II. Telecommunications: Toward Diversified Services A. Steady Progress in Telecommunications Business Policy 1. New Policy Developments Government measures on the status of NTT. In June 1993 the revenues and expenditures of NTT's business divisions were released for the first time. NTT Mobile Communications Network, Inc., was divided into nine regional companies (named, for example, NTT Hokkaido Mobile Communications Network, Inc.) in July, and in October each of these was merged with a company that had been undertaking certain aspects of the mobile communications companies' operations. Promotion of MPT deregulations. In response to users' expectations for lower basic monthly rates and the diversity in mobile communications equipment that would result from increased competition, in April 1994 the MPT introduced a user-ownership system for portable and automobile telephones, ship telephones, and convenience radio phones. To promote the development and improvement of consumer services, in December 1993 the MPT eliminated the requirement that carriers receive authorization for fees and other matters relative to the testing stages of various customer services. Various countries are liberalizing satellite usage, allowing the transborder, wide-area capabilities of satellite communications to be used to their fullest. In light of these developments, the MPT has recognized the need to allow greater leeway for diverse satellite usage and in September 1993 began permitting Japanese Type I telecommunications carriers to use non-INMARSAT satellites. Regional development. The MPT's info-communications policy vision, entitled "Toward the Creation of a New Info-communications Industry" and released in January 1994, incorporates the important policy of promoting such advanced new services as ISDNs operated by new regional carriers and a menu of full services, including communications, provided by cable TV operators. The ultimate goal of these activities is to revitalize regional communications markets and further advance info-communications in general. To ascertain the technical capabilities and public acceptance of Personal Handy-Phone systems, since October 1993 the researchers have been conducting field tests, scheduled to last one year. "Toward the Creation of a New Info-communications Industry" indicates the goal of commercialization of such systems in January 1994. Testing continues for Personal Handy-Phone systems(PHS), a simplified version of the portable telephone New fees and rates. Based on the results of an MPT study group on access charges released in June 1993, a connections agreement was finalized the following October that determined the access charges paid to NTT by Japan's three long-distance carriers. In November, an end-to-end charge was introduced by the three long-distance carriers. To lay the groundwork for the introduction of a user-ownership system for mobile telephones, the MPT convened a study group to look at automobile and portable telephone rates. Based on the group's recommendations, released in October 1993, along with the establishment of the user-ownership system in April 1994 a new rate structure that allows carriers to make available to users a wider variety of choices was introduced. Trends in telephone numbers. An MPT study group on telephone numbers released a report in May 1993, which recommended the investigation of a uniform number system that clearly distinguishes among networks and services. 2. Construction of a New-Generation Telecommunications Network In light of the need for a new telecommunications network that includes advanced high-speed, large-volume capabilities, the MPT is promoting several significant projects. The Provisional Measures Law for Telecommunications Infrastructure Improvement promotes a development project for advanced communications facilities for a new-generation network to serve as Japan's telecommunications infrastructure. This network will incorporate the conveniences of optical fiber and synchronous digital transmission equipment, thus exponentially advancing the telecommunications infrastructure. In December 1993, 13 companies gave their sanction to this project. To popularize the new-generation telecommunications network, at whose core will be a broadband ISDN, beginning in fiscal 1994 the Association of Broadband-ISDN Business Chance and Culture Creation (BBCC) will be conducting the first set of a two-year series of experiments on the network in the Kyoto-Osaka-Nara region, centering on the Kansai Science City. Research will include such applications as capturing and transmitting background video images, electronic libraries, a multimedia telecommunication shopping application using electronic catalogs, a multimedia TV conference with multiple images on a single personal computer screen, and telecommunications between high-speed LANs. 3. Internationalization of Telecommunications The need for international leased circuits for such services as image transmission via satellite is growing. In view of a recommendation on the reforming of satellite telecommunications systems to accommodate growing internationalization, released by the Telecommunications Council in January 1994, the MPT is making the preparations necessary for offering international leased circuit services for image and other transmission via domestic and foreign satellite operators. In recent years, NTT has commenced operations abroad, the first such international activities for a Japanese domestic carrier. In November 1992, the company instituted telephone operations in Thailand (except in the Bangkok metropolitan area), and in January 1994 NTT joined with Nextel Communications Inc., a U.S. mobile telecommunications carrier, in providing telecommunications services in that country. B. Wave Usage 1. Protection of Radio Wave Environment Along with the increased usage of radio waves for telecommunications have come sudden increases in the number of illegal radio stations and problems of unwanted radio waves. To deal with these issues, the MPT is promoting the following: (1) construction of facilities to efficiently and effectively monitor and control illegal radio stations, (2) obligating to any retailers of radio equipment designated by the minister of posts and telecommunications to notify purchasers, before and after making a sales contract, that a radio station license is required to operate the equipment, and (3) measures to counter the interference that results between radio communications equipment and electronic equipment. Additionally, as a means of upgrading the overall efficiency of radio station regulation, construction of PARTNER, a productive and reliable telecommunications network for radio stations, has begun. 2. Development of Frequency Resources Frequencies are limited and need to be used with greater effectiveness. To this end, the MPT is working on such areas as the development of unused frequency bands, including the milliwave band; the redevelopment of frequency bands already in use, so that, for example, the microwave band may be used for mobile communications; and the development of intelligent radio wave utilization and other technologies, so that frequencies will be used more effectively. 3. Popularization of Mobile Communications In response to expanding demand for mobile communications, the MPT is promoting their digitization, which will allow for a greater diversity of services. The ministry is also promoting standardization of Half-Rate CODEC for digital automobile telephone systems and the introduction of a digital MCA system and a digital land mobile communication system for public utilities. International standardization for the Future Public Land Mobile Telecommunication Systems (FPLMTS), to be introduced around the year 2000, is currently under way.