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Tuesday, November 16, 1999
ANALYSIS: NTT Offers Fixed-Fee Net Access, For Some
TOKYO (Nikkei)--Timed local calls have been increasingly criticized as a major obstacle to promoting further Internet use in Japan.
But mounting pressure has finally moved Nippon Telegraph and Telephone Corp. (9432) (NTT), which virtually monopolizes the local-call market, to make concessions.
Although limited to households using integrated services digital network (ISDN) lines located in some areas of Tokyo and Osaka only, regional affiliates NTT East Corp. and NTT West Corp. on Oct. 1 introduced services costing 8,000 yen per month that provide untimed local calls for Internet access.
Escalating competition among Net service providers has resulted in monthly connection fees as low as 2,000 yen per month.
But the timed local-call charge, unchanged at 10 yen for 3 minutes since 1976, has made open-ended Internet access financially prohibitive for most users.
NTT has been criticized for thwarting the chances of Internet growth similar to the explosive U.S. rate which was fueled by untimed local calls. Requests for lower phone charges have intensified as more Net surfers face large phone bills.
Businesses have added further pressure by arguing untimed local calls are essential for promoting e-commerce and expanding the Net economy in Japan.
NTT's 8,000-yen-a-month service is a victory for the campaign, but it received no praise from discontented consumers and businesses.
Surveys show the average price a household is prepared to pay for Internet access is around 5,000-6,000 yen a month. But the cost of using NTT's new service amounts to some 10,000 yen, even if the ISDN service is used with a relatively cheap 2,000 yen monthly package.
Some critics also point out that the 8,000 yen offer is distinct from the basic monthly ISDN charge and 1,080-1,380 yen higher than basic monthly charge for normal phones.
The 8,000 yen offer seems to have come a little too late as more affordable fixed-fee Internet access services are becoming available.
For example, some cable TV companies are providing unlimited Internet access with a higher data throughput speed than the ISDN service for a monthly fee of 5,000-6,000 yen, the maximum subscribers pay since no phone connection is involved.
Next year, more fixed-fee options are expected to become available. SpeedNet Inc., a joint venture involving Softbank Corp. (9984), Tokyo Electric Power Co. (9501) and Microsoft Corp., is working on introducing by mid-2000 a high-speed service that avoids NTT phone lines.
The service, based on mobile communications and fiber-optic cables, is expected to charge a fixed monthly fee of 5,000 yen or less.
Sony Corp. (6758) is also preparing to launch a Net service some time in 2000 that does not use NTT networks.
(The Nihon Keizai Shimbun Tuesday morning edition)
Tuesday, November 16, 1999
Softbank, U.S. Firm To Form Net Copyright Protection Venture
TOKYO (Dow Jones)--Softbank Corp. (9984), a Japanese media and Internet group, said Tuesday it has reached a basic agreement with Reciprocal Inc. of the U.S. to form a joint venture to provide copyright protection services on the Internet.
The new venture, to be called Softbank Digital Rights Corp., will be set up in early 2000 in Tokyo for operations to begin next spring.
Targeting companies selling digital contents, such as music and publication on the Net, Softbank Digital Rights will offer Reciprocal's technology to protect copyrights. By using these systems, these providers will be able to prevent circulation of illegal copies and pirated versions of their contents, Softbank said.
The new venture will also act as an agent in the area of charging services, providing conclusive service to distributors of digital contents.
Softbank Digital Rights will be capitalized at Y275 million, in which Softbank will hold a 60% stake and Reciprocal will take the remaining 40% shares.
Copyright 1999 Nihon Keizai Shimbun, Inc., all rights reserved. |
