Japan’s biggest business publication, The Nikkei, is reporting a major shake-up in Japan’s ISP industry. According to the paper, a total of three ISPs in the country, namely NEC Biglobe [JP], Nifty and Internet Initiative Japan (IIJ) are in talks to join forces by 2011. Supposedly, a basic agreement is expected to be reached within this week.
The result of the cooperation would be Japan’s No. 3 ISP, with a market share of 14.4%. The companies hope to be able to cut equipment-related costs by as much as 20% through the move. Even cross-shareholding appears to be possible. The Nikkei also reports that the three companies want to ask other ISPs to join their initiative.
Systems such as email, data management and billing are to be consolidated, without having end users to change their personal addresses. It’s also planned to keep the three different brand names.
Via Nikkei [registration required, paid subscription]
Serkan Toto
NEC and Fujitsu (parent of Nifty) are two big hardware companies had been leading Japan’s personal computers since 80’s, and succeeded to fit into the internet provider business in 90’s, well they both earned a lot more money from their telecom business with NTT. I personally feel sorry for them that they seem to be failing their adaptation to web services layers.