April 20, 2004

Ministry of Public Management,
Home Affairs,
Posts and Telecommunications


MPHPT submits inquiry to Telecommunications Council concerning a framework for calculating interconnection charges from fiscal 2005



The MPHPT today submitted an inquiry to the Telecommunications Council concerning a framework for calculating interconnection charges from fiscal 2005.

1. Details:

The March 2003 report from the Telecommunications Council stated that, concerning a method for calculating interconnection charges from fiscal 2005, "method should be investigated concerning ways for calculating interconnection charges from fiscal 2005 that take into consideration major changes in environment such as a reduction in traffic and a slowdown in new investments." The MPHPT received this and reconvened the Study Group on LRIC Model to build a model that can be used for calculating interconnection charges from fiscal 2005. A report was compiled on April 15, 2004.

In addition, the September 2002 report from the Telecommunications Council on a framework for calculating existing interconnection charges requested to the MPHPT that an occasion should be promptly put in place for a radical and systematic reinvestigation of the handling of Non Traffic Sensitive (NTS) costs, along with the handling of existing basic charges, charges for establishing facilities, and various types of value-added charges. The results of these investigations should be taken into consideration to formulate a revision of the current telecommunications charge system as soon as possible. Subsequently, in the report of March 2003, the council requested that there should be a radical and systematic reinvestigation of collection methods for NTS costs, along with the handling of basic charges, and that the results of this investigation be reflected appropriately in calculating interconnection charges from fiscal 2007.

2. Major Contents of Inquiry
Taking these conditions into account, the MPHPT is making an inquiry on a framework for calculating interconnection charges from fiscal 2005, including the evaluation of the new model incorporating changes in environment, handling of NTS costs taking into consideration a framework for basic charges and charges for establishing facilities, and handling of traffic input values

NB: The Telecommunications Council today established a new committee (Basic Charges Committee) in order to investigate a framework for basic charges and charges for establishing facilities.

For details refer to the Japanese web site
http://www.soumu.go.jp/s-news/2004/040420_6.html

For further information about this press release, please contact:

International Policy Division, International Affairs Department
Telecommunications Bureau
Ministry of Public Management, Home Affairs,
Posts and Telecommunications
Tel: (03) 5253-5920 Fax: (03) 5253-5924

Or visit
http://www.soumu.go.jp/joho_tsusin/eng/contact.html to fill in the inquiry form.