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(Reference) Outline of Rules for Category I Designated Telecommunications Facilities Interconnection Accounting

Purpose

The purpose of these Accounting Regulations is to specify the accounting methods used for interconnection to Category I designated telecommunications facilities and to clarify revenues and expenses, etc., concerning this interconnection, thereby contributing to the calculation of appropriate interconnection charges.

  • *With respect to the expenses of telecommunications facilities that are attributed to the Category I Designated Facilities Management Business, data are totaled and classified per equipment category unit, such as switches and transmission lines, in order to provide a basis for calculating interconnection charges for each unbundled element.

Regulations

The accounting procedures adopted by telecommunications carriers that install Category I designated telecommunications facilities are separated into the business to manage and operate Category I designated telecommunications facilities (Category I Designated Facilities Management Business) and the business to use such facilities to provide service to users (Category I Designated Facilities Usage Business), and the Category I Designated Facilities Management Business provides these facilities to the Category I Designated Facilities Usage Business and other carriers on equal conditions.

Statements Included

Form Statement Description
1 Profit and Loss Statement Profit (loss) of the Category I Designated Facilities Management Business and Category I Designated Facilities Usage Business
2 Statement of Mean Capital Employed and Rate of Return Mean capital employed (rate base) by the Category I Designated Facilities Management Business and Category I Designated Facilities Usage Business, and the rate of return on that employed by the Management Business (pre-tax basis)
3 Detailed Statement of Fixed Asset Attribution Breakdown of fixed assets attributed to the Category I Designated Facilities Management Business and the Category I Designated Facilities Usage Business
  • *3-2 sets forth the breakdown of general category I designated facilities.
  • *Optical Subscriber Lines and Optical Main Distribution Frames are listed by prefecture.
4 Detailed Statement of Expenses by Equipment Category Breakdown of expenses by equipment category for the Category I Designated Facilities Management Business and the Category I Designated Facilities Usage Business
  • *4-2 sets forth the breakdown of general category I designated facilities.
  • *Optical Subscriber Lines and Optical Main Distribution Frames are listed by prefecture.