C&W to bid sayonara to Japan?

30 Sep 2004

According to the Japanese daily Nihon Keizai Shimbun Cable & Wireless is considering quitting the Japanese mrket by selling its loss-making unit Cable & Wireless IDC to ISP Softbank or Tokyo-based investment firm MKS Partners. The newspaper quotes a sale price of JPY12 billion (USD108 million). Cable & Wireless acquired IDC, an international telephony operator, in June 1999. The company has struggled to compete effectively with larger rivals NTT and KDDI, reporting a net loss of JPY6.67 billion on sales of JPY71.3 billion in the year to March 2004. Softbank is reportedly keen to leverage IDC’s 40,000 business customers in its efforts to become a comprehensive telecoms solutions provider, while MKS is believed to be looking at selling the company on to a third party, possibly Global Crossing.