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NTT Split

Paul Kouroupas's picture

News today that a Japanese government panel has recommended breaking up NTT by 2010 . It’s funny, but when all the net neutrality proponents were pointing to Japan as an example of broadband penetration, they neglected to mention that NTT held a virtual monopoly on fixed line services in Japan. Is that the price they are willing to pay for net neutrality? While consolidation in the industry is dangerously close to re-creating the Bell System, I do not believe a reversion to the monopoly telecommunications model is a price I am willing to pay for broadband penetration and net neutrality.

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Paul Kouroupas – Fri, 2006 – 06 – 09 06:52
broadband – net neutrality
Paul Kouroupas's blog

NTT Split

Paul Kouroupas's picture

The recommendation for the break up of NTT came from a government panel, not NTT. While I am not naive enough to think that the government and NTT are completely separate, the fact is that this was not NTT's first choice and they do in fact oppose the recommendation. And Japan isn't the only country looking at this option. The UK considered it for BT, but instead opted for a watered down version requiring BT to create a separate subsidiary after vigorous opposition from BT. Why would anyone voluntarily relinquish a monopoly?

Paul Kouroupas – Fri, 2006 – 06 – 09 09:42
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I feel it's for different reasons ...

gxnorm's picture

It's not fair to compare the telecommunications market in Japan today to the US market of pre-1984.

DOJ's stance creating the Modified Final Judgment (MFJ) made sense at the time - there were no options like cable, cellular and the only real competitor to AT&T was MCI.

There are options in Japan today, customer can purchase 100M fiber for as little as $50.00 a month or 54M ADSL for $30.00.

I think the position is being created by NTT's management not for increased competition but to increase shareholder value while lining their pockets.

gxnorm – Fri, 2006 – 06 – 09 09:35
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