November 25, 2004

Heisei Denden to Sue Japan Telecom to Stop New Phone Service

Tokyo, Nov. 25 (Jiji Press)--Telecommunications venture Heisei Denden Co. plans to file a lawsuit with Tokyo District Court against Japan Telecom Co. next week, seeking a court injunction to prevent the firm from launching a new fixed-line phone service, Heisei Denden officials said Thursday.

Heisei Denden claims that Softbank Corp. , Japan Telecom's parent, took advantage of the information disclosed by Heisei Denden during their tie-up talks and developed its own fixed-line service that uses the same system as Heisei Denden's, the company officials said.

Japan Telecom is set to start a new fixed-line service in December that uses its own switching equipment installed in telephone stations of Nippon Telegraph and Telephone Corp. . The method allows the company to save on access fees to the NTT group and collect basic monthly fees directly from its subscribers.

Heisei Denden, based in Tokyo, launched such a service in autumn last year.

Heisei Denden argues that the use of business information for other than original purposes violates the law to prevent unfair competition, the officials said.END