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| Japan Internet Report No. 12 January 1997 ********************************************************** In this month's issue: - Hot holiday news couldn't wait - Is Big Bang in Japan's telecom market really Big Bust? - Foreign firms will drive real reform, as usual - Free service ISP to debut - The best place to buy computer stuff online - Back to normal in February ********************************************************** Hot holiday news couldn't wait There has been so much interesting news in December that we couldn't help putting together a quick JIR. We'll return to our regular interview and industry brief format next month. Hope you all had peaceful and healthy holidays! ********************************************************** Is Big Bang in Japan's telecom market really Big Bust? Recent editorials in the Japanese press have referred to the announcement and agreement on NTT's breakup plan as the "Big Bang" in Japan's telecom market. But NTT's "breakup" is almost a joke - one step forward and two steps backward, considering the blistering pace at which telecommunications events are moving forward outside of Japan. Basically, NTT's "breakup," which won't even by fully implemented until 1999, only splits the company into three units that will be managed by a new holding company. And the holding company will be created by revising a law that is designed to prevent monopolistic actions through the use of holding companies! NTT will remain firmly in control of local telephone services... Just a few months ago the telephone giant said it wanted to "bring service rates down to a level at which there will be no price difference between Japan and abroad," and that its goal was to lower the cost of its longest domestic long-distance call to 100 yen (about U.S.$ 0.86) per three minutes by the year 2000. In other words, three years from now such an NTT call would cost 260% of what it costs us today to call New York from Portland. Can these people really be that out of touch with international norms!? Now, though, it looks like that 100 yen per three minute rates will be available from DDI early this year, and that NTT will come close to matching that. Meanwhile, a recent KDD plan to drive rates down to "international levels" called for it to reach Japan-to-U.S. rates of U.S.$ 0.86 per minute three years from now. At TKAI we've been paying U.S.$ 0.36 per minute for daytime weekday phone service to Japan for over a year, with no "service plan" charges whatsoever and GREAT service... ********************************************************** Foreign firms will drive real reform, as usual AT&T's amazing announcement that it plans to offer true Internet-based telephone service (PC-to-POTS, not PC-to-PC) in Japan this year is the kind of initiative that will drive real reform in Japan's telecom sector. The company recently launched callback services in Japan as well, putting more pressure on KDD. It reminds me of how Citibank turnedaJapan's banking industry on its ear and made extraordinary share gains when it went ahead and simply did things that weren't officially restricted, but that hadn't even been conceived of by domestic players. Now NEC says it's going to offer domestic long distance telephone service in Japan, kind of like Dell Computer becoming a long distance carrier in the U.S. More power to them! ********************************************************** Free Service ISP to debut Reflecting the increasingly vicious share struggle in the Internet access service market, Gulf Net says that in April it will offer advertising-supported Internet connectivity services free of both monthly connection and local call charges, by teaming up with two cable TV stations. My prediction: Early this year we'll hear from someone in Japan who promises to PAY subscribers to go online, a model that is already being tested in the U.S. (Is it Cyber Gold? I can hardly keep up with all this stuff...) ********************************************************** The best place to buy computer stuff online Cyberian Outpost (www.cybout.com/075.html), which offers terrific selection, service and pricing, multilingual pages and fast shipments just about anywhere worldwide. JIR readers rave about them, and TKAI staff bought kid's presents through them in December. A top-notch outfit, worthy of a bookmark. ********************************************************** Back to normal in February Look forward to another industry interview, news briefs, and highly-biased commentary next month! Tim Clark Editor Copyright 1997 by Digitized Information, Inc. and TKAI. All rights
reserved NOTE: Some JIR industry briefs appear later in Computing Japan magazine under modified titles. JIR is co-sponsored by Digitized Information, Inc. of Tokyo, a leader in providing daily English language coverage of electronics industry developments in Japan. For more information on monitoring electronics industry developments in Japan, or to receive a free e-mail sample of service offerings, please contact Digitized Information at diginfo@gol.com |
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