November 24, 2020 Appeal for Opinions on Draft Revision to Guidelines for Promotion of Competition in the Telecommunications Business Field

The Ministry of Internal Affairs and Communications (MIC) will make an appeal for opinions on a drafted revision to the Guidelines for Promotion of Competition in the Telecommunications Business Field from Wednesday, November 25 through Tuesday, December 8, 2020.

1. Overview

A report entitled 2020 Report on Verification of Competition Rules (issued on October 27, 2020, by the Working Group on Verification of Competition Rules under the Meeting for Telecommunications Market Validation) points out some cases considered excessive customer capturing. For example, users can only select a period of installment payments for the initial line installation cost of fixed broadband services exceeding the period of their binding contracts. In another case, users will be given advantages of discounts if long-term installments are selected compared to lump-sum payments and short-term installments. Furthermore, users will have less than three months’ penalty-free cancellation method. The report suggests that improvements should be made by showing a certain way of thinking in the guidelines.
Accordingly, to specify that the above cases pose problems under the Telecommunications Business Act and to improve other regulations, MIC has decided to make an appeal for opinions on a revision to the Guidelines for Promotion of Competition in the Telecommunications Business Field (the latest version of July 2020).

2. Appeal for opinions

1. Subject

Draft Revision to Guidelines for Promotion of Competition in the Telecommunications Business Field

2. Submission period

From Wednesday, November 25 and no later than Tuesday, December 8, 2020

3. Future plans

Considering opinions received, MIC will promptly revise the Guidelines for Promotion of Competition in the Telecommunications Business Field.