Telecommunications

March 2002

Nippon Telegraph and Telephone Corp. (NTT) has developed an ultra-fast optical communications router, with the improved optical communications data transfer speed of 100 gigabits per second, a 10-fold increase over existing routers. Optical signals traveling through circuits at speeds up to 300,000km per second slow down at switching points, where they are converted to slower electric signals. Optical routers installed at trunk lines' switching points allow optical signals to pass without such conversion. These were unusable, however, due to the lack of controlling technology compatible with the ultra-fast optical processing. NTT's new circuit for optical routers can switch signals to four destinations at 100 gigabits per second. Improvements in optical communications are key to realizing the government's "e-Japan Priority Policy Program," which aims to create by 2010 a high-speed network allowing constant online access for about 10 million households, or about 25% of the nation. (March 25, the Nihon Keizai Shimbun)

The Ministry of Telecommunication's panel finalized a report calling on Nippon Telegraph and Telephone Corp.'s (NTT) regional telephone operators to implement a cut of more than 10% in access charges new common carriers pay for using their phone networks. The report prepared by a study panel in the Public Management, Home Affairs, Posts and Telecommunications Ministry calls on NTT East Corp. and NTT West Corp. to apply a new model for calculating access charges that would result in the reduction. The ministry will ask the Telecommunications Council to begin an in-depth debate on the possible cuts based on the report. The new model adopts new criteria to calculate costs such as a longer durability period for facilities. According to the plan, access charges for telecom services offered by new common carriers to homes via local switching equipment of the two NTT operators would drop to 4.13 Yen per three minutes from 4.50 Yen planned for fiscal 2002 that begins on April 1. However, NTT and the two regional operators are strongly opposed to any cut in access charges, as it would result in a sharp reduction in earnings. The study panel unveiled the new model on Feb. 1 to seek views on it from various sectors. It has not made changes to the model since then. A three-year cut of 22.5% in access charges was agreed upon in July 2000 between Japan and the United States after Washington complained about NTT's high access charges. The two governments also agreed to review the calculation method in two years' time. (March 8, Kyodo News)