Table １： Comparison of the number of base stations regarding cellular systems among Japan, the U.S. and the U.K. Number of base stations Land area （１ 0,000 ㎢） Number of base stations per １ 0,000 ㎢ Relative comparison to Japan Japan About ９３，０００３７．８２，４６０ １．００ U.S. About １７６，０００９６２１８３ ０．０７ U.K. About ４５，０００２４．３１，８５２ ０．７５ Data of the number of base stations is as of March 2005 in Japan, as of December 2004 in CTIA HP in U.S. and as of December 2004 in MOA (Mobile Operators Associations) Report in U.K. M I C Note:

At present, 135 kHz band ( kHz), 13.5 MHz band ( MHz), 2.4 GHz band ( GHz), etc. are reserved. Nevertheless, reservation of new frequency bands near the 950 MHz band is also taken into consideration to respond to various needs. 1)Within 5 years, amount of approx MHz shall be reserved, mainly in the 1.7 GHz and 2.5 GHz bands. 800 MHz band (at present, used for purposes such as Dispatch services): amount of 8 MHz 1.7/2.5 GHz bands (at present, used by national government fixed communication, private sector satellites, etc.): part of the bands 2 GHz band: amount of 15 MHz Others 2)Within 5 to 10 years, amount of approx GHz at maximum shall be reserved, mainly in the 5 to 6 GHz band and below. VHF/UHF bands (at present, used for broadcasting): part of the bands 800 MHz band (at present, used by regional disaster prevention radio and airport Dispatch services): amount of 10 MHz 1.5 GHz band (at present, used by Dispatch services, etc.): Amount of 18 MHz 3.5 GHz band (at present, used for broadcast transmission): part of the band width of 200 MHz 4 G/5 GHz bands (at present, used by telecommunication carrier fixed communication): part of the bands 1)Within 5 years, amount of approx. 480 MHz at maximum shall be reserved, mainly in the 5 GHz band, to respond to the frequency demand GHz band (at present, used by telecom carrier fixed microwave links): amount of 100 MHz GHz band (at present, used by meteorological radars of national government and electric power companies, etc.): amount of 100 MHz GHz band (at present, used by national government radar, etc.): part of the band 2)Within 5 to 10 years, a width of approx. 740 MHz at maximum shall be reserved, mainly in the 5 GHz band, to respond to the frequency demand. 5 GHz band (at present, used by telecom carrier fixed microwave links): part of the band Expansion in utilization of the sub-millimeter wave band, and development and introduction of technology utilizing the millimeter wave band (59-66 GHz) 1)UWB wireless system: A system is planned to be established next year based on the Telecommunications Council report which now studying of technical requirements to utilize the micro wave band ( GHz). 2)ITS related radio communication systems: Efficient use of existing frequencies in the 5.8 GHz band ( GHz) shall be promoted, along with a study to utilize other frequencies, to respond to future technological developments. 3)Quasi-zenith satellite system: Possibilities shall be studied in regard to communication, broadcasting, and Global Positioning services by taking the following into consideration: WRC-03 decision to allocate the 2.6 GHz band ( GHz) for sound satellite broadcasting, Frequencies that can be assigned for communication and Global Positioning services, and Future R & D trends. 4)Intelligent home appliances: Based on the investigation results of radio spectrum utilization and market needs, details such as frequencies to be utilized and the necessary bandwidth shall be studied, with assignment of frequencies near the 5 GHz band taken into consideration. Phased revision of the Frequency Allocation Plan will be implemented in compliance with the Radio Law. 1)Frequency assignment for prompt development of digital broadcasting at a national level. 2)From 2012 onward, the UHF band will be utilized by mobile communication systems, etc. 3)From 2011 onward, the VHF band will be assigned to respond to new demands, in light of the possible future needs such as digital terrestrial sound broadcasting and mobile communications Following is the frequency demand (5-6 GHz band or below) calculated by the ITU-formulated prediction method. This data is based on estimation of such as the number of medium/long-term cellular phone and PHS subscribers and necessary transmission speeds. Following is the frequency demand (mainly the 5 GHz band) calculated by the ITU-formulated prediction method. This data is based on estimation of such as the number of medium/long-term users of wireless LANs and necessary transmission speeds. Advanced use of electronic tags is being developed in various fields such as physical distribution (e.g., IC cards for automatic ticket gates, product control, and physical distribution control). Mobile Communication Systems Wireless LAN/NWA systems RFID The radio communication systems will be improved, its core technology development will be fostered, and introduction of the system will be promoted. UWB, ITS, Quasi-Zenith Satellite System, Intelligent Home Appliances, etc. NWA system: NWA is the abbreviation of Nomadic Wireless Access. It is a system for non-residential wireless access such as “hot spots.” RFID: Abbreviation of Radio Frequency Identification. It is electronic tagging. UWB system: UWB is the abbreviation of Ultra-wide Band. It is the ultra-wide band wireless system. ITS: Abbreviation of Intelligent Transport System. It is an advanced road traffic system. [Reports by the Telecommunications Council] Proposal regarding “Radio Policy Vision” Establishment of the World’s Most Advanced Wireless Broadband Environment I.Major revision in frequency allocation II.Development of legal framework for frequency reallocation III.Major revision in Spectrum Usage Fee system IV.Promotion of R & D V.Facilitating smooth prevalence of radio equipment VI.Enhancing international strategy VII.Development of a secure and safe environment for radio spectrum utilization [FUTURE CORE RADIO COMMUNICATION SYSTEMS] Direction of Future Radio Policy Prompt promotion and dissemination/development of digitalization Digital broadcasting will start in December 2003 in the three major metropolitan areas (Kanto, Chukyo, Kinki); with introduction of digital broadcasting completed in all remaining areas by the end of Analog broadcasting will end in Terrestrial TV Broadcasting Formulation of policies for frequency reallocation Phased revision of the Frequency Allocation Plan [POLICIES FOR RADIO SPECTRUM REALLOCATION] [Terminology] Amount of approx. 270 MHz (At present) Amount of MHz (5 years later) Amount of 1,060-1,380 MHz (10 years later) Amount of approx MHz (At present) Amount of approx. 480 MHz at maximum (5 years later) Amount of approx. 740 MHz at maximum (10 years later) M I C Figure 1: Outline of Guidelines for Radio Spectrum Reallocation

Figure 2 ： Outline of Legal Framework etc. to Promote Radio Spectrum Reallocation Systemic reforms to promote frequency reallocation have been conducted to develop a wireless broadband environment such as mobile phone and wireless LAN/wireless access systems. Presentation on Guidelines for Radio Spectrum Reallocation and Surveys on Radio Spectrum Usage Introduction of Surveys, Evaluations and Publications of Radio Spectrum Usage (Revision of the Radio Law in 2002) Formulation of Guidelines for Radio Spectrum Reallocation (Publication in October of 2003 ) Introduction of Surveys, Evaluations and Publications of Radio Spectrum Usage (Revision of the Radio Law in 2002) Formulation of Guidelines for Radio Spectrum Reallocation (Publication in October of 2003 ) Establishment of a Compensation System for Spectrum Refarming due to Rapid Withdrawal of Existing Radio Stations Establishment of Registration System for Specific Radio Stations (Revision of the Radio Law in 2004) Establishment of a Compensation System for Spectrum Refarming due to Rapid Withdrawal of Existing Radio Stations Establishment of Registration System for Specific Radio Stations (Revision of the Radio Law in 2004) Development of the world’s most advanced wireless broadband environment Establishment of a Radio Spectrum Usage Fee System taking into consideration Several Elements (Power, Assigned Band Width, Degree of Congestion etc.) related to Economic Value of the Spectrum and Modification of fees (Revision of the Radio Law is expected in the Diet during 2005 ) Establishment of a Radio Spectrum Usage Fee System taking into consideration Several Elements (Power, Assigned Band Width, Degree of Congestion etc.) related to Economic Value of the Spectrum and Modification of fees (Revision of the Radio Law is expected in the Diet during 2005 ) Rapid Withdrawal of Existing Radio Stations and Establishment of Registration System Consideration of Several Elements related to Economic Value of Radio Spectrum M I C

Surveys on Radio Spectrum Usage Publication of the survey results Modification of the Frequency Allocation Plan Survey Items - Number of radio stations - Traffic - Years radio facilities have been in use - Replaceability with other means of telecommunications such as optical fiber cables etc. Evaluation of the extent of efficiency in radio spectrum usage on each frequency band Reflectio n All of the radio spectrum is divided into the following three sections. Surveys are conducted every year on one of the sections. 1 Below 770MH ｚ 2 Above 770MH ｚ /below 3.4GH ｚ 3 Above 3.4GH ｚ Figure 3: Outline of Surveys, Evaluations and Publications of Radio Spectrum Usage and Spectrum Reallocation Consultation to the Radio Regulatory Council Report from the Radio Regulatory Council Public Comments Survey for economical influence to existing licensees Ex. -Need for spectrum refarming to meet new demand for radio spectrum -Need for continuation of existing radio spectrum usage Ex. of survey results Spectrum is used effectively now. Spectrum should be compressed. Fixed micro wave links should be transferred to optical fiber, etc.. Views of evaluation for efficient radio spectrum usage 1 Distribution of radio stations, etc. 2 Usage of radio equipment -Technologies, etc. -Actual usage of radio equipment 3 Presence of substitutability 4 Others (new technology, demand trends etc.) M I C

Table 2 ： Progress of Radio Spectrum Reallocation Radio Communication Systems Progress of Radio Spectrum Reallocation （ As of the end of April 2005 ） Mobile Radio Communication System ・ 800MHz band and 1.5GHz band: The part of allocated frequencies to dispatch systems to be reduced by 22MHz(4MHz width or 18MHz width) by May 2007 or May ・ 1.7GHz band: 70MHz band in total (15 MHz×2 for the whole nation and 20 MHz×2 for the Tokyo, Nagoya and Osaka regions) to cellular systems to be allocated within FY ・ 15MHz ( MHz) of 2GHz band to be allocated to cellular system (TDD) within FY ・ From 2011 onward, the VHF band and from 2012 onward, the UHF band to be allocated after analog broadcasting will be terminated. ・ 800MHz band: Regional disaster radio to be shifted to 260MHz bands by May 2011 and airport dispatch services has been shifted to 400MHz band by May ・ 4G/5G band: Fixed radio communication systems for telecommunications business to be shifted to cable systems. Wireless LAN/NWA ・ 4.9 ～ 5.0GHz band: Fixed microwave links for telecommunication business in metropolitan areas to be withdrawn by 30 November ・ GHz band allocated in May 2005 since the technical regulations were established and the frequency allocation plan was revised ～ 5.725GHz band to be used after establishment of an international standard to avoid radio interference. Terrestrial TV Broadcasting ・ From 2011 onward, the VHF band and from 2012 onward, the UHF band to be allocated to mobile communication systems etc. after analog broadcasting will be terminated. RFID (Electronic tags ) ・ 950MHz band: High power passive tag system was introduced in March Low power system with no licensing requirement and active tag system are under discussion for possible introduction. UWB, ITS, Quasi- Zenith Satellite System, Intelligent Home Appliances, etc. ・ UWB: The problem of radio interference with other existing systems to be studied in Telecommunications Council. ・ ITS: New frequency bands to be studied for an advancement of the systems. ・ Quasi-Zenith Satellite System: Frequencies that can be assigned for communication and Global Positioning services to be studied. ・ Intelligent Home Appliances: Frequency bands and the necessary bandwidth to be studied in the Study Group for Wireless Broadband Promotion by November M I C