Concept of Top-Down Model |
"The costs are calculated by valuation of assets using the latest acquisition cost, on the basis of the NTT network currently in operation as a whole system (including replacement with the modern equivalent assets and adjustment of excess capacity."
(Note) |
| 1. | In the U.K., BT has developed a top-down model similar to NTT's. |
| 2. | In NTT's network, management has been successfully improving efficiency as evidenced by the annual reduction of the interconnection charges.
(Over the last four years, the ZC interconnection charge has reduced by 40%. If the GC interconnection charge is considered, the reduction amounts to 70%.) |
| 3. | Reports have been received from outside organizations* as to the validity of the model and accuracy of the calculation.
(*US Consulting firm, SPR (Strategic Policy Research,Inc); and an accounting firm, CL (Coopers & Lybrand))
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