International Policy Division, Global ICT Strategy Bureau MIC Communications News, Biweekly Newsletter of the Ministry of Internal Affairs and Communications(MIC), Japan

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TOPICS

Announcement of the final year's comprehensive measures for terrestrial digital broadcasting

The Ministry of Internal Affairs and Communications presents here the adjusted "Final Year's Comprehensive Measures for Terrestrial Digital Broadcasting," which contains measures that should be implemented and a study of the structure that will be necessary in this final year in order to finalize the migration to terrestrial digital broadcasting by July 24, 2011.

1. Details
Terrestrial analog broadcasting is scheduled to cease by July 24, 2011, so the migration to terrestrial digital broadcasting should be completed by then.

This time, in addition to previous and existing initiatives, and in tandem with a study of the required structure to end terrestrial analog broadcasting during the FY2011, we have compiled the principal measures that need to be implemented during this fiscal year in the "Final Year's Comprehensive Measures for Terrestrial Digital Broadcasting."

Support for the migration to digital broadcasting will cease in July 2011, so the MIC will this year put its full power into implementing comprehensive measures in cooperation with the related parties so that all citizens can continue viewing television.

2. Main points
-Final checks of households that have been left behind

-Establishment of a terrestrial digital broadcasting call center staffed by 1000 operators

-Establishment of temporary local consultation stalls in approximately 1000 locations nation-wide

-Final checks of senior citizens, etc., by volunteers

-Provide support to the one million senior citizens, etc., in cooperation with Japan Post Service Co., Ltd.

-Accelerated support for digitization of shared facilities as measures against obstacles to reception (particularly in areas affected by tall buildings)

-Acceleration of new measures against poor reception

-Digitization of public facilities

 

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TOPICS

Survey of Domestic and Foreign Price Margins for Telecommunications Services

−FY 2009 survey results−

Every fiscal year, MIC conducts a survey of domestic and foreign price margins for telecommunications services, in order to get an appropriate grasp of the situation concerning rates for telecommunications services.
The results of the FY2009 survey were recently compiled and are introduced below.

1. Survey targets
MIC has compared rates for Internet access services, fixed telephone services, mobile phone services, and international telephone services, etc. in Tokyo, New York, London, Paris, Dusseldorf, Stockholm and Seoul on the basis of the Telegraphic Transfer Selling (TTS) Rate as of March 31, 2010.

2. Survey period
The survey was basically conducted at the end of March 2010. Rates that were revised subsequently were reflected to the greatest extent possible.

3. Survey results
Survey results regarding the rates in Tokyo are as follows. Further details can be found in the attachment.

- Rates for broadband (DSL and FTTH) access are generally at an average or low level.

- Fixed telephone rates are generally at an average or low level in the individual rate comparison while the rates are at an average level in the comparison using the model*.

- Mobile phone rates are generally at an average or high level in the model rate comparison. The comparison based on the average minutes of usage in each country shows that the monthly rate is generally at an average level and the per-minute rate is at a high level.

* For the comparison of rates for telecommunications services in each city, a hypothetic pattern of usage (model) is set specifying how many times calls are made in each time zone and to each distance zone.

Note: With regard to domestic and foreign price margins for telecommunications services, a variety of pricing systems are offered, for example standard and discount rates. The survey results differ depending on pattern of usage, and there are regional discrepancies within the same country. Also, the influence of fluctuations in the exchange rate is great. Therefore, one cannot necessarily make generalizations about whether the rates are high or low, and it would be appropriate to keep these points in mind and consider the survey results as one indicator.

(Attachment)
FY 2009 survey results
Survey of Domestic and Foreign Price Margins for Telecommunications Services

I Survey targets and methods

1. Services subject to survey
Internet access (DSL, CATV, FTTH), fixed telephones, mobile phones (including data communications), international telephones (both fixed and mobile), IP phones, TV (via telecommunications carriers), FMC Service.

2. Cities to survey
Seven cities: Tokyo, New York, London, Paris, Düsseldorf, Stockholm and Seoul

3. Telecommunications Carriers to survey
In principle, the telecommunications carrier holding the highest share in each city was selected.

Internet
DSL CATV FFTH Comparison when using broadband with telephone, etc.
Tokyo -NTT East Japan
-Soft Bank BB
J:COM NTT East NTT East
New York Verizon Communications Time Warner Verizon Communications -Verizon Communications
-Vonage
London British Telecom Virgin Media British Telecom
Paris France Telecom Numericable France Telecom France Telecom
Düsseldorf Deutsche Telekom Tele Columbus Deutsche Telekom Deutsche Telekom
Stockholm Telia Sonera Com Hem Bredbandsbolaget Telia Sonera
Seoul KT SK Broadband KT KT
Mobile phones Fixed telephones International telephones
Tokyo NTT Docomo -NTT East
-NTT Communications
NTT Communications
New York Verizon Wireless -Verizon Communications
-AT&T
AT&T
London Vodafone British Telecom
Paris Orange France France Telecom
Düsseldorf T-Mobile Deutsche Telekom
Stockholm Telia Sonera Telia Sonera
Seoul SK Telecom KT

4. Survey methods
a) Survey methods
The service rates in each city to survey were collected from public information and through meetings with the telecommunications carriers surveyed. The individual rates and model rates1 were then compared to show the domestic and foreign price margins.

(1) Internet: Comparison of individual rates

(2) Fixed telephones: Comparison of individual rates (basic rate, cost at time of subscription or relocation, local call rates) Comparison using the OECD model

(3) Mobile phones: Comparison using the Tokyo model

(4) International telephones: Comparison of individual rates

b) Handling of indirect taxes (consumption tax and value-added tax)
Pre-tax prices are shown for comparison of individual rates. Prices including taxes are shown for comparison of model charges and comparison of rates using broadband with other services.

Consumption tax rate in each city
Tokyo New York London Paris Düsseldorf Stockholm Seoul
5% 11.625% 17.5% 19.6% 19% 25% 10%

c) Survey timing
Basically, rates as of the end of March 2010 were compared.

However, regarding the items for which we were able to obtain the latest information about rates revised after the end of March 2010, these are reflected in the results to the greatest extent possible.

d) Exchange rates
Comparison was done using exchange rates as of the end of March 2010.

(¥)
USA
(USD)
England
(GBP)
France
(EUR)
Germany
(EUR)
Sweden
(SKR)
Korea
(KRW)
This survey
(end of March 2010)
93.27 141.27 125.30 12.85 0.0824
(Reference)
Purchasing power parity (2010)
114.98 173.84 125.43 134.52 12.30 0.149
(Reference) Previous survey
(end of March 2007)
98.31 140.68 130.52 11.84 0.0712
(Data source) Exchange rates: Foreign exchange market situation, Financial Markets Department, Bank of Japan, IMF Representative Exchange Rates for Selected Currencies for March 2010
Purchasing Power Parities: OECD OECD.stat Extracts, PPPs and exchange rates, PPP for GDP

Note: Results include error margin caused by fractional calculation. Due to these fractions, individual values and totals shown in the graph may not match.

1 For the comparison of rates for telecommunications services in each city, a hypothetic pattern of use (model) is set specifying how many times calls are made in each time zone and to each distance zone. In this survey, the model rates are rates applied when a telecommunication service is used according to this model. The OECD model is made by OECD for comparison of rates. The Tokyo model is set according to actual records of use in Japan.

II Survey results

1. Internet (Comparison of Individual rates and comparison of rates using broadband with telephone, etc.)
a) Comparison of individual rates

- DSL charges are at an average level in Tokyo A and a cheap-level in Tokyo B. The maximum communication speed in Tokyo B is 50 Mbps and the maximum communication speeds in the European and American cities range from 7.1 Mbps to 24 Mbps. When we convert the rates in each city to those per 1 Mbps, Tokyo remains cheaper, next to Seoul.
- The rate for CATV Internet in Tokyo is at an expensive-level, but communication speeds in Tokyo are the fastest when we convert the rates to those per 1 Mbps, Tokyo is at a cheap-level and comes after Paris and Seoul.
- FTTH service rates are at a cheap-level in Tokyo 2 (for housing complexes), and at the same level as those in Stockholm and Seoul.

(1) DSL
(A) Monthly rates

Notes
1) Monthly rates for constantly connected DSL (excluding modem lease charges) are compared.

2) Comparison was done using the fastest residential-use service menu in each city on maximum communication speed of downloads.

3) Tokyo A shows NTT East's FLET'S ADSL MoreIII (communication charge in the case where My Line registration has been completed: ¥2,520) + NTT Plala's FLET'S / ADSL set (ISP connection charge: ¥850).
Tokyo B shows SoftBank BB's Yahoo!BB ADSL 50M (communication charge + ISP connection charge: ¥2,938).

4) New York shows rate for Verizon Communications' Verizon Online DSL Turbo Plan (communication charge + ISP connection charge: US $52.99).

5) London shows the rate for BT's BT Total Broadband Option 3 (12-month contract, communication charge + ISP connection charge: £21.27).

6) Paris shows the rate for FT's Formule Plus (12-month contract, communication charge + ISP connection charge: €25.0).

7) Düsseldorf shows the rate for T-Home's Call & Surf Comfort Plus in which PSTN basic telephone charges and domestic calls are included (24-month contract, communication charge + ISP connection charge + PSTN basic telephone charge + unlimited free domestic calls to fixed telephones: €41.97).

8) Stockholm shows the rate for TeliaSonera's ADSL 24 Mbps (18-month contract, communication charge + ISP connection charge: 275.2 Skr, the rate for TeliaSonera fixed telephone subscribers).

9) Seoul shows the rate for KT's QOOK Internet Lite (communication charge + ISP connection charge: 30,000 won).

(B) DSL (rates per 1 Mbps)

(2) CATV Internet (Monthly rates)

Notes
1) Monthly rates for constantly connected CATV Internet (including cable modem lease charges) are compared.

2) Comparison was done using the fastest residential-use service menu in each city on maximum communication speed of downloads.

3) Tokyo shows J:COM Tokyo's J:COM NET Ultra 160M Course (160 Mbps, ¥6,000).

4) New York shows Time Warner's Road Runner Extreme (20 Mbps, US $70.90).

5) London shows Virgin Media Size: XXL (12-month contract, 50 Mbps, £32.34).

6) Paris shows Numericable's Internet Ultra Haut Débit (12-month contract, 100 Mbps, €18.3).

7) Düsseldorf shows Tele Columbus's Internet 10000 (10 Mbps, €25.20).

8) Stockholm shows Com Hem's Bredband XXL 100 (100 Mbps, 375.2 Skr).

9) Seoul shows SKBroadband's B Internet optic fiber LAN (100 Mbps, 33,000 won).

(3) FTTH (Monthly rates)

Notes
1) Monthly rates for constantly connected FTTH (including device lease charges) are compared.

2) Comparison was done on the residential-use service menu of 100 Mbps in each city on maximum communication speed of downloads (in cases where the maximum speed is below 100 Mbps, the fastest speed was used).

3) Tokyo 1 shows Plala Hikari Mate with Flet's Family Type: ¥6,200 (100 Mbps, communication charge: ¥5,200 + ISP connection charge: ¥1,000).
Tokyo 2 shows Plala Hikari Mate with Flet's housing-complex type plan2: ¥3,300 (Max. 100 Mbps, communication charge: ¥2,500 + ISP connection charge: ¥800 in the case of the LAN wiring system)

4) New York shows Verizon's FiOS Internet Service Fastest (50 Mbps, US $114.95).

5) This service is not provided in London.

6) Paris shows FT's La fibre plus (12-month contract, 100 Mbps, €37.54, including free Téléphonie illimité (free calls to fixed telephones and 1 free hour to mobile phones) and 120 TV channels).

7) Düsseldorf shows the VDSL service, DT's Entertain Comfort VDSL50 (24-month contract, 50 Mbps, €54.58), including a free PSTN phone calls to fixed telephones and 70 TV channels.

8) Stockholm shows Bredbandsbolaget's Bredband 100 (12-month contract, 100 Mbps, 256 Skr).

9) Seoul shows KT's QOOK Internet Special (communication charge + ISP connection charge, 100 Mbps, 36,000 won + device charge: 8,000 Won).

b) Comparison of rates using other service, for example

- As regards broadband and IP phone use Tokyo 2 (for housing complex) is at a cheap-level and comes after Seoul and Paris.
- As regards broadband, telephone and TV use Tokyo 2 (for housing complex) is at a cheap-level.

(i) Use of broadband and IP phones (comparison using the model)

Notes
1) We compare monthly rates in each city for 100 Mbps FTTH (where the corresponding service was not provided, we used the fastest FTTH or DSL) and for IP phones according to the model similar to the OECD model, specifying how many and how long calls to fixed and mobile phone are made in each time zone and to each distance zone per month (76.5 calls with a total of 336.4 minutes of communications to fixed telephones and 23.5 calls with a total of 44.17 minutes of communications to mobile phones). Those rates include device lease charge, universal service charge, etc. and tax.

2) Tokyo 1 and Tokyo 2 shows Plala Hikari Mate with Flet's (FTTH, 100 Mbps, Tokyo 1: Family type plan, Tokyo 2:housing-complex type plan2 (LAN wiring system)) and Hikari telephone basic plan.

3) New York shows Verizon's Fios Internet (FTTH, 50 Mbps, 12-month contract) and the Vonage Basic 500 (free domestic calls).

4) London shows BT's Total Broadband Option 3 (ADSL, 20 Mbps, 12-month contract) and BT's Broadband Talk Anytime Plan (free calls to fixed telephones).

5) Paris shows FT's La Fibre Plus (100 Mbps, 12-month contract) including free Téléphonie illimité (free calls to fixed telephones and 1 free hour to mobile phones), and 120 TV channels.

6) Düsseldorf shows T-Home's Call & Surf Comfort VDSL (VDSL, 50 Mbps, bundled IP phone with free calls to fixed telephones, 24-month contract).

7) Stockholm shows the bundled service (18-month contract) of Telia's Bredband FiberLan (FTTH, 100 Mbps) and Telia's Bredbandstelefoni bundle (IP telephone). The price is the basic one presented by Telia to the Housing Management Association, etc. End-user rates may differ from the above mentioned prices. Kväll & helg discount plan is applied to the communication charge of IP phone.

8) Seoul shows QOOK Internet Special (FTTH, 100 Mbps, 36-month contract) and QOOK internet phone (36-month contract).

(ii) Use of broadband, telephone and TV (comparison using the model)

Notes
1) For each city, the monthly cost (tax included) is represented for:
a. the use of the 100 Mbps FTTH (where the corresponding service was not provided, we used the fastest FTTH or DSL);
b. the use of PSTN or IP phones according to the model similar to the OECD model, which specifies how many and how long calls to fixed and mobile phone are made in each time zone and to each distance zone per month (76.5 calls with a total of 336.4 minutes of communications to fixed phones and 23.5 calls with a total of 44.17 minutes of communications to mobile phones);
c. the use of TV services (more than tens of channels) provided by telecommunications carriers,
excluding charges for public broadcasting. Where necessary, the rental costs of equipment, such as private hubs, and universal services costs are included.
The amount of channels TV is a round number. In addition, VOD and other services can be used.

2) Tokyo 1 and 2 shows Plala Hikari Mate with Flet's (FTTH, 100 Mbps, Tokyo 1: Family type plan; Tokyo 2: housing-complex type plan2 (LAN wiring system)), Hikari basic telephone plan and the Hikari TV recommended plan (more than 40 specialized channels and 9 terrestrial digital channels).

3) New York shows Verizon's Fios Internet (FTTH, 50Mbps, 12-month contract), Verizon's Freedom Essentials (PSTN phone (including basic charges and free domestic calls), 12-month contract) and FiOS TV Prime HD (260 channels). Without the 12-month contract, the rate becomes more expensive than the one above. The PSTN basic charge is included in the telephone charge.

4) London shows BT's Talk and Surf Unlimited (the bundle of BT's Total Broadband option 3, ADSL, 20Mbps and Unlimited Anytime Plan, free calls to fixed telephones, 18-month contract) with BT vision (Freeview, free, 40 channels) using complexed STB which can be used IP and terrestrial digital TV).

5) Paris shows FT's La Fibre Plus (100Mpbs, 12-month contract). Without additional costs, 120 channels TV and IP phone Téléphonie illimité (free calls to the fixed phones and 1 free hour to the mobile phones) can be used.

6) The Düsseldorf shows Entertain Comfort VDSL50 (VDSL, 50Mbps, including PSTN phone basic charge, free domestic calls to fixed telephones, and 100 channels TV, 24-month contract).

7) Stockholm shows the bundle (18-month contract) of Telia's Bredband FiberLan (FTTH, 100Mpbs),Telia's Bredbandstelefoni (IP phone), and Kanalpaket Start (6 channels TV) . The Kväll & helg discount plan is used for the communication charges of the IP phone as well as the Kanalpaket Stor option that enables to watch 39 channels.

8) Seoul shows the discount bundle (36-month contract) QOOK Internet Special (FTTH, 100Mpbs, 36-month contract), the uniform national charge (PSTN phone, 36-month contract), and QOOK TV basic plan (76 channels). The charges shown are the fees after applying the bundle discount. Without the 36-month contract, the rate becomes more expensive.

2. Fixed telephones
a) Comparison of individual rates

- The basic charge for residential service in Tokyo are at an average level. The basic charge for business service in Tokyo are at an expensive-level like those in New York and Paris.
- The lump-sum payment for subscription is the most expensive in Tokyo, but the expense for relocation is at a cheap-level next to the one in Seoul.
- The local call charges in daytime in Tokyo are at a cheap-level and comes after Seoul and New York. The local call charges in nighttime in Tokyo at an average-level.
- However, various rate systems are adopted in each city, for example, a plan with monthly basic rate including a certain of communication charge, and a plan that the communication charge doesn't depend on communication time and distance. It is difficult to compare individual rate simply.

(1) Basic charges
(i) Basic charges (Residential service: monthly charges)

Notes
1) This comparison uses NTT East's basic charge for residential service of Class 3 station (over 400,000 subscribers). In Tokyo, this includes a universal service fee of ¥8/month. The basic charge for Class 2 station (50,000 to 400,000 subscribers) is ¥1,558; for Class 1 station (fewer than 50,000 subscribers) is ¥1,458 (each of these is for a dial circuit). In addition, where the issuing of bill statements is done on-line only, the above charges are discounted by ¥110.

2) The basic charge in New York is US$15.80 + the access charge of US$6.41 + the additional charge of US$0.98 for the interstate universal fund.
The basic charge for London, using the Unlimited Weekend Plan (£32.65 for 3 months) is £10.88 for 1 month. (An additional £1.5 is required if payments are made by other than automatic withdrawal.)
The basic charge for Abonnement principal in Paris is €13.38.
The basic charge for Call Plus in Düsseldorf is €15.92.
The basic charge in Stockholm is 116 Skr.
The basic charge in Seoul is 5,200 won.

3) Even if there are the variety of charge plans, such as the communication charge fixed amount system, comparison has been done using the basic charges for plans that do not include communication charges in their monthly basic charges in order to compare the cities each other.

(ii) Basic charges (Business service: Monthly charge)

Notes
1) This Comparison uses NTT East's basic charge for business service of Class 3 stations(over 400,000 subscribers). In Tokyo, this includes a universal service fee of ¥8/month. The basic charge for Class 2 station (50,000 to 400,000 subscribers) is ¥2,358; for Class 1 station (fewer than 50,000 subscribers) is ¥2,308. In addition, where the issuing of bill statements is done on-line only, from the above charges are discounted by ¥110.

2) The basic charge in New York is US$17.59 (24-month contract. If the contract is cancelled within the contract period, a penalty payment may be required. Where there is no contract period, the basic charge is US$21.45.) + the access charge of US$6.41 + the additional charge of US$1.70 for the interstate universal fund.
The basic charge in London is £14.45 for one month of the basic charge £43.35 for three months(24-month contract. If the contract is cancelled within the contract period, a penalty payment may be required. In the case of a 12-month contract, for 3 months the charge is £45.72 which corresponds to £15.24 for one month.)
The basic charge in Paris for Contact Pro is €18.3.
The basic charge in Düsseldorf for Call Plus is €15.92.
The basic charge in Stockholm is 132 Skr.
The basic charge in Seoul is 5,200 won.

3) Even if there are the variety of charge plans, such as the communication charge fixed amount system, comparison has been done using the basic charges for plans that do not include communication charges in their monthly basic charges in order to compare the cities each other.

(2) Expenses for subscription and relocation
(i) Expenses for subscription and relocation (Residential service)

Notes
1) White bars show expenses for relocation. The amounts for lump-sum payment for subscription and the expenses for relocation are the same in each city other than Tokyo, Stockholm and Seoul.

2) Tokyo's lump-sum payment for subscription is the facilities installation charge (¥36,000) + the contract charge (¥800). There is also the possibility to pay an extra ¥250 each month instead of the facilities installation charge subscribing to the light plan (which has been chosen by 99% of the new subscribers (private and business services) during the FY2009).

(ii) Expenses for subscription and relocation (business service)

Notes
1) White bars show expenses for relocation. The amounts for lump-sum payment for subscription and the expenses for relocation are the same in each city other than Tokyo, Stockholm and Seoul.

2) Tokyo's lump-sum payment for subscription is the facilities installation charge (¥36,000) + the contract charge (¥800). There is also the possibility to pay an extra ¥250 each month instead of the facilities installation charge subscribing to the light plan (which has been chosen by 99% of the new subscribers (private and business services) during the FY2009).

3) In London these are £99.00 (24-month contract. If the contract is cancelled within the contract period, a penalty payment may be required. In the case of 12-month contract, the expenses are £106.37).

(3) Local call charges
(i) Local call charges (charges for a 3-minute call at noon on weekdays)

(ii) Local call charges (charges for a 3-minute call at 8 o'clock at night on weekdays)

Notes
1) This comparison uses NTT East's local call charges.

2) The charge at noon on weekdays is: US$0.09/call in New York, £0.235/3 minutes using the Unlimited Weekend Plan in London, €0.134/3 minutes in Paris, €0.1008/3 minutes using Call Plus in Düsseldorf, 0.912 Skr/3 minutes in Stockholm, and 39 won/3 minutes in Seoul.

3) The charge at 20:00 on weekdays is: the same as the charge on weekdays in New York, 0.123/3 minutes using the Unlimited Weekend Plan in London, €0.101/3 minutes in Paris, €0.0387/3 minutes using Call Plus in Düsseldorf, 0.636 Skr/3 minutes in Stockholm, and the same as the charge at noon on weekdays in Seoul.

4) The size of the area for local calls is different for each city.

5) Even if there are the variety of charge plans, such as the communication charge fixed amount system, comparison has been done using the plans adopted in the comparison of basic charges that do not include communication charges in their monthly basic charges in order to compare the cities each other.

[Reference Examples of various discount services]


Examples of charge plans not depending on communication distance, communication time, or address called
City Examples of charges (communication carriers)
Tokyo Platinum Line (NTT Communications)
- No monthly charge.
- Local calls & calls to other cities in the same prefecture are uniformly ¥8/3 minutes; calls to other prefectures are uniformly ¥15/3 minutes.
New York Verizon Freedom Value (Verizon Communications)
- Monthly charge: US$42.99 (including the fixed telephone basic charge; In addition, Universal Service Fund fee is required.)
- Domestic calls, etc. are free.
London Unlimited Anytime Plan (BT)
- Quarterly charge: £45.40 (including fixed telephone basic charge)
- Domestic calls to fixed telephones are free (up to one hour per call).
Paris Optimale illimité (FT)
- Monthly charge: €32.61 (including fixed telephone basic charge).
- Domestic calls to fixed telephones and international calls to Europe and North America are free.
Düsseldorf Call Comfort (DT)
- Monthly charge: €25.16 (including fixed telephone basic charge)
- Domestic calls to fixed telephones are free.
Stockholm Dygnet runt med tillval Till mobiler (TeliaSonera)
- Monthly charge: 75.2 Skr (In addition, fixed telephone charge is required).
- Domestic calls (all day) to fixed telephones and calls (nighttime) to Telia's mobile phones can be made for 0.552 Skr/call regardless of call duration.
Seoul Uniform national charge (KT)
- No monthly charge (3-year contracts).
- Local calls and calls to other countries are uniformly 39 won/3 minutes.
Note: Tax not included. There are various charge plans in addition to the above, and conditions for service use sometimes differ.

b) Comparison using the OECD model

- The ordinary rate and the discount rate for residential service in Tokyo are at an average level.
- The ordinary rate and the discount rate for business service in Tokyo, as for residential service, are at an average level.

(1) Residential service

Ordinary rates
Discount rates
Notes
1) Comparison of the fixed telephone rates was done using the charges for domestic calls according to the hypothetic form of use (model) in which OECD set specifying how many and how long calls to fixed and mobile phone are made in each time zone and to each distance zone in order to compare the fixed telephone rates in each country.
The conditions set for calls in the OECD residential service model are 1-day average for local calls: about 2 times, total 8 minutes; calls to other cities: about 0.5 times, total 3 minutes; calls to mobile phones: about 0.8 times, total 1.5 minutes.

2) The same plan as that for individual rates is applied for ordinary rates.

3) Platinum Line plan rate is applied for the discount rate in Tokyo. (My Line Plus registration is required for all distance sections. Monthly fixed charge is free, calls within the same prefecture are ¥8/3 minutes, and inter-prefecture calls are ¥15/3 minutes.)

4) Sensible Minute plan (monthly charge US$2.99, intrastate call to other cities US$0.3/3 minutes) and Talk Time 60 plan(monthly charge US$9.00, including 60 minutes/month intrastate calls and interstate calls) rates are applied for the discount rate in New York.

5) Unlimited Anytime Plan + inclusive Friends & Family Mobile plan rates are applied for the discount rates in London. (12-month contract, monthly charge £15.13, including basic charge, domestic calls to fixed telephones are free, calls to mobile phones are discounted by a maximum of 33%.)

6) Optimale 2h fixes France plan (monthly charge €15.9, including basic charges and up to 120 minutes/month of domestic calls to fixed telephones) rates is applied for the discount rate in Paris.

7) Call Basic plan (monthly charge €16.76, including basic charges and up to 120 minutes/month of domestic calls to fixed telephones) and Festnetz zu Mobil plan (discount on charges for calls to mobile phones where these total €3.45/month or more) rates are applied for the discount rate in Düsseldorf.

8) Kväll & helg plan (monthly charge 24 Skr) rate is applied for the discount rate in Stockholm.

9) The uniform national charge (3-year contract is required. No monthly charge, calls inside and to outside of the city: 39 won/3 minutes) is applied for the discount rate.

(2) Business service

Ordinary rates
Discount rates
Notes
1) The conditions set for calls in the OECD business service model are 1-day average for local calls: about 5 times, total 9 minutes; calls to other cities: about once, total 3 minutes; calls to mobile phones: about 2 times, total 3 minutes.

2) The same plan as that for individual rates is applied for ordinary rates.

3) Platinum Line plan rate is applied for the discount rate in Tokyo.

4) FirmRate advantage Plus plan (3-year contract, call charges are discounted where long distance calls total US$5/month or more) rate is applied for the discount rate in New York.

5) BT Business Plan (Tailored Option) (charges for local calls, calls to other cities and calls to mobile phones are discounted where communications charges total £250/year or more) rate is applied for the discount rate in London.

6) Optimale pro illimité 1h plan (monthly charge €50, including the basic charge, free domestic calls to fixed telephones including up to 60 minutes/month of calls to mobile phones, and some international calls) rate is applied for the discount rate in Paris.

7) Call Basic plan (monthly charge €16.76, including basic charge and up to 120 minutes/month of domestic calls to fixed telephones) and Festnetz zu Mobil plan (discount on charges for calls to mobile phones where these total €3.45/month or more) are applied for the discount rate in Düsseldorf.

8) Dygnet runt plan (monthly charge 52 Skr, domestic calls to fixed telephones and calls (nighttime) to TeliaSonera mobile phones, are discounted) is applied for the discount rate in Stockholm.

9) The uniform national charge (3-year contract required. No monthly charge, calls inside and to outside of the city: 39 won/3 minutes) is applied for the discount rate in Seoul.

3. Mobile phones (comparison using the Tokyo model)

- In the low-volume users segment, the rate in New York is the most expensive, and the rate in Tokyo is at an average level.
- In the medium-volume users segment, the rate in New York is the most expensive, and the rate in Tokyo is at an expensive-level and comes after Paris and Düsseldorf.
- In the high-volume users segment, the rate in Tokyo is the most expensive (The rate in Tokyo comparing by the PPP is comes after New York and Seoul).

a) Low-volume users (voice communication, 44 minutes/month; e-mail, 7 (3 sent out) accesses /month; no use of data)

b) Medium-volume users (voice communication, 99 minutes/month; e-mail, 355 (140 sent out) accesses/month; data 16,000 packets/month)

c) High-volume users (voice communication, 246 minutes/month; e-mail, 620 (235 sent out) accesses /month; data, flat rate plan)

Notes
1) OECD used its own service fee comparison model for its mobile phone survey, which was different from the actual use patterns of mobile phones in Japan. We used the Tokyo model because which was set on the basis of the actual use patterns of mobile phones in Japan in order to compare service rates concerning voice communication, mobile phone mail, and Internet connection over mobile phones reflecting the actual use better.

2) Each shows the rates for consumers. Excluding plans for pre-paid type mobile phones, we compared call plans that did not have any particular user limits, such as limits by use area, other parties called, and age. Discounts for on-line application and billing, etc., have been excluded. (In Stockholm, an additional 19 Skr is charged to send a paper version of each bill.)

3) Concerning charges for voice communication, comparison was done using the cheapest rates in the case where mobile phones were used according to a pattern of use based on the actual records of average use for each distance, time zone and other party called, for mobile phones in Japan in the FY2008.

4) Concerning charges for e-mail, the cheapest charges using e-mail by mobile phone terminals were compared according to the ordinary methods in each city, such as i-mode e-mail (text only, excluding e-mails containing photographs and movies) in Tokyo, and Short Message Service (SMS) in other cities.

5) Considering the low-volume users as people who almost don't use e-mail, the number of e-mails of the low-volume users was set based on the average number of e-mail used by people who answered "using e-mail less than 5 times a week" in the Ministry of Internal Affairs and Communications' (MIC) "First Questionnaire Survey for FY2010 Telecommunications Service Monitors". Considering the medium-volume users as the average user, the number of e-mail of medium-volume users was set based on the average number of using e-mail from the survey results of "2010 Mobile Phones White Paper (December 2009 Mobile Contents Forum Supervision, Impress R&D)" revised by "First Questionnaire Survey for FY2010 Telecommunications Service Monitors". Considering the high-volume users as the user of a flat-rate plan for data communications, the number of e-mail of the high-volume users was set based on the average number of e-mail transmissions by the highest-volume user group whose proportion to the total user corresponds to the proportion of the flat-rate plan user in "2010 Mobile Phones White Paper".

6) Receiving e-mail is free in all cities other than Tokyo and New York.

7) The numbers of data packets used were set based on the Ministry of Internal Affairs and Communications' web questionnaire survey, at 16,000 packets per month for medium-volume users (the average of users excluding some users who use extremely large amounts of data), zero packets per month for low-volume users (assumed to be users who do not use packet services except for e-mail), and using the flat-rate plan for high-volume users.

8) We set the use of data as that done only by mobile terminals, and excluded the use of data by PDA and connection to personal computers. In principle, we calculated the charges by assuming the use of mobile phones to read data and download data. (In some cities there are separate charges for use of VOD, etc.. In such cases, rates will differ from those shown above.) There are also cases in which a communication charge including a content charge is applied, and flat rate charges are applied for some sites: in these cases, the rates will differ from those mentioned above.

9) In Stockholm, for high-volume user is the flat-rate plan up to 10 GB by month. In Seoul, measured rates vary according to the type of data (VOD, etc.) to be downloaded; the flat-rate charge plan (up to 2GB by month) are used for high-volume users.

10) The rate for voice communication only is the cheapest one among the rates concluded by all plans. The rate plan in London includes the free SMS use in addition to the charge for voice communications, and the rate plan for high-volume users in Paris includes the free data use in addition to the charge for voice communications.

11) The rate plan for each city is shown below.

City (carrier) Model Charge plan
Tokyo
(NTT docomo)
Low-volume users Type S Value, i-mode basic charge ¥315
*Including universal service charge.
Fami-wari (family discount) MAX 50 is applied. (same for both medium-volume and high-volume users)
Medium-volume users Type M Value, packet-hodai("as much as you want")-double, i-mode basic charge
High-volume users Type L Value, packet-hodai("as much as you want")-double, i-mode basic charge
New York
(Verizon)
Low-volume users Nationwide Talk & Family SharePlan − 700 for 1 person
Medium-volume users Nationwide Talk & Text Family SharePlan − 700 for 1 person
For the use of voice communications only: Nationwide Talk Family Shareplan − 700 for 1 person
High-volume users Nationwide Talk & Text Family SharePlan − 700 and Unlimited Data & Web with Mobile Email for 1 person
For the use of voice communications only: Nationwide Talk Family Shareplan − 700 for 1 person
London
(Vodafone)
Low-volume users Anytime (plan for 100 calling minutes, and 500 SMS)
Medium-volume users Anytime (plan for 100 calling minutes, and 500 SMS)
High-volume users Anytime (plan for 300 calling minutes, and unlimited SMS), Mobile Internet and email Pack (long-term contract)
Paris
(Orange France)
Low-volume users Initial
Medium-volume users Origami star 1h
For the use of voice communications only: Origami zen 2h
High-volume users Origami star 3h
Düsseldorf
(T-Mobile)
Low-volume users Relax60
Medium-volume users Relax60, Messaging M, Data5
High-volume users Relax240, Messaging L, Web 'n' walk HandyFlat
Stockholm
(TeliaSonera)
Low-volume users Telia Mobil Prata På
Medium-volume users Telia Mobil Max 25, Mobilsurf Bas
For the use of voice communications only: Telia Mobil Prata På
High-volume users Telia Mobil Max 25, Mobilsurf Extra+
For the use of voice communications only: Telia Mobil Prata På
Seoul
(SK Telecom)
Low-volume users Standard, Family discount
Medium-volume users Standard, Message Lite, Data 35, Family discount
High-volume users Free calls 35, Message Lite, Safe Data 90, Family discount
Note: Charges applied when the calls have exceeded the free amounts have been included.

[Reference: Comparison by PPP]


[Reference: Comparison of rates by average number of minutes used in each country]


- Because the actual use of mobile phone greatly in each city, we have compared the rates based on the average minutes of mobile phone use in each country in addition to comparison using a model which sets a fixed minutes per call.
- The rates in Düsseldorf, where the average minutes of mobile phone use is the lowest, are the cheapest, followed by Stockholm. The rate in Tokyo is at an average-level.
- However, the rates are cheap in New York, Stockholm and Seoul when they are converted to per-minute rates, while it is at a high-level in Tokyo.
Note
1) When comparing mobile phone rates using a fixed model, the rates for the same number of minutes of mobile phone use can be compared. But because the number of minutes of mobile phone use in each country is very different, rates calculated using the model sometimes do not match the average rate amounts paid by users in each city. Therefore, in order to compare the rate levels for standard users in each city, we have compared the cheapest rates in the case where users in each country use mobile phones for an average number of minutes per month.

2) The comparison shows rates for voice communications only.

3) The average minutes per month per contract in each country except for New York is the number of minutes of mobile phone use for making calls in each city. For New York, it is 1/2 of total minutes used for sending and receiving calls on mobile phones.

4) The following shows the rate plan in each city and the sources of monthly average minutes of mobile phone use per contract for each country.

Rate plan in each city
City (carrier) Charge plan Sources for minutes used
Tokyo
(NTT docomo)
Type M value
Fami-wari(Family discount) MAX 50 is applied
Ministry of Internal Affairs and Communications, State of Japan's Communications in Terms of Traffic (State of telecommunications services usage in FY2008)
New York
(Verizon)
Nationwide Talk Family SharePlan − 700 for 1 person FCC, 14th Mobile Wireless Competition Report
London
(Vodafone)
Anytime (300 calling minutes, unlimited SMS, £15 plan) Ofcom, The Communications Market 2009
Paris
(Orange France)
Origami Star 2h ARCEP, Annual report 2008
Düsseldorf
(T-Mobile)
Relax 60 Bundesnetzagentur, Annual Report 2008
Stockholm
(TeliaSonera)
Telia Mobil Prata På SIKA, Televerksamhet 2008
Seoul
(SK Telecom)
Unlimited calls 35, Family discount SL Telecom, Annual Report 2009
Note: Charges applied when the calls have exceeded the free amounts have been included.

[Reference: FMC service rates]


Examples of FMC services
City Product System (Carrier) Monthly rate Features
Tokyo Home U
Wireless LAN
(NTT docomo)
¥490 (tax incl.) Wireless LAN devices (which are on the market and supporting Home U) and mobile phone terminals supporting it are used. In the Home U area, it is possible to use high-speed data transmission. 30% reduction on the plan subscribed for the calls, free use of the i-mode from mobile phone terminals, and free calls between Home U are applied.
My Area
Femtocell
(NTT docomo)
¥980 subscribing to Fami-wari(family discount) MAX 50, ¥490 (tax incl.) The micro-cell radio station which is exclusive for NTT docomo and can be set in a house is used for communications with a mobile phone terminal. Initial cost is ¥2100. Since only the registered terminals can be used, the high-speed packet data transmissions can be used.
Paris UNIK
Wireless LAN
(Orange France)
€14 (tax incl.) The FT's wireless LAN Live Box for broadband services and mobile phone terminals supporting it are used. In the UNIK area, high-speed data transmission can be used. Free domestic calls to fixed telephones, to one's own company mobile phone, and free data use from mobile phone terminals are applied.
London Vodafone
Femtocell
Sure Signal
(Vodafone)
Free The micro-cell radio station which is exclusive for Vodafone and can be set in a house is used for communications with a mobile phone terminal. Equipment price starts from £50. There is no discount, however it is useful to avoid being outside range.
New York Verizon Wireless Network Extender
Femtocell
(Verizon)
Free The micro-cell radio station which is exclusive for Verizon Wireless and can be set in a house is used for voice communications with a mobile phone terminal. The equipment costs US$249.99. No discount, however it is useful to avoid being outside range.
Stockholm Telia Home Free
Wireless LAN
(Telia)
199 Skr. (tax incl.) Wireless LAN devices and mobile phone terminals supporting it are used. High-speed data transmission can be used in the area of wireless LAN in a house. There are discounts on domestic calls to fixed telephones, and to one's own company mobile phone.
Seoul TB Phone
Wireless
(SK Telecom)
2,200 won (tax incl.)
There are also other plans
Wireless LAN devices and mobile phone terminals supporting it are used. In the area of wireless LAN in a house, VoIP (calls to/from outside and inside the city are 38 won/3 min and to mobile phones 11.7 won/10sec.) and free internet can be used.
Note: In addition to regular mobile phone services, we show the rates of services which provide calls or high-speed data transmissions using mobile phone terminals via fixed home broadband networks by wireless LAN or femtocell.

[Reference: rates for International Roaming Service (model rates for one-minute calls)]


Note
1) Total rates for making a 1-minute call from a foreign country to each city in one's home country with a mobile phone are shown.
From Tokyo: Rates for making a call from Tokyo to one's home country with a mobile phone of each foreign carrier.
From overseas: Rates for making a call from each foreign city to Tokyo with a mobile phone of a Japanese carrier.

2) Unless specially mentioned, for each city the rates do not differ depending on the day of the week on the time zone. When necessary, we add the setup charge, and we calculate total rates for 1-minute call using a model.

4. International calls (comparison of individual rates)

- Except between Tokyo and Paris, the international telephone rates for calling from Tokyo to each city shown are more expensive than the rates for calling from each of these cities to Tokyo.
Call rates (converted to rates for 3 minutes)
Note
1) Various plans other than ordinary charges are generally used for international telephone calls. The cheapest discount rate in each city was therefore used in the comparison of international telephone charges.

2) Unless specially mentioned, there are no charges for time zone differences in each city.

3) The international telephone call from Tokyo to Stockholm here uses "International Selectalk" (Midnight and early morning rates are shown above. 50% discount is applied on weekdays). Other international calls from Tokyo use "SEKAIWARI Platinum Line" provided by NTT Communications.

4) AT&T Worldwide Value Calling (monthly flat rate US$5.00, US$0.09/minute) is applied for the international call rate from New York.
Friends & Family International (quarterly flat rate £2.52, 2.127 pens/min., in addition to a setup charge of 8.42 pens/call) is applied for the international call rate from London.
Option Plus / Les Heures (free monthly flat rate, €0.67/min.) is applied for the international call rate from Paris.
Call Start (€0.124/min.) is applied for the international call rate from Düsseldorf.
Utland (monthly flat rate 12 Skr, 0.20 Skr/min. in addition to a setup charge of 0.55 Skr/call) is applied for the international call rate from Stockholm.
001 special DC plus (290 won/min.) is applied for the international call rate from Seoul.

 

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