1. Ministry of Internal Affairs and Communications (MIC), JAPAN Recent Regulatory and Policy Developments, Japan 10 May, 2010 Shoji MIHARA Director, Multilateral Economic Affairs Office International Economic Affairs Divisions Global ICT Strategy Bureau Ministry of Internal Affairs and Communications, Japan 1

2. MIC Ministry of Internal Affairs and Communications (MIC), JAPAN Broadband Service Subscribers in Japan 2 4.11 mil (Unit: 10 thousands contracts) Note: Reported numbers compiled by MIC in accordance with the provisions of the Rules for Reporting on Telecommunications Business.(Numbers compiled before the end of December 2009 were reported voluntarily by carriers) DSLDSL Cable Internet Optical Fibers (FTTH) FTTH exceeded DSL （ June 2008 ） Start WiMAX service  Now, services are providing all over the Japan. Start WiMAX service  Now, services are providing all over the Japan. 11.18 mil 17.2mil Feb. 2009

3. MIC Ministry of Internal Affairs and Communications (MIC), JAPAN “Hello, …” Future Application in the Mobile Terminals E-mail Informatio n Weather forecast Photo/Video mail TV Game Video telephony Credit payment Electronic money Music download Navigation system 3D Communicatio n Online 3D Game DVD Download Live HDTV Mobile Medical Care 2G 3G 3.5G 3.5G upgraded 3.9G 4G Telephone (Voice) Data communication (Internet access) Real-time / HD Image Transmission (HD Video) Image transmission (Camera phone) ～ kbps ～ 384kbps ～ 14Mbps ～ 42Mbps ～ 100Mbps ～ 1Gbps 3

4. MIC Ministry of Internal Affairs and Communications (MIC), JAPAN OperatorUQ Communications Inc.Willcom Inc. Adopted System Mobile WiMAXXGP Number of BSs/ Area cover ratio (by March 2013) About 19,000 base stations 93 ％ area coverage(1,161 cities) About 20,000 base stations 92 ％ area coverage(846 cities) Capital Investment (by March 2013) 132.3billion yen111.3billion yen Subscribers (by March 2013) 5 million2.40million Service Outline Pilot Launch from February 2009 Commercial Service from July 2009 - Maximum 40Mbps Download - Maximum 10Mbps Upload Field Trial from April 2009 Commercial Service from October 2009 - Maximum 20Mbps Download - Maximum 20Mbps Upload Mobile WiMAX & XGP Service in Japan 4

5. MIC Ministry of Internal Affairs and Communications (MIC), JAPAN (1) 10MHz (2) 10MHz 1844.91854.91859.91475.91485.91495.91510.9 （ MHz ） 1.5 GHz band1.7 GHz band Use restriction* *Unavailable in some areas including Tokyo, Tokai, Kinki areas, until the end of March 2014, when its use for digital MCA expires. Guard band Public service Guard band (3) 15MHz (4) 10MHz Assign 10 MHz or 15 MHz to up to 4 entities for prospective entrants or existing operators. Achieve 50% or higher population coverage within 5 years in 11 districts for 3.9G and 3.5G upgraded- system. (using newly assigned frequency bands as well as already-assigned frequency bands). Allow the use of the frequency bands for 3G or 3.5G to flexibly respond in various ways to 3.9G deployment. Outline of the 3.9G license Policy IMT-2000 License for 3.9G (Assigned on 10 June 2009) 1.5 GHz band1.7 GHz band 1475.91485.91495.91510.9 （↑）（↑）（ 1427.9 ）（ 1437.9 ）（ 1447.9 ）（ 1462.9 ） （ MHz ） Use restriction* Guard band Public service Guard band IMT-2000 10MHz （ ↓ ） 15MHz （ ↓ ） 10MHz （ ↓ ） 1844.91854.91859.9 （↑）（↑）（ 1769.9 ）（ 1779.9 ） （ MHz ） Japan will start LTE (3.9G/Super 3G) service on this December 5 Four existing operators applied for license Start this winter!!

6. ICT Network Contents ・・・ ・ TV / ImagesMusicRadio Voice telephone Web Information Change in Network by Telecom & Broadcast Convergence Vertical Broadcasting CableTelevision SatelliteBroadcastingTerrestrialBroadcasting ＜ Convergence ＞ Wireless Fixed Horizontal Wired CommunicationsWireless Communications Transmission infrastructure Satellite 6 Telecommunications

7. New Converged Services (1) IP multicast service (2) Digital signage Nighttime: Data transmission Daytime: Broadcast 1) Data transmission during nighttime hours Telecom 2) Data accumulation 3) Data update of Digital signage Bus Train Bus Company A Data for Bus Company A Television Service Broadca st Data for Railway Company B ・・・ Railway Company B ＳＴＢ ＯＮＵ 収容局 Head end IP Multicast Network Splitter Local office Broadcast server Router Subscriber OLT ＳＴＢ ＯＮＵ Optical Fiber Router Local office Broadcast Station (image)

8. 8 Broadcast Act Current Legal Structure Telecommunications Broadcasting Radio Act Wire Telecommunications Act Act Concerning Broadcasting of Telecommunication Services Cable Television Broadcast Act Broadcast Act Act to Regulate the Operation of the CableSound Broadcasting Service New Legal Structure Telecommunications Business Act New Legal Structure towards Convergence Act Concerning Wire Broadcasting Telephone Business Act Concerning Wire Broadcasting Telephone Business Telecommunications Business Act Wire Telecommunications Act (wired) Radio Act (wireless)

9. Outline of Amendment - (1) Broadcast Act 9 Outline Current laws A broadcast operator cannot choose its own operating structure. (ex. A terrestrial broadcaster should own its broadcast stations.) Current laws Cable television operator must receive permission from MIC. Current laws MIC can establish ownership limitations into broadcasters in MIC ordinance. (1)Expansion of Management Choice (2)Rationalizing broadcast regulations (3)Clarifying ownership limitations of broadcasters After revision A broadcast operator can choose its own operating structure. After revision Cable television operator must register with MIC. After revision MIC can establish ownership limitations into broadcasters in MIC ordinance, within the range from minimum 10% to maximum 33%.

10. (2) Radio Act 10 Outline Current laws Broadcast operators cannot provide telecommunication services through their broadcast stations, and telecommunications carriers cannot provide broadcast services through their radio stations. Current laws Antenna power of a license-free radio station must be under 0.01 watts. After revision Companies can provide both telecommunications services and broadcasting services under a single license. After revision The limit of antenna power of a license- free radio station will be 1watt. (1)Flexible Use of Radio Frequency (2) Promotion of the Prompt Introduction of New Services and New Products

11. (3) Others 11 Outline Current laws Telecommunications carriers can apply the dispute resolution to Telecommunications Dispute Settlement Commission (TDSC), and content providers cannot apply the dispute resolution. Current laws Telecommunications carriers should explain terms and conditions of their services, but broadcasters are not obliged to explain their terms and conditions under any laws. After revision Both content providers and telecommunications carriers can apply the dispute resolution to TDSC. After revision Broadcasters that provide paid services must explain terms and conditions of those services just as is already obligating telecommunications carriers. (1)Expansion of Dispute Settlement Function (2) Consumer Protection

12. Ministry of Internal Affairs and Communications (MIC), JAPAN Shoji MIHARA (s.mihara@soumu.go.jp) Thank You!