January 22, 2021 Guidance to KDDI Corporation regarding Thorough Accurate Reporting of Specific Affiliated Corporations

In response to a false report made by KDDI Corporation (Makoto Takahashi, President, Representative Director), the Ministry of Internal Affairs and Communications (MIC) has today instructed KDDI Corporation to thoroughly implement recurrence prevention measures, and constantly review them and make improvements.

Outline of the case and contents of administrative guidance

The Ministry of Internal Affairs and Communications (MIC) designates telecommunications carriers that set up base stations and provide mobile telecommunications services as mobile network operators (hereafter referred to as “MNOs”) subject to the provisions of paragraph 2 of the Act. This designation is made under Article 27-3, Paragraph 1 of the Telecommunications Business Act (Act No. 86 of 1984; hereafter referred to as the “Act”). Also, MIC designates those who provide mobile telecommunications services among the specified affiliated corporations of MNOs.
In response to reports from businesses based on the Rules for Reporting on Telecommunications Business (Ministerial Ordinance of MPT No. 46 of 1988), MIC has been designating telecommunications carriers subject to Article 27-3, Paragraph 2 of the Act. However, KDDI Corporation (hereafter referred to as “KDDI”) has made a false report. As a result, it was confirmed that some of KDDI’s specific affiliated corporations (Oita Cable Telecom Co., Ltd., Cable Net Shimonoseki Co., Ltd., J:COM West Co., Ltd., J:COM Kyushu Co., Ltd., J:COM Saitama·Higashinihon Co., Ltd., J: Com Sapporo Co., Ltd., J:COM Shonan·Kanagawa Co., Ltd., J:COM Chiba Co., Ltd., J:COM Tokyo Co., Ltd. Tsuchiura Cable Television Co., Ltd., Yokohama Cable Vision Inc., and KYOCERA Communication Systems Co., Ltd., a total of 12 companies), which should be designated, have not been designated.
KDDI neglected the necessary confirmation and made a false report, even though the content to be reported was clear in light of the relevant laws and regulations. KDDI was grossly negligent. As a result of making the false report, KDDI hindered the environment of fair competition among telecommunications carriers and may have reduced the legal compliance awareness of other carriers regarding the discipline. Accordingly, MIC has instructed KDDI today to thoroughly implement recurrence prevention measures, and constantly review them and make improvements. MIC will continue striving for the strict enforcement of the law to secure an appropriate competitive environment for the mobile market.