Abstract
Recent information and communications technology (ICT) developments have turned the content industry into one of the core sectors that will support the long-term growth of the Japanese economy. Thus, proper policy intervention will be necessary to address the obstacles this industry may encounter. One such possibility is the emergence of vertically integrated network operators who will leverage their market power anti-competitively and control content distribution. This risk is especially high in Japan because the main trend in Japanese broadband usage is toward less-regulated mobile sectors. This paper summarizes the changes in Japan’s broadband/media sector and evaluates the policy options available to telecom regulators, including US-style net neutrality regulations, to assist the development of the content industry.