Government panel opts not to force NTT to spin off fibre unit

18 Nov 2010

A government-appointed panel in Japan, set up to oversee plans to roll out fibre-optic broadband access to all homes by 2015, has said it will not force the incumbent, Nippon Telegraph and Telephone Corp (NTT), to spin off the division responsibility for fibre infrastructure. The Nikkei daily reports that although the fibre-optic networks are primarily owned by the telco’s regional units NTT East Corp and NTT West Corp, rivals such as Softbank Corp are calling for government intervention arguing that NTT’s dominance in the sector makes for an unfair playing field. However, the government panel says that rather than pursue a structural separation, it will instead compel NTT to create a clear division between its fibre-optic networks and other operations, and force it to open up its new networks to other service providers. The government will review the situation in 2015, and if it deems the level of competition is not sufficient by that date, only then will it revisit the spin-off plan. The panel is expected to complete its recommendations in early December.

Japan, NTT (NTT East & NTT West)