NTT shares fall on news of new IP telephony services

27 Jan 2003

Tokyo Telecommunication Network Company, an affiliate of Tokyo Electric Power Company, has revealed plans to introduce IP-based telephony services in March, while K-Opticom Corp, affiliated with Kansai Electrical Power Company, has also proposed a similar offering. Fixed line giant NTT saw its shares fall by 5.2% on the news, as the launch of IP telephony could have a marked effect on its revenues. IP telephony customers will not have to pay monthly usage fees to the PTO’s NTT East and NTT West subsidiaries, which receive a total of JPY1.4 trillion (USD11.9 billion) per year from monthly basic phone fees.