KDD to Launch "KDD Volume Saver" Discount Service
1996-009                                                     May 14, 1996

KDD today filed with the Minister of Posts and Telecommunications a request for permission on launching "KDD Volume Saver," a new customer-selected discount service for international telephone.

KDD plans to commence the service immediately after it is approved by the Minister.

With "KDD Volume Saver," customers select from one of three plans, "KDD Volume Saver I," "KDD Volume Saver II," and "KDD Volume Saver III," depending on their telephone usage. By paying a basic monthly fee, the customers are entitled to a discount on call charges during the day on weekdays when business usage is the heaviest (each call is discounted). In addition, call charges for all hours are discounted according to the total monthly usage (volume discount).This service provides a discount of up to some 24%. When used in combination with Route KDD and/or VIRNET, the discount adds up to some 40% for day hours on weekdays.

Features of this service are as follows:
(1) Blanket discount service by invoice "KDD Volume Saver" is a blanket discount service that applies to all international telephone charges. The total amount on invoice is discounted, whether it is for one or more telephone numbers. Besides conventional international direct dial and operator-assisted calls, the discount applies to various types of international telephone services including Route KDD, international calls from automobile and portable telephones, Japan Direct and KDD Card calls, and Third Party Dial. Furthermore, the amount of discount can be increased by aggregating the call charges incurred by more than one telephone number of the same subscriber that are registered in advance.

(2) The higher the volume the higher the discount With "KDD Volume Saver I," for example, calls placed during the day on weekdays are discounted some 14%. In addition, the total international telephone charges for a month are discounted 6% if they are from 500,000Yen to 1,000,000Yen, 8% if from 1,000,000Yen to 5,000,000Yen, 10% if from 5,000,000Yen to 10,000,000Yen, and 12% if in excess of 10,000,000Yen. Consequently, usage in excess of 10,000,000Yen would discount the charge of a three-minute call to the United States placed during the day on a weekday from 480Yen to 360Yen.

(3) Additional discounts by combining it with other discount services
If "KDD Volume Saver" is used in combination with Route KDD or VIRNET, the additional discount (15% from Route KDD and 7% (in case of On-Net call) from VIRNET) would increase the total discount up to some 40%.

Note: Discount Dial I/II/III,KDD Family Talk, KDD "TALK & SAVE" PLAN, or Dial Coupon 001 may not be used with "KDD Volume Saver."

"KDD Volume Saver" -- Schedule of Discount Rates

Service KDD
Volume Saver I
KDD
Volume Saver II
KDD
Volume Saver III
Basic monthly
charge
50,000Yen 10,000Yen 1,000Yen
Discount per
call*1
Approx. 14% Approx. 12% Approx. 10%
Volume
discount*2
0-500,000Yen : 0%
500,000Yen-1,000,000Yen : 6%
1,000,000Yen-5,000,000Yen : 8%
5,000,000Yen-10,000,000Yen :10%
10,000,000Yen-:12%
0-100,000Yen : 0%
100,000Yen-300,000Yen : 4%
300,000Yen-1,000,000Yen : 6%
1,000,000Yen-3,000,000Yen : 8%
3,000,000Yen- :10%
0-10,000Yen : 0%
10,000Yen-100,000Yen : 3%
100,000Yen-300,000Yen : 4%
300,000Yen- : 5%
Total
discount rate
19% - 24% 14% - 19% 10% - 14%
Appropriate
if usage is
More than
5,000,000Yen
500,000Yen-
5,000,000Yen
50,000-
500,000Yen

*1: Applies to direct dial calls (including VIRNET) placed via NTT network or Route KDD during the day on weekdays and operator-assisted calls including Japan Direct.
*2: In addition to calls placed during Standard rate period, all international calls on the international telephone invoice such as calls placed during Economy and Discount rate period, calls placed from portable telephones, and Auto Collect calls qualify for the discount.