| HOME > News
Release > News Release 2003 |
|
 |
|
| July
17, 2003 |
Cable & Wireless
IDC
Inc.
FUSION
COMMUNICATIONS
CORP.
JAPAN
TELECOM
CO.,LTD.
KDDI
CORPORATION
POWEREDCOM,
Inc.
|
|
|
Telecommunications
carriers
move
to
protect
fair
competition
(TOKYO)
July 17, 2003
---- Cable & Wireless
IDC Inc., FUSION
COMMUNICATIONS
CORP., JAPAN
TELECOM CO.,LTD.,
KDDI CORPORATION
(TSE: 9433)
and POWEREDCOM,
Inc., five
of Japan's
major telecommunications
carriers, today
announced that
they are to oppose
an average
tariff increase
of 4.8% resulting
from a decision
by the Minister
of Public Management,
Home Affairs,
Posts and Telecommunications
to amend the
interconnection
charges paid
to NTT East
and NTT West. While
the companies
have each submitted
petitions to
the Tokyo District
Court to launch
an administrative
suit on a number
of legal grounds,
the five suspect
and oppose
a reversal
in the Ministry's
pro-competition policy
that has brought
about significant
declines in
domestic call
rates.*
The
five companies,
are specifically
calling for
the revocation
of the approval
granted on
April 22 by
the Minister
of Public Management,
Home Affairs,
Posts and Telecommunications
for the partial
amendment of tariffs
concerning
interconnection
to Type I designated
telecommunications
facilities
at NTT East
and NTT West.
The telecommunications
carriers are
also questioning
the Ministry's
reversal of
policy without adequate
debate and
through procedures
that were not
transparent.
Japan's
telecommunications
industry has
a history of
utilizing pro-competitive
policy to produce
benefits for
users, such
as reductions
in charges
and the introduction
of new services,
specifically
realizing the aims
proclaimed
in Article
1 of Japan's
Telecommunications
Business law
to "promote
the public
welfare."
The
recent upwards
amendment of
the interconnection
charges, together
with after
the fact adjustments
and implementation
of exactly
the same charges
for both NTT
East and West,
appears to
be a significant reversal
of that pro-competition
policy and
is likely to
lead to increased
charges for
customers.
Through
their shared
commitment
on this issue,
the five companies
making this
announcement
have requested
revocation
of the approval
of the amendment
of charges,
on the following
legal grounds:
|
- The
amendment
to bring
in uniform
interconnection
charges
for NTT
East and
NTT West:
-
contradicts
the
findings
of
the
Ministryįs
own
advisory
body,
the
Telecommunications
Council;
-
infringes
the
appropriate
procedures
necessary
for
administrative
action, such
as
calling
for
opinions
as
required
by
Council
report; and,
-
includes
errors
in
the
decision
method
and
process.
- The
interconnection
charges
are not
based on
the amount
and length
of calls
or on NTT
East and
NTT West's
efficient
use of
the network but
on other
unrelated
factors
(non-traffic
sensitive
costs,
NTS), thereby
infringe
the Telecommunications
Business
Law.
- Adjustments
in the
interconnection
charges
are based
on amendments
that infringe
the Telecommunications
Business
Law.
- Unification
of the
interconnection
charges
for NTT
East and
NTT West
infringes
both the
Anti-Monopoly
Law and
the Telecommunications
Business
Law as an
unfair
restriction
on trading
and an
obstacle
to fair
competition
between
telecommunications
carriers.
- Making
the tariff
amendments
effective
from the
date of
the ministerial
ordinance
is a disadvantageous
retroactive
application,
which is
an infringement
of the Telecommunications
Business
Law.
*
REFERENCE
Average
cost
of
a
3-minute
call
between
Tokyo
and Osaka
in
1988
cost
JPY
400.
In
2003,
the
same call
would
cost
JPY
80.
|
| For more
information, please contact the
following: |
| Cable & Wireless
IDC
Inc. |
Corporate
Communications |
Phone:
03-5820-5121 |
| FUSION
COMMUNICATIONS
CORP |
Public
Relations |
Phone:
03-3242-7049 |
| JAPAN
TELECOM
CO.,LTD |
Public
Relations
Group |
Phone:
03-5540-8017 |
| KDDI
CORPORATION |
Public
Relations
Department |
Phone:
03-6678-0690 |
| POWEREDCOM,
Inc. |
Public
Relations
Group |
Phone:
03-4555-2112 |
|
|
|
Appendix
1
Background
| Date |
Council
findings,
approval,
etc. |
Notes |
September
13,
2002 |
Report
concerning
the
approach
to
computation
of
interconnection
charges
based
on
revision
of
the
Long-Run Incremental
Cost
model
(findings
of
the
Telecommunications Council) |
Decision
that
different
interconnection
charges
between
NTT East
and
NTT
West
would
be
appropriate |
November
28,
2002 |
Decision
by
both
Lower
and
Upper
House
committees involved
in
the
Ministry
of
Public
Management, Home
Affairs,
Posts
and
Telecommunications |
Decision
that
NTT
East
and
NTT
West
to set
uniform
interconnection
charges |
February
14,
2003 |
Inquiry
(Minister
of
Public
Management,
Home
Affairs,
Posts and
Telecommunications)
and
call
for
opinions
regarding draft
ministerial
ordinance
for
partial
amendment
to interconnection
charge
regulations
(Telecommunications
Council) |
Eighteen
carriers
including,
the
five
carriers,
submit
a joint
opinion
on
March
10. |
March
11,
2003 |
Public
hearings
(Fifth
session,
Telecommunications
Council) |
Hearings
state
that
the
five
carriers
petitions
participated
in
these
hearings. |
March
18,
2003 |
Disclosure
of
results
of
Call
for
Opinions
(Telecommunications
Council) |
|
March
28,
2003 |
Partial
amendment
of
interconnection
regulations
(Minister
of Public
Management,
Home
Affairs,
Posts
and
Telecommunications) |
The
amendment
was
different
from
that
in
the inquiry
regarding
the
draft
ministerial
ordinance
for partial
amendment
to
interconnection
charge
regulations,
made to
the
Telecommunications
Council
on
February
14, 2003.
However,
there
was
no
call
for opinions
from
the
various
telecommunications
carriers. |
April
11,
2003 |
Issue
of
interconnection
charge
regulations
(Minister
of
Public
Management,
Home
Affairs,
Posts
and
Telecommunications) |
|
April
22,
2003 |
Request
for
approval
of
changes
to
interconnection
charges executed
by
ministerial
ordinance
concerning
partial
amendment
of
interconnection
regulations
(NTT
East
and
NTT West) |
Approval
was
given
on
the
same
day.
There was
no
call
for
opinions
from
the various
telecommunications
carriers. |
| |
(As
above)
Approved
by
the
Minister
of
Public Management,
Home
Affairs,
Posts
and
Telecommunications |
|
|
|
|
Appendix
2
Main
Changes
to
Interconnection
Tariffs
-
As approved
by ministerial
ordinance,
April 22, 2003,
concerning
partial amendment
of interconnection
regulations
|
| 1. |
Amendment
to
interconnection
charges |
|
Stipulates
interconnection
charges
for
FY2003/FY2004,
computed
using a
modified
long-run
incremental
cost
model.
-
Group
Center
connection,
3
minutes:
JPY 4.37
(2.9%
down,
FY2002:
JPY
4.50)
-
Zone
Center
connection,
3
minutes:
JPY 5.36
(12.1%
up,
FY2002:
JPY
4.78)
|
| Interconnection
charges
computed
on
the
basis
of
the ministerial
ordinance,
using
traffic
figures
annualized
from the
second
half
of
FY2003
and
first half
of
FY2004,
and
totals
for
NTT East
and
NTT
West
costs
and
traffic. |
|
| 2. |
Introduces
after-the-fact
adjustment
system |
If
a
comparison
of
expected
traffic
with
actual traffic
shows
a
variation
exceeding
a
15%, adjustment
is
made
to
the
interconnection
tariff based
on
the
number
of
subscriber
exchanges.
|
Adjustment
is
made
by
multiplying
the
following
numbers:
-
the
balance
amount
between interconnection
charges
calculated
from
actual traffic
volume
for
FY2003
or
FY2004 and
those
with
approval;
-
the
amount
multiplied
by the
variation
ratio
of
each
carrierįs
traffic
volume
in
the
total traffic
volume
of
all
carriers;
-
the
actual
annual
traffic volume
of
each
of
the
carriers party
to
this
arrangement. |
|
| 3. |
Retroactive
application
The
amended
interconnection
charges
are
to
be
applied
retroactively
from April
11,
2003.
|
|
|
|
|
|
