Appeal for Opinions on Draft Report from “Long-Term Incremental Expense Model Research Society”

1. Background

The current long-term incremental expense model (*) is being applied as a model for the calculation of connection fees for subscriber exchange functions and trunk exchange functions, etc. during the two-year period from FY 2011 to FY 2012.
The Ministry of Internal Affairs and Communications (MIC) initiated the “Long-Term Incremental Expense Model Research Society” on July 8, 2011, and commenced studies relating to a long-term incremental expense model applicable to the calculation of connection fees for fixed telephones, etc. in FY 2013 and beyond.

 Accordingly, there will now be an appeal for opinions on the draft report compiled by this Research Society.

*The long-term incremental expense model calculates targeted network expenses based on expense when networks equip the same scale of throughput for their number of subscribers and volume of traffic as at present in new constructions using the cheapest and most efficient equipment and technologies available at present (forward-looking cost), rather than calculating the actual amount of expense arising (historical cost).

2. Outline of appeal for opinions

Subject of appeal for opinions: Draft Report from “Long-Term Incremental Expense Model Research Society”

Deadline for submission of opinions: 17:00 on March 7 (Wed), 2012 (mailed submissions must also arrive by this date)

Please note that this draft report will be made available for inspection at the Tariff and Telecommunications Access Policy Division, Telecommunications Business Division of the Ministry of Internal Affairs and Communications (MIC) Telecommunications Bureau (10th Floor, Central Gov't. Building No. 2), and will also be published in the “Reports and documents” section of the Ministry of Internal Affairs and Communications (MIC) website (http://www.soumu.go.jp/) and in the “Public comment” area of e-Gov (http://www.e-gov.go.jp/), the coordinated electronic government contact website.

3. Schedule

Based on the opinions received concerning this draft report, the Research Society will conduct a study at the end of March and will then compile a final report.

Related reports and documents

○“Long-Term Incremental Expense Model Research Society” to be opened (July 8, 2011)