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Translation - English Cartel Prevention Manual (Practical Aspects)
１．What is a cartel？
A cartel is a form of criminal activity in which competitors discuss or agree on pricing, production volume, sales volume, sharing of markets, and so on.
(１)Cartels
Various kinds of behavior are categorized as cartels, but what you should particularly beware of is the exchange of information regarding pricing of products, production volume, sales volume, manufacturing capability, rate of operation, buyers (customers), sales regions, which products companies deal with, and so forth. Just by exchanging this kind of information, competing companies run an extremely high risk of being accused of forming a cartel, so be absolutely sure not to engage in such exchange of information under any circumstances.
(２) The damage cartels inflict on corporations
Cartels are an unforgivable form of crime, and companies punished for engaging in them suffer immeasurable damage including astronomical fines, bad publicity and more. All company employees should be aware that even everyday business operations, may cross the line into criminal activity if they are not careful.
(３) Application of overseas regulations… the US, Europe are especially strict
Countries the world over have laws regulating the formation of cartels. Even if exchanges of information regarding prices took place in Japan, in cases where these exchanges influence prices of products for export to other countries, they will be dealt with under the laws of the countries in question. For example, when Asian manufacturers in countries such as Taiwan and China exchange information about prices, these actions may be punished not only under the laws of the country where they took place, but if the products are shipped to Europe or North America, also under the stricter US or European regulations.
２. If you get entangled in a cartel…
You may be forced to provide massive amounts of evidence, and eventually to pay a huge fine. In some cases individuals are even sent to prison.
(１) Fines imposed by competition authorities
Recently, there is an international trend towards stricter crackdowns on cartels. Especially in the US and Europe, when a cartel is recognized it is not uncommon for companies to be fined tens of billions of yen. In addition, the individuals responsible are fined or imprisoned.
(２)Civil lawsuits
In general, when a competition authority suspects the existence of a cartel and begins investigating, the suspicion is enough to serve as the basis for a class action lawsuit filed in the US or elsewhere seeking compensation for the damage caused by the cartel. To resolve these lawsuits, companies must expend vast amounts of effort and money (for legal fees, compensation, out-of-court settlements, and so on.)
(３) Gathering of evidence, and other cumbersome paperwork
When companies are suspected of taking part in cartels, not only the guilty, but also the innocent are under obligation to cooperate with investigations by the competition authority and class action-related discovery procedures, as well as to gather and submit enormous amounts of evidence. Gathering of evidence requires the cooperation of numerous employees related to the investigation, not only in legal departments but also in a variety of other areas, causing severe impairment to routine business operations. Furthermore, employees bearing a relation to the case must be questioned by the competition authority, or must give evidence in class action lawsuits. These procedures require hiring lawyers and other experts from outside the company, resulting in huge legal fees and other costs.
３．“Where there’s smoke…”
Contact with competitors
When contact with competitors has no clear purpose, it is suspected of being cartel-oriented contact.
(１)Acceptable contact
There is essentially nothing wrong with contact with competitors when it serves a specific and necessary business-related purpose, such as industry association activities including unification of standards, or OEM supply and other collaborative efforts. However, these reasons are often used as a cover for contacts aimed at forming cartels, and competition authorities in every country are watching such activities closely. In case you are asked in the future why you were meeting a competitor’s representative, it is necessary to take measures such as preserving reports or the minutes of meetings. (Refer to 4. Only YOU can protect yourself!, and 9. “Loose lips sink ships”… Watch your words.)
(２)Unacceptable contact
Setting aside actual contact for cartel purposes, which is obviously out of the question, any contact with competitors that serves no clear purpose is considered unacceptable. Contact with no clear purpose does not automatically constitute a cartel, but the more times it takes place, the more suspect it becomes. Strictly refrain from making contact with competitors that serves no clearly recognizable purpose.
Competing companies in Japan are especially prone to taking part in meetings with vague, ill-defined goals that are held by industry associations, and overseas, particularly US and European competition authorities tend to suspect these get-togethers of being aimed at forming cartels. Consider carefully whether it is really necessary to participate in such meetings, and when you do participate, take measures to ensure that this participation will not entangle you in a cartel. (Refer to 4. Only YOU can protect yourself!)
Note that not only meetings involving multiple competitors, but also one-to-one contact; not only face to face meetings but also contact by phone or email; and not only public but also private contact runs the risk of being suspected as a cartel by competition authorities.
４．Only YOU can protect yourself!
Even if you have no intention of getting involved in a cartel, there is a danger of being entangled or set up.
(１)Stay away
The simplest means of self-defense is to stay away from situations where competitors are apt to discuss sensitive topics such as pricing. If you cannot avoid being present in such situations, take steps to prevent sensitive topics from coming up, such as having a lawyer or other legal professional accompany you.
(２) Clearly state that you will not enter into a cartel
Hypothetically speaking, if another participant were to bring up sensitive topics such as pricing, you would not have to take part in the discussion to be considered complicit – just staying silent means you give your tacit approval. In cases like these, you should clearly tell all participants, “I can’t take part in such discussions,” and if discussion on the same topic continues, you should first clearly say “I can’t take part in such discussions,” and then leave the place. After that, record the fact that your company refused to take part in the discussion right away and keep the records, and also report the incident to a legal group or legal office.
(３)Keep records
When you make contact with competitors, you run the risk of coming under cartel suspicion, even if you do not discuss pricing, etc. at all. For example, coming into frequent contact with competitors, to no clearly recognizable purpose, at industry association meetings and so forth, gives the competition authority a reason to suspect that a cartel is being conducted. At such times, if ambiguous language that could be interpreted as evidence of a cartel is preserved in the minutes of the meeting, the competition authority may reach a conclusion, based on this, that a cartel is indeed happening.
In any case, in order to prove your innocence if the competition authority falsely accuses you, keep and maintain accurate records of all discussions whenever you encounter your competitors.
５．If it’s only an exchange of information, is it OK？
“Even if competitors exchange information on pricing, etc., as long they don’t actually make agreements, it’s OK…” this is incorrect.
(１) Exchange of information between competitors
Even if pricing (price increases, price maintenance, range of price reductions) and so on are not agreed upon, just by exchanging information, competitors run an extremely high risk of being suspected of forming a cartel. This is true even if prices themselves are not revealed, and only information that can be used to deduce prices (costs, rebates, discounts, profit margins) is exchanged. For this reason, strictly refrain from exchanging information with competitors.
(２) If you are approached for information exchange
In the event that a competitor’s representative approaches you, either face to face or by phone or email, on the subject of pricing, etc., state clearly, “I cannot take part in such discussions [information exchanges]). Make sure the person recognizes that not only did you not agree on pricing, etc., but you also refused to engage in any information exchange at all.
In a face-to-face meeting, if following the above advice fails to halt the discussion on the topic, state again, “I cannot take part in such discussions [information exchanges]), and leave the meeting.
To be prepared in case the competition authority investigates you, clearly and promptly record the fact that your company refused to agree on pricing, etc., or exchange information, and keep the records. Report the incident to a legal group or legal office.
(３)Acceptable means of acquiring information
It is acceptable to seek information on competitors’ pricing, production volumes, and so forth as long as the information is not exchanged between competitors, but acquired by proper means from a non-competitor such as a research company, customer, parts manufacturer, etc.
６．Severe demands for lower prices… are no excuse
Even if you are in the red, agreements or exchanges of information on pricing, etc. are inexcusable.
(１) Severe customer demands for price cuts
Severe customer demands for lower prices on products in fiercely competitive categories are given as a reason for agreements on pricing, exchanges of information, and other behavior that risks being designated a cartel. However, even if you were forced to engage in agreements on pricing or exchanges of information with competitors in order to protect your own company’s interests, this does not justify the formation of a cartel.
(２) Wanting to check up on possible false info from customers
Acquiring information on competitors’ pricing, etc., from customers, does not in itself constitute a cartel, but there is an extremely high likelihood of it becoming a cartel if you confirm the information with the competitor in question. Customers have been known to impart false information about competitors’ prices, making them sound lower than they are, so as to get a company to lower its prices. Nonetheless, be absolutely sure not to check with the competitor to see if the information is true or false.
(３)Being instructed to exchange information
Even if you receive instructions, from your supervisor or from another department, to exchange information with competitors, you must adamantly refuse to do so. If you receive such instructions, consult a legal group or legal office immediately.
Also be absolutely sure not to instruct others to exchange information with competitors. There is a risk that not only the company, but also the individual who gave instructions to exchange information, and the individual who acted on them, will be penalized.
７．If I’m away from work, is it OK？
At parties, playing golf… no matter where you are, do not exchange information.
(１)Don’t do it, no matter where you are
If you exchange information on pricing, etc. with a competitor’s representative when you’re off duty and away from work, you run an extremely high risk of being accused of a cartel. While people may tend to loosen their tongues when at a party or on the golf course, if topics of this kind come up, you must state clearly at once, “I can’t take part in such discussions,” and if the discussion continues, state clearly again, “I can’t take part in such discussions,” and then leave the place.
Also, do not take part in parties or golfing in the first place when you can foresee this kind of discussion taking place.
(２)Don’t forget to record and report
Even when contact with competitors is personal and private, such as at a party or when playing golf, it is still contact. In order to prove at a later date that you have not been part of a cartel, keep and store records showing whether discussions of pricing, etc. took place or not, and if they did, how you responded to the situation. If such discussion did take place, report them immediately to a legal group or legal office.
８．As long as the information is false, is it OK?
Deceiving others with false information… this, too, is a prime example of a cartel.
(１) It doesn’t matter what kind of price information it is
Falsified prices, inaccurate prices, roughly estimated prices, rounded-off prices… the type of price information doesn’t matter. Even if it isn’t accurate, price information exchanged among competitors is extremely likely to be identified as cartel behavior.
(２)It doesn’t matter what the objective is
Any exchange of information among competitors is highly likely to be identified as cartel behavior, even if the objective is not to reach an agreement on pricing (price increases, price maintenance, range of price reduction, etc.), but rather to offer customers a lower price than one’s competitors, or to use fake price information to lull competitors into a false sense of security.
９. “Loose lips sink ships”… Watch your words
When meeting with competitors, say and write no more than necessary.
(１)Choose your words with meticulous care
When a proposal for a tie-up with a competitor is on the table, enthusiasm for the proposal often leads company representatives to make exaggerations. For example, [after using expressions implying agreement between the companies on pricing, production volume, sharing of markets, etc.], “Let’s work together for our mutual benefit,” “Let’s corner the market together,” “With this collaboration, let’s drive our rivals out of the market”… expressions of this kind will cause the company to be suspected of reaching an anti-competitive agreement, even if the speaker was only trying to smooth things over socially or get into the spirit of things.
Even just telling a competitor, “Go easy on us,” or something similar, can be interpreted as suggesting that prices be maintained at current levels. By all means, be extremely careful when choosing your words.
(２)Watch what you write in reports and the minutes of meetings
When writing reports or the minutes of meetings with competitors, employees have a tendency to use forceful expressions in order to impress on their superiors that the meeting went well. For example, in addition to the examples in section (1), they may include in reports expressions like “We told [the competitor] to stop setting prices that would cause a commotion in the market.” Whether such a thing was actually said or not, this alone could be interpreted as a request to bring prices down.
In addition, when including information in reports about price fluctuation tendencies in the marketplace, be sure to indicate clearly the source of this information. Otherwise, you will be suspected of having gleaned this information from a competitor.
In order to avoid unnecessary misunderstandings, be very careful of which expressions you use when writing reports or the minutes of meetings.
(３)Management of in-house documents containing price information
If in-house documents containing your company’s price information find their way somehow into the hands of a competitor, this can become evidence that a cartel took place. Documents of this kind must be classified as secret, and carefully managed according to company rules regarding classified information (if such rules do not exist, they should be created) so as not to be obtained by competitors.
１０．You, too, could be arrested!
Are you under the impression that you yourself are safe because any penalties will be imposed on the company, not you, and because you have no authority to set prices?
(１)Penalties imposed on individuals
As stated previously, if corporations form a cartel, the individuals responsible will also be punished. In the US, the penalties imposed on individuals are especially severe, and examples of Japanese citizens being punished exist in actuality. One instance occurred in December 2008, when the US competition authority sentenced a Japanese national involved in a rubber hose cartel to two years’ imprisonment and a fine of $80,000.
(２)It doesn’t matter if you have authority or not
Whether agreements on pricing, etc., or exchanges of information, were carried out by management-level personnel or by rank-and-file employees, the company as a whole will be judged as involved in a cartel. The competition authority does not care whether the person responsible had authority over pricing or not. In other words, if you take part in agreements or information exchange, this will amount to the company engaging in a cartel, and you too may be penalized. Please do not forget this under any circumstances.
１１．“The early bird gets the worm”… Leniency policies
You’ve already exchanged information… but it may not be too late.
(１)About leniency policies
A cartel is a difficult crime to investigate without the cooperation of the companies involved. For this reason, in nearly all countries or regions, there are policies under which companies involved in cartels can have their astronomical fines waived or reduced if they cooperate positively with the competition authority’s investigation. These are known as leniency policies. The sooner a company admits the existence of a cartel to the competition authority, the better it will be treated, but only the first company to admit it can have its fine waived in entirety.
(２)Maintaining evidence
If documents or emails serving as evidence of a cartel are modified, disposed of or deleted despite an ongoing investigation (or the threat of an investigation) by the competition authority, the company will be excluded from leniency due to its disruption of or non-cooperation with the investigation, and fines may be increased, or the individual responsible for modifying, disposing of or deleting data may be punished. If the competition authority is investigating or is thought likely to investigate, be absolutely sure to maintain all documents and emails without modifying, disposing of or deleting them.
Japanese to English: ＫＯＢＥ Ｂｉｅｎｎａｌｅ 2009 Basic Plan
○ 交付対象主体及び交付率
① 条件不利地域に該当する市町村（交付率：１/３）
（注）条件不利地域とは、過疎、辺地、離島（奄美及び小笠原を含む。）、半島、山村、
豪雪及び沖縄県のこれらに類する地域をいう。
② ①を含む合併市町村又は連携主体（交付率：１/３）
（注）合併が行われた日の属する年度及びこれに続く３年度に限り交付対象とする。
③ 第三セクター法人（交付率：１/４）
（１）実施主体
都道府県、市町村、第三セクター及び複数の地方公共団体の連携主体
（２）補助対象経費
① 施設・設備費（センター施設、映像ライブラリー装置、送受信装置、構内伝送路、双方向画像伝送装置、伝送施設等）
② 用地取得費・道路費
（３）補助率
① 離島単独及び離島を含む連携主体の場合…２／３
② 都道府県、市町村単独の場合及び都道府県、政令市、中核市から成る連携主体の場合…１／３
③ ①②以外の連携主体、合併市町村（ただし、合併年度及びこれに続く一年度に限る。）の場合及び沖縄県、沖縄県内の市町村…１／２
③ 第三セクターの場合…１／４
（４）その他
① あらかじめケーブルテレビ（地方公共団体又は第三セクターが運営するものに限る。）への開放を目的とする整備を可能とする。
② あらかじめ高速・超高速インターネットアクセス提供事業への開放を目的とする整備を可能とする。
１ 辺地及び過疎対策事業債
（１）辺地対策事業
辺地に係る公共的施設の総合整備のための財政上の特別措置等に関する法律（昭和３７年法律第８８号）第２条第２項に規定する施設の整備
（２）過疎対策事業
過疎地域自立促進特別措置法（平成１２年法律第１５号）第１２条第１項に規定する施設の整備等
（対象施設）
① 有線放送電話業務及び有線ラジオ放送業務並びに有線テレビジョン放送に係る施設・設備（難視聴解消のための共同受信施設を含む。）
② 電気通信事業法に規定する端末設備及び電気通信設備並びにこれら設備の設置に係る施設・設備
③ 地域における公共施設等を結ぶ情報通信ネットワークを活用して超高速インターネットアクセスを可能にする加入者系光ファイバ網その他の高速・超高速インターネットアクセスを可能とする通信施設・設備 等
（過疎地域自立促進重点事業）
① 過疎地域自立促進市町村計画上、中長期的観点から重点的な投資が必要な過疎対策事業として位置付けられた自主的、主体的な取組みにより実施される下記事業については、過疎地域自立促進重点事業と位置付け、過疎対策事業債について適切な配慮をするものとします。
産業、教育、医療・福祉等の様々な側面で過疎地域に変革をもたらすものとして都道府県が特に推薦するＩＣＴ（Information and Communications Technology）基盤の整備事業
２ 地域活性化事業債（地域情報通信基盤整備事業）
情報通信の地域格差の是正及び活力ある地域社会の形成を図るための情報通信基盤の整備
（対象事業）
① 公共施設等を接続するネットワークの整備（庁内ＬＡＮを除く。）
② 条件不利地域におけるデジタル加入者回線設備（簡易局舎の整備を伴うものに限る。）並びに公共施設等を結ぶ情報通信ネットワークを活用した加入者系光ファイバ網及び加入者系無線アクセス設備の整備
③ 行政情報等を提供するためのケーブルテレビの整備（行政情報を提供するために必要な部分に限る。）等
Section 4 Support System for Nationwide Broadband Network Improvement
When planning for the improvement of the broadband network in digitally disadvantaged areas, it is important to compare and consider various approaches in order to enact broadband improvements that truly meet the needs of the areas in question, taking into account the current state of the broadband network, geographic factors, the financial condition of communities, the status of digital terrestrial TV broadcasting, and other needs of citizens.
The central government has established a support system for private businesses and regional public entities engaged in broadband improvements, including low-interest financing, subsidized interest payments, and tax breaks, as well as guarantees of debt, subsidies to regional public entities, and other financial assistance.
Section 4 explains the contents of this support system and provides necessary contact information.
Part 1 Summary of support system for private businesses (pertaining to the Internal Affairs Ministry)
There is a support system in place for private businesses engaged in broadband improvements, including low-interest financing provided by the Development Bank of Japan and others, as well as subsidized interest payments as set forth in the Provisional Measures Law for Telecommunications Infrastructure Improvement (Law No. 27 of April 2, 1991) (known hereafter as the “Infrastructure Law”).
Part 1 of Section 4 explains the contents of the support system for private businesses, especially the support system laid out by the Infrastructure Law, as well as the procedures required of businesses applying for support.
Low-interest loan system（special low-interest financing system for advanced digital business operations）
１．Eligible equipment
Under the Communications System Improvement Project for Telecommunications Businesses, a financing body governed by the Development Bank of Japan, the following equipment or assemblies thereof is eligible for improvement:
（１） Terminal optical trunk lines (meaning the trunk line part of subscriber fiber-optic cables (that is connected from the telecommunications carrier’s base of operations to the terminal equipment))
（２）Optical line terminal devices (SLTs, etc.)
（３）Optical circuit terminal line devices (ONUs, etc.)
（４）Digital subscriber line access multiplexers（DSLAM）
（５）Digital subscriber line signal separator apparatus (splitters)
（６）Accessory equipment for DSL service providers
（７）Radio communications equipment for subscriber radio access
（８）Cable modems
（９）Optical transmissions equipment for multiple services
（10）Transmissions equipment for bandwidth control
（11）IP version 6 routers
２．Interest
Special interest rate for advanced digital business operations (interest rates determined at the Development Bank of Japan)
３．Financing ratio
（１） Built-up areas provided for in the Metropolitan Region Development Law, built-up areas provided for in the Kinki Region Development Law, older urban areas of Nagoya: 30%
（２） Suburban development areas provided for in the Metropolitan Region Development Law, suburban development areas provided for in the Kinki Region Development Law, urban development areas provided for in the Chubu Region Development Law (excluding older urban areas of Nagoya): 40%
（３） Other areas: 50%
４．Direct inquiries to:
Development Bank of Japan Information and Communications Division
http://www.dbj.go.jp/
Subsidized Interest Payment System
１．Eligible parties
The following parties are eligible, when implementing projects approved by the Internal Affairs Minister related to advanced communications equipment improvement, as provided for in the Provisional Measures Law for Telecommunications Infrastructure Improvement:
（１）Telecommunications carriers
（２）Wired-line telephone carriers
２．Eligible equipment
【Advanced communications equipment improvement businesses】
（１） Terminal optical trunk lines (meaning the trunk line part of subscriber fiber-optic cables (that is connected from the telecommunications carrier’s base of operations to the terminal equipment))
（２）Optical line terminal devices (SLTs, etc.)
（３）Optical circuit terminal line devices (ONUs, etc.)
（４）Digital subscriber line access multiplexers（DSLAM）
（５）Digital subscriber line signal separator apparatus (splitters)
（６）Radio communications equipment for subscriber radio access
（７）Cable modems
３．Subsidy rate
In terms of interest payments on low-interest financing (Special Low-Interest Financing System for Advanced Digital Business Operations) from the Development Bank of Japan, the independent administrative institution NICT (the National Institute of Information and Communications Technology) will give financial subsidies down to the floor rate, with a maximum range of 2%.
［Floor rate］
Non-under-populated areas Initial 5 years: 2.0% From 6th year onward: 2.5%
Under-populated areas, etc. Initial 5 years: 1.6% From 6th year onward: 2.1%
４．Direct inquiries to:
NICT (the National Institute of Information and Communications Technology)
Innovative Business Support Group, ICT Proactive Outreach Department
http://www.nict.go.jp
Tax system for promotion of next-generation broadband infrastructure improvement
１．Eligible parties
The following parties are eligible, when implementing projects approved by the Internal Affairs Minister related to advanced communications equipment improvement, as provided for in the Provisional Measures Law for Telecommunications Infrastructure Improvement:
（１）Telecommunications carriers
（２）Cable television broadcasters
２．Eligible equipment
（１）Subscriber fiber-optic cables (that are connected from the telecommunications carrier’s base of operations to the terminal equipment (those connected from national tax-related offices or regional tax-related terminal equipment to the terminal equipment, are limited in area)
（２）Optical line terminal devices (SLTs, etc.)
（３）IP version 6 routers
（４）Wavelength division multiplexes（WDM）
※ Only regional tax applies to (3), (4)
３．Details of preferential measures
（１）National tax (corporate tax)
When work involves subscriber fiber-optic cables or optical line terminal devices, 5% special depreciation is applied to corporate tax for the fiscal year in which work was executed (regional restrictions apply).
（２）Regional tax（property tax）
When concerning the 4 types of equipment listed above, for the 5 fiscal years following acquisition of the equipment, the tax base is compressed as follows.
①Subscriber fiber-optic cables（from distributing frame to terminal equipment is only applicable in disadvantaged areas35）：3/4
②Subscriber fiber-optic cables（from the telecommunications carrier’s base of operations to the terminal equipment or from cable television broadcasters’ base of operations to the bifurcation point）, optical line terminal devices, IP version 6 routers, wavelength division multiplexes（WDM）：4/5
４．Period of validity
From April 1, 2008 to March 31, 2010 (2 years)
５．Direct inquiries to:
Advanced Network Division, Telecommunications Bureau, Ministry of Internal Affairs and Communications
Tax system to promote expansion of the broadband subscriber network
１．Eligible parties
The following parties are eligible, when implementing projects approved by the Internal Affairs Minister related to advanced communications equipment improvement, as provided for in the Provisional Measures Law for Telecommunications Infrastructure Improvement
（１） Telecommunications carriers
（２） Wired-line telephone carriers
２．Eligible equipment
（１）Equipment related to digital subscriber lines (DSL)
① Small-scale line accommodation DSLAM (national tax applicable in selected areas only)
② Accessory equipment for DSL service providers
（２） Communications-related facilities for subscriber radio access
○ Radio communications equipment for subscriber radio access
（３）Satellite Internet-related facilities
○ Radio communications equipment for satellite Internet communications (Main stations, substations)
３．Details of preferential measures
（１）National tax (corporate tax)
When work involves small-scale line accommodation DSLAM, a 10% special amortization will be applied to corporate tax for the fiscal year in which work was executed (regional restrictions apply36)
（２）Regional tax (property tax)
Concerning the 4 types of equipment listed above, in terms of property taxes for the 5 fiscal years following acquisition of the equipment, the tax base is compressed as follows.
・ Small-scale line accommodation DSLAM, accessory equipment for DSL service providers：2/3
・ Radio communications equipment for subscriber radio access, radio communications equipment for satellite Internet communications (Main stations, substations)：4/5
・
４．Period of validity
From April 1, 2008 to March 31, 2010 (2 years)
５．Direct inquiries to:
Advanced Network Division, Telecommunications Bureau, Ministry of Internal Affairs and Communications
Debt guarantee system
１．Eligible parties
The following parties are eligible, when implementing projects approved by the Internal Affairs Minister related to advanced communications equipment improvement, as provided for in the Provisional Measures Law for Telecommunications Infrastructure Improvement
（１）Telecommunications carriers
（２）Wired-line telephone carrier
２．Eligible equipment
（１）Fiber-optic cables
（２）Simultaneous digital transmission equipment
（３）Optical line terminal devices (SLTs, etc.)
（４）Optical circuit terminal line devices (ONUs, etc.)
（５）High-performance routers
（６）Wavelength division multiplexes（WDM）
（７）Digital subscriber line access multiplexers（DSLAM）
（８）Digital subscriber line signal separator apparatus (splitters)
（９）Accessory equipment for DSL service providers
（10）Radio communications equipment for subscriber radio access
（11）Line connection apparatus for subscriber radio access
（12）Cable modems
（13）Communications network control apparatus
（14）Multiplex telecommunication switches
（15）Multiplex telecommunication switching equipment
（16）Optical transmissions equipment for multiple services
（17）Transmissions equipment for bandwidth control
３．Details of guarantee
（１）Balance limit of guaranteed debt for a single guarantee recipient
4 billion yen (Advanced communications equipment improvement business)
（２）Guarantee ratio Maximum 80％ (70% for corporate debt with share warrants)
（３）Guarantee period As a basic rule, 10 years or less
（４）Guarantee fee 1.5% or less
4．Direct inquiries to:
Advanced Network Division, Telecommunications Bureau, Ministry of Internal Affairs and Communications
Application procedures for the support system provided for in the Provisional Measures Law for Telecommunications Infrastructure Improvement
１．Procedures for accreditation of implemented projects
In order to be eligible for support measures outlined in the Infrastructure Law, it is necessary to possess or obtain the appropriate equipment, in accordance with an implementation plan for facility upgrade and construction projects (in the case of broadband improvements, advanced communications equipment improvement projects) approved by the Internal Affairs Minister, based on the provisions of the Infrastructure Law, Article 4 (1).
The procedure for approval of the implementation plan for advanced communications equipment improvement projects is as follows.
(１) Application
Prepare and submit the following documents to the Ministry of Internal Affairs and Communication（Advanced Network Division, Telecommunications Bureau）
・Application for Approval of a Facility Improvement/Construction Project Implementation Plan
・Implementation Plan Proposal
・Reference materials
(Please direct inquiries about application formats to the Advanced Network Division)
(２) Approval
An implementation plan will be approved when the Internal Affairs Minister judges that the plan is appropriate in light of the “Basic Principles for Promotion of Facility and Equipment Improvement” (Ministry of Posts and Telecommunications / Ministry of Labour, Notice No. 1, 1991), and there is certainty that the project in question will actually be implemented.
2.Procedures for application of tax breaks
In order to be eligible for application of tax breaks, it is also necessary to receive certification from the Internal Affairs Minister that at the time a tax return was filed, the equipment in question was acquired in accordance with a plan of implementation that was accredited as described above.
Implementation plans for advanced communications equipment improvement projects are eligible for approval for a maximum of 3 years, but approval must be reapplied for each time a tax return is filed.
(１) Procedures for reduction of corporate taxes
a. Prepare a “Request for Proof of Application of Article 44-4(1)(i) of the Act on Special Measures Concerning Taxation” or “Request for Proof of Application of Article 44-4(1)(ii) of the Act on Special Measures Concerning Taxation,” and submit it to the Ministry of Internal Affairs and Communications (Advanced Network Division, Telecommunications Bureau) for approval. (Juridical persons making consolidated tax payments are subject to the same procedures.)
(Please direct inquiries about application formats to the Advanced Network Division)
[As a general rule, requests should be submitted during the month following financial closing]
b. After obtaining the proof (the request approved by the Internal Affairs Minister), submit it to the tax office.
(２) Procedures for reduction of property taxes
a. Prepare a “Request for Proof of Application of the Provisions of the Local Tax Law, Article 15(57)” and submit it to the Ministry of Internal Affairs and Communications (Advanced Network Division, Telecommunications Bureau) for approval.
[As a general rule, requests should be submitted during January]
(Please direct inquiries about application formats to the Advanced Network Division)
b. After obtaining the proof (the request approved by the Internal Affairs Minister), submit it to the municipal authorities.
3. Procedures for low-interest financing, subsidized interest payments and guarantees of debt
In order to be eligible for application of low-interest financing, subsidized interest payments and guarantees of debt, it is necessary to obtain the certification described above, and then make inquiries to the appropriate parties (the Development Bank of Japan, etc.)
Preferential measures related to the Japan Foundation for Regional Vitalization (“Furusato Zaidan”) system
１．Eligible parties
（１）Telecommunications carriers
（２）Wired-line telephone carrier
（３）Cable television broadcasters
２．Eligible businesses
（１）Businesses engaged in maintenance or improvement of subscriber fiber-optic networks
（２）Businesses engaged in maintenance or improvement of broadband subscriber networks (DSL (digital subscriber lines), wireless access (subscriber radio access communications), cable Internet)
３．Eligible regions
(1) Under-populated areas
(2) Regions subject to remote island stimulus measures
(3) Amami Islands
(4) Ogasawara Islands
(5) Special areas of heavy snowfall
(6) Mountain villages subject to stimulus measures
(7) Regions subject to peninsula stimulus measures
(8) Okinawa Pref.
４．Details of preferential measures
The Japan Foundation for Regional Vitalization (“Furusato Zaidan”) system is a no-interest financing system operated by the Japan Foundation for Regional Vitalization (“Furusato Zaidan”), and in terms of conditions regarding employment (prefecture or specially government-designated city level: 10 employees or more; municipal level, 5 employees or more), flexibility is to be applied.
５．Direct inquiries to:
Applicable regional public entity
[Web site for reference]
Japan Foundation for Regional Vitalization (Furusato Zaidan)
http://www.furusato-zaidan.or.jp/
Part 2 Summary of support system for regional public entities（pertaining to the Ministry of Internal Affairs and Communications）
Improvement of the broadband infrastructure requires a considerable amount of funding, and especially in disadvantaged regions, fiscal concerns have prevented improvements from going forward.
In addition, due to the worsening financial condition of many regional public entities, a large number of communities have yet to engage in any improvement of their information and communications infrastructure whatsoever.
Part 2 of Section 4 explains the system of funding for communities that provide financial assistance to private businesses for improvement of their information and communications infrastructure, a part of central government measures to support regional public entities in the improvement of said infrastructure.
Subsidies for the promotion of regional information and communications infrastructure
１．Summary of measures
In order to support the improvement of the information and telecommunications infrastructure in a manner suited to the unique character of each region, and close the “digital divide,” assistance is provided for a wide range of equipment such as cable TV, ADSL, and FWA that helps to overcome this divide between regions, elevating residents’ standard of living and bringing about regional revitalization.
○ Bodies eligible for support and subsidy rates
① Communities designated as disadvantaged areas（Subsidy rate：１/３）
（Note）“Disadvantaged areas” include under-populated regions, remote areas, remote islands (including Amami and Ogasawara), peninsulas, mountain villages, areas of heavy snowfall, and Okinawa Prefecture.
② Merged communities or affiliated bodies encompassing areas listed in ①（Subsidy rate：１/３）
（Note）Subsidies are limited to the fiscal year in which the merger took place, and the 3 following fiscal years.
③ “Third sector” (joint public/private) ventures（subsidy rate：１/４）
２．Direct inquiries to:
Ministry of Internal Affairs and Communication, Telecommunications Bureau having jurisdiction over the region in question
Program to improve regional Intranet infrastructure equipment
１．Summary
This program provides support to regional public entities, etc., engaged in improving regional public networks so that high-speed or super high-speed connections exist in schools, libraries, community centers, city offices, etc., to boost the quality of regional education, government, welfare, medical care, and disaster prevention.
（１）Responsible organizations
Prefectures, municipalities, joint public-private ventures, cooperative organizations encompassing multiple regional public bodies
（２）Expenses eligible for grants
① Expenses for equipment and facilities (center facilities, video library equipment, transmitting and receiving apparatus, on-premises transmission lines, bi-directional image transmission apparatus, transmission equipment, etc.)
② Land/space acquisition and road costs
（３）Grant rate
① Individual remote islands or joint organizations encompassing remote islands …２／３
② Individual prefectures or municipalities or joint organizations composed of prefectures, specially government-designated cities, and core cities…１／３
③ Joint organizations other than those listed in ①
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Years of experience: 20. Registered at ProZ.com: Oct 2006.
I grew up near New York City. I've lived in Japan for 10 years and am immersed in the language in my daily life, having little or no contact with other non-Japanese from day to day.
At the same time, I make sure I keep my English sharp by reading every day -- newspapers in the morning, books before bed. I also write for the regional expatriate magazine.
While I've translated Japanese texts on everything from building materials to food sanitation to music, there are plenty of subjects I have yet to encounter. I look on each new translation as an opportunity to gain new knowledge, and never send in a translation that isn't both faithful to the original and completely natural as English.
Past clients include the Japanese government, the Australian government, the city of Kobe, Kansai International Airport, Panasonic, Sharp, Sumitomo, and LVMH.
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