Author: Tronserve admin
Wednesday 4th August 2021 02:32 PM
Japan to Create Law Aimed At Fostering New 5G Industries
TOKYO---Japan has decided to create a law aimed at fostering new industries using next-generation ultrafast communications networks known as 5G.
Specifically, the law under consideration is designed to help companies in Japan's telecom industry forge business ties with their U.S. and European peers free of national security concerns and expand 5G services in the country at a faster pace, according to government sources. Under the plan, if the government approves that companies are not using electronic parts with security risks when they build base stations and factories involving 5G technologies, they will be eligible for tax benefits or subsidies.
The scheme will also be in step with the 5G policy of the United States, which has blacklisted Chinese telecom giant Huawei Technologies Co, citing security concerns.
The Japanese government hopes to have the law enacted in the ordinary parliamentary session to be convened in January, according to the sources. As Japan is lagging far behind other countries in the development of 5G technologies, the government has recognized the need to prepare an environment in which domestic companies find it easier to form business tie-ups with major players in the industry such as Sweden's Ericsson and Finland's Nokia.
In a related development, Japan's industry and information ministries have sought a tax-break system aimed at increasing 5G-related investment to be included in the government's tax reform package for fiscal 2020 starting next April.