Telecommunications

September 2004

NTT group firms will cut charges for fixed-line phone services to compete with discount companies by KDDI Corp. and the Sofbank group, and other companies. NTT East Corp. and NTT West Corp. are planning to reduce the basic charge for household users in urban areas by about Y200 from Y1750. The reduction will be the first of its kind since its predecessor, the state-owned Nippon Telegraph and Telephone Public Corporation was founded in 1952. The two regional NTT group firms earn revenues of about Y1.8 trillion a year from basic fixed line charges, an amount that is higher than the revenue they make from calls being placed. The expected cut in monthly basic charges could deal a blow to the NTT group's earnings. NTT East and NTT West are planning scrapping initial fees of Y72,000 charged to subscribers to help NTT cover construction costs. (September 18, Kyodo News, the Daily Yomiuri)