AT&T's discount-call offer disrupts Japan phone market

Article Abstract:

AT&T will offer discounted international calls to Japanese customers using a call-back service which relies on low American long-distance rates. The announcement is sure to bring about deregulation in Japan, where high telephone rates are responsible for a lack of competition in the telecommunications market. AT&T's call-back service will enable a caller in Japan to access any number abroad by first dialing a switch in the US. This switch will call the person back, then route international calls through the US, thus charging customers lower American rates. While members of Japan's Kokusai Denshin Denwa Company (KDD) deem the service as unfair, AT&T insists that its service conforms to all regulations. KDD has been preparing for deregulation by reducing its rates to 450 yen for a three-minute call to the US, while AT&T's charge for the same call will be only 240 yen. A call put directly through KDD will take approximately six seconds compared with the 12 to 15 seconds it will take to use AT&T's service.

Planning, Foreign operations, International trade, Company service introduction, Service introduction, Company business planning, International communication, International communications

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AT&T and British Telecom merge overseas operations

Article Abstract:

AT&T and British Telecommunications announced a joint venture of most of their international communications operations. Both companies said the new venture, which would have $10 billion in revenue, would target multinational corporations. Plans call for the new company to employ 5,000 people and establish headquarters somewhere in the eastern US, as well as complete its first year in 2000. The move illustrates the need for even communications giants to join forces in a shifting market that seeks to satisfy business demand for linking far-flung offices. AT&T and British Telecom rank as the largest communications carriers in the US and Britain, respectively, but have struggled in recent years to widen their presence. The venture represents AT&T's largest step in that direction through its $2 billion contribution of assets, plus customers, to the new company. By comparison, British Telecom would add only $1.4 billion in assets.

Joint ventures, British Telecommunications PLC, Company joint venture

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N.T.T. agrees to split into 3 separate units

Article Abstract:

Nippon Telegraph and Telephone (NTT) will be restructured into three separate units: a long-distance service provider and two regional local service providers. Hoping to increase competition and lower rates, the Japanese government has been urging the dismantling of NTT, the world's largest telephone company, since 1982. A holding company will own the three new NTT companies. It is not yet clear how autonomous the companies will be. Under the agreement, the long-distance company will be permitted to provide international service and NTT will be allowed to make alliances with global telephone carriers. Industry analysts do not expect the change to affect competition significantly. The restructuring was finalized in part because of anticipated competition in the global market from powerful companies, such as that created by the British Telecommunications and MCI merger.

Wired Telecommunications Carriers, Telephone Communications, Management, Telecommunications systems, Telephone services, Nippon Telephone and Telegraph Corp., Reorganization and restructuring, Telecommunications Industry, Company Restructuring/Company Reorganization

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