The Honorable Mitsuo Igarashi
Deputy Minister for Policy Coordination
Ministry of Posts and Telecommunications
3-2 Kasumigaseki l-Chome
Chiyoda-Ku, Tokyo 100
April 27, l991
Dear Deputy Minister Igarashi:
Thank you for your Letter of April 27, 1991 and its Attachment and Appendix concerning the policies the Ministry of Posts and Telecommunications (MPT) confirms and measures the MPT will take consistent with the l990 Policies and Procedures regarding International Value-Added Network Services, which is attached to your letter of July 31, l990 to Ambassador Williams and Under Secretary J. Michael Farren. Please accept our continued appreciation and wish to work together in a spirit of mutual cooperation and joint efforts.
Very truly yours,
[signature]
S. Linn Williams
[signature]
Timothy J. McBride
April 27 , l991
Ambassador S. Linn Williams
Deputy United States Trade Representative
Executive Office of the President
Washington, D.C. 20506
Mr. Timothy J. McBride
Assistant Secretary for International Trade
U.S. Department of Commerce
Washington, D.C. 20230
Dear Ambassador Williams and Assistant Secretary McBride:
Consistent with the 1990 Policies and Procedures Regarding International Value Added Network Services, which is attached to my letter of July 31, 1990 to Ambassador Williams and Under Secretary J. Michael Farren I am pleased to inform you that the Ministry of Posts and Telecommunications confirms the policies and will take the measures described in the Attachment and Appendix to this letter.
Yours sincerely,
[signature]
Mitsuo Igarashi
Deputy Minister for Policy Coordination
With regard to the implementation of the 1990 Policies and Procedures Regarding International Value-Added Network Services (IVANS Policies and Procedures), which is attached to Deputy Minister Mitsuo Igarashi's letter of July 31, 1990 to Ambassador S. Linn Williams and Under Secretary J. Michael Farren, the Ministry of Posts and Telecommunications (MPT) confirms the following:
I. Private Leased Circuit form for Joint Use and Intracorporate
Communications
If a customer is requesting private leased circuit service for Joint use and/or intracorporate communications under the terms of the IVANS Policies and Procedures, it is necessary for the customer to fill in the eight "essential items" on the Form for the provision by the Type I carrier of services requested by the customer and submit the Form to the Type I carrier. (Sample Form attached as Appendix.) The eight "essential items" are identified as Nos. 1 through 8 on the Sample Form attached. It is also necessary for the customer to certify (Note 2 in Appendix) that its communications conform to the following definition of joint use and/or intracorporate communications: The term "joint use" means the use of private leased circuit services by more than one company, where one company owns 10 percent or more of the capital of the other company and the two companies have a continuing business relationship; where two companies have a relationship of continuing business transactions (defined as meaning that either company accounts for 20 percent of the gross value of the other's transactions--e.g., purchases or sales); or where the joint user has a continuous contractual relationship with one of the companies, such as a business tie-up (that is, a close relationship of mutual assistance, such as the commissioning of business operations). The term "intracorporate communications" means communications solely within the same juridical person or communications between "affiliated companies". The term "affiliated companies" means one company that is a Juridical person holding 10 percent or more of the total issued stock or capital (hereafter "capital") of another company; a company more than 10 percent of the capital of which is owned by another corporation, or two companies "affiliated" with a third company. It is also necessary for such a joint or intracorporate use customer, when it seeks to interconnect its private leased circuit with the Public Switched Telephone Network (PSTN) both in Japan and in the United States, to certify (Note 3 in Appendix) that it has the technical capability to prevent simple resale.
These statements concerning joint user and intracorporate communications user status and technical capabilities shall be sufficient to satisfy the above mentioned certification requirements in all cases of joint use communications, where private leased circuits are interconnected with the PSTN in the United States and Japan, intracorporate communications, where private leased circuits are interconnected with the PSTN in the United States and Japan, and the intracorporate or joint use of an excess part of capacity on a non-tariff-based contract circuit used by an international Special Type II business.
The Type I Carrier is required to supply a Form for joint use and intracorporate communications wherein the items requested from the customer will be classified into the eight items that are "essential" for the provision of requested services (items 1 through 8 on the Sample Form attached) and the items that are not necessary unless the customer wishes to obtain optional services, including but not limited to installation of in-house wiring of terminal equipment by the Type I carrier, provisions for route diversity arrangements, or Circuit multiplexing for the domestic portion of the Circuit. Such Optional items are listed on the Sample Form as No. 9 and No. 10 and could also be added in No. 11. Only the eight "essential items" necessary for the Type I Carrier to provide requested services must be filled in. The customer is not required to attach documents that support the statements on the Form. The format of the optional information requested in Notes l, 4 and 5 may be decided upon by the customer (see "Notes" in Appendix to Attachment).
The Type I carrier is required to accept the above information as provided by the customer. Upon the customer's submission of the above information to the Type I carrier, the Type I carrier is required to furnish a private leased circuit for the initiation of leased circuit service within a reasonable period of time, in a manner consistent with the IVANS Policies and Procedures.
II. Tariff Revision
The MPT will approve by June 30 re-revised tariffs for Type I carriers consistent with the l990 Policies and Procedures Regarding International Value-Added Network Services including points in section I of this Attachment and the attached Sample Form.
III. Investigation
When international leased circuits used for joint use and/or intracorporate communications are interconnected to the public switched telephone network both in Japan and in the United States, the Japanese side customers and their joint users in Japan are not permitted to engage in simple resale between Japan and the United States. If a Type I carrier presents evidence that such customers or their joint users in Japan are engaging in such simple resale between Japan and the United States, it may suspend the use of the service or terminate the contract only if the MPT so authorizes, following an MPT investigation to determine that such customers or their joint users in Japan are engaging in such simple resale between Japan and the United States.
To conduct this investigation, the MPT can require Type I carriers to request that the customer provide to the MPT information necessary for the MPT to determine that the Japanese side customers or their joint users in Japan are engaging in such simple resale between Japan and the United States. The MPT and the U.S. Government will consult over the next 60 days to agree on a mutually-acceptable investigation process.
Appendix
[International Private Leased Circuit Form follows. In Japanese and English and not reproduced here. The eight items are: 1) Customer name - foreign side, 2) type of circuit, 3) Japanese gateway and country of carrier, 4) Type of domestic circuit portion, 5) term of contract, 6) application for joint or corporate use, 7) network information, and 8) billing address.]
APPENDIX
Note l OPTIONAL: Please attach a diagram to this Form, which illustrates the configuration of the customer's system limited to the telecommunications circuit facilities installed by the Type I carrier (including those installed jointly by the Type I Carrier and an overseas telecommunications carrier).
Note 2: In the case of an application for a private leased circuit for joint use and/or intracorporate communications, please attach a statement to this Form, in which the customer certifies that its communications conform to the definition of joint use or intracorporate communications: The term "Joint use" means the use of private leased circuit services by more than one company, where one company owns 10 percent or more of the capital of the other company and the two companies have a continuing business relationship; where two companies have a relationship of continuing business transactions (defined as meaning that either company accounts for 20 percent of the gross value of the other's transactions--e.g., purchases or sales); or where the joint user has a continuous contractual relationship with one of the companies, such as a business tie-up (that is, a close relationship of mutual assistance, such as the commissioning of business operations). The term "intracorporate communications" means communications solely within the same juridical person or communications between affiliated companies. The term "affiliated companies" means one company that is a juridical person holding 10 percent or more of the total issued stock or capital (hereafter "capital") of another company; a company more than 10 percent of the capital of which is owned by another corporation, or two companies "affiliated" with a third company.
I hereby certify that my communications conform to the definition of "joint use" which means the use of private leased circuit services by more than one company, where one company owns 10 percent or more of the capital of the other company and the two companies have a continuing business relationship; where two companies have a relationship of continuing business transactions (defined as meaning that either company accounts for 20 percent of the gross value of the other's transactions--e.g., purchases or sales); or where the joint user has a continuous contractual relationship with one of the companies, such as a business tie-up (that is, a close relationship of mutual assistance, such as the commissioning of business operations), and/or "intracorporate communications", which means communications solely within the same juridical person or communications between "affiliated companies", which means one company that is a juridical person holding 10 percent or more of the total issued stock or capital (hereafter "capital") of another company; a company more than 10 percent of the capital of which is owned by another corporation, or two companies "affiliated" with a third company.
(Signature)
Notes 3 : In the case of an application for a private leased circuit for joint use and/or intracorporate communications, where private leased circuits are connected to the public switched telephone network both in Japan and in the United States, please attach a statement to this form, in which the customer certifies that it has the technical capability to prevent simple resale.
Statement:
I hereby certify, with respect to a private leased circuit interconnected with the PSTN at both ends, that I have the technical capability to prevent simple resale.
(Signature)
Note 4 OPTIONAL: In cases where the Type I carrier is requested to install NCTE and/or other terminal equipment on the customer's premises, please attach a diagram to this Form, which illustrates a connection plan and layout (floor plan) of the terminal equipment and in-house wiring (vertically).
Note 5 OPTIONAL: In the case of a request for any optional service, please attach a document to this Form which provides the information necessary for the Type I carrier to provide such optional services.