BT sets sights on Japan with pounds 1.2bn investment
Monday 26 April 1999
BT and AT&T have bought 30 per cent of Japan Telecom and promised to boost investment in the company, Japan's third-largest operator. BT's regional director for Japan, Richard Slogrove, said this was the time to "really lay into NTT" in Japan's telecoms market, which at $100bn ranks second only to the United States.
Chris Godsmark, telecoms analyst at Investec Henderson Crosthwaite, welcomed the deal. He predicted BT would use Japan Telecom's national fibre-optic network along the railway lines of its largest shareholder, Japan Railway Co, to link its city networks in Tokyo and Osaka. Mr Godsmark said: "This further enriches BT's position in Japan and will enable BT to connect its city centre ring rollout."
Under the terms of the deal, AT&T and BT's Japanese operations will be absorbed by Japan Telecom. BT will end up with a 20 per cent interest, while AT&T will gain 10 per cent, although each will hold 15 per cent of the shares, giving them equal voting rights. Both will appoint executive directors to Japan Telecom's board.
BT will also take a significant stake in Japan Telecom's mobile joint venture with AirTouch and Nissan Motor, which is applying for a third- generation licence to provide high-speed Internet and other wireless data links in Japan.
Industry speculation is rife that BT and AT&T are pushing to raise their stake to 33.4 per cent - enough for a veto on management decisions - as Japan Telecom's investment needs rise and profits shrink to 5bn yen (pounds 26m) this year. Japan Telecom made 8.1bn yen net profit in the year 31 March on revenues of 392bn yen.
The deal, the first joint investment by the two telecoms giants since they launched their $10bn Global One venture last July, also marks the first major inroad into Japan's domestic market. Japan boasts one of the largest concentrations of lucrative multinational clients in the world.
- 1 Miley Cyrus' homeless MTV VMAs date, Jesse Helt, is wanted by the police
- 2 36-year-old skeleton of dead baby found inside Indian woman
- 3 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
- 4 Homer Simpson has taken the ALS ice bucket challenge because of course he has
- 5 The 13 obscure UK laws you didn’t know you were breaking
Miley Cyrus' homeless MTV VMAs date, Jesse Helt, is wanted by the police
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
The 13 obscure UK laws you didn’t know you were breaking
Teenager dies after suspected ice bucket challenge goes horribly wrong
Car tax disc changes: Make sure you know the new rules from 1 October or risk £1,000 fine
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Jeremy Clarkson is a cultural tumour and needs to be removed, says comedian Frankie Boyle
Air strikes? Talk of God? Barack Obama is following the jihadists’ script after James Foley beheading
- < Previous
- Next >
iJobs Money & Business
£500 - £700 per day: Harrington Starr: Calypso Developer Calypso, J2SE, XML, ...
£35000 - £36000 per annum + benefits: Ashdown Group: A market leading financia...
£250 - £350 per annum + competitive: Orgtel: My client, a leading bank, is cur...
£23000 - £26000 per annum: Ashdown Group: Account Executive / Client Services ...