May 20, 2024 Establishment of Standard Charge Index for Specified Telecommunications Services Provided by Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation
- Report from Information and Communications and Posts Administrative Council -

 Today, the Ministry of Internal Affairs and Communications (MIC) has received a report from the Information and Communications and Posts Administrative Council, chaired by AIDA Hitoshi, Professor Emeritus of the University of Tokyo. The report states that it would be appropriate to establish standard charge index for specified telecommunications services provided by Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation (hereinafter referred to as "NTT East and West"), as consulted on March 21, 2024 (Consultation No. 3179).

1. Background

 Regarding the charges for telephone services, including subscriber telephone services provided by NTT East and West, the maximum rate level (price cap) has been in operation since October 1, 2000 to regulate the charges.
 Under the price cap system, NTT East and West can set or change the charges, including subscriber telephone services, for example, only by notification, as long as the new charges do not exceed the standard charge index, which indicate upper charge limits. If NTT East and West intend to set a charge that exceeds the corresponding standard charge index, they must seek approval from the Minister for Internal Affairs and Communications.
 Before setting a standard charge index, the expected rate of productivity improvement (X-factor) must be calculated every three years based on a reasonable forecast of future costs. The current X-factor is valid until the end of September 2024. The X-factor applicable to the next period (three years from Tuesday, October 1, 2024) needs to be determined, followed by establishing a standard charge index applicable from Tuesday, October 1, 2024, to Tuesday, September 30, 2025.
 On March 21, 2024, the MIC consulted the Information and Communications and Posts Administrative Council regarding the establishment of standard charge index for specified telecommunications services provided by NTT East and West. The Council solicited opinions from Friday, March 22, 2024 to Monday, April 22, 2024.

2. Report and results of the solicitation for opinions

 The Information and Communications and Posts Administrative Council has reported that it would be appropriate to establish standard charge index for specified telecommunications services provided by NTT East and West, as consulted on March 21, 2024.

3. Future plans

 Based on this report, the MIC plans to notify NTT East and West of the standard charge index by the end of June 2024, following the necessary procedures.