Tuesday, July 10, 2007

Is open-market competition a more fair game?


Japan Communications said that it has asked the Internal Affairs and Communications Minister Yoshihide Suga to make an arbitration ruling on its use of NTT DoCoMo's mobile network. The company made the first-ever request for the minister's arbitration on the use of a mobile communication network after its negotiations with Japan's top mobile carrier DoCoMo reached a deadlock.

The Internal Affairs and Communications Ministry is set to make a draft after hearing claims by both companies and will submit this to the Telecommunications Business Dispute Settlement Commission. Based on a report by the commission, the minister is expected to makea ruling within the next three or four months.

Japan Communications, a mobile virtual network operator, offers data telecommunications services by borrowing part of the network of personal handy phone system service provider Willcom Inc.

In its negotiations on the use of NTT DoCoMo's network, the company has demanded an interconnection-style contract, which sets out clear conditions, rather than a wholesale-style deal under which the network operator is freer to control the terms of use.

Japan's telecommunications business law stipulates that a carrier is not allowed to reject a request for access to its network without reasonable grounds.

Will such episodes eventually give way to an open market competition in the telecom sector? Are market restrictions justified in today’s open-market-world?