Panel calls for NTT break-up in 2010/11

6 Jun 2006

An advisory panel to Japan’s home affairs ministry has recommended that Nippon Telegraph and Telephone Corp (NTT) be disbanded in 2010/11 in order to stimulate competition. In its final report to home affairs minister Heizo Takenaka, the group proposes that the former monopoly, which currently provides fixed, mobile and data services, should be fully dissolved. The panel also suggests that once broken up, the country’s regulatory regime should be relaxed so as to improve competition and drive down prices for consumers. If the report is adopted as official government policy, it is expected that NTT and some factions of the ruling Liberal Democratic Party will object to the plans.