Furthermore, telephones equipped with "001 access"^* will also become available at markets concurrently with this rate reduction.
* 001 long distance call supported ACR (Automatic Carrier Routing)

1. Reduced rates for 001 long distance calls

KDD's 001 long distance calls use the Hudson Charging Method*, under which calls are charged every 6 seconds. This method is also used for KDD's 001 International Direct Dialing. It is a very economical system whereby customers only pay for what they actually use, and therefore the system has enjoyed great popularity since its introduction in July last year. Under the new price system, new short-distance call rates will be established for "neighboring area/ - 20km" range, and the rates for 20km - 100km middle-distance calls will also become lower.

For example, the standard and economy rates for "neighboring area/ - 20km" range will be 0.66yen, and the discount rate will be 0.5yen for every 6 seconds under the new pricing system. This is almost a 49% reduction when compared with the current standard and economy rates which are 1.3yen every 6 seconds, and a drop of 50% compared with the current discount rate. Furthermore, the standard and economy rates will become 1.1yen, and the discount rate will become 0.9yen for every 6 seconds for "20km - 60km" middle-distance calls. This is a drop of about 15% for standard and economy rates and a drop of 10% for discount rate when compared with the current rates.

This new pricing system has enabled lower rates for short- and middle-distance calls in addition to the lowered rates for long-distance calls. Customers are now able to securely make 001 long distance calls for all areas outside the town of their residence.

* Hudson Charging Method:

A charging method under which calls are charged in units of a fixed number of seconds. Because KDD uses 6 seconds as the charging unit, it is able to set smaller divisions of call rates compared with other companies that apply the Carlson Method which uses fixed amounts such as 9-10yen as charging units.

(Call rates every 6 seconds. Unit: yen Rates in parentheses indicate former rates.)
Distance/time period	Standard	Economy	Discount
Neighboring area/ - 20km	0.66 (1.3)	0.66 (1.3)	0.5 (1.0)
- 60km	1.1 (1.3)	1.1 (1.3)	0.9 (1.0)
- 100km	1.8	1.2 (1.3)	0.9 (1.0)
100km or more	2.3	1.8	1.0

(Note 1)	Standard:	Weekdays 8:00 - 19:00
	Economy:	Weekdays 19:00 - 23:00, Holiday 8:00 - 23:00 (Saturday, Sunday and Public Holidays)
	Discount:	23:00 - 8:00
(Note 2)	Gray-colored squares indicate reduced rates.

2. Introduction of minimum charge system

A minimum charge of 5yen per call will be introduced together with the establishment of the new rates for the neighboring area in the new pricing system so that the occurrence of a negative spread of the access charge paid to NTT can be avoided thereby ensuring that customers are able to enjoy an overall low-cost service well into the future.

The new system will take effect on November 1, to take into consideration the period necessary for customers to become aware of the change through brochures enclosed with bills, newspaper advertisements, etc.

3. Commencement of sale of telephones equipped with "001 access"

In conjunction with the new lowered call rates, telephones equipped with "001 access" will become available for sale. These enable a user to access 001 long distance call services without having to dial "001". When this telephone is connected to a telephone socket and a modular, ACR will automatically start operating usually by the next day. Therefore, usage of "001 access" enables a user to access KDD's 001 long distance call services without the need to make prior applications. Telephones equipped with "001 access" are manufactured by Victor Company of Japan, Ltd., Kenwood Corporation and Pioneer Communications Corporation and will gradually become available at home appliances stores around the country from late September.

KDD will continue to increase the number of companies manufacturing telephones equipped with "001 access" as well as their model types in order to make the telephone available to a wider range of customers.

Comparison of call rates between KDD's 001 Domestic Long Distance call services and other companies' services

(3 minutes; unit: yen)

KDD (revised) NTT DDI Japan Telecom TTNet Standard Neighboring area/ - 20km 20 20 20 20 14.4 - 30km 33 40 40 40 27 - 60km 50 36 - 100km 54 80 70 70 54 - 170km 69 90 90 90 63 170km or more Economy Neighboring area/ - 20km 20 20 20 20 14.4 - 30km 33 40 40 40 27 - 60km 50 - 100km 36 60 36 - 170km 54 80 70 70 54 170km or more Discount Neighboring area/ - 20km 15 20 20 20 14.4 - 30km 27 30 30 30 18 - 60km - 100km 40 40 40 27 - 170km 30 60 36 170km or more 50 50 45