State of Calculation of Connection Charges in FY2013 and Beyond based on the Long-Run Incremental Cost Model

1.Background, etc.

  The long-run incremental cost model has been applied to the calculation of connection charges pertaining to subscriber switching function, relay switching function, etc. out of Category I designated telecommunications facilities installed by Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation. As for said calculation model of connection charges, the period of application of the current long-run incremental cost model used for calculating costs is set to be by FY2012 in the report from the Information and Communications Council dated September 28, 2010.
  The Study Group on Long-Run Incremental Cost Model (Chairman: Tadao Saito, Emeritus Professor at University of Tokyo) has considered the long-run incremental cost model applicable to the calculation of said costs in FY2013 and beyond and compiled a report proposing to revise the current long-run incremental model from the viewpoint of prompt response to latest situation.
  In response, the MIC submitted an inquiry to the Information and Communications Council concerning the state of calculation of connection charges in FY2013 and beyond based on the long-run incremental cost model.
 

2.Future schedule

  Investigations and considerations will be carried out by the Telecommunications Business Policy Committee and the Interconnection Policy Subcommittee under the Information and Communications Council to compile a report.