Ministry of Internal Affairs and Communications

Press Release

June 30, 2020

Establishment and Notification of Standard Charge Indices for Specified Telecommunications Services Provided by NTT East and NTT West

  In accordance with Paragraph 1, Article 21, of the Telecommunications Business Act (Act No. 86 of 1984), the Ministry of Internal Affairs and Communications (MIC) established standard charge indices for specified telecommunications services (i.e., subscriber phone, ISDN, and public telephone services) provided by Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation (NTT East and NTT West). The standard charge indices are valid for one year beginning on October 1, 2020, and ending on September 30, 2021, and MIC has today notified NTT East and NTT West of the indices.

[Notified standard charge index]
Types of specified telecommunications service providers NTT East NTT West
Voice transmission services*1 95.2 (94.9) 95.2 (94.9)
Voice transmission services that are provided by using Category I designated terminal system transmission line facilities only*2 102.7 (102.4) 102.7 (102.4)

Note: The initial value of the standard charge index is 100 (charge index as of April 1, 2000).
          The figures in parentheses are the current standard price index (from October 1, 2019, through September 30, 2020).

          *1. Basic subscriber phones, ISDN, public phones, call/communication charges, and directory assistance charges.

          *2. Basic charges for subscriber telephone, ISDN, and facility installation fees.

• Formula of standard charge index calculation

   Base rate index = Base rate index for the previous application period
   × (1 + Consumer price index volatility - Expected productivity improvement rate (X value) + Extrinsic factor)
  
    (1) Base rate index for the previous application period: (Voice transmission) 94.9 (Subscriber line) 102.4

    (2) Consumer price index volatility (FY2019): 0.5%

    (3) X value *3: (Voice transmission) 0.2% (Subscriber line) 0.2%

    (4) Exogenous factors: 0

[Background]
  MIC has held meetings of the Study Group on Operation of Price Cap System from December 2017 to summarize the basic idea of the calculation method of the standard charge index. On March 23, 2018, MIC sent an inquiry to the Information and Communications and Posts Administrative Council about settings for the standard fee index. On May 25, 2018, MIC received a report from the Council stating its approval as inquired.
  Furthermore, MIC has just obtained approval from the Ministerial Meeting on Commodity Prices on June 26, 2018.
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For further information about this press release, please fill in the inquiry form and submit it to MIC on the website
https://www.soumu.go.jp/common/english_opinions.html

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

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