November 12, 2021 Thorough Understanding and Compliance with Guidelines for Operation of Article 27-3 of Telecommunications Business Act and Relevant Laws and Regulations (Administrative Guidance)

The Ministry of Internal Affairs and Communications (MIC) recently noted that NTT Docomo, Inc. (headed by II Motoyuki, President and Chief Executive Officer) implemented inappropriate discounts on communications charges. The company’s deed did not comply with MIC’s Guidelines for Operation of Article 27-3 of the Telecommunications Business Act. In response, MIC has today instructed the company to thoroughly understand and comply with the said guidelines and relevant laws and regulations and steadily implement measures to prevent the recurrence of the problem.

Outline of case and details of administrative guidance
Article 27-3, Paragraph 2, Item 1 of the Telecommunications Business Act (Act No. 86 of 1984, hereafter referred to as the “Act”) stipulates prohibited matters, such as making communication charges more favorable when selling handsets than when not selling handsets. The Guidelines for Operation of Article 27-3 of the Telecommunications Business Act (formulated by MIC in September 2019; hereafter referred to as the “Guidelines”) stipulates the provision of benefits on the condition of new contracts that are not made in connection with the sale of handsets. According to the Guidelines, a discount on communication charges may fall under the requirements stipulated in Article 29, Paragraph 1, Item 5 of the Act.
The Guidelines also stipulate the conditions of benefits, including discounts on communications charges, for both new subscriptions and plan changes. Plan changes shall not be considered a case where new contracts are required if additional conditions are attached to the plan changes and the additional conditions are the same as those attached to new subscriptions.
According to a report from NTT Docomo, Inc. (hereafter referred to as “NTT Docomo”), from September 21 through September 23 of this year, under the name of U30 Long Discount, NTT Docomo attached additional conditions to plan changes. These changes were namely “those involving a change between communications systems” or “those involving a change between plans of the same communications system (limited to those involving a handset change).” On the other hand, by not attaching the same additional conditions to new contracts, NTT Docomo offered inappropriate discounts on communication charges that did not follow the Guidelines.
Furthermore, in asking for a report on U30 Long Discount, MIC also requested a report on the existence of similar measures. MIC then found out that NTT Docomo had been offering a similarly inappropriate discount on communication charges from July 7 through October 6, 2021, under the U15 Hajimete Sumaho Plan, which did not follow the Guidelines.
NTT Docomo’s inadequate understanding and confirmation of the Guidelines and the fact that the above-mentioned discounted telecommunications charges not following the Guidelines are deemed to have the potential to impede fair competition among telecommunications carriers. Accordingly, MIC instructed NTT Docomo to thoroughly understand and comply with the Guidelines and the rules outlined in relevant laws and regulations and steadily implement measures to prevent the recurrence of such a situation in the future.
MIC will continue its efforts to strictly enforce the law to ensure an appropriate competitive environment in the mobile market.