December 13, 1999

Application to MPT for Revision of Interconnection Charges

Nippon Telegraph and Telephone West Corporation (NTT West) and Nippon Telegraph and Telephone East Corporation (NTT East) today applied to the Minister of Posts and Telecommunication for authorization to revise their Articles of Agreements Concerning Interconnection to Designated Telecommunications Facilities, including interconnection charges for fiscal 1999 (from April 1, 1999 to March 31, 2000).

1. Summary

The proposed revisions reflect the results of interconnection accounting based on unbundled functions introduced in fiscal 1998.

In addition, interconnecting charges for connection leased circuits were computed on the basis of the cost of leased circuits as identified by interconnection accounting.

See Attachments 1 and 2 for interconnection charges by function.

2. Timing of Revision

Charges will be immediately revised upon approval of the Minister of Posts and Telecommunications, and the revised Articles of Agreements shall be used in entering into agreements with other telecom carriers.

The revised charges shall be implemented retroactively as follows. Charges for telephone and ISDN shall be implemented retroactively from April 1, 1999. Charges for leased circuits shall be implemented retroactively from the date on which counterparties have made the switch to end-to-end charging.

3. Related Matters

With today's application, NTT East and NTT West shall take steps to satisfy the requests which are described in the attached materials and the recommendations contained in the "Report of the Study Group on Interconnection Charge Calculation" released last summer. NTT East and NTT West have reported to the Minister of Posts and Telecommunications regarding the result of these steps.

(Attachment 1)
New Interconnection Charge Plan for Telephone and ISDN

(Attachment 2)
Principal Interconnecting Charges for Leased Circuits

(Reference Figure 1)
Example of Telephone and ISDN Interconnection Charges

(Reference Figure 2)
Example of Interconnection Charges for Interconnecting Circuits

(Reference 1)
1. Example of Interconnection at Local Switch (GC)
2. Example of Interconnection at Tandem Switch (Zone Center: ZC)

(Reference 2)
Reduction in NTT Interconnection Charges