The glass is half full....NEWS:
Wednesday, November 22 10:22 AM SGT
NTT East, NTT West To Launch Full-Scale ADSL Svc In Dec
TOKYO (Dow Jones)--Nippon Telegraph & Telephone Corp.'s (NTT or 9432) regional units NTT East Corp. and NTT West Corp. said Wednesday they plan to launch full-scale asymmetric digital subscriber line-based Internet access services in December.
Personal computers using ADSL services connect to the Internet over existing telephone lines in the same manner as local area networks (LANs). DSL services can transmit a large volume of data for images and other applications at low cost and high speed. Users are able to can access the Internet using DSL services, while using other phone functions at the same time.
Currently, Japan's two dominant local phone operators are providing ADSL services on a trial basis in limited areas in eastern and western Japan.
"In December, we plan to expand the service area and cut the monthly service fees," a NTT East spokesman said. The monthly charge of the company's trial services is currently around Y5,100, he added.
"We plan to lower the service fees in December, although the exact rate is yet to be fixed," a NTT West spokesman said.
By the end of March 2001, NTT East said it plans to expand the service areas to all 23 wards in Tokyo and possibly other major cities in eastern Japan.
NTT West said it aims to expand the area it services to the entire Osaka area and other major cities in western Japan by next March.
If users of NTT's original Integrated Services Digital Network (ISDN) wish to switch to ADSL services, they will be required to change their telephone number and incur other inconveniences.
However, NTT East and NTT West are also planning to launch a new type of DSL service other than the standard ADSL service, which can operate in tandem with ISDN services.
"We are aiming to start the ISDN-compatible DSL service by next March," the NTT East spokesman said.
ISDN, which uses Japanese specifications for data transmission, enables simultaneous use of facsimile, telephone, and Internet functions.
ISDN users, currently estimated at around 10 million, are considered the most likely candidates to switch to DSL-based Internet access services, industry sources said. -0- 22/11/00 02-22G
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The connection
Investment in Japan's ACCA Networks With NTT Com and Ignite Showcases Covad's Entrance Into the International Market
Tokyo - (August 10, 2000) - Covad Communications (NASDAQ: COVD), the nation's leading broadband services provider of DSL (Digital Subscriber Line) technology, today announced that it signed a formal agreement with NTT Communications Corporation, (NTT Com), Japanese communications company, ACCA Networks, Co. Ltd., and Japan-based venture capital firm Ignite Japan KK, to provide local broadband network services using DSL to major metropolitan areas in Japan.
Under the agreement, both Covad and NTT Com will each acquire a 41.8 percent stake in ACCA, which is an investment of $11.5 million USD (approximately 1.25 billion yen). Ignite through its affiliated IT 2000 fund, will acquire a 6.7 percent stake, which is a total of 1.6 million USD (170 million yen). The remaining 9.7 percent will be held by the five founders of ACCA. ACCA will issue additional stock options for its employees.
For Covad, this is an equity investment without additional financial commitments, requiring no additional expenses in its financial model, outside of the equity ownership and cash investment on the balance sheet. ACCA will continue to raise private and ultimately public funding as it grows, in which Covad has the right of first refusal to participate in subsequent financing rounds. Covad will also hold two seats on the ACCA board.
Under the agreement, NTT Com, through its OCN and other brands plans to use ACCA's DSL lines to meet increasing customer demand for faster Internet access and other wide bandwidth applications. The goal is to build out over 450 central offices (COs) in 17 markets by the end of 2001. This is expected to cover 40 percent of businesses and 33 percent of homes in Japan. Covad will assist ACCA in the deployment of its broadband DSL network by leveraging its experience in large-scale DSL network operations.
Covad will also license its proven, scalable Operational Support System (OSS) to ACCA with exclusive rights in Japan. The OSS will allow ACCA's sales partners and their end users to automate and streamline the ordering and provisioning process. Ignite has provided ACCA with hands-on support for the growth of the company since its establishment and will continue to support ACCA's growth strategy financially and operationally.
"We are investing thoughtfully and prudently in Japan, which we have always known is an important opportunity for the deployment of broadband services," said Robert E. Knowling, chairman, CEO and president of Covad. "The Japanese regulatory market is opening up and we are working with the largest phone company in the world, which is providing human resources and marketing support. Importantly, we are also licensing our OSS to ACCA that, by itself, could payback our entire cash investment."
ACCA, a broadband access network provider founded in March of this year, was registered as a Type II telecommunications carrier in April. ACCA will launch pilot DSL services this fall in selected areas in Tokyo and will expand to a commercial nationwide service starting early 2001. ACCA plans to evaluate offering access services utilizing other technologies as well in the future.
As a wholesaler, ACCA will provide its DSL services to business users as well as residential users primarily through Internet Service Providers (ISPs) and telecommunications carriers. ACCA expects that ISPs and telecommunications carriers will bundle their Internet backbone and other network services with ACCA's access services to provide packaged broadband services under the operators' brand to end users.
The synergy created by a dynamic startup team, Japan's premier brand name and customer base, USA's leading broadband DSL services provider, and the financial backing of a leading venture company, should launch this alliance into a leadership position in the Japanese Internet market.
"The lack of competitive broadband access solutions has been bottlenecking Japan's IT explosion. This alliance is a dream team offering such a solution which will also bring socioeconomic changes in this country, " said Hidehiko Yuzaki, a founder and CEO of ACCA Networks.
Masanobu Suzuki, President and CEO of NTT Communications, said, "ACCA Networks will be an important vehicle for NTT Communications' continued expansion into high quality broadband services. NTT Com will continue to strengthen its commitment towards up-to-date customer needs and establish a end-end information distribution value chain by expanding its high-speed access capabilities. We also expect that the partnering with Covad Communications, which has been successful in the U.S. market with its entrepreneurship, will bring great advantage to business in the competitive and fast-moving Japanese market."
Nobuo Mii, Managing Partner, Ignite Group, said, "The synergy of combining the expertise and brand name of leading companies with the energy and nimbleness of a dynamic startup is a success formula for creating high-growth companies in the Japanese venture market. The ACCA partnership is a good example of using such a success formula. Ignite is proud to be part of this promising team." |
