Official Announcement of Final Report from “Research Society concerning Use of Price Caps”

1. Background

  With regard to fees for subscription telephones, etc. provided by Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation (hereinafter, “NTT East and West”), a maximum cost (price cap) system has been installed since October 1, 2000. However, the rates of expected productivity improvement (X values) that are required when the Ministry of Internal Affairs and Communications (MIC) establishes standard fee indexes showing maximum costs are reviewed every three years. 　
  The Ministry of Internal Affairs and Communications (MIC) has started the “Research Society concerning Use of Price Caps” since November 2011 in order to consider and arrange items to be kept in mind when calculating X values to be adopted in the next term (three years from October 1, 2012). 　As a result of studies carried out at the sixth meeting, the Research Society has now compiled a final written report.