October 9, 2020 Approval to Changes in Establishment Plans of KDDI Corporation and Okinawa Cellular Telephone Company on Specified Base Stations

The Ministry of Internal Affairs and Communications has today approved the applications of KDDI Corporation (headed by TAKAHASHI Makoto, President and Representative Director) and Okinawa Cellular Telephone Company (headed by YUASA Hideo, President and Representative Director) for changes in their establishment plans on specified base stations for 3.9th-generation mobile communications systems (3.9G), fourth-generation mobile communications systems (4G), and respective peripheral facilities.

1. Background

Fourth-generation mobile communications systems (4G) and broadband wireless access systems (BWA) use frequencies lower than those assigned for fifth-generation mobile communications systems (5G) in April 2019. There is a growing need to use these frequencies for 5G and 5G-compatible BWA and secure a wide 5G service area to ensure mobility.

Considering these needs, MIC received a partial report from the Information and Communications Council on the technical requirements for 5th generation mobile communications systems (5G) and advanced broadband wireless access (BWA) in March this year and made institutional development for technical requirements in August.

In response to the above, to introduce a 4G frequency band to 5G., KDDI Corporation and Okinawa Cellular Telephone Company made applications for changes in their establishment plans on specified base stations for the spread of 3.9G (hereafter referred to as the “3.9G establishment plan”) and those for the spread of 4G (hereafter referred to as the “4G establishment plan”). These applications were based on the provisions of Article 27-14, Paragraph 1 of the Radio Act (Act No. 131 of 1950; hereafter referred to as the “Act”).

MIC examined the applications based on the provisions of Article 27-13, Paragraph 4 of the Act, which is applicable mutatis mutandis to Paragraph 2 of the same Article. As a result, MIC recognized the appropriateness of the changes in the establishment plans and has today approved them.

2. Outline of changes in establishment plans

1. Schedule including 3.9G establishment plan

Rate of municipal population coverage	No changes (In fiscal 2019, the rate of municipal population coverage in the jurisdiction of each Regional Bureau of Telecommunications recorded at least 80%) [Reference] 5G specific base stations in number opened in the current plan at the ends of fiscal 2020, fiscal 2021, and fiscal 2022 are 0, 8827, and 11,402, respectively.
Securement of base station locations	Consider measures that utilize infrastructure sharing in areas where it is difficult to secure land to construct base stations. Pay attention to the Japanese government’s IT-related procurement policy and procurement procedure of goods or services.
Ensuring safety and reliability	Pay attention to the Japanese government’s IT-related procurement policy and procurement procedure of goods or services.
Institutional development for legal compliance, personal information protection, and user interest protection	As for the appropriateness of the publicity methods for informing users of 5G communication performance, follow the guidelines indicated in a report of the New-generation Mobile Communications System Subcommittee of the Department on Information and Communications Technology under the Information and Communications Council, and plan to protect user interests through the methods. Plan to create an area map for users’ ease to understand the communication quality difference due to frequency characteristics.

2. Opening Plan for 4G

Population coverage	No changes The population coverage rate of 5G specific base stations and the number of stations opened at the end of 2024 and those at the end of 2026 are expected to be 37.3% (14,806 stations) and 53.5% (20,985 stations), respectively.
Securement of base station locations	Consider measures that utilize infrastructure sharing in areas where it is difficult to secure land to construct base stations. Pay attention to the Japanese government’s IT-related procurement policy and procurement procedure of goods or services.
Ensuring safety and reliability	Pay attention to the Japanese government’s IT-related procurement policy and procurement procedure of goods or services.
Institutional development for legal compliance, personal information protection, and user interest protection	As for the appropriateness of the publicity methods for informing users of 5G communication performance, follow the guidelines indicated in a report of the New-generation Mobile Communications System Subcommittee of the Department on Information and Communications Technology under the Information and Communications Council, and plan to protect user interests through the methods. Plan to create an area map for users’ ease to understand the communication quality difference due to frequency characteristics.
MVNO promotion	Provide services to mobile virtual network operators (MVNOs) through wholesale telecommunications services. (There is a track record of providing services to those other than existing operators at base stations at designated frequencies). MVNOs and their contracts (limited to 5G systems and L2 connections) expected in number at the end of 2024 are as follows: Number of MVNOs: Seven; Number of contracts: Approximately 1.19 million
Various pricing	In 5G services, offer multiple rate plans according to the amount of available data communication, considering each user group’s monthly communication volume. Plan to continue providing rates that can meet the needs of various users.

3. Conditions for approval to changes

In approving the changes in the establishment plans for the spread of 3.9G, the establishment plans for the spread of 4G, etc., the conditions currently attached shall be revised. Furthermore, the following conditions shall be added.

1.
Strive to popularize a wide range of broadband services.
2.
Strive to improve the safety and reliability of telecommunications equipment, including measures against power outages and congestion and prevention of communication failures.
3.
When using the frequencies for 5G mobile communications systems, take adequate cybersecurity measures, including measures against supply chain risks, with consideration of the following: The Info-Communications Safety and Reliability Standards (MPT Notice No. 73 of 1987), the Unified Standard Group for Information Security Measures of Government Agencies (2016 version), and the Consultations regarding Procurement Policies and Procurement Procedures for Goods or Services in Japan related to IT Procurement (December 10, 2018, under relevant ministries agreement).
4.
Strive to promote the use of the specified base stations by interconnecting telecommunications equipment, providing wholesale telecommunications services, and other methods to those who have not been assigned with frequencies. In particular, provide services that contribute to the promotion of the use of the specified base stations. Then open the connection function, optimize the interconnection fees and wholesale telecommunications service charges. Strive further to promote the use of the specified base stations by electrically interconnecting using a communication method that uses the General Packet Radio Service (GPRS) tunneling protocol.
5.
Strive for low-cost, clear, and satisfying pricing that meets the needs of mobile phone users.
6.
When using frequencies for 5G mobile communication systems, the performance, including communication speed, should be properly disseminated by a polite and easy-to-understand method, such as an area map so that the user does not misunderstand.
7.
Regarding the implementation of termination promotion measures, strive to form a sufficient consensus with the target licensees, strive for smooth implementation, and ensure sufficient transparency.
8.
Considering that mobile phones have become an important means of living for people, steadily open base stations in dead zones.

(The following conditions are attached in the case of approval to the changes in the establishment plans for the spread of 3.9G, etc.)

9.
When opening and operating a specific base station, respond appropriately to prevent and eliminate reception problems of terrestrial digital broadcasting.

Contact

For further information about this press release, please fill in the inquiry form and submit it to MIC on the website
https://www.soumu.go.jp/common/english_opinions.html

International Policy Division, Global Strategy Bureau, MIC

TEL: +81 3 5253 5920

FAX: +81 3 5253 5924

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