Senior official voices concern over NTT’s monopoly

4 Oct 2006

According to the Financial Times, a senior director of competition policy at the Japanese Telecommunications Ministry has called on the government to implement a new regulatory framework to ‘keep up’ with NTT’s decision to launch converged fixed-mobile services. The official, Yasu Taniwaki, added that the Ministry is also planning to ‘investigate whether the merging of the [fixed line and mobile] markets is going to cause dominance’ by NTT. The former monopoly is looking to offer customers a single telephone number that will use the fixed line network when they are at home, and switch to mobile when they are out. Although NTT has won approval to launch fixed-mobile services, opponents of the scheme fear it has been gifted an unfair advantage as its NTT East and West subsidiaries control about 90% of the fixed line market ,and its mobile arm NTT DoCoMo has a 60% share of the wireless segment.