About Universal Service Fund System

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 au HIKARI 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), and emergency calls such as 110, 118 and 119.
  • Local calls, isolated islands calls which are subject to special rates, and emergency calls such as 110, 118 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.
  • Subscriber line of optical fiber phone equivalent to a general subscriber phone and emergency calls such as 110, 118 and 119.
  • [1]
    Defined in accordance with the Telecommunications Business Law (Law No. 7).

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 part of cost necessary for ensuring the provision of Universal Service operated by Eligible Telecommunications Carriers (currently NTT East and NTT West are designated).

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.
    Open link in a new windowunit price per phone number (in Japanese only)
  • [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 telephone companies?

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 au HIKARI phone and au HIKARI phone service for their portion of usage.

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.

  • Billing item: Universal Service Fee
  • Billing amount: ¥2.2 (tax included)/month [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. [6]

    Personal Business
    Mobile au smartphone, au mobile phone
    UQ mobile
    povo
    Tablet
    Data communication terminal [7]
    au smartphone, au mobile phone
    UQ mobile
    Tablet
    Data communication terminal [7]
    Communication-modules [8]
    Fixed au HIKARI phone service
    au HIKARI Chura phone service
    Home-plus phone
    Cable-plus phone
    Cable-plus Hikari phone
    Cable-plus Home phone
    Mansion-plus phone
    Phone number "050" service
    KDDI Hikari Direct [9]
    KDDI-IP phone
    FREE CALL (including Free Phone)
    KDDI Paperless FAX service
    au Office Number
    Office Mobile Phone Pack (fixed-line phone number option)
    au Hikari Access (B) phone service
    Cisco Webex with KDDI
    Cloud Calling for Microsoft Teams
    Cloud Calling for Genesys Cloud CX
    Cloud Calling for Zoom Phone
    • [5]
      From 1st January, 2022: ¥2.2 (tax included)/month per phone number.
    • [6]
      For povo 2.0, the universal service fee you will be billed only in the month when the topping you purchased is valid or when you use a pay-as-you-go call, SMS, etc.
      However, we will not charge until we inform you on the povo website that we will start billing.
    • [7]
      Data communication terminal including "Qua station" and so on.
    • [8]
      Except for Communication-modules with "020" phone number
    • [9]
      The KDDI Hikari Direct, "KDDI Hikari Direct over Powered Ethernet" and "KDDI Hikari Direct over Wide Area Virtual" are also included
  • For multiple phone numbers, the Universal Service Fee billed is calculated in accordance with the number of phone numbers used in principle (Please note that if you use a phone number beginning with an area code such as "03" as well as a phone number beginning with "050," both phone numbers will be subject to the Universal Service Fee).
  • 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.