KDD to Launch International Business IP Service
1997-013March 27, 1997



KDD (Japan's Global Communications) will launch on March 31 International Business IP Service to provide customers with the optimal means of constructing an Intranet between Japan and the United States. In the United States, the service will be handled by KDD America (main office: New York, president: Hiroshi Hirai).

The growth of the Internet has led to the rapid increase in the popularity of Intranet, which is essentially an intracorporate network employing Internet technology. But the one big problem remains yet to be solved: the Internet may fail to meet the quality requirements for intracorporate networks in terms of security, throughput, and reliability.

The new service will furnish a solution of this problem providing global networking capability to secure improved security and throughput, while retaining the advantage of the Internet, - low, fixed rate. In addition, the service employs IP* interface for easier access.

* IP: Internet Protocol, or the communication protocol used on the Internet.

This service will be provided in two different types: Type-A for better quality and Type-B for better economy. With a subscriber port of up to 1.5 Mbps, customers can use the service by either choosing one of them, or combining both, depending on quality requirement of each destination.

With Type-A network, a 16 kbps to 1 Mbps logical link is established with each destination using KDD's International Frame Relay Network. As with the International Frame Relay Service, the logical link is guaranteed to provide a specified transmission rate.

With Type-B, through the direct circuit for KDD's Internet International Gateway Service, a virtual link is established with each of the designated destinations so that communications can be set up only within a closed user group. To this end, the Business IP router is equipped with tunneling and filtering functions.

For the service, a direct circuit is established between the customer and one of KDD's thirteen points of presence (Tokyo, Western Tokyo, Oyama, Chiba, Yokohama, Nagoya, Kyoto, Osaka, Kobe, Hiroshima, Yamaguchi, Fukuoka, and Okinawa).

The service area will be limited to the United States in the beginning, but it will gradually be expanded to include 30 countries and regions such as the United Kingdom, Germany, Hong Kong, and Singapore.

KDD also plans to introduce various application services such as GroupWare and EDI (Electronic Data Interchange) to supplement the International Business IP Service by the end of this year.

KDD has designated the first year of the new service as a trial period. During this period, the company plans to review the usage and demand trend of the service before providing the service on full scale from next spring.

[Attachment]
International Business IP Service Rates

1. Subscription fee: 800 yen

2. Communication charge:
(1) Port fee (same for both types)
Port speedFee (monthly)
64kbps200,000 yen
128kbps280,000 yen
192kbps370,000 yen
256kbps460,000 yen
384kbps630,000 yen
512kbps800,000 yen
768kbps1,150,000 yen
1Mbps1,280,000 yen
1.5Mbps1,800,000 yen

(2) Surcharge (Type-A)
Port
speed
Usage
surcharge*
(monthly)
64kbps21,000 yen
128kbps36,000 yen
192kbps51,000 yen
256kbps66,000 yen
384kbps96,000 yen
512kbps126,000 yen
768kbps186,000 yen
1Mbps246,000 yen
1.5Mbps374,000 yen
Port
speed
Communication surcharge**
(monthly)
Zone1
Asia
Zone2
U.S.A.,
Australia
Zone3
Europe
Zone4
South
America
16kbps28,000 yen32,000 yen40,000 yen46,000 yen
32kbps48,000 yen52,000 yen68,000 yen78,000 yen
64kbps80,000 yen88,000 yen114,000 yen132,000 yen
128kbps134,000 yen148,000 yen192,000 yen222,000 yen
256kbps226,000 yen248,000 yen322,000 yen374,000 yen
384kbps306,000 yen338,000 yen438,000 yen506,000 yen
512kbps380,000 yen418,000 yen542,000 yen628,000 yen
1Mbps640,000 yen704,000 yen912,000 yen1,056,000 yen

* Charged for setting a logical link.
** Communication surcharge is charged for each connected destination.
Note: When using Type-B to communicate with a destination in the United States or with a destination elsewhere via the United States, a connection surcharge is imposed in addition to the port fee (the connection surcharge is not required for connections to Asia). The connection surcharge is 110,000 yen for 64 kbps and 970,000 yen for 1.5 Mbps. This surcharge is the same regardless of the number of connected destinations.

3. Subnetwork* registration fee (Type-B):
Additional one-time fee is required.
* Subnetwork: the IP address or a set of IP addresses that the customer registers upon establishing a virtual link.

4. Local Access Charges:
(1)Charges for subscriber tie line: equal to the leased circuit charge set by domestic Type 1 telecommunication carriers
(2)Rental for the terminal equipment, etc., installed by KDD

TypeCharge (monthly)
64kbps`128kbps (metal cable)6,700 yen
64kbps`1.5Mbps (optical fiber)24,000 yen

(3)In-house wiring charge: equal to the leased circuit charge set by domestic Type 1 telecommunication carriers

[Sample rates]
When a customer selects 128 kbps subscriber circuit, Type-A (32 kbps logical link to the United States and 16 kbps logical link to Hong Kong) and Type-B (virtual links to Hong Kong and Singapore)

(1)Port fee280,000 yen
(2)Type-A
Usage surcharge
Communication surcharge

(United States)36,000 yen
(Hong Kong)28,000 yen
(3)Type-B
Connection surcharge
0 yen
(4)Charges for subscriber tie line
(when customer is within 15 km from point of presence and uses NTT)
81,860 yen
(5)In-house wiring charge (when NTT is used)60 yen
(6)Rental for the terminal equipment6,700 yen


Total484,620 yen