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To: DaveMG who wrote (171)	7/29/1999 5:14:00 PM
From: quidditch	Read Replies (2) \| Respond to of 426

More consolidation of wireless v. DoCoMo in Japan? By Scott Stoddard at Bloomberg News 29 July 1999 DDI Corp. and Japan Telecom Co., Japan's third- and fourth-largest telecommunications companies, said they may expand their stakes in nine regional mobile phone companies affiliated with Nissan Motor Corp. to challenge NTT DoCoMo, which dominates Japan's cell phone market. Nissan, Japan's No. 2 automaker, will sell most of its more than 20% stake in the privately held mobile phone companies under Tu-Ka Cellular and Digital Tu-Ka to DDI and Japan Telecom for a combined 3 billion yen ($25.9 million), the Nihon Keizai newspaper said, without citing sources. Nissan will sell shares in six of the companies to Japan Telecom, which currently holds 23% of Digital Tu-Ka. DDI, which already owns 26% of Tu-Ka Cellular, will buy shares in the other three, the report said. "We're considering various things, but nothing's been decided yet," said Mamoru Mishina, a DDI spokesman. Japan Telecom and Nissan issued similar statements. The Tu-Ka companies combined control 12% of Japan's 4.3 trillion yen mobile phone market and would help Japan Telecom and DDI expand their cell phone businesses outside of the Tokyo- Osaka corridor, enabling them to challenge NTT Mobile Communications Network Inc. (NTT DoCoMo), the world's largest mobile phone company by subscriptions. Currently, only NTT DoCoMo mobile phones can be used nationwide. That's helped NTT DoCoMo increase subscribers 10-fold to 25 million over the past four years, giving it 58% of the market. "With the share purchase, you can expect Japan Telecom and DDI to increase their shares of the cellular phone market and oppose NTT DoCoMo," said Toshiaki Onoda, an analyst at New Japan Securities Co. who rates Japan Telecom shares "outperform" and DDI "average." Toyota Motor Corp., the third-largest Japanese company by market capitalization behind NTT and NTT DoCoMo, is also threatening NTT DoCoMo's dominance. Japan's biggest automaker earlier this month indicated it may seek to merge its IDO Corp. mobile phone subsidiary with DDI to better compete with NTT DoCoMo. Toyota has said it aims to get 10% of sales from non- automotive businesses as worldwide competition holds down prices of new cars. The company uses cellular phone technology in its car navigation systems, dashboard-mounted displays that show drivers maps and give directions. Nissan, however, can no longer afford to hold shares in companies that aren't critical to reviving its automotive business, analysts said. The company - saddled with 2.9 trillion yen in consolidated debt - has posted group net losses in six of the past seven years. Nissan on Monday sold part of its stake in Akebono Brake Industry Co. to Delphi Automotive Systems Corp. for between 1.7 billion yen and 1.9 billion yen ($14.7 million and $16.4 million). British Telecommunications Plc also has stakes in both Digital Tu-Ka and Tu-Ka Cellular, while AirTouch Communications Inc. owns part of Digital Tu-Ka. Copyright 1999, Bloomberg L.P. All Rights Reserved. © EMAP Media 1999 Regards. Liacos_samui