In order to provide equitable and stable phone services, such as subscriber line access, (hereafter referred to as "Universal Services") to every household throughout Japan, a "Universal Service Fund System" began in 2006, requiring all telecommunications carriers to appropriately share any expenses necessary.
In accordance with the launch of this "Universal Service Fund System," KDDI and OKINAWA CELLULAR TELEPHONE COMPANY began imposing a "Universal Service Fee" on customers who signed contracts with us directly for services such as au mobile phone and Metal-plus phone for their portion of usage in January, 2007. The full amount collected is forwarded to the Telecommunications Carriers Association (TCA), which is the Universal Service Administrative Agency.
We appreciate your understanding and cooperation with this Universal Service Fund System.

1. What exactly are "Universal Services" in terms of phone services?

In terms of phone services, "Universal Services" are defined as being those services which "are essential to the life of every person and should be available throughout the entire country" [1]. The following services are included as examples of Universal Services:

• Subscriber line access used for general subscriber phone services (basic fees), isolated islands calls which are subject to special rates, and emergency calls such as 110 and 119.
• Local calls, isolated islands calls which are subject to special rates, and emergency calls such as 110 and 119 that can be made from Type 1 public phones, which are installed as part of the public phone service for purposes of assuring a safe social lifestyle and as a minimum communication method outdoors.

• [1] Defined in accordance with the Telecommunications Business Law (Law No. 86 of 1984) and other laws.

2. What exactly is the Universal Service Fund System?

The "Universal Service Fund System" is a system that requires all telecommunications carriers to appropriately share any expenses necessary for ensuring the provision of Universal Service operated by Universal Services providers (NTT East and NTT West).

3. Why is the Universal Service Fund System required?

Previously, as the provision of Universal Services was defined by law as being the responsibility of NTT East and NTT West, these companies bore all expenses required for maintaining the Universal Services. However, the growth of mobile phones and IP phones, and development of fiercer competition by phone service providers in urban areas has improved the telecommunication environment, and it is anticipated that it will become difficult to ensure the provision of Universal Services if expenses are borne solely by NTT East and NTT West, especially in unprofitable (high-cost) areas outside urban areas. Accordingly, in order to continue providing Universal Services equitably and stably in every household throughout Japan without creating regional differences, a "Universal Service Fund System" has been implemented, requiring not only NTT East and NTT West, but other telecommunications carriers also, to equally bear the expenses necessary for maintaining those Universal Services.

4. Can you tell us more specifically about the structure of the Universal Service Fund System?

Since January, 2007, the amount of expenses necessary to ensure the provision of Universal Services has been calculated based on the number of phone numbers used by our customers and paid to NTT East and NTT West via the Universal Service Administrative Agency [2]. The amount to be charged per phone number (hereafter referred to as "unit price per phone number [3]") is determined by the Universal Service Administrative Agency by taking the amount required for NTT East and NTT West to cover budget deficits [4] into consideration.

• [2] The Universal Service Administrative Agency is a designated institution engaged in the operation of the Universal Service System. At the moment, the Telecommunications Carriers Association has been designated this role by the Minister of Internal Affairs and Communications.
• [3] The unit price per phone number is posted on the Universal Service Administrative Agency's website. Please visit their website from the related links.

• unit price per phone number

• [4] The amount required to cover budget deficits is determined in order to cover part of the costs for general subscriber phone lines (basic fees) in high-cost areas such as isolated islands and mountainous areas, and the deficit attributed to Type 1 public phones.

5. Are the expenses necessary to ensure the provision of Universal Services related to the charges we pay telecommunications carriers?

KDDI bears the necessary expenses depending on the number of phone numbers used by our customers. However, as it is ultimately included in your service charges, the expenses are actually covered by part of your monthly charge.

6. How are the expenses of these Universal Services shared amongst the users?

In accordance with the launch of this "Universal Service Fund System," KDDI and OKINAWA CELLULAR TELEPHONE COMPANY have begun imposing a "Universal Service Fee" on customers who signed contracts with us directly for services such as au phone and Metal-plus phone for their portion of usage since January, 2007.
Financial support has become necessary for Universal Services provided by NTT East and NTT West due to the deteriorating surplus of recent years. Responding to a request from its designated Universal Service Administrative Agency, the Ministry of Internal Affairs and Communications approved an amount of approx. 11.1 billion yen to be paid to NTT East and NTT West to cover budget deficits for 2012 on November 29th, 2011.
In accordance with this approval, KDDI imposes each customer with a "Universal Service Fee" [5], as determined by the Universal Service Administrative Agency. The full amount collected is forwarded to the Universal Service Administrative Agency.
Together with its customers, KDDI will continue watching NTT East and NTT West closely to make sure they streamline their operations.
We appreciate your understanding and cooperation with this Universal Service Fund System.

• Item name on bill: Universal Service Fee
• Amount charged: ¥3 (¥3.15 with tax) [5]
• Phone numbers subject to the Universal Service Fee: The Universal Service Fee is applied to any of the following services (including dial-in numbers) which are subscribed to at the end of each month.

  	PersonaI	Business
  Mobile	au mobile phone au prepaid mobile phone [6] Digital communication life device [7] Data communication terminal	au mobile phone au prepaid mobile phone [6] Digital communication life device [7] Data communication terminal Communication Module
  Fixed	Metal-plus phone au HIKARI phone service au HIKARI Chura phone service ADSL one phone service Phone number "050" service Cable-plus phone	au HIKARI Business au HIKARI chura Business KDDI METAL PLUS (for business) KDDI Hikari Direct KDDI Hikari Direct over Powered Ethernet KDDI Hikari Direct over Wide Area Virtual Switch KDDI-IP phone Direct lines (including Route KDDI) FREE CALL (including Free Phone) Access Call DOD KDDI Paperless FAX service au Office Number

  • [5] From 1st July, 2012: ¥3/month per phone number (¥3.15 with tax)
    From 1st January, 2012 to 30th June: ¥5/month per phone number (¥5.25 with tax)
  • [6] The Universal Service Fee imposed on au prepaid mobile phone users is automatically deducted from the remaining calling charges. Prepaid service users will be charged ¥3 per 30 days (the number of days the usage term is extended when registering a new prepaid card). Billing of the new ¥3 (¥3.15 with tax) unit price per phone number will commence when registering for usage start-up or registering an additional prepaid card at and after midnight on Saturday, 30th June, 2012.
  • [7] Digital communication life device: Digital photo frame, e-book reader, communication-enabled car navigation system

• Images of bill

  

  

  • * Customers using either the au HIKARI phone service (excluding au one net) or Cable-plus phone service will be charged by the partner provider or by the cable television company through which the service was applied for.

Inquiries
KDDI Customer Service Center

• * For the Cable-plus phone service, please contact the cable television company through which you originally applied for the service.