The Act Partially Amending the Telecommunications Business Act

<p>The Act Partially Amending the Telecommunications Business Act, which was passed in the 208th Japanese ordinary diet session, aims to ensure the smooth provision of telecommunications services and the interests of the users of the services under the changes in circumstances surrounding telecommunication businesses. It has mainly three pillars: (1) positioning certain broadband services as universal telecommunications services; (2) ensuring proper handling of user information; and (3) ensuring the appropriateness of negotiations between wholesale service suppliers and MVNOs (Mobile Virtual Network Operators) .</p><p>Specifically, as for (1), the act contains two main points: (i) it establishes a subsidy system to ensure the stable provision of broadband services in unprofitable areas by positioning certain broadband services as universal telecommunications services; and (ii) it imposes the obligations such as to establish general conditions of contracts and notify the Ministry of Internal Affairs and Communications (MIC) of them, and to provide services in the service areas, for universal telecommunications services.</p><p>As for (2), the act contains three main points: (i) it requires telecommunications carriers who have a great influence on the interests of users to properly handle user information that they obtain by creating an internal rule of handling of user information etc.; (ii) if a case where those operating telecommunication businesses transmit telecommunications instructions for the external transmission of user information, it requires them to notify it to its users; and (iii) it newly obliges businesses who provide search engines or social networking services to file a notification with MIC. </p><p>As for (3), the act imposes some obligations to particular wholesale telecommunication service suppliers in order to ensure appropriate negotiations between businesses: e.g. to provide the service unless there are justifiable grounds; and to present buyers with information including the methods of wholesale rate calculations.</p>