181 Entities Announce Joint Position on NTT Law Revisions

Tokyo, December 4, 2023 – On December 4, 2023, a total of 181 entities^*1, including telecommunications operators and local governments, announced their position regarding the discussion on revising the Act on Nippon Telegraph and Telephone Corporation (the “NTT Law”).

Position Statement
On December 1, 2023, the Liberal Democratic Party's Project Team on the Future of the Act on Nippon Telegraph and Telephone Corporation discussed a proposal for the NTT Law.

While we believe the government will continue to consider the matter in greater detail going forward, we continue to oppose the abolition of the NTT Law and urge lawmakers to conduct careful policy discussions with due consideration for the following points.

• The development of Japan's telecommunications industry is based on ensuring fair competition, which can only be achieved through a combination of the Telecommunications Business Act, which stipulates rules for fair competition for the telecommunications market, and the NTT Law, which imposes certain obligations on Nippon Telegraph and Telephone Corporation (“NTT”) and Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation (“NTT East/West”), as the inheritors of assets and facilities from the former Nippon Telegraph and Telephone Public Corporation.
•  If the NTT Law is abolished as is being proposed by the Liberal Democratic Party’s Project Team:
  (1) It will impede a fair and competitive environment, leading to higher user fees and stagnant innovation, which will jeopardize the public interest.
  (2) NTT will no longer assume responsibility for acting in the public interest for regions of the country that cannot be covered by competitors and that need NTT to continue to fulfill its role as the network coverage provider of last resort.
  (3) A decrease in the number of local operators will negatively impact regional communication capabilities, including the dissemination of information, disaster prevention, and information for daily life. Consequently, there are viable concerns that the level of local services provided will decline.

Telecommunications play a crucial role in improving people's daily lives, revitalizing the economy, strengthening international competitiveness, and ensuring safety in times of disaster. To realize the Government of Japan’s “Vision for a Digital Garden City Nation,” which aims to revitalize local communities through digitalization, we believe that the principled development of telecommunications infrastructure and a fair, competitive environment for all businesses are more essential than ever.

Japan’s telecommunications industry framework should be built on the premise that the Telecommunications Business Act and the NTT Law are the two pillars of Japan’s telecommunications system, and together they should foster fair competition with NTT, as well as support innovation and regional development through competition among diverse players in the industry.

Please refer to the "181 Entities Announce Joint Position on NTT Law Revisions" (in Japanese) for details.

Notes
*1 This press release has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Please see the Japanese press release for a full list of signatories.

* Product names and service names published in this press release are generally trademarks or registered trademarks of their respective companies. Trademarks such as ™and ® may be omitted in the trademark descriptions of each company in this press release.