Japan has reformed its telecommunications regulations over time to promote transparency, establish standardized licensing procedures, and encourage public participation in the regulatory process. These reforms have helped create a business-friendly environment and contributed to Japan's telecommunications industry becoming globally competitive. Currently, Japan has over 12,000 telecommunications carriers operating in a competitive market, broadband penetration is widespread, and telecommunications rates have declined substantially.

1. 1
Regulatory Reform of Domestic Regulations
in the Telecommunications Sector
- Japanese Experience-
FURUICHI, Hirohisa
Senior Advisor
General Affairs Division
Telecommunications Bureau
MINISTRY of PUBLIC
MANAGEMENT, HOME
AFFAIRS, POSTS and
TELECOMMUNICATIONS

2. 2
Outline
1. Summary
2. Japanese Experience
3. Current Situation in Japan

3. 3
1. Summary
 Japan has, since early days, established and
administrated a transparent regulatory
framework in the telecommunications sector.
The continual regulatory reforms including
recent efforts for further enhancing
transparency in licensing requirements have
contributed to realizing a business-friendly
environment and to its telecommunications
industry to become competitive in the global
market.

4. 4
2. Japanese Experience
(1) TransparencyTransparency
(2) Licensing Procedures,
Technical Standards
(3) Public Comment Procedures
(4) Procedures for Adverse
Dispositions
(5) Regulatory Reform

5. 5
2. Japanese Experience
(1) TransparencyTransparency
 All laws, ordinances and regulations
are made public by means of an
Official Gazette.
 Laws and regulations are also made
public on the website

6. 6
2. Japanese Experience
(1) TransparencyTransparency
 Telecommunications laws and regulatory guidance
are uploaded in English to the greatest extend
possible. (ex. http://www.soumu.go.jp/joho_tsusin/eng/laws.html)

7. 7
2. Japanese Experience
(1) Transparency
(2) Licensing Procedures,Licensing Procedures,
Technical StandardsTechnical Standards
(3) Public Comment Procedures
(4) Procedures for Adverse
Dispositions
(5) Regulatory Reform

8. 8
2. Japanese Experience
(2) Licensing Procedures,Licensing Procedures,
Technical StandardsTechnical Standards
 Telecommunications licensing
procedures and technical standards are
stipulated in Laws, ordinances and
related examination standards.

9. 9
2. Japanese Experience
(2) Licensing Procedures,Licensing Procedures,
Technical StandardsTechnical Standards
 The Japanese Telecommunications
Ministry has established the standard
processing period for licensing
procedures since 1987.

10. 10
2. Japanese Experience
(2) Licensing Procedures,Licensing Procedures,
Technical StandardsTechnical Standards
 The Minister shall inquire the
Councils including the
Telecommunications Council and the
Radio Regulatory Council before
making such regulations as licensing
procedures, technical standards and
licensing criteria.

11. 11
2. Japanese Experience
(1) Transparency
(2) Licensing Procedures,
Technical Standards
(3) Public Comment ProceduresPublic Comment Procedures
(4) Procedures for Adverse
Dispositions
(5) Regulatory Reform

12. 12
2. Japanese Experience
(3) Public Comment ProceduresPublic Comment Procedures
 The Japanese Telecommunications
Ministry has established the Public
Comment Procedures since 1985.
 The Minister shall request the public to
submit opinions on proposed regulations
which are taken into consideration before
before the adoption and the
implementation of the proposed
regulations.

13. 13
2. Japanese Experience
(1) Transparency
(2) Licensing Procedures,
Technical Standards
(3) Public Comment Procedures
(4) Procedures for AdverseProcedures for Adverse
DispositionsDispositions
(5) Regulatory Reform

14. 14
2. Japanese Experience
(4) Procedures for Adverse Dispositions
 The Japanese Telecommunications Ministry
established the Procedure for Adverse
Dispositions in the early days.

15. 15
2. Japanese Experience
(1) Transparency
(2) Licensing Procedures,
Technical Standards
(3) Public Comment Procedures
(4) Procedures for Adverse
Dispositions
(5) Regulatory ReformRegulatory Reform

16. 16
2. Japanese Experience
(5) Regulatory Reform
 Abolition of Restriction on Foreign
Participation imposed across on board.
 Abolition of Entrance Permission.
 Abolition of tariff regulations for non-
dominant carriers

17. 17
3. Current Situation in Japan
(1) Increasing number of
Telecommunications Carriers and
Progress of Competition
(2) Expansion of Telecommunications
Market

18. 18
3. Current Situation in Japan
(1) Increasing number of Telecommunications
Carriers and Progress of Competition
20020722
0
2,000
4,000
6,000
8,000
10,000
12,000
Ｓ６０ … Ｈ４ ５ ６ ７ ８ ９ １０ １１ １２ １３ １４
Ge ne ral Type - Carrie rsⅡ Spe c ial Type - Carrie rsⅡ Type - Carrie rsⅠ
(FY）
(companies）
03. De c . 1
Increasing number of Telecommunications Carriers
There is a clear distinction between Type-I and Type-II carriers; the former is a carrier owning telecom facilities and providing
telecommunications services, and the latter rents the facilities owned by Type-I carriers and provides services other than those offered by
the Type-I carriers.
The Type-II carriers are classified into two groups; the special Type-II carrier provides the international telecommunications service, as
well as the voice communication service for an unspecified number of people by making PSTN connections, and the other is the General
Type-II carrier.
※ Classification of Telecommunications carriers
Type-I telecommunications carriers : 7
Special Type-II carriers : 9
General Type-II carriers : 200
Total : 216
(As of April 1, 1985)
Type-I telecommunications carriers : 7
Special Type-II carriers : 9
General Type-II carriers : 200
Total : 216
(As of April 1, 1985)
Type-I telecommunications carriers : 417
(*Of these, CATV business operators): 305
Special Type-II carriers : 113
General Type-II carriers : 11,872
Total : 12,402
(As of Dec 1, 2003)
Type-I telecommunications carriers : 417
(*Of these, CATV business operators): 305
Special Type-II carriers : 113
General Type-II carriers : 11,872
Total : 12,402
(As of Dec 1, 2003)
0202010100009999989897979696959594949393929219851985
All copyrights reserved (MPHPT)

19. 19
3. Current Situation in Japan
(1) Increasing number of Telecommunications
Carriers and Progress of Competition
0
100
200
300
400
500
0
500
1000
1500
2000
KDDI 85. 4. 1 KDDI 96. 11. 23 98. 12～96. 11～
98. 1. 7から
9ye n
10ye n
5
10
9ye n
～
8.7ye n
8.5ye n
～
8.4ye n
▲ 25%
▲ 15%
NTT Com 01.Mar.1～ Fus ion 01.Apr.1～ C&WIDC 02.Apr.21～
KDDI01.Mar.1～ MEDIA 02.J an～ HEISEI 03.J ul.15～
J T 01.Mar.1～
TTNe t 01.Mar.1～
４００円
～
0
TTNe t
54ye n
C&WIDC
HEISEIDENDEN
18ye n
Fus ion Communic ations Corp
MEDIA
20ye n
NTT Com, J T
KDDI 80ye n▲ 80～96％
NTT 83.7.21～
1,530円
KDD 85.Apr.1～
98.De c ～
▲ 90～96%
8.2ye n
～
7.5ye n
96.Nov～
① Long-distance call rate (Tokyo - Osaka)① Long-distance call rate (Tokyo - Osaka) (Three-minutes, week-day,
day-time rate)
② Local call rate② Local call rate (Three-minutes, week-day,
day-time rate)
MEDIA 02.J an.30～
HEISEIDENDEN
02.Fe b.1～
MEDIA 8. 2ye n
HEISEI DENDEN
7. 5ye n
01.May.1～
NTT Eas t ･We s t
KDDI, J T,
NTT Com
8. 5ye n
TTNe t , QTNe t
8. 4ye n
01.J an.10～
NTT Ea s t 9ye n
TTNe t 8. 7ye n
TTNe t ,
QTNe t 9ye n
TTNe t 98.J an.7 ～
QTNe t 99.Apr.1～
NTT 76.Nov.17～
260円
70円
0
100
200
300
400
93. 3. 25 現在
20, 000
15, 000
10, 000
5, 000 100
200
300
400
NTTﾄﾞｺﾓ
93.3.25
NTTﾄﾞｺﾓ
93.3.25
NTT 9ﾄﾞｺﾓ中央ほか社
00.12.1～
J-PHONE東日本
1 99.6.1ほか 社 ～
0
④ Mobile communication rate④ Mobile communication rate
Basic fee
17,000 yen
▲ 75%
4,300 yen
Telephone call rate (Mobile phone → fixed
telephone in the same prefecture)
260 yen
▲ 73%
70 yen
NTT
DoCoMo
93.Mar.25
J-PHONE
99.Jun.1 –
NTT
DoCoMo
93.Mar.25
NTT DoCoMo Central and
nine other companies
00.Dec.1 -
Note: March 25, 1993 is the day when the 800 MHz digital system was launched. NTT
DoCoMo’s basic charge has been 4,500 yen (including the 200 yen for free-of-charge
calls) since June 2000.
③ International call rate (Japan - U.S. )③ International call rate (Japan - U.S. )
(Three-minute, week-day,
day-time rate)
KDD 450 yen(96.Nov.23)
JT 440 yen(96.Dec.20)
C&W IDC 440 yen(96.Dec.20)
MCIWCJ 150 yen(98.Dec.1)
JT 180 yen(99.Oct.1)
C&W IDC 180 yen(99.Oct.5)
KDDI 180 yen(99.Nov.1)
TTNet 132 yen(99.Nov.11)
DTJ 75 yen(00.Dec.10)
NTT Com 160 yen(00.Apr.3)
Fusion Communications Corp.
45 yen(01.Sep.1)
MEDIA 45 yen(02.Jan.30)
HEISEI DENDEN 45 yen(02.Feb.1)
Reduction of Telephony Service Charge

20. 20
3. Current Situation in Japan
(1) Increasing number of Telecommunications
Carriers and Progress of Competition
70 8
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
99-3 99-6 99-9 99-12 00-3 00-6 00-9 00-12 01-3 01-6 01-9 01-12 02-3 02-6 02-9 02-12 03-3 03-6 03-9 03-12
Cable Internet
● Subscribers：Approx. 2,510,000
● Operators ：306
(End-Jan. 2004)
Cable InternetCable Internet
● Subscribers：Approx. 2,510,000
● Operators ：306
(End-Jan. 2004)
61 2 9 16 17
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
00/09 00/12 01/03 01/06 01/09 01/12 02/03 02/06 02/09 02/12 03/03 03/06 03/09 03/12
Fiber-Optics
(FTTH)
（for general users）
● Subscribers：960,926
● Operators ：12
(End-Jan. 2004)
FiberFiber--OpticsOptics
(FTTH)(FTTH)
（for general users）
● Subscribers：960,926
● Operators ：12
(End-Jan. 2004)
960,926
2,510,000
DSL
● Subscribers：10,612,671
● Operators ：44
(End-Jan. 2004)
DSLDSL
● Subscribers：10,612,671
● Operators ：44
(End-Jan. 2004)
10,612,671
Current Status of Broadband Penetration in Japan - Number of Subscribers -

21. 21
3. Current Situation in Japan
(1) Increasing number of Telecommunications
Carriers and Progress of Competition
Current Status of Broadband Penetration in Japan - Comparison with Other Countries -
US (End-Jun. 2003)
DSL CATV Other
(Satellite,
FWA, etc.)
53.8
643.0
1,366.0
DSL CATV Other
(Satellite,
FWA, etc.)
Korea (End-Dec. 2003)
382.8
643.5
91.4
Japan
FTTH DSL CATV
3.2
251.0
FWA,etc.
DSL
1.9
Malaysia (End-Dec. 2002)
DSL
UK
DSL
450.0
Germany (End-Dec. 2003)
CATV
96.0
DSL
12.9
CATV
10.0
(End-Dec. 2002)
167.4 133.1
1061.2
1: CATV refers to high-speed Internet connection services through
CATV networks.
2: Except for Japan and the U.S., subscribers to DSL and/or Cablemodem only are shown.
This is due to a lack of data, not because other services are
unavailable in some countries.
3: Source: MPHPT for data on Japan, Singapore and Malaysia; FCC Report on USA; MIC on Korea;
OFTEL on U.K.; OECD on France and Germany.
Note:
(Ten thousand subscribers)
6.0
CATV
(End-Nov. 2003)
Key Fact:Key Fact:
 In the number of broadband subscribers, Japan is one of the most advanced countries in the world.
(End-Jan. 2004）
FTTH
1.6
DSL
7.0
17.6
CATV FWA,etc
1.9
(End-Mar. 2003)Australia
France
DSL CATV
210.0
39.3
(End-Jul. 2003)
Singapore
(End-Dec. 2003)

22. 22
3. Current Situation in Japan
(1) Increasing number of Telecommunications
Carriers and Progress of Competition
Japan
Others
About 64% About 36%
Korea
KT
About 81%
US
About 85%
About 15%
UK
BT
About 99.4%
About 0.6%
Germany
DT
About 93.6%
About 6.4%
【End-Jan. 04】
【End-Nov. 03】
Source: Oftel's Internet and Broadband
Brief – Nov. 2003
NTT East & West
RBOCs
Others
Source: MPHPT
Others
About 19%
Others
Source: FCC “High-Speed Services
for Internet Access”
【End-Dec. 03】【End-Jun. 03】
Source: Ministry of Information
and Communication (MIC)
Others
【End-Jul. 03】
Source: EC “9th Report on the Implementation of the
Telecommunications Regulatory Package”
Current Status of Broadband Penetration in Japan
- Comparison of Competition in the DSL Services Market Based on Unbundled Lines-
Japan’s promotion of pro-competitive policies has resulted in it becoming the country with the most
competitive market.
(NTT East & West’s share of the market is about 36%.)

23. 23
3. Current Situation in Japan
(1) Increasing number of Telecommunications
Carriers and Progress of Competition
22.69 22.69 23.50 25.15 23.50 25.15
39.95 38.04
22.65
18.67
53.84
24.23
16.09 16.09 18.65 27.98
41.30
38.04
25.15
39.95
23.5025.1523.50
38.7838.78
46.65
24.23
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
foroperators forISPs
Notes:
1）Fees are as of March 2003 except the fees of 24M service of NTT East and 26M service of Softbank BB, which are as of July 2003,.
The 40M & 45M services are scheduled to be launched at December 2003.
2) Foreign exchange rates were calculated on the basis of the TTS (Telegraphic Transfers Selling) rate on March 31, 2003, which was 121.20 yen to
the US dollar, 193.45 yen to the British pound ,131.33 yen to the Euro, 88.87 yen to the Swiss franc and 0.0979 yen to the Korean won.
3）Tax not included.
USD
/month
500kbps
/256kbps
512kbps
/128kbps
24Mbps
/1Mpbs
768kbps
/128kbps
768kbps
/128kbps
1.5Mbps
/256kbps
24Mbps
/1Mbps
600kbps
/128kbps
OCN
(ACCA)
Verizon
(New York)
BT
(London)
NTT
East
FT
(Paris)
DT
(Berlin)
KT
(Seoul)
Current Status of Broadband Penetration in Japan - Fees for DSL
-
Swisscom
(Geneva)
 As a result of advancing competition, the fees for DSL services in Japan are the most inexpensive in
the world.
40Mbps
/1Mbps
40Mbps
/3Mbps
26Mbps
/1Mbps
Downstream
/ Upstream
Softbank
BB
OCN
(ACCA)
NTT
East
Softbank
BB
45Mbps
/3Mbps
53.84

24. 24
3. Current Situation in Japan
(1) Increasing number of Telecommunications
Carriers and Progress of Competition
1. Price per 100 kbps (US$)
6.6
6.4
6.1
5.9
5.8
5.4
5.0
4.4
4.0
3.9
3.5
3.4
3.3
2.7
2.6
2.2
1.3
1.2
0.3
0.1
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
Norway
UK
Italy
Austria
Denmark
Bahamas
Lithuania
Germany
Israel
Slovenia
United States
Netherlands
Canada
New Zealand
Macao, China
Singapore
Hong Kong, China
Belgium
Korea
Japan
2. 100kbps as % monthly income
0.42
0.40
0.38
0.30
0.29
0.26
0.25
0.25
0.24
0.22
0.20
0.16
0.15
0.14
0.12
0.11
0.05
0.05
0.02
le s s than 0.01
0.0 0.1 0.2 0.3 0.4 0.5
Bahamas
Finland
UK
Italy
Slovenia
Austria
Denmark
Israel
Norway
Germany
New Zealand
Macao, China
Netherlands
Canada
United States
Singapore
Hong Kong, China
Belgium
Korea
Japan
ITU Internet Reports: Birth of Broadband (September 2003)

25. 25
3. Current Situation in Japan
(1) Increasing number of Telecommunications
Carriers and Progress of Competition
0
1 ,0 0 0
2 ,0 0 0
3 ,0 0 0
4 ,0 0 0
5 ,0 0 0
6 ,0 0 0
7 ,0 0 0
8 ,0 0 0
9 ,0 0 0
1 9 8 9 1 9 9 0 1 9 9 1 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 98 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2
F ix ed Co m m u n icatio n ( S u b scr ib er 's lin e + I S D N )
S u b s cr ib er 's lin e
M o b ile Co m m u n icatio n ( C ellu lar p h o n e + P H S )
Rapid Diffusion of Mobile Communications
（10 thousand）
Reverse point
Subscriber：55.6million
Mobile：56.9millon
(2000.3) Reverse point
Fixed：62.2million
Mobile：62.8millon
(2000.11)
8,112
6,077
5,116

26. 26
3. Current Situation in Japan
(1) Increasing number of Telecommunications
Carriers and Progress of Competition
8. 9
1 1 . 7
1 2. 0
1 3. 8
20. 0
29. 1
33. 0
33. 9
74. 9
79. 2
0 20 40 60 80 100
United States
France
Singapore
Germany
Canada
Finland
Argentina
China
Korea
Japan
7.50
34.57
0.05
62.46
67.21 million
contracts
51.93
41.53
51.14
60.94
69.12
75.65
79.28 million
Contracts
0
10
20
30
40
50
60
70
80
90
1998 1999 2000 2001 2002 Nov 2003
Transition in the number of contracts for mobile telephones and the
mobile Internet
Mobile telephone Internet compatibility rate in the main
countries (as of September 2002)
(Ratio of mobile Internet contracts as a percentage of total mobile telephone
contracts).
Created by documents from Baskerville Communications
MPHPT Survey
(Number of mobile
telephone
contracts)
(Number of mobile
Internet contracts)
Number 1 in the world
for Internet
compatibility in mobile
telephones
The number of contracts
has jumped to more than
67 million in only 4.5 years.
（％）
(Note) Mobile Internet began service in February 1999
(million contracts)
Japan Currently Enjoying a Major Lead in the Use of the Mobile Internet
◇ The number of mobile Internet contracts has jumped to more than 67 million in only 4.5 years.
◇ Internet compatibility for mobile phones in Japan is No.1 in the world at around 80%.

27. 27
3. Current Situation in Japan
(1) Increasing number of
Telecommunications Carriers and
Progress of Competition
(2) Expansion of TelecommunicationsExpansion of Telecommunications
MarketMarket

28. 28
3. Current Situation in Japan
(2) Expansion of Telecommunications Market
88.72 97.50 103.85 106.63 115.01 123.10
79.22
8.6%
9.3%
10.0%
10.9% 11.2% 11.8%
12.6%
40
60
80
100
120
140
1995 1996 1997 1998 1999 2000 2001
(trillion yen)
0%
2%
4%
6%
8%
10%
12%
14%
Information and communications industry Proportion to overall industries
(Year)
（― ） （12.0％）
（9.9％） （6.5％） （2.7％）
（7.0％）（7.9％）
* The percentages in brackets indicate changes over the previous year.
88.72 97.50 103.85 106.63 115.01 123.10
79.22
8.6%
9.3%
10.0%
10.9% 11.2% 11.8%
12.6%
40
60
80
100
120
140
1995 1996 1997 1998 1999 2000 2001
(trillion yen)
0%
2%
4%
6%
8%
10%
12%
14%
Information and communications industry Proportion to overall industries
(Year)
（― ） （12.0％）
（9.9％） （6.5％） （2.7％）
（7.0％）（7.9％）
* The percentages in brackets indicate changes over the previous year.
Transitions in the Market Size and Proportion of the Information and
Communications Industry to Overall Industries

29. 29
3. Current Situation in Japan
0
25,000
50,000
75,000
100,000
125,000
150,000
175,000
200,000
1996 1997 1998 1999 2000 2001 2002
(2) Expansion of Telecommunications Market
Transition of the gross sales of Telecommunication business
: Type1 Carriers
: Type2 Carriers
(100 million yen)
(FY)