The telecommunications industry in Japan is highly active, with numerous business operators engaged in providing various services. As telecommunications technology continues to advance and become more complex, it is increasingly common for foreign business operators to offer telecommunications services to Japanese customers.

This article provides an overview of the regulations governing telecommunications businesses in Japan. If you are considering expanding your telecommunications business to Japan, this information will be essential.

I. License Regime

The primary legislation governing telecommunications in Japan is the Telecommunications Business Act (Act No. 86 of 25 December 1984) (“TBA“). Under the TBA, business operators must obtain a license to provide telecommunications services that enable communication between users. There are two types of licenses:

・Type 1 (Registration)

・Type 2 (Notification)　

1. Key Requirements

Under the TBA, a license is required for services that act as an “intermediary for the telecommunications of others”. This phrase, derived from a direct translation of the original TBA texts, refers to services that facilitate interactive communication between identifiable users without processing or editing content. Examples of such services include:

・Direct messaging services

・Chat services

・Phone services

・Web meeting services

・Email services

If a service does not include such interactive communication, it does not require a TBA license. For example:

・a health app that enables a user to record his/her health status on mobile devices does not fall under “intermediary for the telecommunications of others” since the user is communicating with the server of the business operators who run the app, not with other users. If the app enables users to communicate with other users by direct messages, the app falls under “intermediary for the telecommunications of others” and is required a license.

・Email advertising services that receive advertising content from customers and directly distribute it to registered users without service provider’s editing the advertising content fall under the category of“intermediary for the telecommunications of others” and therefore require a license (i.e., the service provide interactive communication between the customer and the users.). If the service provider edits the contents sent by the customer before distributing the contents to the users, it does not fall under “intermediary for the telecommunications of others”. This is because it does not provide telecommunications between users but rather it is considered to be distributing its own content.

2. Type 1: Registration

Type 1 licenses are generally not applicable for most business operators, because it is only required when the business operator has installed telecommunication line facilities (submarine cables, telecommunication base stations, optical fibers, etc.) of a certain scale or more to provide “intermediary for the telecommunications of others”. For example, Tier 1 companies that provide internet telecommunications with installing fiber-optic lines throughout Japan are typical business operators that require Type 1. Type 1 requires applicants to establish management policies of the telecommunication line facilities, to appoint certain personnel, and to be registered with MIC.

3. Type 2: Notification.

Except for Type 1 services, telecommunications business operators offering “intermediary for the telecommunications of others” need Type 2 license. According to the Ministry of Internal Affairs and Communications (“MIC”, which is the prime regulator in this sector), there were approximately 300 Type 1 business operators, compared to over 20,000 Type 2 business operators as of the end of February 2025.

To obtain a Type 2 license, applicants need to file a notification to MIC before commencing the telecommunication services. MIC provides templates of those filing documents, such as application forms, network diagrams and lists of services to be provided. The license will be granted 1-2 weeks after filing the documents.

II. Hurdles for Foreign Business Operators

Even if the applicant is a company established outside Japan, the company can obtain the licenses since the TBA does not exclude offshore business operators from obtaining the license. However, the offshore applicant will face the following hurdles until it completes the process:

1. Local Representative as Liaison

Under TBA Article 16(1)(ii), companies incorporated in accordance with offshore laws (“Foreign Companies”) must appoint a local Japanese liaison between the company and MIC. Although the TBA does not set forth qualifications for the liaison, a Japanese qualified lawyer can be appointed.

2. Foreign Companies Registration

Under Japanese Companies Act Article 817(1), Foreign Companies must appoint at least one local representative person with a Japanese residential address before carrying out continuous business transactions in Japan. Moreover, under Article 818(1), the company must be registered with Local Affairs Bureaus as “Foreign Companies” before commencing its business in Japan. A potential administrative penalty for not registering as Foreign Companies is a fine of JPY 1 million or less.

The Ministry of Justice, which is a prime authority in the corporate sector, actively enforcing Foreign Company Registration. If a foreign business operator is not registered, the MOJ may reach out to the business operator and ask it to carry out the registration as soon as possible. In the past, several giant tech companies were subject to MOJ’s enforcement and most of them followed MOJ’s instruction. As far as we know, the MOJ has been expanding the scope of its enforcement in the telecommunications field in recent years.

3. Language Barriers

Applicants cannot avoid communicating with the authority in Japanese and documents must be drafted and filed in Japanese. Since applicants need to draft those documents in accordance with Japanese instructions, a native Japanese professional will be essential to complete the procedure.

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