March 26, 2021 Appeal for Opinions on Establishment of Standard Charge Index for Specified Telecommunications Services Provided by NTT East and NTT West

The Information and Communications and Posts Administrative Council received today an inquiry concerning approval for a change of the standard charge index for specified telecommunications services provided by Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation.
In this connection, the Ministry of Internal Affairs and Communications (MIC) has decided to make an appeal for opinions from Saturday, March 27 through Monday, April 26, 2021.

1. Background

The maximum rate level (price cap) has been applied as a rate regulation since October 1, 2000, to charges related to telephone services, including subscriber telephone services, of Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation (hereafter referred to as “NTT East/West”).
NTT East and West can set or change charges, including subscriber telephone rates if they do not exceed the standard charge index that indicates the maximum charge. If they intend to set a charge that exceeds the standard charge index, they must obtain approval from the Minister for Internal Affairs and Communications.
For setting the standard rate index that indicates the maximum rate, the expected rate of productivity improvement (X-factor) is to be calculated every three years based on a reasonable forecast of future costs. However, the application deadline of the current X-factor is the end of September 3, 2021. Accordingly, it is necessary to calculate the X value applied to the next term (three years from October 1, 2021) and set the standard charge index applied from October 1, 2022, through September 30, 2023.

2. Subject and procedure of appeal for opinions^*

Subject of appeal for opinions: Standard telecommunications service index for specified telecommunications services provided by NTT East and West, applied from October 1, 2021, through September 30, 2022

• *
  The published material is in Japanese only.

3. Future plans

Considering opinions received, MIC will investigate and deliberate on this matter and report it to the Minister for Internal Affairs and Communications.