April 3, 2020 Appeal for Opinions on Draft Interim Report of Study Group on Long-Run Incremental Cost Model

The Ministry of Internal Affairs and Communications will make an appeal for opinions from Saturday, April 4 through Friday, May 8, 2020, on an interim report drafted by the Study Group on Long-Run Incremental Cost Model (chaired by Tadao Saito, Professor Emeritus at the University of Tokyo).

1. Background

The interconnection tariff for the subscriber exchange and relay exchange functions of Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation’s category I designated telecommunications facilities is based on a long-run incremental cost method. The current long-run incremental cost model^* applies the calculation of interconnection charges from fiscal 2019 through fiscal 2021.
MIC resumed the Study Group on Long-Run Incremental Cost Model on June 28, 2019, and has been examining a long-run incremental cost model applicable to the calculation of interconnection charges in and after fiscal 2022. The Study Group on Long-Run Incremental Cost Model drafted the interim report at the 67th round-robin cabinet meeting, which was held from March 23 through March 30, 2020. Accordingly, MIC has decided to make this appeal for opinions on the draft interim report.

• *
  The long-run incremental cost model is a technical model for calculating the cost of interconnection charges based on the cost of newly constructing a network with the most inexpensive and most efficient equipment and technology currently available.

2. Procedure of appeal for opinions

1. Subject

Draft Interim Report of Study Group on Long-Run Incremental Cost Model

2. Submission deadline:

From Saturday, April 4 and no later than Friday, May 8, 2020
(Opinions, if submitted by mail, must arrive no later than the same day.)

3. Method for obtaining references

Reference information will be posted on the public comment page of the e-Gov (https://www.e-gov.go.jp/ ). It will also be available for viewing and obtaining copies at the contact window of the MIC’s division in charge.