Reporting a 6 per cent decline in revenues for the fixed line unit in the first half, the former telecoms monopoly said restrictions on its operations introduced five years ago to promote competition in the sector were no longer fair in the face of changing technology and increasing incursions into its core markets by rivals. "We would like to ask for an urgent review of competition policy," Norio Wada, NTT president, said Wednesday.
His plea throws the spotlight on the flaws in NTT's restructuring in 1999, when the group was split into four major operating companies - two fixed line local call companies, a mobile operator, and a long distance and international call provider. Since then, changes in technology, particularly the rise of mobile services and voice over internet protocol (VOIP), have led to a decline in conventional fixed line services while deregulation has allowed fully integrated telecoms companies such as rival KDDI to lease NTT's lines and slash prices.
..."If this state of affairs continues, NTT will continue to weaken and this is negative for the national interest," said Hitoshi Hayakawa, telecoms analyst at CSFB in Tokyo.
I think Mr. Hayakawa's employers might have a quiet word with him about being so blatant a spokesman for NTT. Most analysts try to be a bit more subtle.
