Discussion over NTT Law

The government of Japan once had three public corporations: railway, cigarette and telephone. They were privatized in 1980s, receiving the demand to cut the cost for them. When telephone corporation was privatized in 1985, establishing Nippon Telegram and Telephone Corporation (NTT), the government legislated NTT Law to vest the obligations to maintain universal telephone service everywhere in Japan and to disclose the achievement of the studies on telecommunication. The president of NTT, Akira Shimada, required Liberal Democratic Party to abolish NTT Law, hoping to be unleashed. There is a discussion in LDP to promote NTT reform for defense policy.

NTT Law was legislated at the time most telephone services were provided through the lines in office, home or pay phone booth. Now, most telephone users call through cell phone. According to the report of Nikkei Shimbun, contracts of using fixed-line phone decreased from 63 million in 1997 to 13 million in 2023. Cell phone contracts with big three companies are over 200 million this year.

 

For NTT, the obligation of the law on universal service is recognized as eroding its international competitiveness. In the meeting of LDP, Shimada required the abolishment of NTT Law with the reason that the law had finished its role. In the press conference after the meeting, Shimada hoped other telephone communication companies to owe some responsibility for service of fixed-line phone.

 

Other three companies, KDDI, Softbank and Rakuten, opposed abolishing NTT Law. With about one hundred and eighty companies, they submitted a request to LDP to deliberately consider the abolishment of NTT Law. NTT succeeded the infrastructure, such as telephone poles or office buildings, from the governmental corporation. Other companies argue that NTT should return those formerly public assets, if NTT Law is abolished. They are worried that the abolishment may cause unfair competition.

 

There is a discussion in LDP to require the government to sell its own NTT stocks for “complete privatization.” Yomiuri Shimbun reported that some of LDP lawmakers hoped that the benefit of selling those stocks could be contribute to appropriate for defense budget, which budgetary resource had not found. The idea of tax increase for defense budget is fundamentally unpopular.

 

Asahi Shimbun criticized the idea of selling NTT stocks in its editorials for defense. It argued that the review of NTT Law had to be done in the perspective of fair competition and utility of users. There can be a public discussion that the money obtained by selling NTT stocks should be used for other purpose than for defense. We have not seen an attempt of LDP to listen to the tax payers on the issue.

Comments

Post a Comment

Popular posts from this blog

Amendment of Local Autonomy Law

The House of Representatives started discussion on revision of the Local Autonomy Law, which would vest the national government a power to instruct local government in an emergency. It may change the relationship between the national and local government, which has been recognized as equal. The opposition parties oppose the amendment, arguing that it would give the national government an excessive power.   With the Meiji Restoration, the national government abolished the feudal system, introducing modern governance. However, its autonomy was not sufficient. The governor of each prefecture was appointed by the national government. The local governments subordinated to the national government. It was as late as 2000 when  the Comprehensive Decentralization Law  was enacted and the relationship between the national and local government was defined as equal.   The national government found inconvenience in the relationship between the national and local government, when ...
Read more

Request for Final Nuclear Disposal Site

Ministry of Economy, Trade and Industry requested Genkai Town, Saga, to accept “literature survey” for building a final disposal site for high-level radioactive waste. Genkai is going to answer within this month. If it accepts, it will be the third place to accept that survey, following two places in Hokkaido. Main reason to accept the survey is supposed to be subsidy from the national government.   Japan has no final disposal site. Among all 54 reactors in 17 nuclear power generation plant, 12 reactors of 6 plants are operating. The rest of them are not in operation, some of which are determined to be decommissioned. Used nuclear fuels are stocked in each plant, 　 or have sent to a reprocessing plant in Rokkasho, Aomori. There are two plans to stock nuclear wastes in the intermediate facility for disposal, one is already built and another is still in negotiation.   Nuclear Fuel Final Disposal Act in 2000 determines to bury nuclear waste in the underground. Literature survey, ...
Read more

Not A Royal Wedding

The bride called her husband an indispensable existence and their marriage was necessary choice to protect their mind. The groom insisted on his life as only once and his right to be with his loved one. Her father wanted his daughter’s marriage to be celebrated by the people. The people were not sure whether the family was happy as a whole. Is this the traditional Japanese social system that makes no one happy? Mako Komuro, as known as Princess Mako during her life in one of the royal family Akishino, held on Tuesday a press conference with her husband Kei Komuro, right after submitting marriage report to local government. It was something different from ordinary Q&A session, because Mako was afraid of her mental uneasiness brought by some questions not based on truth. So, the event was actually one-sided speech to the reporters. Mako emphasized that the Kei’s decision of studying abroad five years ago had not been his original idea, but a result of her request to establish an over...
Read more