October 7, 2022 Results of Solicitation of Opinions on Draft Final Report of Study Group on Long-Run Incremental Cost Model and Publication of Final Report

The Ministry of Internal Affairs and Communications (MIC) solicited opinions from Saturday, August 27 through Monday, September 26, 2022, on the final report drafted by the Study Group on Long-Run Incremental Cost Model (chaired by SAITO Tadao, Professor Emeritus at the University of Tokyo).
Taking into consideration the results of the solicitation of opinions, the study group finalized the Final Report of the Study Group on Long-Run Incremental Cost Model. Accordingly, MIC has decided to publish the report, along with the five opinions submitted and the study group's views on those opinions.

1. Background

The access charges for the subscriber exchange and relay exchange functions of category I designated telecommunications facilities installed by Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation are calculated based on a long-run incremental cost method. MIC's Study Group on Long-Run Incremental Cost Model examined the long-run incremental cost model* applicable to the calculation of access charges in and after FY2022, and compiled an interim report in May 2020.
After that, MIC resumed discussions at the Study Group on Long-Run Incremental Cost Model on March 10, 2022, and examined the method of calculating the universal service cost using the long-run incremental cost model (ninth IP-LRIC model), which can be applied to calculate the amount to be compensated under the universal service system to be approved on and after FY2023. The study group compiled a draft final report at its 76th session held on August 23, 2022, and MIC solicited opinions on the draft final report. As a result, five opinions were submitted.
Taking into consideration the results of the solicitation of opinions, the study group finalized the Final Report of the Study Group on Long-Run Incremental Cost Model at its 77th session on September 30, 2022, and MIC has decided to publish the report.

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

2. How to obtain reference information

MIC will post the documents on the public comment page of the e-Gov (https://www.e-gov.go.jp/ ) and make them available for viewing and obtaining copies at the contact point.

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  The published materials are in Japanese only.