NTT won't have to divest its fiber assets

Japan's government has high hopes to get every home in the country connected to Fiber to the Home (FTTH) by 2015, but to reach that goal it's not going to require the country's incumbent service provider NTT (NYSE: NTT) to separate its fiber network units from the rest of the company.

Not surprisingly, Japan-based competitive carriers Softbank Corp. want the government to step in to ensure that NTT's units--NTT East Corp. and NTT West Corp.--won't monopolize the FTTH service market.

Instead of forcing NTT to spin out the fiber units, the government-appointed panel overseeing the ambitious FTTH plan would like to have the incumbent service provider show the division between its fiber networks and other service functions in addition to opening up the networks to competitive providers like Softbank.  

If, however, the government does not see enough competition in the FTTH market by 2015 it will reconsider its initial network spinoff proposal.

For more:
- TeleGeography has this article

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