KDD and DDI Agree on Tie-up for Joint International-Domestic Telephone Resale Service and Sales Cooperation

NotificationAugust 4, 1997

Kokusai Denshin Denwa Co., Ltd.
DDI Corporation

KDD (Kokusai Denshin Denwa Co., Ltd., headquarters: Shinjuku-ku, Tokyo, president: Tadashi Nishimoto) and DDI (DDI Corp., headquarters: Chiyoda-ku, Tokyo, president: Yusai Okuyama) have agreed to join hands to develop a joint international-domestic telephone service under a unified brand name and to cooperate with each other in marketing the service. The service will be provided through KDD Teleserve (a wholly-owned subsidiary of KDD, headquarters: Shinjuku-ku, Tokyo, president: Akira Tsumekawa). The companies plan to sign the agreement on August 5.

KDD and DDI plan to launch the telephone service based on the agreement by October this year.

For this service KDD Teleserve will subscribe to volume discount services offered by KDD and DDI respectively, integrate the two services, and offer the joint international-domestic telephone service to end customers under a uniform brand name. KDD and DDI will then market the product.

With this service customers have only to apply to a single "window" to fulfill both international and domestic long-distance telephone needs. The joint endeavor will also allow customers to tap a wide variety of services such as to receive a single bill for both international and domestic calls and to enjoy discounts commensurate with the two carriers' large-volume discounts.

KDD and DDI plan to launch seamless international and domestic services one by one from this October on for leased circuit and frame relay by interconnecting their respective networks. The companies also plan to engage in joint development and joint marketing efforts to study ways to provide even more convenient and inexpensive services.

The gist of the agreement is as follows:

1. Cooperation in telephone service

The two companies will create a joint international-domestic telephone service under a uniform brand name to be provided through resale by KDD Teleserve, then cooperate with each other in marketing the joint service.

2. Cooperation in advanced services

KDD and DDI will interconnect their networks for such corporate services as leased circuit and frame relay, create seamless international-domestic services, and cooperate with each other in marketing the services.

3. Others

KDD and DDI will aggressively pursue the joint development and joint marketing of multimedia-related services including those related to the Internet. The companies will also work together to construct facilities that are of mutual benefit.