To: Ray Burke who wrote (25308 ) 1/16/1998 9:20:00 AM From: Secret_Agent_Man Read Replies (1) | Respond to of 41046
The Article: see below Japanese Carriers Enter Internet Fax Arena (01/15/98; 3:24 p.m. EST) By Jeremy Scott-Joynt, Total Telecom Hot on the heels of Internet telephony, Japanese carriers are cottoning on to Internet fax as a means of entering the international market. DDI, the second-largest carrier in the Japanese domestic market, is licensing technology from FaxSav, an Internet fax product developer, to provide a fax-by-Internet service to customers throughout Japan. Users will be able to access the service via normal fax machines and electronic means, including e-mail and dedicated software, and deliver their faxes to 70 different countries. Meanwhile, KDD, the Japanese-based international carrier that already operates domestic and international Internet phone services, is also planning its own Internet fax service. KDD will act as a wholesaler, however, with the aim of selling the service on to ISPs rather than telecommunications resellers. KDD has a marketing and sales agreement with DDI, whose executives have repeatedly stressed the need for Japanese telephone companies to make alliances if they are to survive in a deregulated environment. Despite its own international ambitions for Internet faxing, faxes sent within Japan on KDD's new service will travel over DDI's domestic network. Japan has seen an explosion of Internet telephony services during the past six months, led by call-back operators such as AT&T's Jens subsidiary and USA Global Link. But such operators have been followed into the market by traditional telcos, including KDD, and by ISPs such as Rimnet and Niftyserve. Until recently, the only formal Internet fax service was Uufax, a service operated by WorldCom subsidiary Uunet. WorldCom is also selling space to an Internet telephony operator, FNet, though it has no plans to go into Internet telephony itself. WorldCom's strategy sees Internet telephony over public networks as too immature a technology to be really marketable. The carrier is put off by poor voice quality and the breaks in message delivery associated with Internet telephony. Internet faxing, on the other hand -- consisting of one-way, all-in-one messages - is well-suited to packet-based networks. According to Schema, a British market researcher, 15 percent of corporate expense on telecom is taken up by faxing. Internet fax is seen by users and carriers as a tool capable of cutting telecom costs without damaging quality of service. Like WorldCom, Japanese telcos have recognized this as a viable offer to make. For DDI, the technology is a cheap and effective way of digging its way deeper into the international communications market. bg