ABSTRACT
This chapter provides an overview of the current state of broadband and competition policy in Japan. It highlights the primary factors contributing to Japan’s ongoing success in implementing broadband. Telecommunications policy and the structure of the telecommunications industry are inextricably linked such that changes in policy cause the structure of the industry to change, and changes in the structure of the telecommunications industry likewise cause the telecommunications policy to change. Policies to create and promote competition are adopted to inject competition into areas newly liberalized or privatized, which formerly allowed monopolistic services by public corporations or enterprises. It is easy for incumbent companies to exploit their market dominance right after liberalization and privatization, so it is necessary to adopt ex ante regulations that restrain competition-limiting behavior by incumbents. Measures that are favorable to new entrants are also adopted until the new companies can get established and capture a reasonable share of the market.
