Opposition to proposed abolition of Japan’s NTT Law

Japan faces mounting opposition to scrapping the NTT Law. About 180 organizations, including major telecom companies, oppose its abolition, arguing that this law, combined with the Telecommunications Business Act, is crucial for a competitive telecom sector.

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A growing wave of opposition has risen against the proposed abolition of Japan’s NTT Law. About 180 organizations, including telecom operators and local governments, object to its removal, arguing that both the Telecommunications Business Act and the NTT Law are crucial for a fair and competitive telecom environment. Three major Japanese telecom companies – KDDI, Rakuten Mobile, and SoftBank have united against its abolition, highlighting the success of this combination in promoting competition, diversifying services, reducing costs, and fostering economic growth.

The anticipated abolition of the law is driven by the need to enhance global competitiveness, particularly in 6G technology development. It would also relieve NTT from the obligation to publicly disclose research results, seen as a hindrance to global competitiveness. In tandem, Japan’s ruling LDP aims to unlock funds by divesting the government’s 34.25% stake in NTT, provided that the NTT Law undergoes reform to facilitate the divestment.