Communications deregulation under consideration -- Japan

[David Farber <farber () central cis upenn edu>]

Date: Mon, 20 Jun 94 11:30:00 +0900
From: Bruce Hahne <bruce () jise isl melco co jp>


> From the front page of my newspaper today (6/20/94), below the fold.
Insert your own snide comments about MPT as desired.  The notes on
control over supply and demand and preventing competition made my jaw
drop.  I guess I'm still too naive about Japan's economy. :|


Bruce Hahne
hahne () acm org
I speak only for myself.


---------------------------------------------------------------------------


"Govt eyes communications deregulation"


The government is considering abolishing regulations that limit new
entrants to the telecommunications market and setting up new standards
that it says will be clearer and fairer.


A draft plan for deregulation of the information and communications
markets obtained by the Yomiuri Shimbun Sunday says the government plans
to ease regulations on fees for telecommunications services and on
link-ups between communications networks.


The government also plans to abolish a regulation that requires new
entrants to the cable television business to show that they can make
profits within a set period of time after entering the market.


The deregulation draft, which includes 50 provisions, will be finalized
by the end of this month.


The Posts and Telecommunications Ministry is strongly opposed to the
draft...


The Posts and Telecommunications Ministry and the Cabinet councillors'
office have been involved in a heated debate over the draft and it is
still uncertain whether it will be finalized in its present form,
according to sources.


Under current telecommunications regulations, a company can only enter
the market if the ministry judges there is sufficient demand.


The ministry says the regulation is aimed at preventing severe industry
competition and keeping supply and demand stable.


Business leaders say the regulation hinders new entrants to the market
and have demanded that it be abolished.


However, the ministry said that the number of new entrants to the
information and comunications market has increased, and that the
regulation is therefore not a barrier to new entrants.


[stuff cut]


Communications companies that link their networks with other
communications firms will only be required to report their plan to the
ministry.  Under current regulations, they have to apply to the ministry
for approval.


The proposed regulation will enable companies to operate nationwide
communications businesses like Nippon Telegraph and Telephone Corp.


[stuff cut]


The government also plans to ease broadcasting regulations and the
licensing system for cellular and car telephone businesses.


It is also considering introducting an auction system for allocation of
signal frequencies in the mid-term.


[remainder cut]