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(Update) KDDI, Tokyo Electric in Fiber-Optic Biz Integration Talks

Posted on: Monday, 3 April 2006, 18:00 CDT

Tokyo, April 3 (Jiji Press)--Telecommunications carrier KDDI Corp. and Tokyo Electric Power Co. are in the final stages of negotiations over integration of their fiber-optic communications business in the spring next year, it was learned Monday.

The integration will have KDDI acquire the fiber-optic network of the power utility to become the fourth biggest player in the business, up from the current sixth, informed sources said.

Before the business integration, they will start using a common brand for their fiber-optic communications services in June at the earliest, the sources said.

The two companies have yet to decide whether KDDI will purchase Tokyo Electric's entire optical fiber network or part of it, the sources said.

KDDI, which now leases fiber-optic lines from regional carriers of Nippon Telegraph and Telephone Corp. , hopes to reduce costs and improve services by obtaining the power utility's network covering Tokyo and surrounding prefectures.

KDDI will also accelerate the development of new services that make use of both mobile and fixed-line telephone infrastructure.

NTT's regional carriers hold the lead in the rapidly growing Japanese market for fiber-optic broadband communications services in terms of subscriber numbers.

Since they announced a comprehensive alliance in communications business last October, KDDI and Tokyo Electric have been jointly marketing fiber-optic communications services for households.END

Source: Jiji Press English News Service

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