1. About Top-Down Model


Concept of Top-Down Model


"The costs are calculated by valuation of assets using the latest acquisition cost, on the basis of the NTT network currently in operation as a whole system (including replacement with the modern equivalent assets and adjustment of excess capacity."



(Note)

 

1.

In the U.K., BT has developed a top-down model similar to NTT's.

 

2.

In NTT's network, management has been successfully improving efficiency as evidenced by the annual reduction of the interconnection charges.
(Over the last four years, the ZC interconnection charge has reduced by 40%. If the GC interconnection charge is considered, the reduction amounts to 70%.)

 

3.

Reports have been received from outside organizations* as to the validity of the model and accuracy of the calculation.
(*US Consulting firm, SPR (Strategic Policy Research,Inc); and an accounting firm, CL (Coopers & Lybrand))