I. Outline of Cable TV Business System

1. CTB Law
   The CTB Law was enacted in 1972 as legislation for enforcing comprehensive regulation to ensure proper installation and operation of cable TV facilities and provision of service. The CTB Law stipulates regulations concerning permission to install cable TV facilities, notification of service and other relevant subjects.

2. WT Law
   As a fundamental law pertaining to wire telecommunications, the WT Law applies to the regulation of all wire telecommunications equipment, including cable TV facilities.
   Although there are few overlapping areas regulated by both the CTB Law and the WT Law, the former, as a special law, takes precedence in any overlapping areas. The WT Law, which is a general law, is applied to supplement the CTB Law.
   Specifically, with regard to cable TV facilities having 500 or less drop terminals, for which permission is not required under the CTB Law, it is required under the provisions of the WT Law to notify the Minister of Posts and Telecommunications of any intent to install or change such wire telecommunications equipment. Moreover, the technical conditions specified in the WT Law also apply to cable television broadcasting facilities.

(2) Cable TV Administration Procedures under the CTB Law and the WT Law

The provisions of either the Cable Television Broadcast Law (CTB Law) or the Wire Telecommunications Law (WT Law) shall apply to the installation of cable TV facilities and their use to conduct cable TV service, depending on the scale of the facilities and the type of service involved.
These relations are summarized in the following table.
This booklet mainly describes the procedures for cases in which persons install and provide service through their own facilities having 501 or more drop terminals. The articles related to these procedures, including other cases, are summarized as follows:

1. Installation of cable TV facilities (Article 3 of the CTB Law)

   Scale of facilities		Faclitity aspects			Service aspects
   		Permission for installation under the CTB Law	Notification of installation under the WT Law		Notification of service commencemnet,etc. under the CTB Law
   			For installation in the same building or on the same premises	For cases other than those shown on the left
   501 or more drop terminals
   51 to 500 drop terminals
   Less than 50 drop terminals	Engaged in self-originated broadcasting
   	Engaged in simulatneous retransmission only

   Permission from the Minister of Posts and Telecommunications is required for the installation of cable TV facilities having 501 or more drop terminals. If the facility has 500 or less drop terminals, filing of a notification under the provisions of Article 3 of the WT Law is sufficient.

2. Provision of cable TV service (Article 12 of CTB Law)
   Any person who intends to provide cable TV service must file with the Minister of Posts and Telecommunications a service commencement notification indicating the service area thereof, service details, etc. Such notification is separate from the permission or notification concerning the installation of facilities, and is required not only for those who install their own facilities but also for those who lease unused channels for the provision of programs.

3. Exemption from application of the CTB Law (Article 31 of CTB Law)
   The CTB Law was enacted to meet the specific characteristics of cable TV facilities, such as local monopolization, social utility, and social impact, etc. However, the cable TV mentioned in each item of Article 31 (Exemption from Application) of the CTB Law, including cable TV broadcasting carried out using facilities with 50 or less drop terminals (can be applied only to cable TV broadcasting for entirely simultaneous retransmission.), is exempted from application of this Law. It is deemed that there is no specific need for applying regulation as stipulated by the CTB Law, and that, on the contrary, excluding its application would be socially appropriate.

4. Exemption from notification obligation of the WT Law (Article 3 paragraph (4) of the WT Law)
   For cable TV facilities with 500 or less drop terminals, a notification of installation under the WT Law shall be submitted no later than two weeks prior to the day on which such installation work is to start. However, the facilities mentioned in each item under Article 3 paragraph (4) of the WT Law, including facilities to be installed on the same premises or in the same building , are exempted from this notification obligation.

(1) Application for Permission to Install Facilities (Article 3 of the CTB Law)

If the facility has 501 or more drop terminals, an "Application Form for Permission to Install Cable Television Broadcasting Facilities" shall be submitted to the Minister of Posts and Telecommunications in accordance with the provisions of Article 3 paragraph (2) of the CTB Law in order to obtain permission to install the facility.
The Minister of Posts and Telecommunications will examine each application and grant permission when it is deemed that the application conforms to the provisions under Article 4 (Permission Standards) of the CTB Law.
*More specifically, concrete criteria for the "Permission Standards" are described in the "Examination Standards Regarding the Cable Television Broadcast Law" mentioned subsequently on page ??.
In accordance with the provisions of Article 4 paragraph (2) of the CTB Law, the Minister of Posts and Telecommunications shall ask the opinion of the prefectures of the area when intending to make an administrative disposition on whether or not to grant permission to install cable TV facilities.

(2) Notification of Services (Article 12 of the CTB Law)

In the case of a licensee of cable TV facilities, following the completion of installation and prior to the commencement of service, a "Cable Television Broadcasting Service Commencement Notification" as stipulated in Article 27 of the Regulations for Enforcement of the CTB Law shall be submitted in accordance with the provisions of Article 12 of the CTB Law. Persons who intend to provide cable TV service by leasing unused channels of other cable TV facilities shall also submit a "Cable Television Broadcasting Service Commencement Notification" prior to the commencement of their service.

(3) Notification of Tariff Concerning Service Charges (Article 15 of the CTB Law)

When a cable TV broadcaster collects a charge from users for the provision of cable TV service, the broadcaster shall, in advance, establish a tariff concerning the charges for the said service and submit a notification thereof to the Minister of Posts and Telecommunications (excluding those engaged only in simultaneous retransmission using facilities with 50 or less drop terminals).

(4) Editing of Programs (Article 17 of the CTB Law)

In cases where cable TV broadcasters are engaged in self-edited broadcasting, program standards shall be established and made public, and a broadcast program consultative organization shall also be put in place.

(5) Obligation to Provide Facilities (Article 9 of the CTB Law)

When a licensee of cable TV facilities receives a request for the use of those facilities for the provision of service from a person who intends to engage in cable TV service, the licensee shall consent to the request in principle.

(6) Obligation to Provide Service (Article 16 of the CTB Law)

A cable TV broadcaster shall not refuse to provide service in its service area unless there is sufficient reason to do so.

(7) Consent for Retransmission (Article 13 paragraph (2) of the CTB Law)

A cable TV broadcaster must not receive or retransmit television broadcasts, etc. without the consent of the broadcasters. This does not apply, however, to cases of obligatory retransmission. The relation to copyright holders is regulated in accordance with the Copyright Law.

(8) Permission for Occupancy of Road Area and Consent for Utility Pole Attachment (Article 12-2 of the CTB Law and Article 27 paragraph (2) of Regulations for Enforcement of the Law)

When submitting a notification of cable TV service, a copy of the written permission for occupancy of road area and a copy of the written consent for utility pole attachment must be appended to the notification form.

In cases where the public road surface or the airspace above a public road is to be used to install cable TV facilities, permission of the road administrator for occupancy of road area is necessary in accordance with the provisions of the Roads Law. Moreover, in cases where construction or maintenance work is to be done on the road, permission of the chief of the police station having jurisdiction over the road is necessary in accordance with the provisions of the Road Traffic Law. Furthermore, in cases where the cable TV facilities must cross a river, permission of the river administrator is necessary under the provisions of the River Law.
As for the use of another person's property or utility poles, the necessary procedure for obtaining the respective consent of the owner of the property or utility poles must be taken.

Cable Television Broadcast Law (Disqualification for Permission)
Article 5.

Permission under Article 3 paragraph (1) may not be granted to persons who fall under any of the following items.

1. Any person who does not have Japanese nationality.
2. Any foreign government or its representative.
3. Any foreign juridical person or association.
4. Any juridical person or association having a person mentioned in the three preceding items serving as an officer who executes the business, or one-fifth or more of whose voting rights are controlled by such persons.

(1) Ratio of Foreign Ownership

The CTB Law provides that permission to install facilities may not be granted to a juridical person or association of which non-Japanese nationals hold one-fifth or more of the voting rights.
However, since December 1993, under this provision, the examination standards have become less restrictive. Permission may be granted to a juridical person or association of which non-Japanese nationals hold less than one-third of the voting rights. This examination standard was expressly stipulated and made public in the "Examination Standards Regarding the Cable Television Broadcast Law" (see page ??) established by the Minister of Posts and Telecommunications in September 1994.

(2) Assumption of Officer Positions by Non-Japanese Nationals

The CTB Law provides that permission may not be granted to a juridical person or association of which non-Japanese nationals are officers who execute the business.
However, this provision has hitherto been implemented such that permission may also be granted, as the need arises, to a juridical person or association of which non-Japanese nationals are officers who execute the business. The "Examination Standards Regarding the Cable Television Broadcast Law" have now been revised to stipulate an examination standard concerning regulation of the assumption of officer positions by non-Japanese nationals in January 1997.
Specifically, permission may be granted even to a juridical person or association of which non-Japanese nationals are serving as officers, in cases where such persons do not have the right of representation and also the number of such persons accounts for less than one-third of all officers (including auditors).

(3) Regulation for the persons also engaged in Type I Telecommunications Business

From the viewpoint of promoting convergence of the cable TV and telecommunications business, in December 1997, the "Examination Standards Regarding the Cable Television Broadcast Law" was revised so that the persons engaged in Type I telecommunications business shall be given a permission without application of the examination standards described above. (Amendment will be effective from the day when the Fourth protocol to the General Agreement on Trade in Services (GATS) is effective in Japan.)

(4) Regulation on Foreign Ownership, Etc. for Terrestrial and Satellite Broadcasting

With respect to terrestrial and satellite broadcasting (except facility supplying broadcasting), a person who applies for a radio station license for broadcasting or for approval to program supplying broadcasting service shall not be granted the license or approval in cases where (1) the person is a non-Japanese national, (2) the person is a juridical person or association of which non-Japanese nationals are officers who execute the business, or (3) the person is a juridical person or association of whose voting rights one-fifth or more are held directly by non-Japanese nationals (Article 5 paragraph (4) of the Radio Law; Article 52-13 paragraph (1) item (5) of the Broadcast Law). Further, the Minister of Posts and Telecommunications shall revoke the license or approval whenever a person who has been granted a license or approval falls under any of these provisions (Article 75 of the Radio Law; Article 52-23 of the Broadcast Law).
In this sense, regulations for terrestrial and satellite broadcasting are different from those for cable television.

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