KDD America Obtains License to Provide International Telephone Service



1997-024-aSeptember 12, 1997



KDD America Inc. (main office: New York, president: Hiroshi Hirai), a wholly-owned subsidiary of KDD (Japan's Global Communications), on September 12 obtained a license from the FCC (Federal Communications Commission), based on Article 214 of the U.S. Communications Act, to provide international telephone service in the United States. At the same time, KDD America was granted permission to expand the number of destinations of its international leased line resale services.

The license allows KDD America to:
<1> Provide resale of public-switched international telephone services between the United States and the rest of the world except for Japan, France, and four other destinations (*1).
<2> Provide international telephone services by International Simple Resale (*2) between the United States and designated countries (*3).
<3> Add France, Belgium, and Hong Kong to the destinations of its international leased line resale services from the United States.

Although still pending, the FCC is expected in the next few days to permit KDD America to provide the resale of public-switched international telephone services to France and the four other destinations.

Having obtained the license, KDD America will make preparations to launch the services at an early date.

KDD America filed with the FCC an application for the license to provide leased circuit service on January 10 this year and international telephone service on February 12. On March 7, the FCC announced that it would delay processing the applications at the request of the U.S. Trade Representative (USTR), the Department of Commerce, and the Department of State. KDD America sent a letter to the FCC on March 17 to request the agency to expedite the approval process. Then, on September 8, the USTR announced that it was withdrawing the request. The FCC's approval followed.

By working closely with the rest of the KDD group, KDD America has been very active in launching a wide variety of telecommunications services including Globridge (*4, international leased line resale service) and Teleweb (store-and-forward fax service).

KDD will continue to deploy its telecommunications business in such countries as the United States, Germany, and France, trying to meet the telecommunications needs of the world in concert with its group companies.

*1 France, Belgium, Hong Kong, Russia, and Mongolia
*2 The method of providing international telephone services by connecting both ends of an international leased circuit to public networks.
*3 Destinations which the FCC has allowed to provide international telephone services by International Simple Resale (currently U.K., Canada, Sweden, Finland, Australia, and New Zealand).
*4 Service to U.K. and Germany began in March 1996, Japan September 1996, and France February 1997.