Gov't to pressure NTT to cut fees for fiber-optic access+
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[June 09, 2006]

Gov't to pressure NTT to cut fees for fiber-optic access+

(Japan Economic Newswire Via Thomson Dialog NewsEdge)TOKYO, June 9_(Kyodo) _ The Ministry of Internal Affairs and Communications has decided to urge Nippon Telegraph and Telephone Corp. to cut the fees it charges other communications services providers for using its fiber-optic lines as early as fiscal 2008, ministry sources said Friday.



The ministry's committee on competition in the telecommunications market is expected to include the reduction plan in its report due out July, the sources said.

Having seen ADSL services rapidly expanded throughout the nation after lowering access fees, the ministry expects the same result in the fiber-optic services -- lower fees would encourage new service providers to enter the market, and therefore lower the charges for end-users.



NTT, which dominates in the fiber-optic communications market with about a 60 percent share, provides fiber-optic access to households at 5,074 yen per month.

Other providers borrowing the lines from NTT charge about 6,000 yen per month from households after covering part of the fees they have to pay to NTT.

The ministry's plan is in line with the position of an advisory panel on the matter to communications minister Heizo Takenaka and a ruling Liberal Democratic Party panel on communications reforms.

NTT aims to expand its fiber-optic services to 30 million subscribers by fiscal 2010.

It sees the current level of fees charged to other service providers for using its fiber-optic lines as still at unprofitable levels.

But analysts say that increasing fiber-optic subscribers would lower the cost of building facilities per household, and therefore would give NTT more room to lower the connection fees for other service providers.

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