September 19, 2023 Organizing a Study Group on Cost Calculation under the Universal Service System for Broadband Services

In June 2023, the amended Telecommunications Business Act came into effect, establishing a new universal service system for broadband services. Of this system, for the institution pertaining to subsidies, it is necessary to examine and verify the construction of a standardized formula (hereafter referred to as the “standard judgment formula”) to be used for the actual designation of support areas and calculation of subsidies for cost, with a view to the full-fledged operation of the institution in the future. Accordingly, the Ministry of Internal Affairs and Communications (MIC) has decided to organize a Study Group on Cost Calculation under the Universal Service System for Broadband Services.

1. Purpose

Regarding the universal service system for broadband services, the Information and Communications Council’s Report (February 7, 2023) states that it is appropriate to use a standard model for designating support areas and calculating subsidies. Based on the above, the Study Group will research the standard judgment formula for calculation of subsidies for cost.

2. Main items for consideration

(1) Approach to the establishment of the standard judgment formula (zoning model and subsidy calculation model)
(2) Input values required to establish the standard judgment formula
(3) Other matters deemed necessary

3. Schedule

The first meeting will be held on Tuesday, the 26th of this month, and the results of the study will be compiled around March 2024.

*The published materials are in Japanese only.