 |
|
|
|
Comprehensive Alliance between KDDI and TEPCO Group in Telecommunication Services
KDDI Corp.
Tokyo Electric Power Co.
POWEREDCOM Inc.
2005/10/13
|
KDDI Corp. (represented by President and Chairman Tadashi Onodera, hereinafter referred to as "KDDI") and Tokyo Electric Power Co. (represented by President Tsunehisa Katsumata, hereinafter referred to as "TEPCO") have decided today to form a comprehensive alliance in telecommunications services with an aim to compete against the NTT Group, and reached a basic agreement on the merger between KDDI and POWEREDCOM Inc. (represented by President and CEO Shigeru Nakane, hereinafter referred to as "POWEREDCOM") and on the provision of integrated services in the FTTH business of KDDI and TEPCO.
Under this comprehensive alliance, KDDI and the TEPCO Group will integrate their telecommunications-related management resources with an aim to form a stronger telecommunications service group, and win in the intensifying competition in the telecommunications market and provide customers with services of the highest level by realizing the convergence of telecommunications services and energy services (FMC + E: convergence of fixed and mobile communications + energy), [1] removing the walls between different lines of business.
Moreover, the alliance aims to meet the expectations of Japan's people and society and fully contribute to the development of economy and society by forming as early as possible a business group that is strong enough to compete against the NTT Group.
| [1] |
FMC + E stands for Fixed Mobile Convergence + Energy, i.e., the integrated services of fixed-line communications, mobile phone and energy. |
 | 1. Merger between KDDI and POWEREDCOM |
| | | |
KDDI and POWEREDCOM are slated to merge on January 1, 2006, with KDDI as the existing company.
POWEREDCOM is a leading company that boasts the largest share in the wide-area Ethernet service market that is expected to rapidly expand from now on in the corporate fixed-line data communications market where competition is very keen.
As an integrated common carrier, on the other hand, KDDI is fully prepared to meet the needs of corporate customers, including fixed-line communications services, international communications services, and mobile phone services. KDDI will try to improve customer satisfaction by further improving services and customer convenience through the merger.
After the merger, one managing officer is scheduled to be assigned to KDDI from POWEREDCOM (on the day of the merger). One member of the board is scheduled to be sent to KDDI from TEPCO (at the time of the general meeting of stockholders in 2006).
The stocks of the subsidiaries, etc. owned by POWEREDCOM (Dream Train Internet Inc., Familynet Japan Corp., Fusion Communications Corp. and At Tokyo Corp.) are scheduled to be transferred by the day of the merger to TEPCO or a third party or third parties based on TEPCO's policy.
| 2. Alliance in FTTH Business |
| | | |
KDDI and TEPCO plan to integrate KDDI's CDN [2] for video distribution services and TEPCO's high-quality fiber-optic networks within this year to combine together the telecommunications services now being provided respectively by KDDI and TEPCO, and provide integrated services that are highly marketable and price competitive.
KDDI and TEPCO have also agreed that: KDDI would bear part of the funds to be invested by TEPCO in equipment and facilities for the planned integrated services; and the two companies would start specific discussions about consolidation or joint undertaking through the separation of their respective business units as the form of alliance in the FTTH business in the future.
KDDI and TEPCO will continue to build a strong alliance and try to improve customer satisfaction based on the improvement of services and customer convenience.
| [2] |
CDN stands for Contents Delivery Network, i.e., a contents distribution network suited for distribution of videos and audios by using IP technology, large capacity lines, etc. |
This press release may include statements about future prospects in some cases, in addition to statements about facts in the past. Such statements about future prospects include known and unknown risks, and uncertain and other factors. It should be noted that, because of such factors, the achievements, business activities, business development or financial standing in the future, which are mentioned explicitly or implicitly in the statements about future prospects, may be far different from the realities in some cases.
|
|
| | | | |
|
|
