I don't know why I thought three splits, is it two? Sorry Same time next year it will be three ;-)
Look at this News, AT&T is on a tear!
April 25, 1999 01:56
AT&T and BT to Acquire 30 Percent Stake in Japan Telecom for US$1.83 Billion
Japan Telecom to Become the Sole Distributor of AT&T and BT Global Venture Branded Services in Japan
TOKYO, April 25 /PRNewswire/ -- Japan Telecom, AT&T (NYSE: T) and BT today announced a ground-breaking strategic and operational partnership, aimed at further enhancing Japan Telecom's ability to deploy new services and technologies to serve customers in Japan. The companies have entered into a definitive agreement for AT&T and BT to acquire a 30 percent stake in Japan Telecom, one of Japan's largest telecommunications companies, for US$1.83 billion. The agreement is expected to be closed by the autumn.
Under the agreement, AT&T and BT will each subscribe for 15 percent of the equity in Japan Telecom. AT&T and BT will hold their interests through a jointly owned holding company through which they will adjust their economic interest. AT&T and BT will jointly manage their investment. Both companies will appoint executive and non-executive directors in the company and will be offered senior management positions.
Japan Telecom will also become the sole distributor of AT&T and BT global venture branded services and a preferred supplier of services to the global venture.
Japan Telecom serves the full range of business and consumer customers and operates in the international, long distance, data, Internet and local markets in Japan with some 17 million customers. It also has significant interests in digital mobile companies, which have more than 6 million customers.
The company plans to develop rapidly its data, mobile and Internet businesses and has an advanced program to roll out a national IP-based network. This will be fully compatible with the IP-based network planned by the AT&T and BT global venture. Additionally, the global venture will use Japan Telecom's extensive network infrastructure to enhance its coverage and provide end-to-end services to customers.
AT&T's joint venture, AT&T Jens, together with BT's existing joint ventures, BT Communications Services and BT.NIS, will be integrated into Japan Telecom. This integration will enhance and expand two key Japan Telecom businesses: multinational corporation and large corporate sales, and data communications. These businesses will market and sell AT&T and BT's global venture services and other corporate services in Japan.
In addition, BT will take a significant stake in the Japan Telecom third generation mobile consortium which, in the next year, will apply for a license in Japan.
Koichi Sakata, chairman of Japan Telecom, said, "We are delighted with today's partnership announcement. Japan Telecom is very well positioned to offer further choice and innovation to customers, and to take full advantage of the many opportunities that liberalization in Japan is presenting.
"The agreement will strengthen further the company's position in the Japanese market with the backing of two such strong brands as AT&T and BT. It will also give Japanese customers access to exciting new products and services that the two companies' new proposed global venture will bring."
C. Michael Armstrong, chairman and chief executive officer of AT&T, said: "The partnership we're announcing today will bring customers the power of global services backed by unparalleled experience, extensive global reach and strong networks both in Japan and globally through AT&T and BT's global venture.
"Japan has one of the largest concentrations of multinational companies in the world. It's an extraordinary growth opportunity for all three companies and it is essential that the global venture have a strong distributor in this key market. Japan Telecom is a great candidate and partner."
Sir Peter Bonfield, BT's chief executive, said, " When BT entered the Japanese market in 1985, our ambition was to become a strong force in the world's second largest telecommunications market, which is worth about US$100 billion a year. This deal will allow Japan Telecom to become the number one challenger in Japan.
"This partnership between Japanese, European and US companies is ground breaking in telecommunications and builds substantially on BT's growing presence in Asia. We are delighted with this deal."
This is the first joint investment by AT&T and BT since the two companies announced last summer their intention to form a global venture to serve multinational business customers and international carriers.
Japan Telecom owns a leading ISP which will be combined with AT&T's and BT's Japanese ISPs in a new data division within Japan Telecom, to form one of Japan's top five ISPs with more than 400,000 customers.
Japan Telecom's planned implementation of third generation (3G) mobile services complements AT&T and BT's own strategy for the future of mobile communications. These 3G systems will provide high-speed Internet access and other broadband wireless applications.
The companies will work together to develop a common IP-based architecture for their 3G networks, giving customers in Asia, Europe and North America seamless access to 3G services across the three regions.
Japan is expected quickly to adopt 3G mobile as its digital operators near capacity on their existing digital systems. Japan has more than 40 million mobile customers, which represents a penetration of about 37 percent.
About AT&T
AT&T Corp. is the world's premier voice and data communications company, serving more than 80 million customers, including consumers, businesses and governments. With annual revenues of more than US$53 billion and 140,000 employees, AT&T provides services to virtually every country and territory around the world. AT&T runs the world's largest, most sophisticated communications network and the largest digital wireless network in North America. The company is a leading supplier of data and Internet services for businesses and the nation's largest direct Internet service provider to consumers. AT&T provides outsourcing, consulting and networking-integration services to large businesses. AT&T's businesses are backed by the research and development capabilities of AT&T Labs, which is working to create the information services and communications network of tomorrow. More information about AT&T is available at att.com .
About Japan Telecom
Japan Telecom and its affiliates provide integrated telecommunications services ranging from domestic and international phone service to data and mobile communications that covers both corporate and residential users. The company has a total number of subscribers that amount to about 23 million lines, including 6.3 million mobile communications users and 300,000 Internet users. Japan Telecom owns a 10,000km optical-fiber network infrastructure that is placed along the national railroad of Japan Railways and reaches over 220 countries and territories for international network services. It also actively develops growing sectors such as the IP-based next generation network called 'PRISM', and the 3G mobile business operation. |
