December 18, 2020 Appeal for Opinions on Draft Revision to Guidelines for Promotion of Competition in the Telecommunications Business Field, Release of Revised Guidelines, and Request for Compliance with Guidelines

The Ministry of Internal Affairs and Communications (MIC) made 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. As a result, 12 opinions were submitted. Considering the opinions submitted, MIC and the Japan Fair Trade Commission have revised and released the Guidelines for Promotion of Competition in the Telecommunications Business Field.
In response to this revision, MIC has requested four telecommunications carrier-related associations today to comply with the Guidelines for Promotion of Competition in the Telecommunications Business Field.

1. Background of drafting Guidelines

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 improve other regulations, MIC made the appeal for opinions on the revision to the Guidelines for Promotion of Competition in the Telecommunications Business Field (the latest version of July 2020).

2. Results of appeal for opinions

MIC made an appeal for opinions on a drafted revision to the Guidelines from Wednesday, November 25 through Tuesday, December 8, 2020. As a result, 12 opinions were submitted.

3. Revision to Guidelines

Considering the opinions submitted, MIC and the Japan Fair Trade Commission have revised the Guidelines.

4. Request for compliance with Guidelines

In response to the revision to the Guidelines, MIC expects businesses that provide fixed broadband services will promptly start system modifications and operational changes to comply with the Guidelines and complete the same by July 1, 2021, at the latest. Therefore, MIC has today requested four telecommunications carrier-related associations to publicize the measures to be implemented by their member companies that provide fixed broadband services. The associations are required to report on the status of compliance with the Guidelines accordingly.