Telecommunications

June 2003

New telecommunications carriers are preparing to sue the government over hikes in interconnection fees for access to the networks of Nippon Telegraph and Telephone Corp. (NTT). The unprecedented action to counter the April rate hikes is seen as a warning shot for the Ministry of Public Management, Home Affairs, Posts and Telecommunications over its shift away from promoting competition between NTT and other carriers. KDDI Corp. is consulting lawyers over a plan to file the first-ever suit by a Japanese telecom carrier targeting the supervising ministry. KDDI Vice Chairman Okuyama met Minister Katayama of Telecommunications to gauge the potential response. According to Katayama, the Ministry will remain neutral and is ready to hear opinions from both NTT another carriers. KDDI claimed that rate-hike process by NTT was opaque. The new carriers are apparently trying to check the ministry's move to ease the obligations on NTT to open its fiber-optic networks to other carriers. (June 6, Jiji Press, the Japan Times)