To: Dwight E. Karlsen who wrote (7237 ) 10/22/1997 8:57:00 AM From: Glenn D. Rudolph Respond to
Impact of phone rate deregulation to be small-NTT
Reuters Story - October 22, 1997 03:10
%JP %US %GB %TEL %DE %CH %STX %ISU 9432.T WCOM MCIC BT.L V%REUTER P%RTR
TOKYO, Oct 22 (Reuters) - Nippon Telegraph and Telephone
Corp said on Wednesday Japan's planned deregulation of
telephone rates is unlikely to have a large impact on
competition among NTT and other new common carriers.
"The long-distance phone market is already very
competitive," NTT president Junichiro Miyazu told a news
conference. "The deregulation will not have a decisive impact on
the current market condition."
The ruling Liberal Democratic Party (LDP) on Tuesday
announced a plan to liberalise Japan's international and
long-distance rates in an economic package aimed at stimulating
Japan's ailing economy.
Carriers at present are required to seek ministry approval
for rates for such services.
Asked about the takeover battle in the United States
involving WorldCom Inc , GET Corp, MCI Communications
Corp and British Telecommunications Plc , Miyazu
said that NTT would watch from the sidelines.
"It's a fight among companies trying to get into the
lucrative U.S. local call market," Miyazu said. "We are simply
looking...because we have no plan to move into the U.S. local
call market in a big way."
From October 25 to November 5, Miyazu will visit the U.S.,
Britain, Germany and Switzerland to explain NTT's strategy to
about 50 institutional investors, he said.
"We hope to make clear our strategy to foreign investors,"
Miyazu said, citing the possibility of that Japan's Finance
Ministry would start selling its shares on the market later this
year.
NTT's foreign ownership was 5.9 percent in August, up from
four percent in March.
In a move to strengthen international investor relations,
NTT will publish half-year group profits for the first time in
November.
-- Tokyo equities desk (813) 3432-8595
email: tokyo.equities.newsroomreuters.com
