NIPPON TELEGRAPH AND TELEPHONE EAST CORPORATION:NewsRelease

December 13, 1999

Application to MPT for Revision of Articles of Agreements Concerning Interconnection to Designated Telecommunications Facilities Regarding Provision of Local-Switch Function Menu

NTT East and NTT West (hereafter referred to as NTT East/West), following the announcement ^*1 in July 1997 regarding the opening up of local-switch functions (advanced service connection), have announced their policies concerning the local-switch function menu and have been taking the required preparatory measures.

The development of these functions will soon be completed and, since they can be provided to other carriers from January 2000, NTT East/West have applied to the Minister of Posts and Telecommunications for authorization to revise the Articles of Agreement, concerning Interconnection to Designated Telecommunications Facilities.

*1 Made by the former NTT.

1. Summary of Local-Switch Function Menu

NTT East/West will offer 41 types of functions in its local-switch function menu so that other carriers can freely combine functions selected from the function menu by controlling it from their service control point (SCP)^*2 via the signaling network, enabling them to provide customers with advanced services such as toll-free services and VPN.^*3

The interconnection chart using the local-switch function menu is shown in the attachment.

*2 SCP (Service Control Point) refers to the equipment used for interconnection control for operating the local-switch function menu.

*3 VPN (Virtual Private Network) refers to services based on secured public networks which function as private networks.

2. Development of the Function Menu

In the past, in order for other carriers to offer new advanced services which require network modification in NTT East/West's local-switch software, it was necessary to make changes in the network for each service in accordance with their individual requirements. As a result, the introduction of new services was time-consuming.

This introduction of the local-switch function menu will allow NTT East/West and other carriers to levelly utilize the functions of the NTT East/West's local switches. Since this measure guarantees fairness in service competition conditions and allows other carriers to offer services without making network modifications, it will contribute to fairer competition. Greater competition in advanced services will benefit users by stimulating the development of a wide range of services and so forth.

3. Timing of Implementation

This system shall be immediately implemented upon approval of the Minister of Posts and Telecommunications.

- (Attachment) Outline of Local-Switch Function Menu