FOR INFORMATION November 20, 1998

NTT Applies to MPT to Revise Interconnection Charges

Nippon Telegraph and Telephone Corporation (NTT) today applied to the Minister of Posts and Telecommunications for authorization to revise its Articles of Agreements concerning Interconnection to Designated Telecommunications Facilities, such as interconnection charges for fiscal 1998 (from April 1, 1998 to March 31, 1999). NTT decided to revise the interconnection charges, which were set last year by unbundled functions. The new charges will be based on the fiscal 1997 (April 1, 1997 to March 31, 1998) accounting period. However, the ISDN interconnection charges for the I-interface subscriber module (ISM) switching function will be figured out by estimating one-year costs and traffic based on the results of the first half of fiscal 1998. This is due to the considerable increase in ISDN traffic in fiscal 1997. See attachment on next page for interconnection charges by function. Revision will be implemented soon after ministerial approval. NTT will sign agreements with other telecom carriers according to the Articles of Agreements concerning Interconnection. The interconnection charges will be implemented retroactively from April 1, 1998. With today's application, NTT will take steps to satisfy requests made by the Telecommunications Council in a report titled "Measures That Have to be Taken by NTT." The council issued the report this spring when the interconnection articles were authorized (see Appendix). NTT also submitted for the minister's approval a plan to revise the corporation's Articles of Agreement Concerning Interconnection to Non-Designated Telecommunications Facilities.

Attachment New Interconnection Charge Plan Reference1 1.Example of Interconnection at Tandem Switch (Zone Center: ZC) 2.Example of Connection at Local Switch (GC) (subscriber telephone) Reference 2 Application and Charges for Transmission Line Functions 1.Charge Plan for Non-Designated Telecommunications Facilities 2.Application to PHS Carrier (dependent-type) (originating and terminating calls by subscriber telephone, including local transmission) Reference 3 Interconnection Charge by Function Appendix

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