5G regulation and law in Japan

5G

Comprehensive 5G technology verification tests took place between 2017 and 2019. These included testing for industrial uses such as remote control of construction machinery, smart agriculture, arrayed vehicles mobility, and telemedicine.

In April 2019, the four mobile telecommunication service providers (NTT DOCOMO, SoftBank, KDDI/Okinawa Cellular and Rakuten Mobile) won spectrum licences after applying to set up 5G base stations.

In 2019, experimental 5G services were launched, including services for audience experience enhancement at international sporting events such as the Rugby World Cup 2019.

In March 2020, NTT DOCOMO, SoftBank and KDDI/Okinawa Cellular launched commercial 5G services, followed by Rakuten Mobile in September 2020. Based on the four mobile telecommunication service providers’ business plans, approximately 98% of the 10 km² of meshes (a unit of land in a grid used to determine mobile data coverage) would have 5G base stations by April 2024. These 5G services were non-standalone (NSA) services. However, the 5G licensees were planning to shift their services to the standalone (SA) standard in the next few years. These licensees, which are NTT DOCOMO, SoftBank and KDDI/Okinawa Cellular, started SA 5G services in or before 2022.

In August 2020, the Ministry of Internal Affairs and Communications (MIC) amended the Regulation for Enforcement of Radio Act of Japan Act No. 131 of 2 May 1950, Radio Act) so that 5G licensees can use some of the existing 4G spectrum bands for their 5G services.

In November 2020, MIC announced its Frequency Reorganisation Action Plan (FY2020 Second Revision), in which it discussed its main activities relating to 5G: (i) a study of additional spectrum allocation; (ii) conversion of existing bands to 5G; and (iii) a study of additional spectrum allocation for Local 5G.

Nationwide 5G population coverage reached 98.1% at the end of March 2024. According to a report in July 2024, MIC’s plan is that sub-6 frequencies (i.e. 3.7 GHz, 4.5 GHz and 4.9 GHz) will cover 80% of  high traffic areas, and there will be fifty thousand base stations for millimetre-waves (i.e. 26 GHz, 28GHz and 40 GHz)  by the end of March 2027. In addition, all base stations for these frequencies will be SA-type stations.

Local 5G

Local 5G is a system that regional entities such as companies or local governments can establish within a limited area, such as in their own buildings or on their own grounds, to meet the connectivity needs of local communities or businesses. Implementation of local 5G regulations began in December 2019, and the government has started treating licence applications for certain spectrum with a higher priority.

In locations where the progress of area-wide deployment of mobile service providers is slow, Local 5G, which can be implemented more quickly, can be introduced before the normal mobile networks become available. Local 5G also has performance settings that are flexible, and can be modified for various purposes. Additionally, compared to earlier mobile standards, Local 5G is less affected by telecommunication system failures and disasters in other locations.

Companies and local governments are conducting regional tests of Local 5G for development purposes, using combinations of different spectrum in different environments (cities, rural areas, indoors,). These tests will help determine, among other things, whether Local 5G can meet regional community needs.

Local 5G aims to allow a wide range of operators and industrial companies - regardless of size - to gain access to frequencies. In December 2020, the Radio Act and related regulations were amended to allow Local 5G to use the 28.2 - 28.3 GHz frequency band. In December 2020, after further amendments to the Act, the 4.6 - 4.9 GHz and 28.3 - 29.1 GHz frequency bands became available for Local 5G use.

Local 5G has been tested in stadiums, airports, factories, farms, construction sites or other premises.

There have been no public tenders in the sense that applicants compete based only on who offers the highest price.

Under the Radio Act, MIC grants a licence to establish and operate base stations exclusively for a certain spectrum band for a certain period (the general rule is five years) once the authority has reviewed and approved the “base stations establishment plan” submitted by the applicant. Amendments to the Radio Act came into force in October 2019, pursuant to which a plan must also include a statement of how much the licence applicant will pay the government (the Specified Base Station Opening Fee). The applicant must consider the economic value of the frequency band when determining the fee, which the MIC will consider as an additional factor when reviewing the licence application.

In July 2019, MIC granted the four mobile operators 5G spectrum licences, under which the use of allocated spectrum bands to non-5G networks by a 5G licencee may lead to cancellation of those 5G licences.

However, MIC is considering holding a public tender process for the allocation of new spectrum licences. In 2023, MIC issued a report that set out the appropriate basic direction for proceeding with studies to enable the selection of conditional auctions as a new method for allocating mobile phone frequencies in Japan. At the same time,  the report says that when introducing such an allocation method, it is also necessary to clarify the policy objectives for the frequency bands that are expected to be newly allocated for 5G use by the end of FY2025 (4.9GHz band, 26GHz band, 40GHz band) and to conduct further studies.

When there were multiple applicants that all satisfied the conditions, MIC reviewed whether the applicant:

1. planned to cover a wider area using 5G infrastructure and to install more base stations;
2. provided safer and more reliable maintenance plans for the facility;
3. planned to open up its network to more MVNOs;
4. had a better plan to use 5G for a wide array of industries; and
5. would ensure better 5G access for a larger geographic area and population.

MIC required that applicants’ plans indicated compliance with the following minimum standards:

nationwide coverage for 5G infrastructure must be 50% or more, and services will be available in all 47 prefectures within two years;

1. a plan to maintain safe and reliable facilities;
2. a funding plan to cover necessary costs, and a plan to open up their network to MVNOs; and
3. an agreement that their business will not be transferred to other operators.

The term of the license is five years in principle.

There was no standard in July 2019 for calculating the Specified Base Station Opening Fee .

However, in August 2020, MIC published its Study Group Report on Standard Amount of Specified Base Station Opening Fee. This report aimed to define the economic value of frequencies, and set the criteria for calculating the specific base station establishment fee for future frequency allocation. The report explains that the economic value of a particular frequency band should be determined using factors such as the width of the frequency band, shared use of such band with other wireless communication systems, interference with adjacent frequency bands, and any termination promotion measures.

In September 2024, MIC published its draft Frequency Reorganisation Action Plan (FY2024). The draft states that MIC is considering using 2.6, 4.9, 26 and 40 GHz for 5G. For 26 and 40 GHz. the draft states MIC will aim to implement a conditional auction by the end of FY2025 and allocate these frequencies to 5G. MIC  will consider the status of studies on transition measures for existing systems and frequency sharing and aims to finalise the technical conditions by around spring 2025, and formulate the technical standards by around autumn of the same year,..

In 2019, the Radio Act was amended to include provisions for 5G spectrum licensing. The amendments also allow experimental WiFi and other services (such as smart speakers or AR glasses) to be operated for a maximum of 180 days without the relevant radio equipment meeting Japanese standards, as long as the service provider has met an equivalent international standard.

Another regulatory amendment established telecommunication facility technology standards and amended spectrum licensing rules for Local 5G.

Yes.

KDDI and SoftBank agreed on 3 July 2019 to jointly promote the early development of 5G networks in rural areas through the sharing of base station assets. They decided to consider a joint venture to promote the most effective base station construction design and management. They also began joint demonstrations in Asahikawa City in Hokkaido, Narita City in Chiba Prefecture, and Fukuyama City in Hiroshima Prefecture in autumn 2019.

On 1 April 2020, they set up the resulting joint venture 5G Japan Corporation.

There is no specific regulation for 5G network or spectrum sharing. MIC issues guidelines that clarify the application of general regulations in infrastructure sharing including that for 5G.

In December 2019, in order to ensure fair competition, MIC issued a request for mobile carriers to open their 5G networks to MVNOs. This request included the following:

1. Carriers open their own 5G networks to MVNOs when launching their own 5G services;
2. Carriers promptly provide MVNOs with information necessary for 5G services (such as network launch dates, service areas, telecommunication speed, connection fees, connection spots, technological details for connection, etc.); and
3. Carriers give MVNOs enough time for discussions, facility upgrade, network tests or other actions required for the MVNOs.

In September 2023. MIC released the “Seventh Research Group Report on the Calculation of Interconnection Charges. According to the Report, MIC wants MNOs to share necessary information with MVNOs to promote more active establishment of 5G services..

MIC released 5G Cybersecurity Guidelines in April 2022. The Guidelines summarise 5G-related technologies, threats and appropriate countermeasures. There are no official comments or regulations regarding the use of Chinese technology at the moment. However, in December 2018, the government announced that its ministries must, in principle, seek advice from the Information and Communication Technology (IT) Strategic Planning Office and the Cabinet Cyber Security Centre on measures to avoid supply chain risks in procurement procedures. This announcement is understood as a declaration that the government views Chinese technology as having supply chain risks. Since April 2019, the government has excluded Chinese technologies from its procurement process, leading 5G spectrum licensees to stop using Chinese technologies for 5G network services.

Since May 2024, the government has been able to designate businesses, including telecommunications carriers and key facilities based on certain criteria under the Act on Economic Security Promotion. When the designated businesses intend to outsource introduction, maintenance and management of the designated facilities, they must notify the government in advance and undergo an inspection. If the government deems that there is a high risk that the proposed facilities will  create a degree of interference with the stable service, the government may recommend or order the businesses to take necessary measures, including preventing such interference.

MIC issued a report in June 2024 related to 6G. The report sets out four strategies, namely: R&D Strategy, Social Implementation Strategy, Intellectual Property and Standardisation Strategy, and Overseas Expansion Strategy. The report mentions three key technologies: all-optical network-related technology, non-terrestrial network-related technology, and secure virtualisation and integrated network-related technology. The reports says the outcomes of R&D related to the key technologies above will be gradually implemented in the domestic network from 2025 onwards, and then expanded  as quickly as possible.