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Technology Stocks : Softbank Group Corp -- Ignore unavailable to you. Want to Upgrade?

To: Edwin S. Fujinaka who wrote (4681)	3/30/2000 2:57:00 AM
From: Edwin S. Fujinaka	Respond to of 6020

More on Tepco and Speednet from the Nikkei Net. Most of this has already been reported elsewhere, but there may be one or two more details of interest. (I wonder if Tepco's plan to shed 300 billion yen of debt is related to Softbank's plan to raise 300 billion in new capital? <G>.): Wednesday, March 29, 2000 Tepco Says Internet Venture With Softbank May Be Delayed TOKYO (Dow Jones)--Tokyo Electric Power Co. (9501) expects the launch of its Internet holding venture with Softbank Corp. (9984) and U.S. software giant Microsoft Corp. could be delayed from its initial scheduled startup this coming summer, company president Nobuya Minami said Wednesday. Minami said his company has found technical and feasibility problems which must be cleared before the Internet venture is officially launched. The new venture with Softbank and Microsoft, called Speednet Inc., was established last September, with plans to use wireless technology to link computer users to Tepco's existing 40,000-kilometer-long network of optical-fiber lines and then to the Internet. The plan was to provide low-cost, high-speed Internet access to Tokyo consumers as early as this summer. "While we have had a series of discussions with the two other counterparts in reviewing the entire business plan, we still have some issues that need to be solved before a fully-fledged startup," said Minami. Tepco holds a 31% stake in Speednet Inc. Technically, there have been some noise problems with the Tepco's optical-fiber network, which may require more experimental work, he said. Minami also pointed out that the venture is also facing some more unsolved issues preventing it from becoming economically feasible. Despite the possible delay, the Minami insisted that the Internet venture project has been making "progress" and won't be scrapped. Tepco will have to spend billions of yen to extend the optical lines to get the project running. It will then recoup the investment through dividends and rental charges on its optical fiber lines. rental charges on its optical fiber lines. Expected capital spending requirements for the venture conflict with Tepco's goal of shedding as much as Y300 billion in interest-bearing liabilities by the end of March 2003 - mainly by slashing annual capital spending, analysts said. On the Tokyo Stock Exchange, Tepco shares rose Y5 to Y2,300 Wednesday.