This paper reviews recent changes in Japanese telecommunications policy, assesses those changes, and evaluates the differences in the policy making and policy implementation processes in Japan and the United States. From this analysis, five lessons are derived for U.S. telecommunications policy: (1) the telecommunications sector is strategically important to economic development and international competitiveness, and thereby deserves legislative, not merely regulatory or judicial, attention; (2) telecommunications policy should be developed and implemented at the national--not the state--level; (3) telecommunications policy should balance short-term consumer benefits against long-term national interests in technological advancement in telecommunications equipment, networks, and services; (4) policy jurisdictional disputes should be minimized by a clear grant of primary responsibility to a single agency; and (5) policymakers should seek the advantages of competition and integrated systems by removing restrictions on Bell operating companies while promoting open access, technical interconnection, and compatibility, and prohibiting discrimination against competitive suppliers. The text is supplemented by four tables and a 51-item bibliography is provided. (Author/EW)