June 15, 2020 Result of Appeal for Opinions on Draft Interim Report of Study Group on Long-Run Incremental Cost Model and Announcement of Interim Report

The Ministry of Internal Affairs and Communications (MIC) made 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).
With consideration of the result of the appeal for opinions, the Interim Report of the Study Group on Long-Run Incremental Cost Model was completed by the Study Group. Accordingly, MIC has decided to open the same to the public, together with five opinions that were submitted and MIC’s views on the opinions.

1. Background

The interconnection charges for the subscriber exchange and relay exchange functions, etc., among 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 meeting of the Study Group, which was held from March 23 through March 30, 2020. MIC made this appeal for opinions on the draft interim report, on which five opinions were submitted.
With consideration of the result of the appeal for opinions, the Interim Report of the Study Group on Long-Run Incremental Cost Model was completed at the 68th meeting of the Study Group, which was held on May 25, 2020. Accordingly, MIC has decided to open the Interim Report to the public.

• *
  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. Result of the appeal for opinions and interim report

The published material is in Japanese only.