Start of KDD's Domestic Telecommunications Services and Charges

(1) Domestic Telephone Service from Route KDD

Service for domestic telephone calls between Route KDD customers, and from Route KDD customers to NTT subscribers, will be provided at a uniform rate throughout Japan regardless of distance or time frame using the same 6-second increment system that is used for international calls through KDD.

The charge for calls made between Route KDD customers will be 1.4 yen per 6-second increment (42 yen for 3 minutes), and for calls from Route KDD customers to NTT subscribers, the rate will be 1.8 yen (54 yen for 3 minutes). Compared with NTT's current daytime rate for calls beyond 100 km (110 yen for 3 minutes), the new KDD charges will be, respectively, 62% and 51% cheaper, or less than half.

(2) Domestic Public Telephone Service from IC Global Phones

KDD's domestic public telephone service from IC Global Phones to NTT subscribers will be cheaper over all distances than the public telephone service currently offered by NTT.

The rates for daytime calls beyond 40 km in particular will be less than half the NTT rates.

(3) Domestic Leased Circuit Service

KDD will provide high-speed digital leased circuit service for 12 types of speed varying from 64 kbps to 6 Mbps at low cost.

In particular, the services will be offered at the lowest rates among type I telecommunications carriers in most types for each of the Tokyo-Nagoya-Osaka sections where communications of corporate customers concentrate. These rates will be approximately 20% lower than NTT's current rates.

Long-term users will be offered further discounts of 5% for a 3-year contract and 10% for a 5-year contract.

(4) KDD PLANS

KDD plans to provide a total, all-inclusive domestic and international service including the building, operation and maintenance of telecommunications systems that meet the specific requirements of customers.

(5) InternetKDD

In the past, InternetKDD has been only an international Internet gateway service offered to Internet service providers for use as an international backbone, but from now on, InternetKDD can be used as a high-quality Internet backbone service for both domestic and international communications.

In addition to the services that we will be starting above, from October 1997 we plan to offer additional services such as frame relay service, Business IP service, and Internet connection service. Then at the beginning of fiscal 1998, we plan to start a more comprehensive domestic long-distance service allowing customers to make calls by simply dialing 001 instead of requiring them to register in advance.

When the JIH (Japan Information Highway) cable comes into operation, scheduled for March 1999, KDD plans to build a low-cost network that will cover all of Japan, aiming to offer services at even lower rates and with improved quality.

KDD, as a global telecommunications carrier, always stands ready to develop new services to satisfy all the needs of our customers.

1. Domestic Telephone Service from Route KDD

Type of Call	Rate	3 min.
Between Route KDD subscribers	1.4 yen / 6 sec.	42 yen
From Route KDD to NTT subscriber	1.8 yen / 6 sec.	54 yen

Note: These are uniform rates, not subject to distance or time frame of call.

2. IC Global Phone (To NTT subscriber)

Distance	Call duration for 10 yen (sec.)			Charge for 3 min. (yen)
	Standard	Economy	Discount	Standard	Economy	Discount
Local call	90.0	90.0	120.0	20	20	20
Adjacent area, up to 20 km	50.0	50.0	58.5	40	40	40
~ 60 km	44.0	44.0	58.5	50	50	40
~ 100 km	29.0	35.0	44.0	70	60	50
Over 100 km	19.5	22.0	29.5	100	90	70

Note: Standard: 08:00~19:00, Economy: 19:00~23:00, Discount: 23:00~08:00

3. Domestic Leased Circuit Service

(Unit: Thousand yen / per month)

Distance	Main Section	64kbps	384kbps	1.5Mbps	6Mbps
~ 220 km	Nagoya-Osaka	32.5	113.9	331.6	992.1
~ 320 km	Tokyo-Nagoya	39.4	154.1	480.2	1448.6
~ 420 km	Tokyo-Osaka	46.3	194.3	628.8	1905.1
~ 520 km	Osaka-Fukuoka	53.2	234.5	777.4	2361.6
~ 620 km	Kyoto-Fukuoka	60.1	274.7	926.0	2818.1
~ 720 km	Tokyo-Hiroshima	67.0	314.9	1074.6	3274.6
~ 820 km	Tokyo-Yamaguchi	73.9	355.1	1223.2	3731.1
~ 920 km	Tokyo-Fukuoka	80.8	395.3	1371.8	4187.6
Over 920 km	-	6.9	40.2	148.6	456.5

Notes:

1. Rates do not include leased circuit charges for connection to the KDD gateway station.

2. For rates beyond 920 km, add the rate shown in the bottom row in the table for each additional 100 km.

Service	Service Profile
Route KDD	The customer and KDD's switching facility are connected by a dedicated circuit, without going through NTT's domestic telephone network, to provide an inexpensive telephone service.
IC Global Phone	A prepaid public telephone service using an IC card.
Domestic leased circuit service	KDD provides the customer with an exclusive, around-the-clock use of a telecommunications circuit.
KDD PLANS	A line of services that offers the customer support in building, operating, and maintaining their network.
System-PLAN	With this made-to-order service, KDD builds, manages, and maintains the telecommunications system for the customer.
PLAN-E	A total engineering service that provides the customer with support that is fine-tuned to their needs in every step from network design to network connection and testing.
PLAN-M	KDD monitors the customer's telecommunications network for failures and restores the network in the event of a failure.
PLAN-H	KDD houses the customer's telecommunications network system in the safe and dependable KDD Building to monitor, operate, and maintain the system.
InternetKDD (Internet international gateway service)	Designed primarily to provide major providers with an international backbone, InternetKDD connects the customer and KDD's gateway facility with a leased circuit to allow high-throughput, high-quality data transfer by IP (Internet Protocol). This service, which has been limited to international use, will be available for domestic use.