September 28, 2020 Appeal for Opinions on Draft Ministerial Ordinance, Etc. for Partial Revisions to Regulations for Enforcement of the Telecommunications Business Act (Establishing Regulations for Voice Interconnection Charges (for Optical IP Phones) in the Process of Transition to the IP Network and Enhancement of the Notification System for Optical Service Wholesale

The Ministry of Internal Affairs and Communications (MIC) has drafted a ministerial ordinance and notice that will partially revise the Ministerial Ordinance for Partial Revision of Regulations for Enforcement of the Telecommunications Business Act. Accordingly, MIC will make an appeal for opinions on the drafts from Tuesday, September 29 through Thursday, October 29, 2020.

1. Background

The facilities of the public switched telephone network (hereafter referred to as “PSTN”) currently used for the telephone services of Telephone East Corporation and Nippon Telegraph and Telephone West Corporation (hereafter referred to as “NTT East/West”) will reach the maintenance limit around 2025. NTT East/West is planning to gradually shift from the PSTN to an IP network from January 2021. Therefore, in April 2020, the Minister for Internal Affairs and Communications consulted with the Information and Communication Council on an ideal connection system based on the stage of transition to the IP network. On September 18, 2020, the Information and Communication Council drafted a partial report on an ideal connection system based on the stage of transition to the IP network―organizing policies for starting IP interconnections. Considering this, MIC recently drafted the revisions to the relevant ministerial ordinance, etc., to establish the necessary rules in the process of transition to the IP network for an ideal way of voice interconnection charges (interconnection charges for optical IP phones). Furthermore, the Information and Communication Council issued a final report on December 17, 2019, on an assessment of the state of competition in the telecommunications business field. Based on the report, MIC’s Study Group on Calculation of Interconnection Charges started studying in the same month a mechanism for appropriately grasping the actual conditions of providing wholesale telecommunications services using type I designated telecommunications equipment or type II designated telecommunications equipment. On September 17, 2020, the Study Group on Calculation of Interconnection Charges issued the fourth report. From the perspective of steadily grasping the actual situation of optical service wholesale*1, MIC is currently receiving notifications from more than 500,000 lines of optical service wholesalers under Article 25-7, Item 4 of the Regulations for Enforcement of the Telecommunications Business Act. The report showed an idea of requesting notifications from NTT East/West for all wholesalers. With consideration of this, in addition to the above-mentioned institutional development, MIC drafted the ministerial ordinance and notice regarding the enhancement of the notification system for wholesalers of optical services.

• *1
  Wholesale telecommunications services provided by NTT East/West to telecommunications carriers providing FTTH access services to a large number of general users.

2. Guidelines for appealing opinions

1. Subjects of appeal for opinions

• Draft Ministerial Ordinance to Partially Revise the Regulations for Enforcement of the Telecommunications Business Act (including matters other than those to be consulted with the Information and Communications and Posts Administrative Council)
• Draft Notice to Partially Revise MIC Notice No. 243 of 2001 (Designating Telecommunications Equipment Based on the Provisions of Article 33, Paragraph 1 of the Telecommunications Business Act and Article 23-2, Paragraph 1 of the Regulations for Enforcement of the Telecommunications Business Act)

2. Submission deadline

From Tuesday, September 29, and no later than Thursday, October 29, 2020 (Submission of opinions by mail, must also arrive no later than the deadline date.)

3. Future plans

With consideration of opinions submitted, MIC will revise the ministerial ordinance, etc. Regarding the matters to be consulted, the Information and Communications and Posts Administrative Council will make a report in response to MIC’s inquiry considering the results of the appeal and a re-appeal for opinions.