KDDI announces 27% cut in interconnection fees

4 Feb 2011

Japan’s second largest carrier by subscribers and revenues, KDDI Corp, is cutting its mobile interconnection fee by 27.3%, the Nikkei daily reports. The operator has informed the Ministry of Internal Affairs and Communications (MIC) that the rate other mobile phone companies must pay to connect to its network for local calls will be reduced to JPY6.24 (USD0.0569) per minute for fiscal 2010, down from JPY8.58 per minute previously. The new fees, which result from an amendment to the MIC’s interconnection guidelines, will be applied retroactively. Under the new rules, telcos can no longer include their operating expenses as an element in their access fee calculations. Larger rival NTT DoCoMo Inc decided last month to slash access fees by up to 35.6%, and Softbank Corp also plans to reduce its fees as well. The move by the mobile carriers could lead to lower call rates for end users.

Japan, KDDI (au)