Office of U.S. Trade Representative (USTR) presented Japanese gov...

of the United States to the Government of Japan Under the U.S.-Japan Regulatory Reform and Competition Policy Initiative” said its recommendations were “designed to facilitate a return to sustainable growth and open market in Japan.” Report said Japan had made “significant” progress in promoting competition in telecom sector through regulatory reform, as well as in rollout of advanced telecom technologies, including deployment of broadband services. U.S. also urged Japan to consider “even more far-reaching reforms that challenge the status quo, facilitating a transition to advanced networks and services, and allowing market forces to overtake obsolete regulations that hinder the development of a competitive environment.” U.S. suggested U.S.-Japan Telecom Working Group enhance its dialog by inviting experts from govt. and private sector to provide their perspectives. It also recommended Japan implement following reforms in telecom sector in 2003: (1) Focus regulatory obligations on carriers with market power and eliminate or reduce filing and reporting requirements for carriers without market power. (2) Promote transparent and independent regulation by transferring regulatory functions to independent agency not under ministerial authority. (3) Reinforce dominant carrier safeguards to prevent abuses by carriers with market power. (4) Complete implementation of cost-oriented, transparent and reasonable interconnection rates that are necessary for competitive local market and ensure that interconnection will be available to competitors on non-discriminatory terms. (5) Establish means to determine if rates for termination to NTT DoCoMo network are set at reasonable, competitive levels and eliminate discrimination in retail rate-setting. (6) Continue to improve rights of way regime through annual reviews of rights of way guidelines to promote competitors’ installation of network facilities.