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KDDI, Tokyo Electric to Jointly Control Japan's No. 2 CATV Firm

Posted on: Wednesday, 7 December 2005, 18:00 CST

Tokyo, Dec. 7 (Jiji Press)--KDDI Corp. and Tokyo Electric Power Co. are planning to jointly take control of Japan Cablenet Ltd., the second largest cable television operator in Japan, KDDI officials said Wednesday.

Specifically, the two firms are hoping to jointly own a majority equity stake in Japan Cablenet Holdings Ltd., which fully owns the CATV operator, the officials said.

Tokyo Electric Power, the largest Japanese power supplier, already holds a 23 pct stake in the holding company.

KDDI, the second largest telecommunications carrier, has been negotiating with other Japan Cablenet Holdings shareholders on its acquisition of their stakes, in the hope of reaching an agreement by the end of March 2006, the officials said.

Tokyo-based Japan Cablenet Holdings is owned by electronics giant Fujitsu Ltd. , leading security service firm Secom Co. and major trading house Marubeni Corp. , besides Tokyo Electric Power.

Fujitsu President Hiroaki Kurokawa serves as president of Japan Cablenet Holdings.

After the acquisition, KDDI plans to replace Japan Cablenet's existing cable networks with optical fiber networks to strengthen its broadband communications services, in order to better vie with leading telecommunications carrier Nippon Telegraph and Telephone Corp. , the officials said.

The Japan Cablenet group operates 13 CATV stations mainly in Tokyo, and neighboring Kanagawa and Chiba Prefectures. It has about 500,000 subscribers.END

Source: Jiji Press English News Service

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