Collaboration Between KDD and TTNet

NotificationSeptember 2, 1997

KDD
TTNet

KDD (Kokusai Denshin Denwa Co., Ltd., main office: Shinjuku-ku, Tokyo, president: Tadashi Nishimoto) and TTNet (Tokyo Telecommunication Network Co., Inc., main office: Minato-ku, Tokyo, president: Katsumi Iwasaki) have agreed on a collaborative arrangement that includes the reciprocal use of networks and the establishment of an Internet-related joint venture. Each company will use the other company's network, technology, know-how, and other business resources to build inexpensive infrastructure, efficiently expand business, and provide seamless international and domestic services. The companies plan to sign the agreement on September 3.

Under the agreement, KDD and TTNet will interconnect each other's networks including those used for telephone, leased circuit, frame relay, and multimedia so they can provide seamless international and domestic services. At the same time, the companies will consider sales cooperation and the provision of services under the same brand name.

From 1998, KDD will use TTNet's network that is directly connected to NTT's GC (Group Center, or local switching office) to reduce the cost incurred for domestic relay network. From 1999, TTNet, on the other hand, will use KDD's JIH (Japan Information Highway) currently under construction to reduce networking costs outside of the Kanto region.

KDD and TTNet will also promote technical cooperation and personnel exchange. At the same time, they will consider establishing a joint venture company that will provide operation, maintenance, and technical support for Internet facilities and market the two companies' Internet-related services.

Following is a gist of the agreement:

1. Reciprocal use of networks

*KDD and TTNet will interconnect their networks for telephone, leased circuit, frame relay, multimedia, etc., so each company can provide seamless services.
*From 1998, KDD will use TTNet's network that is directly connected to NTT's GC to reduce the cost of using domestic relay networks.
*From 1999, TTNet, on the other hand, will use KDD's JIH network currently under construction to reduce the cost of transmissions to areas outside of the Kanto region.
*The companies will also consider sales cooperation and the provision of services under the same brand name.

2. Technical cooperation and personnel exchange

*KDD and TTNet will promote the sharing of technology and operation and maintenance know-how through technical cooperation and personnel exchange.

3. Establishment of an Internet joint venture

*The companies will consider the establishment of a joint venture that will provide operation, maintenance, and technical support for Internet facilities and market the two companies' services.

4. Others

*KDD and TTNet will jointly develop a draft of long-run incremental cost method in an effort to reduce access charges.