KDD America

KDD America Obtains License to Operate
Facilities-Based International Telecommunications Business
Between Japan and U.S.

Notification

March 26, 1998

KDD America Inc. (main office: New York, president; Hiroshi Hirai), a wholly-owned subsidiary of KDD (Japan's Global Communications), obtained from the Federal Communications Commission, on March 25 (local time) a license, granted under Article 214 of the United States Telecommunications Act, to provide facilities-based international telecommunications business between Japan and the U.S.

The license will allow KDD America to provide:

(1) Such facilities-based international telecommunications business as international telephone and leased circuit services between the U.S. and Japan

(2) International telephone service between the U.S. and Japan by the resale of public switched service

By last year KDD America had obtained all the licenses necessary to provide international telecommunications business including facilities-based services between the U.S. and the rest of the world except for Japan. Having obtained the latest license, KDD America will acquire the ownership in circuit capacity on the international optical submarine cables and build an economical and efficient network between Japan and the U.S. as well, by combining facilities-based and resale-type operations.

KDD will continue to collaborate with its group companies to expand its overseas telecommunications business from the U.S., U.K., Germany, and France to the rest of the world.

The license granted to KDD America conditions the international settlement rate not exceeding the benchmark the FCC established (15 cents/minute) be applied to that between KDD and the U.S. telecommunications carriers. On this condition, however, KDD has filed with the U.S. Court of Appeals a petition for review seeking the cancellation of such benchmark on the grounds that the application of the international settlement rate benchmark is not within the FCC's jurisdiction.

[Reference 1] KDD America has already obtained the licenses for the following services

(1) Resale-type international leased circuit services between the U.S. and Japan, Hong Kong, U.K. Germany, France, and Belgium

(2) International telephone services between the U.S. and six destinations including U.K. by the simple resale

(3) International telephone services between the U.S. and the rest of the world except for Japan by the resale of public switched services

(4) Facilities-based international telecommunications business between the U.S. and the rest of the world except for Japan

[Reference 2] Main services provided by KDD America

(1) TeleWeb (a store-and-forward-type fax service launched in October 1994)

(2) Globridge (a resale-type leased circuit service launched in March 1996)

(3) JapanNet (an Internet connection service launched in November 1996)

For further information contact
Office of Public Relations KDD: 03-3347-6935

(1)	Such facilities-based international telecommunications business as international telephone and leased circuit services between the U.S. and Japan
(2)	International telephone service between the U.S. and Japan by the resale of public switched service

(1)	Resale-type international leased circuit services between the U.S. and Japan, Hong Kong, U.K. Germany, France, and Belgium
(2)	International telephone services between the U.S. and six destinations including U.K. by the simple resale
(3)	International telephone services between the U.S. and the rest of the world except for Japan by the resale of public switched services
(4)	Facilities-based international telecommunications business between the U.S. and the rest of the world except for Japan

(1)	TeleWeb (a store-and-forward-type fax service launched in October 1994)
(2)	Globridge (a resale-type leased circuit service launched in March 1996)
(3)	JapanNet (an Internet connection service launched in November 1996)