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4. Calculation of Spectrum User Fee

Calculation of Spectrum User Fee

The Concept Behind the Calculation of the Amount of the Spectrum User Fee

1. The amount of the Spectrum User Fee

The Radio Law (Article 103-2 paragraphs 1 and 3) classifies radio stations under nine categories, with those holding a Blanket License classified as a separate category, and it also establishes the annual amount of the Spectrum User Fee for each of these categories.

When the system was begun in 1993, the annual amount of the Spectrum User Fee was calculated based on the concept that the expense of administrative work ("outlays for spectrum users common benefit use") for the three year period beginning Fiscal 1993 up to and including Fiscal 1995 be evenly borne by the expected number of radio stations of the same period. Since then, it was calculated in 1996 and again in 1999 using the same method.

2. Concept behind the creation of the budget for Fiscal 2002

In deciding the budget for Fiscal 2002, the amount of the Spectrum User Fee was calculated, as in the past, based on the expected outlays for spectrum users common benefit use for the three year period from Fiscal 2002 up to and including Fiscal 2004 and the number of expected radio stations of the same period.

The amount required for the maintenance and operation of radio monitoring facilities, maintenance and operation of general radio station administrative systems, the clerical work for conducting technological testing as countermeasures for the frequency crunch and the work related to countermeasures for changes in designated frequencies, for the three years beginning Fiscal 2002 up to and including Fiscal 2004 is nticipated to be 169.3 billion yen.

For the three years beginning Fiscal 2002 up to and including Fiscal 2004 an amout of 159.8 billion yen in income is expected projected number of radio stations during the same period if the current fee is maintained.

If this calculation were to prove to be correct, there would be a shortage of 9.5 billion yen in income. However, the cumulative amount of surplus from past fiscal years (revenue balance subtracted by expenditure balance) is expected to be 11.6 billion yen at the end of Fiscal 2001, so it would be possible to cover the shortage in income by appropriating a portion of the surplus.

Therefore, it was thought to be appropriate to maintain the current fee by appropriating a portion of the cumulative surplus up to Fiscal 2001 for the three years beginning Fiscal 2002 up to and including Fiscal 2004.

The annual charge is calculation from the total cost required for administrative services during the 3 year period.

Ministry of Internal Affairs and Communications

Telecommunications Bureau of the Ministry of Internal Affairs and Communications