The Japanese and U.S. governments are at odds over access charges for NTT networks. The Japanese side is balking at a U.S. demand for a deep and prompt price cut, on the grounds that it will have a crippling effect on NTT operations. As things stand, it is unclear whether an agreement can be reached by the end of March, the mutually set deadline.
Lower access charges will, of course, spur competition in the communications market and ease the financial burden on users. Japan's communications market is said to be several years behind that of the United States and Europe in terms of liberalization. To regain competitiveness, an early cut in interconnection fees is inevitable, although this is not to say that Japan should accept the U.S. demand in its entirety.
Much criticism has been leveled here and abroad against NTT's high hookup charges, which communications firms such as long-distance and international carriers and cell-phone companies pay to NTT East Japan and NTT West Japan for access to their local networks. The price for three minutes of service in Japan is 5.81 yen, compared with 4.44 yen in the U.S., 2.27 yen in Britain, 3.26 yen in France and 3.39 yen in Germany.