NTT DoCoMo Partners AT&T for Cheaper US Calls
totaltele.com
By Junko Fujita at Bloomberg News
18-AUG-98
NTT Mobile Communications Network Inc., Japan's
largest cellular phone operator, said it will tie up with
AT&T Corp. to provide direct and cheaper international
phone service, dealing another blow to struggling
Japanese international phone companies.
Calls made by subscribers of the Japanese mobile phone
operator, better known as NTT DoCoMo, and its eight
regional units will be connected to the AT&T network
through a new international unit of Nippon Telegraph &
Telephone Corp., Japan's former domestic phone
monopoly. The Diet last year granted permission for NTT,
the world's largest phone company, to begin operating
internationally.
DoCoMo calls overseas are now connected through the
networks of Japan's three international phone companies
- Kokusai Denshin Denwa Co. (KDD), Japan Telecom
Co., and International Digital Communications Inc. (IDC).
Those companies are struggling to cope with declining
profits caused by rates cuts, intensifying competition,
deregulation and changing technology. DoCoMo's move
could cause a drop in connection fees received by KDD,
Japan Telecom and ITC.
NTT owns 94.7% of NTT DoCoMo, which has signed up
almost 60% of the 35 million cellular phone users in
Japan.
By connecting DoCoMo's calls directly to AT&T,
DoCoMo will be able to decide how much to charge
users. DoCoMo said it plans to charge 540 yen ($3.70)
for a three-minute phone call to the US, down from 710
yen now charged by KDD.
DoCoMo's new service will be limited for the time being
to calls to the US, the single largest market. The move
will enable DoCoMo subscribers to receive one cellular
phone bill combining both domestic and international
phone charges.
DoCoMo has filed applications with the Japanese
government to start the international cellular phone
services. The company, which generated sales of 2.2
trillion yen ($15 billion) for the year ended March,
expects to generate "several hundreds of millions" of yen
annually from the new service, a spokesman said.
c Total Telecom 1998. All Rights Reserved. info@totaltele.com
For a continuing
update on the BT and
AT&T deal see
www.totaltele.com/bt&t/.
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