Dependence on Other Telecommunications Operators’ Network Facilities and Interconnection Fees
First written in FY2019. 1 of 3 entries say "Materialised", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2025: 3 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Interconnection charges for voice communications lines between telecommunications carriers remained at levels that reflected a conservative review of access charges in light of the transition of the telephone network to IP. Overall, however, revenue declined while the business returned to profitability.」
While continuing to recognize the risk of earnings fluctuations from revisions to access-charge levels, the domestic telecommunications business returned to segment profitability despite lower revenue. - FY2025MaterialisedAnnual report
「Some operators do not set the unit price for interconnection charges in April, at the start of the fiscal year. Instead, they determine it around February of the following year based on actual usage and apply it retroactively to April, the start of the fiscal year. As a result, revenue and profit or loss in the fourth quarter, when the adjustment is made, may fluctuate significantly compared with other months.」
Regarding dependence on other companies’ network facilities and interconnection charges, the company detailed the mechanism by which retroactive settlement at the fiscal year-end can cause substantial fluctuations in revenue and profit or loss. During the current fiscal year, a decline in revenue and recognition of losses occurred due in part to retroactive settlements covering 3 fiscal years. - FY2019First statedAnnual report
「To build the communications network necessary to provide communications services in the domestic telecommunications business, the company uses some network facilities and other infrastructure owned by other operators.」
The company newly disclosed the potential impact on the domestic telecommunications business of losing the ability to continue using other companies’ facilities or facing higher interconnection charges.