenditure of 240 million yen. The general breakdown of the estimated expenditure includes, for example, the fees for sport broadcasting rights in the case of sport telecasts, and for third-party rights in the case of general broadcasts, and costs for installing and operating the communication lines and labor costs involved in such work as they are required for nearly real-time broadcasting when providing news programs, etc. Total expenditure amounts to 240 million yen. The 10 million yen difference is treated as fees for the broadcast right of NHK.  MIC examined the service in question offered by the company based on the following provisions in Article 9 of the Broadcast Law: 1) "...conduct services especially necessary for the improvement and development of broadcasting and the reception thereof."(Paragraph 2 Particular 6) 2) "...NHK shall not aim at profit."(Paragraph 4) MIC recognized that said service met item 1) for the following reasons: - The mobile satellite digital broadcasting service would herald the approach to mobile digital broadcasting services in Japan whose realization, diffusion, and development were hoped for. - The service would be available to regions such as at sea and mountain areas through small cellular terminals because it utilizes radio waves that cover the whole country through satellites. - It is expected to play a role of one of effective communication means at the time of an emergency disaster because it used the S band that is least affected by attenuation due to rainfall. - The fact that NHK will contribute to facilitating the launch and diffusion of the service by offering its programs to said service in the environments mentioned above, will greatly contribute to not only the diffusion and development of mobile digital broadcasting services but also to the advancement and improvement of broadcasting services and their reception in Japan. For this reason, the service was regarded as a service specially required for the advancement and improvement of overall broadcasting and reception in Japan. In terms of item 2), MIC recognized that NHK would not engage the business for a lucrative purpose because NHK would offer its programs with an estimated fee that would only cover the actual cost and expenses and the broadcasting right fees to contribute to the advancement and improvement of broadcasting and reception.  MIC intends to approve the application because the service meets both the provisions of Article 9 of the Broadcast Law as explained above. Note that there are three examples where NHK has provided its programs to other broadcasters as services that meet the provisions of Article 6 Paragraph 2 Particular 6 of the Broadcast Law: NHK had provided its programs; 1) to overseas broadcasters, etc. for six years since 1991, based on the assumption that they were aired locally; 2) to the hi-definition test broadcasting that was started in 1991 by the Hi-Vision Promotion Association, Inc. (now, the Association for Promotion of Satellite Broadcasting); 3) to the terrestrial digital voice development test broadcasting that was started in 2003 by the Association for Promotion of Digital Radio Broadcasting. b. Major questions and answers   -The following question was asked: MIC explained that the program offering period was one year. Is it extendable? MIC answered as follows: That depends on how the company will start the service. MIC, however, believes it is MOBILE BROADCASTING CORPORATION itself that will determine whether or not it needs to request NHK to, for example, extend the provision period. - The following question was asked: I don't think the service where NHK offers its programs is itself intended for any profit-making purpose. However, MOBILE BROADCASTING CORPORATION, to which NHK plans to offer its program, is a profit-oriented company. I feel their relations are a little subtle. How does MIC feel? MIC answered as follows: As the member just said, MIC also accepts that MOBILE BROADCASTING CORPORATION is a profit-oriented company. But, the company will start its business from scratch with no receivers deployed and little prospect of income. For this reason NHK intends to provide its broadcasts to the company to help the first cellular service in Japan to start while it bears the burden of expenses almost equivalent of the actual cost. So, MIC does not believe that the authorization contradicts the Broadcast Law. - The following question was asked: MIC explained that NHK would prepare the communication lines. Why won't MOBILE BROADCASTING CORPORATION prepare them? MIC answered as follows: MIC hears that NHK and the company have reached an agreement for the contractual arrangements between them. Anyway, since MOBILE will pay the actual costs, the agreement does not violate any relevant provisions. -The following question was asked: Will NHK provide anything such as know-how in addition to provided programs per se? MIC answered as follows: As NHK has been playing a leading role in starting various new services, the corporation intends to provide programs based on its abundant experience. MIC understands it that way. - The following question was asked: MIC cited NHK's providing its programs to Hi-Vision Promotion Association, Inc. and the Association for Promotion of Digital Radio Broadcasting, both of which are more or less nonprofit organizations as examples in the past within Japan. Is this the first attempt to provide them to a business corporation? Is it all right to allow NHK to do so in the light of Article 9 Paragraph 2 Particular 6 of the Broadcast Law? MIC answered as follows: This is the first attempt in Japan, but NHK has done so for a broadcaster (a business corporation) overseas. So, MIC believes that it is acceptable from the viewpoint of the relevant laws and regulations. (6) Concerning the pre-permits for terrestrial digital broadcasting stations (Consultation No. 30)    MIC explained the pre-permits for terrestrial digital broadcasting stations and provided a questions-and-answers session as follows. The Council deliberated this matter and made replied indicating that the Council regarded it as acceptable. a. Explanation by MIC    This asks the Council to deliberate the pre-permits for a total of four broadcasting stations: two NHK stations-Gifu (General) station and Kobe (General) station; and two private broadcasting stations-one station from Television KANAGAWA, Inc. and one station from Gifu Broadcasting System.  The service start schedule for each station is as follows: November 1 this year-NHK Gifu (General); December 1 this year-NHK Kobe (General) and Television KANAGAWA, Inc.; April 1 next year-Gifu Broadcasting System. Each corporation desires to have frequencies and antenna powers specified in the channel plan. In addition, they request a gradual increase of antenna power in 2 stages depending on the progress of the analog frequency change measures, etc., similarly to the cases in the three major areas, Kanto, Kinki, and Hanshin.  As a result of examining the applications for the pre-permits, MIC believes that they should be regarded as conforming to the License Policies for Terrestrial Digital Television Broadcast Stations because they meet the requirements for simultaneous broadcasting and hi-definition broadcasting.  MIC also believes it appropriate that a set of antenna powers should be specified at once at the time of pre-permit authorization for the 4 stations that plan to gradually increase the antenna power in 2 stages so that they can gradually increase it without problems.  As the relevant radio laws and regulations require that a single antenna power must be specified, however, MIC wants to specify only one antenna power in the set for each definite period. When they gradually increase antenna power, they plan to emit test radio waves. For this reason, MIC intends to carefully regulate the radio waves by establishing a licensing condition that they must submit a document that describes their test radio wave emission plan.  The schedule for terrestrial digital broadcasting operation is as follows: MIC will grant them the applied-for pre-permits on September 10. The formal licenses will be granted following the emission of test radio waves and inspection after the completion of construction of the stations, and regular broadcasts will commerce. b. Major questions and answers   - The following question was asked: One of the examination items specifies that the broadcasting stations must provide two-thirds or more of the broadcasts in the simultaneous mode. What purpose does this serve? MIC answered as follows: Until the complete termination of analog broadcasting in 2011, MIC assumes that many households can only receive analog broadcasts. For this reason, MIC requires the broadcasting stations to provide simultaneous broadcasts until then. - The following question was asked: I don't feel the digital services should be the same as the analog as long as they meet their own requirements and provide quality programs. What does MIC think about this? MIC answered as follows: MIC admits that TV programs that only digital services can provide should be produced. The reason why MIC requires that simultaneous programs be aired is that if TV programs that only digital receivers can accept increase in number, the households that only own analog receivers will be treated unfavorably. - The following question was asked: Were BS broadcasts offered as simultaneous programs? MIC answered as follows: BS is offering simultaneous programs in the same light. - The following question was asked: Although MIC voiced its opinion in general terms that launching digital broadcasting operations was difficult when explaining the operational income and expenditure estimation, the outlook for estimated operational income and expenditure for each company about which MIC is consulting us seems good. Does this mean that all applications came from companies whose performances were good? MIC answered as follows: As to Television KANAGAWA, Inc., they built a new company building and plan to pour an investment of 5 billion yen or more into full specification digital broadcasting. The company belongs to the semi-public sector and is granted financial support, which is why MIC believes that they could develop an acceptable financial plan. As to Gifu Broadcasting System, they will start digital broadcasting services this time with simplified facilities and they have prepared a fund of approximately 350 million yen. Although the fund level is rather low, their financial plan looks healthy. However, as the company must build more relay stations to cover the same areas as the analog services and making the business profitable is very difficult, they may still face financial difficulties.   (The Radio Regulatory Council Secretariat is responsible for the wording of this document.)