NTT is once again facing the possibility of a government-mandated breakup of its local networks to help drive competition in the Japanese telecom market.
NTT has a 70 percent market share of the fiber-based service segment, yet a TeleGeography report citing an Nikkei Business Daily article points out that even though the service provider's fiber-based last mile network could serve over 90 percent of Japan's residential users, less than one-third of the country's residential customers can access the network.
To bring these capabilities into more residential user's hands, Japan's internal affairs ministry is considering a number of options for the Japanese incumbent telco. These include forming a new NTT group by spinning off the service provider's assets or developing a separate company that has no financial operational ties to NTT. Not surprisingly, NTT does not agree with the government's proposals. A previous attempt by the government to break up NTT never materialized.
For more:
- Telegeography has this article
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