Telecommunications giant Nippon Telegraph and Telephone Co. (NTT) has decided to set itself on a course to abolish its system of charging telephone subscription rights when users set up a new line, it has been learned.
...However, NTT said it would treat the money people had paid for subscription rights as one-time payments and would not make any refunds.
...Telephone subscription rights can be bought and sold and many firms treat them as intangible fixed assets. However, abolishment of the subscription right system would render the rights worthless, which would have a large effect on businesses. Because of this, the Ministry of Internal Affairs and Communications (MIC)...will ask NTT to gradually reduce the 75,600 yen it currently charges for telephone subscription rights over a five- to six-year period beginning from fiscal 2006.
...[N]ew phone line services that don't require telephone subscription rights will begin this winter.
...Since revenue collected from subscription right payments have been used to lay new telephone lines, users have claimed that the revenue is a loan from users to construct a "collective possession" of the nation. Abolishing the system and rendering the rights worthless is therefore likely to draw opposition.