Hi swisstrader, trust you are OK. What are you holding, buying, selling, and watching these days? Chugs, Jay
news.ft.com
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Softbank heats up Japanese broadband battle
By Bayan Rahman in Tokyo
Published: June 21 2001 06:20GMT | Last Updated: June 21 2001 07:26GMT
Softbank, the Japanese technology investor, on Thursday made further inroads towards competing in broadband access against NTT, the country's dominant telecommunications carrier, by taking over a troubled high-speed internet service provider.
Softbank said it would acquire a stake of more than two-thirds in Tokyo Metallic Communications, which pioneered asymmetric digital subscriber line (ADSL) services in Japan last year.
The takeover will provide Softbank with access to Tokyo Metallic’s 25,000 customers, its ADSL network with a capacity for 500,000 potential subscribers, and the company’s technological know-how.
The move comes in the same week that Softbank and its internet portal subsidiary Yahoo Japan said they would start ADSL services in August at one-third of the price charged by NTT.
But NTT, Japan’s former telecommunications monopoly, will pose a formidable challenge to Softbank’s ambitions. Tokyo Metallic’s demise was partly blamed on its inability to compete with the carrier, which has been accused of hindering competitors.
NTT controls more than half of the budding Japanese market, after beginning its ADSL services in December.
Softbank’s move ends Tokyo Metallic’s search for a buyer after it failed to persuade its banks to extend loans. Tokyo Metallic has about ¥4bn in outstanding debt.
Softbank and Yahoo Japan’s shares rose on the news. Near the end of trade in Tokyo, Softbank was at ¥4,200, up ¥280 or 7.1 per cent, while Yahoo! was up ¥320,000 or 8.4 per cent at ¥4.15m.
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