V. Reference Materials

1. Cable Television Broadcast Law (Excerpts)
2. Regulations for Enforcement of the Cable Television Broadcast Law (Excerpts)
3. Examination Standards Regarding the Cable Television Broadcast Law (Excerpts)
4. Others

(Purpose)

Article 1.

The purpose of this law is to protect the interests of receivers of cable television broadcasts and also to foster the sound development of cable television broadcasting by ensuring proper installation of cable television broadcasting facilities and operation of service, and thereby to contribute to the promotion of public welfare.

(Permission to Install Facilities)

Article 3.

(1) Any person who intends to install cable television broadcasting facilities and to provide cable television broadcasting service through the said facilities shall obtain permission from the Minister of Posts and Telecommunications to install the facilities. This shall not apply, however, to cable television broadcasting facilities whose scale does not exceed the standard stipulated in the applicable ordinance of the Ministry of Posts and Telecommunications.

(2)Any person who intends to obtain permission under the preceding paragraph shall file with the Minister of Posts and Telecommunications an application form describing the area where the facilities are to be installed and other installation plans, the frequency to be used, an outline of the cable television broadcasting facilities, and the other matters stipulated in the applicable ordinance of the Ministry of Posts and Telecommunications.

(Permission Standards)

Article 4.

(1) The Minister of Posts and Telecommunications shall grant permission under paragraph (1) of the preceding Article if he determines that an application for permission under the same paragraph conforms to each of the following items:

1. The installation plan for the cable television broadcasting facilities shall be reasonable, and also its implementation shall be feasible.
2. The cable television broadcasting facilities shall conform to the technical conditions stipulated in the applicable ordinance of the Ministry of Posts and Telecommunications.
3. The applicant shall possess the financial basis and technical capabilities sufficient for reliable installation and operation of the cable television broadcasting facilities.
4. In addition, installation of the cable television broadcasting facilities shall be necessary and suitable in the light of the natural, social and cultural circumstances of the area in question.

(2) The Minister of Posts and Telecommunications, in accordance with paragraph (1) of the preceding Article, shall ask the opinion of the prefectures concerned when he intends to make an administrative disposition on whether or not to grant permission.

(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.

(Time Limit for Installation of Facilities)

Article 6.

(1) A licensee for cable television broadcasting facilities shall install the cable television broadcasting facilities relating to the permission under Article 3 paragraph (1) within the period specified by the Minister of Posts and Telecommunications for each classified area in which the facilities are to be installed.

(3) A licensee for cable television broadcasting facilities who has installed the cable television broadcasting facilities relating to the permission under Article 3 paragraph (1) shall submit, without delay, a notification to that effect to the Minister of Posts and Telecommunications.

(Maintenance of Facilities)

Article 8.

A licensee for cable television broadcasting facilities shall maintain his cable television broadcasting facilities relating to the permission under Article 3 paragraph (1) in conformity with the technical conditions stipulated in Article 4 paragraph (1) item ii) of the applicable ordinance of the Ministry of Posts and Telecommunications.

(Obligation to Provide Facilities)

Article 9.

When a licensee for cable television broadcasting facilities receives a request for the use of his cable television broadcasting facilities relating to the permission in Article 3 paragraph (1) for the provision of service from a person who intends to engage in cable television broadcasting service, the licensee shall accept the request, except in those cases stipulated by the applicable ordinance of the Ministry of Posts and Telecommunications.

(Notification of Services)

Article 12.

Any person who intends to become a cable television broadcaster shall submit to the Minister of Posts and Telecommunications a notification which indicates the service area of the intended cable television broadcasting, whether or not there is a retransmission obligation, and any additional matters stipulated in the applicable ordinance of the Ministry of Posts and Telecommunications. The same shall apply when a cable television broadcaster intends to change any previously notified matters.

(Use of Cable Television Broadcasting Facilities)

Article 12-2.

A cable television broadcaster shall not engage in cable television broadcasting using cable television broadcasting facilities installed without obtaining the necessary permissions for their installation under Article 32 paragraph (1) or paragraph (3) of the Roads Law (Law No. 180 of 1952) (including cases to which Article 91 paragraph (2) of the same Law applies mutatis mutandis), or administrative dispositions based on other laws and ordinances, or which have been installed on another person„ęs land, utility poles or other structures without the consent of the owner, etc.

(Retransmission)

Article 13.

(2) A cable television broadcaster shall not receive and/or retransmit television broadcasting or television multiplex broadcasting (including entrusted broadcasting, and broadcasting which is received and retransmitted by a person who has been granted a license for the radio relay broadcasting to eliminate receiving interference provided for in Article 5 paragraph (5) of the Radio Law (Law No. 131 of 1950), the same shall apply hereafter in this Article) without obtaining the consent of the broadcaster (excluding the facility supplying broadcasters stipulated in Article 2 item iii-4 of the Broadcast Law, the same shall apply hereafter in this Article). In accordance with the provisions in the preceding paragraph, this shall not apply, however, when a cable television broadcaster as the licensee for the cable television broadcasting facilities retransmits television broadcasting or television multiplex broadcasting.

(Notification of Tariff Concerning Service Charges)

Article 15.

A cable television broadcaster, when collecting charges from receivers for cable television broadcasting service other than retransmission of the television broadcasting or multiplex television broadcasting as provided for in Article 13 paragraph (1), shall establish in advance a tariff concerning charges for the service and submit a notification thereof to the Minister of Posts and Telecommunications. The same shall apply when the tariff is to be amended.

(Obligation to Provide Service)

Article 16.

A cable television broadcaster shall not refuse to provide cable television broadcasting service in his service area unless there is a sufficient reason to do so.

(Mutatis mutandis application of the Broadcast Law)

Article 17.

The provisions of Article 3, Article 3-2 paragraphs (1) and (4), Article 3-3 through Article 4, Article 51 and Article 52 of the Broadcast Law shall apply mutatis mutandis to cable television broadcasting (except the cable television broadcasting in which the television broadcasts or television multiplex broadcasts of broadcasters are received, all these broadcast programs thereof are retransmitted intact and simultaneously).

In this case:

"the broadcasting of items related to economic and market trends, natural events, sporting news, and other items provided for by the Ordinance of the Ministry of Posts and Telecommunications, or the broadcasting for extraordinary and temporary purposes (limited to those provided for by the Ordinance of the Ministry of Posts and Telecommunications)" in Article 3-5 of the same law shall be read as "the cable television broadcasting of items related to economic and market trends, natural events, sporting news, and other items provided for by the Ordinance of the Ministry of Posts and Telecommunications";

"seven committee members (except a broadcast program consultative organization for a private broadcaster conducting exclusive multiplex broadcasting which shall consist of committee members less than seven in accordance with the provisions of the Ordinance of the Ministry of Posts and Telecommunications)" in Article 51 paragraph (1) of the same law shall be read as "seven committee members";

"the service area of the broadcast station (which means the service area mentioned in Article 14 paragraph (3) item iii) of the Radio Law: hereinafter the same) or the service area of a facility-supplying broadcast (hereinafter referred to as "service area" in this paragraph)" in the same Article paragraph (3) shall be read as "the service area."

(Consultation with Council)

Article 26-2.

The Minister of Posts and Telecommunications shall consult with the council stipulated in the applicable cabinet ordinance (hereinafter referred to as the "council") in cases falling under any of the following items. This shall not apply, however, to such matters as the council deems to be minor.

1. When the Minister intends to make an administrative disposition concerning an application under Article 3 paragraph (1) or Article 14 paragraph (1) or an administrative disposition in accordance with the provisions of Article 25.

(Facility Scale Standard)

Article 3.

(1) The scale of a facility under the provisions of the proviso of Article 3 paragraph (1) of the Law shall be determined by the number of drop terminals. The standard thereof shall be 500 drop terminals.

(Cases Not Requiring Lease of Facilities)

Article 12.

Those cases that do not require consent to a request for use of facilities under the provisions of Article 9 of the Law shall be as follows:

1. When all of the frequencies of the facility which can be used simultaneously are already being used, or it is certain that they will be used within one year's time.
2. When it is technically difficult to improve the facilities in order to accommodate the applicant's method of use.
3. When the applicant fails to pay the charges for use of the facilities or other charges, or is likely to neglect such payment.
4. When the Minister of Posts and Telecommunications determines that consent to such a request is likely to impose a severe hindrance on the operation of the facilities.

(Notification of Service)

Article 27.

(1) Notification under the provisions of the preceding paragraph of Article 12 of the Law shall be made using a notification form which is in accordance with Format VIII and which describes, in addition to the service area of the cable television broadcaster and whether there is any obligation for retransmission, the matters set forth in each of the following items.

1. Name and address of the applicant and other matters pertaining to the applicant.
2. Facilities and frequencies to be used.
3. Category of cable television broadcasting service.
4. Program editing standards, broadcast times and other matters pertaining to broadcast programs (limited to cases of self-edited broadcasting).
5. An estimate of the number of persons contracting to receive service.
6. An estimate of business revenues and expenditures.
7. The planned date for commencement of cable television broadcasting service.

(2) A copy of the written permission (hereinafter referred to as "permission for occupancy of road area") stipulated in Article 32 paragraph (1) or paragraph (3) of the Roads Law (Law No. 180 of 1952) (including cases to which Article 91 paragraph (2) of the same Law applies mutatis mutandis) which is necessary for installation of the cable television broadcasting facilities to be used, administrative dispositions based on other laws and ordinances, and copies of documents attesting to the actual consent of owners for joint use of utility poles, use of land, etc. shall be appended to the notification form in the preceding paragraph.

(Purpose)

Article 1.

The purpose of this Notice is to stipulate the examination standards concerning permission for installation of the cable television broadcasting facilities granted under the provision of article 3 paragraph (1) of the Cable Television Broadcast Law (Law No. 114 of 1972, as amended), hereinafter referred to as "the Law", for the permission of extension of the designated term for installation of the cable television broadcasting facilities granted under the provision of Article 6 paragraph (2) of the Law and for the permission of modifications granted under the provision of Article 7 paragraph (1) of the Law.

(Basic Policy)

Article 2.

The permission for installation of cable television broadcasting facilities, hereinafter referred to as the "Facilities," or for modifications of plans for the facilities shall be granted on the basis of the profitability forecast made by the applicant, to help the interested parties to move into this market, based on the potentialities of future expansion of the cable television broadcasting market.

(Disqualification for Permission)

Article 3.

Any person who intends to obtain permission to install facilities shall, in principle, not fall under any of the provisions for disqualification for permission stipulated in each item of Article 5 of the law.
However, the person who falls under any of the provisions in Article 5 for disqualification, shall not be refused a permission if the person falls under any of the standards in Article 3, paragraphs (1) and (2) below:

(1) Juridical persons or associations stipulated in item iv) of the same Article shall not fall under any of the following cases,

1. The cases where persons mentioned in items i) through iii) of the same Article are officers who have the right of the representation of the juridical person, etc.
2. The cases where persons mentioned in items i) through iii) of the same Article are officers account for one-third or more of the officers of the juridical persons, etc.
3. The cases where persons mentioned in items i) through iii) of the same Article possess one-third or more of the voting rights of the juridical persons, etc.

(2) Persons mentioned in items i) through iv) of the same Article have a permission based on Article 9 paragraph (1) of Telecommunication Business Law. (Law No. 86 of 1984, as amended)

(Area of Facilities)

Article 4.

The area of facilities (meaning the area in which facilities are installed and cable television broadcasting service is conducted by means of the said facilities; hereinafter the same) shall be as established below:

(1) The area of facilities shall cover a unit or units of the Administrative Area and, as a rule, extend to the entire boundaries of an administrative area. For the purpose hereof, the term, "Administrative Area," shall describe the area represented by municipalities which shall include special wards and, with respect to ordinance-designated cities as provided for in Article 252-19 of the Local Autonomy Law (Law No. 67 of 1947, as amended), be city wards instead.

(2) Where any circumstances in which the entirety of an Administrative Area may not be covered under an area of facilities are considered to exist, at least the greater part of the Densely Inhabited Districts of that administrative area shall be included in the area of facilities.

(3) A future project shall be made specific with respect to how to deal with any such area as is part of an Administrative Area but may not be part of an area of facilities.

(4) In the case of facilities, including facilities for the purpose of common reception of television broadcasting or simultaneous retransmission service for overcoming reception interference, etc., the said area of facilities shall not include the area where the installation of the said facilities is not necessary.

(Reasonableness, and Feasibility of Implementation, of Installation Plan for Facilities)

Article 5.

The installation plan for the facilities shall be reasonable, and also its implementation shall be feasible in the light of the following criteria:

(1) The area of facilities as applied for shall be appropriately set up from the viewpoints of such demand and distribution thereof in the areas involved as foreseen by the applicant.

(2) Arrangements of transmission facilities, trunk lines and amplifiers within the area of facilities shall be suitable for such expected demands and distribution thereof in the area as foreseen by the applicant.

(3) Where installation of the facilities requires occupancy of roads or joint use of utility poles, or of land not under the ownership of the applicant, the permission therefor shall have been expected to be obtained.
In cases involving joint use of another person's utility poles, etc., where several operators install the facilities in the same area of facilities the installation plan for facilities in the same area by several operators, including the method of installing the trunk lines on the poles, shall be made explicitly clear in the permission for the use of utility poles, etc.

(4) The location at which the facilities are to be installed shall be the one allowing the installation thereof in the light of laws and ordinances relating to, among other things, community development, disaster control and protection of cultural property.

(Financial Background and Technical ability)

Article 7.

The financial background and technical ability shall be sufficient to warrant successful installation and operation of the facilities in the light of the following criteria:

(1) Financial Background:

1. Construction cost and procurement of construction funds:
   Construction cost for installation of the facilities shall be properly estimated on the basis of, among other things, the estimated cost of the facilities submitted by construction contractors. Procurement of the construction funds to cover the above construction cost shall be properly arranged.
2. Estimate of business revenues and expenditures:
   The estimate of business revenues and expenditures of the operation of the facilities, for installation of which an application for permission is filed, shall be based on the profitability of the operation as forecast by the applicant, and grounds of the estimates for respective incoming and outgoing items shall be specific and reasonable.
   The estimate of business revenues and expenditures, in those cases where the installation of the facilities is to be carried out by several operators shall be prepared on the basis of a subscriber estimate that assumes several operators will install the facilities and conduct business.
   If, with respect to the estimate of business revenues and expenditures of the operation pertaining to any facilities to be installed by a group of the receivers or the like and engaging solely in simultaneous retransmission, for the purpose of eliminating reception interference of the television broadcasting, for which an application for a permission of installation thereof is filed, the party responsible for the receiving interference has an agreement in effect that the party responsible for the receiving interference shall pay in full the cost of operations thereof, the amounts of expenses necessary for the operations and the timing of payments thereof shall be made specific for each of the business years.
3. Funding plan:
   The funding plan shall be appropriate with respect to the fund income from, among other things, profits from the operations and any increases in capitalization to support continuing operation of the cable television broadcast operations, and the outgoing from the funds including, but not limited to, any deficits from the operations and construction expenses.

(2) Technical Ability:

1. The representatives responsible for installation projects and maintenance services of the facilities shall be fully technically qualified, backed by practise and experience.
2. The maintenance system shall be capable of dealing with emergency maintenance as well and a sufficient number of qualified personnel shall always be secured as necessary for maintenance of the facilities.

(Installation of facilities)

Article 8.

(1) The installation of the facilities shall be deemed necessary and appropriate in the light of, among other things, the geographical identity of the area involved, extent of receiving interference of television broadcasting, demands for means of local communications, and local identity as a living and cultural community.

(2) There shall be private circumstances in which persons who install the facilities, if a private broadcaster or local public entity or otherwise is controlled thereby, has, among other things, no other provider-to-be of the facilities, or has strong demands from the local inhabitants for installation of cable television broadcasting facilities. For the purpose hereof, the term "control," shall be understood to mean as provided for in Article 9 Paragraph (5) of the "Ordinances for the Essential Standards for Establishing Broadcasting Stations." (Radio Regulatory Committee Regulations No. 21 of 1950, as amended).

(Freedom of Broadcast Program Editing)

Article 3.

Broadcast programs shall never be interfered with or regulated by any person, excepting the case where provided for by law.

(Editing of Broadcast Programs for Domestic Broadcasting)

Article 3-2.

(1) The broadcaster shall, in editing the broadcast programs for the domestic broadcasting, follow what is laid down in the following items:

1. Shall not disturb the public security, good morals or manners;
2. Shall be politically impartial;
3. Shall broadcast news without distorting facts;
4. As regards controversial issues, shall clarify points from as many angles as possible

(Standards of Broadcast Program Editing)

Article 3-3.

(1) The broadcaster shall establish the standards for the editing of broadcast programs (hereinafter referred to as the "Standards of Broadcast Programs") according to the type of broadcast programs and the persons these programs are designed for, and shall edit the broadcast programs in accordance with such standards.

(2) The broadcaster shall, upon having established the standards of broadcast programs for the domestic broadcasting according to the provisions of the preceding paragraph, make such standards public in accordance with the provisions of the applicable ordinance of the Ministry of Posts and Telecommunications. The same shall apply to the amendment of the standards.

(Consultative Organization on Broadcast Programs)

Article 3-4.

(2) The consultative organization may, in addition to deliberating matters essential to the promotion of proper broadcast programming, in response to an inquiry from the broadcaster, express its views thereof to the broadcaster.

(3) When the broadcaster intends to establish or change the standards of broadcast programs and the basic plan relating to the editing of broadcast programs, he must consult the consultative organization.

(4) The broadcaster shall, in the case where the consultative organization has replied to his inquiry or stated its views in accordance with the provisions of paragraph (2), take necessary action in deference to such reply or statement.

(Correction Broadcasting, etc.)

Article 4.

(1) In the case where, within three months from the day when the broadcasting was made, there is a demand from the person whose rights have been infringed upon by the broadcasting or any person directly concerned in the case with the reason that untrue matter has been broadcast by the broadcaster, the broadcaster must investigate without delay whether such broadcasted matter was untrue or not, and if the broadcast is clarified as untrue, must, within two days from the day when such clarification was made, broadcast the correction in an appropriate manner through broadcast equipment tantamount to the equipment through which the original broadcast was made.

(2) The same shall apply when the broadcaster of his own accord, has found any untrue matter in its broadcasting.

(3) The provisions of the preceding two paragraphs shall not preclude the claim for damages in accordance with the provisions of the Civil Code (Law No. 89 of 1896).

(Consultative Organization on Broadcast Programs)

Article 51.

(1) The consultative organization for a private broadcaster shall consist of seven committee members (for the consultative organization for a private broadcaster engaged exclusively in multiplex broadcasting, less than seven committee members as stipulated in the applicable ordinance of the Ministry of Posts and Telecommunications) or more.

(2) Committee members of the consultative organization for a private broadcaster shall be nominated by the latter from among persons of learning or experience.

(Campaign Broadcasting)

Article 52.

In the case where a private broadcaster has allowed any candidate for an elective office to broadcast his political views or make a campaign speech over the former's broadcast equipment or through other broadcaster's, it shall, on application, let other candidates for the same office in the same election, broadcast under the same conditions, whether with or without charge.

(2) Ordinances for the Essential Standards for Establishing Broadcasting Stations (Excerpts)

(Diffusion of Broadcasting)

Article 9.

(5) The term "control" mentioned in the provisions from paragraph (1) through the preceding paragraph designates those actions falling under any of the following items:

1. Possession by a single person of voting rights exceeding one-tenth of the voting rights of a juridical person or association.
2. The total number of officers of a single juridical person or organization who are concurrently officers of another juridical person or organization (except auditors, or other corresponding persons; the same shall apply hereafter in this item) exceeds one-fifth of the total number of officers of the said other juridical person or association.
3. The officers who possess the right of representation or the full-time officers of a single juridical person or association are officers who possess the right of representation or full- time officers (except auditors and other corresponding persons) of another juridical person or association.

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