BT sets sights on Japan with pounds 1.2bn investment

BRITISH TELECOM yesterday vowed to challenge NTT, Japan's state- controlled telecoms giant, in its home market as it unveiled details of its pounds 1.2bn investment in Japan Telecom with the US long-distance carrier AT&T.

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.

News
newsVideo targets undecided voters
Arts and Entertainment
Singer Pixie Lott will take part in Strictly Come Dancing 2014, the BBC has confirmed
tv
Life and Style
Cooked up: reducing dietary animal fat might not be as healthy as government advice has led millions of people to believe
healthA look at how governments started advising incorrectly on diets
News
Evan Spiegel, the founder of Snapchat, dropped out of Stanford University just before graduation to develop his app
techAnd yes, it is quite a lot
PROMOTED VIDEO
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Calypso Developer

£500 - £700 per day: Harrington Starr: Calypso Developer Calypso, J2SE, XML, ...

IT Developer/Analyst

£35000 - £36000 per annum + benefits: Ashdown Group: A market leading financia...

Pricing Manager, Finance, Edinburgh, £250-350p/d

£250 - £350 per annum + competitive: Orgtel: My client, a leading bank, is cur...

Client Services Executive / Account Executive - SW London

£23000 - £26000 per annum: Ashdown Group: Account Executive / Client Services ...

Day In a Page

Kate Bush, Hammersmith Apollo music review: A preamble, then a coup de théâtre - and suddenly the long wait felt worth it

Kate Bush shows a voice untroubled by time

A preamble, then a coup de théâtre - and suddenly the long wait felt worth it
Robot sheepdog technology could be used to save people from burning buildings

The science of herding is cracked

Mathematical model would allow robots to be programmed to control crowds and save people from burning buildings
Tyrant: Is the world ready for a Middle Eastern 'Dallas'?

This tyrant doesn’t rule

It’s billed as a Middle Eastern ‘Dallas’, so why does Fox’s new drama have a white British star?
Rachael Lander interview: From strung out to playing strings

From strung out to playing strings

Award-winning cellist Rachael Lander’s career was almost destroyed by the alcohol she drank to fight stage fright. Now she’s playing with Elbow and Ellie Goulding
The science of saturated fat: A big fat surprise about nutrition?

A big fat surprise about nutrition?

The science linking saturated fats to heart disease and other health issues has never been sound. Nina Teicholz looks at how governments started advising incorrectly on diets
Emmys 2014 review: Can they genuinely compete with the Oscars

Can they genuinely compete with the Oscars?

The recent Emmy Awards are certainly glamorous, but they can't beat their movie cousins
On the road to nowhere: A Routemaster trip to remember

On the road to nowhere

A Routemaster trip to remember
Hotel India: Mumbai's Taj Mahal Palace leaves its darker days behind

Hotel India

Mumbai's Taj Mahal Palace leaves its darker days behind
10 best pencil cases

Back to school: 10 best pencil cases

Whether it’s their first day at school, uni or a new project, treat the student in your life to some smart stationery
Arsenal vs Besiktas Champions League qualifier: Gunners know battle with Turks is a season-defining fixture

Arsenal know battle with Besiktas is a season-defining fixture

Arsene Wenger admits his below-strength side will have to improve on last week’s show to pass tough test
Pete Jenson: Athletic Bilbao’s locals-only transfer policy shows success does not need to be bought

Pete Jenson: A Different League

Athletic Bilbao’s locals-only transfer policy shows success does not need to be bought
This guitar riff has been voted greatest of all time

The Greatest Guitar Riff of all time

Whole Lotta Votes from Radio 2 listeners
Britain’s superstar ballerina

Britain’s superstar ballerina

Alicia Markova danced... every night of the week and twice on Saturdays
Berlin's Furrie invasion

Berlin's Furrie invasion

2000 fans attended Eurofeurence
‘It was a tidal wave of terror’

‘It was a tidal wave of terror’

Driven to the edge by postpartum psychosis