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News Release

April 23, 2008


Amendment Application for Optical Subscriber Lines
Interconnection Charges


On January 9, 2008, Nippon Telegraph and Telephone West Corporation ("NTT West") submitted to the Minister of Internal Affairs and Communications an application seeking authorization to revise Articles of Agreement Concerning Interconnection to Designated Telecommunications Facilities, applicable beginning the fiscal year ending March 31, 2009. In response to a request from the Minister, which was based on the report from the Telecommunications Council on March 27, 2008, NTT West submitted today its amendment application to the Minister.


1.Summary
(1) Revision of the demand estimates for optical subscriber lines (dark fiber) that will be used by interconnection service providers.

We changed a part of the demand estimation for optical subscriber lines of the application for the authorization on January 9, 2008. The interconnection demand growth rate observed during the period of demand expansion in the ADSL market is employed to estimate the demand for an optical main subscriber line and an optical branch subscriber line by interconnection service providers.

(2) Revision of the concept of adjustment of disparities between results and forecasts

The concept of disparities to be adjusted in the subsequent calculation period is changed from "difference between actual revenue arising from interconnection charges*1 and actual interconnection cost" to "difference between actual revenue arising from interconnection charges and estimated interconnection costs (estimated revenue arising from interconnection charges*2)".

*1: Actual revenue arising from interconnection charges = actual number of core-cables in use × interconnection charges in the calculation period.
*2: Estimated revenue arising from interconnection charges = estimated number of core-cables in use × interconnection charges in the calculation period.


2.Proposed Interconnection Charges
Category Revised Proposed
Charges
Proposed Charges
(January 9 application)
(Reference)
Current Charges
Optical Subscriber
Line
Type 1-1
Per one-core cable
(monthly)
4,932 yen
(-142 yen)
5,048 yen
(-26 yen)
5,074 yen
Note: Numbers in ( ) indicate increase/decrease in price in comparison with the current charges.
In conjunction with the revision of interconnection charges for optical subscriber lines, interconnection charges for an optical main subscriber line will also be revised. (Revised Proposed Charges: 4,522 yen; Proposed Charges (January 9 application): 4,647 yen; Current Charges: 4,987 yen).


3.Period of Implementation
After ministerial approval, the revised interconnection charges will be applied from April 1, 2008.



- Reference Material: Details of Amendment Application for Optical Subscriber Lines Interconnection Charges(PDF:101KB)



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