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PoweredCom to Set Up Internet-Protocol Telephony Network in Japan

Posted on: Wednesday, 24 March 2004, 06:00 CST

Mar. 24--TOKYO -- PoweredCom Inc. plans to establish a nationwide Internet protocol (IP) telephony network by linking up 10 telecommunications firms affiliated with electric power companies, PoweredCom officials said Wednesday.

PoweredCom, a telecommunications unit of Tokyo Electric Power Co. (TEPCO), will make use of the network of IP telephony service provider Fusion Communications Corp., they said.

The move follows a basic agreement reached last month between PoweredCom and Fusion Communications, a unit of Nissho Iwai Corp., to integrate their fixed-line phone operations July 1, creating Japan's fourth-largest fixed-line telecom business.

The two companies aim to reach a final agreement as early as this week -- one month ahead of schedule -- and the IP telephony network project will be included in projects to be undertaken by the integrated entity, the officials said.

Electric power company-affiliated telecommunications companies have been operating independently in each region, but as part of a nationwide system they will be able to compete better with rivals such as Nippon Telegraph and Telephone Corp.

The integrated company will make use of Fusion's optical fiber-based IP telephony network and subscribers to each telecommunications company will be able to communicate free of charge with those located in other regions, starting April 1, the officials said.

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