April 1, 2009

Publication of the Final Report from the Study Group on the
Management of Price Caps

The Ministry of Internal Affairs and Communications (MIC) has since January, 2009 convened the Study Group on the Management of Price Caps (Chairman: University of Hyogo Graduate Professor, Tsuji Masatsugu) to review and identify matters to be considered in calculating the value X (the estimated productivity growth rate), which were needed to set the new standard tariff index as a price cap.
Tonight this is being made public in light of the Study Group on the Management of Price Caps organizing their final report.

1.Background

Since October 1, 2000, the price cap system has been applied to tariffs for subscriber telephone and other services of Nippon Telegraph and Telephone East Corporation (NTT East) and Nippon Telegraph and Telephone West Corporation (NTT West). To set the new standard tariff index, which represents a price cap, the value X (the estimated productivity growth rate) is needed. The value must be reviewed every three years.
The Study Group was convened from January 2009 with the purpose of reviewing and identifying matters to be considered in calculating the value X for the next three-year period, which begins on October 1, 2009. After assembling 5 times to identify the matters concerned, the Study Group has tonight created their final report.

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http://www.soumu.go.jp/joho_tsusin/eng/contact.html

International Policy Division,
Global ICT Strategy Bureau, MIC
TEL: +81 3 5253 5920 / FAX: +81 3 5253 5924