For Immediate Release
January 30, 1998
NTT Submits Interconnection Tariffs to the Minister for Authorization
Nippon Telegraph and Telephone Corporation (NTT) today filed and submitted with the Minister of Posts and Telecommunications for authorization of tariffs concerning interconnection with designated telecommunications facilities, including revision of interconnection charges.1. Outline
The newly published Interconnection Tariffs include 1997 interconnection charges calculated based on new interconnection rules and other interconnection conditions between NTT's designated telecommunication facilities and other carriers' telecommunications facilities.
Previously, interconnection with other operators required interconnection agreements following negotiation by both sides and authorization from the Minister.
NTT believes that the new tariffs will greatly simplify procedures for interconnection, requiring only the signing of an agreement based on the tariffs, and a submittance of notification to the Minister.
2. New Interconnection Provision
According to the new provision, Interconnection Tariffs charges will be unbundled by function (please see attachment). Other conditions within existing interconnection agreements and regulations as stipulated by law, including all technical requirements necessary for interconnection, will be reorganized and included in the new Interconnection Tariffs.
3. Interconnection Provision Effective Date
The new Interconnection Tariffs would go into effect in March if approved by the Minister of Posts and Telecommunications, whereby new agreements based on the new tariffs would be signed with other telecommunications operators. The interconnection charge will be used retroactively from April 1997.
4. Other
NTT has also filed and submitted to the Minister of Posts and Telecommunications for authorization of tariffs concerning interconnection with non-designated telecommunications facilities.
Attachment 1
New Interconnection Charge Plan
| Functional Category | Charge |
| Local Switching Function | ¥0.99 per communication |
| ¥0.0289 per second | |
| I-Interface Subscriber Module (ISM) Switching Function | ¥2.39 per communication |
| ¥0.0571 per second | |
| Local Transmission Function | ¥0.20 per communication |
| ¥0.0278 per second | |
| Tandem Switching Function | ¥0.27 per communication |
| ¥0.0009 per second | |
| Interoffice Transmission Function(for shared use) | ¥0.02 per communication |
| ¥0.0349 per second | |
| Directory Assistance Service Interconnection Function (Interconnected at Tandem Switch) | ¥213 per service |
| Directory Assistance Service Interconnection Function (Interconnected at Terminal Line) | ¥217 per service |
| Public Telephone Originating Function | ¥0.1738 per second |
| Digital Public Telephone Originating Function | ¥0.1708 per second |
Previously, all charges were based on profit calculations for each business sector, but with the revisions, charges would be calculated based on Interconnection Accounting after unbundling by function to better reflect facility costs. In fiscal 1996, NTT would implement the new rule wherever possible while basing its calculations on profits as before.
