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NTT's Docomo takeover given green light by Japan antitrust chief

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Created with Sketch.Created with Sketch.TOKYO -- Nippon Telegraph &amp; Telephone's plan to take subsidiary NTT Docomo private is unlikely to present any problems from the standpoint of merger regulations,&nbsp;Japan Fair Trade Commission Secretary General Shuichi Sugahisa told reporters Wednesday.The antitrust watchdog must be notified if a shareholder increases its stake in a company beyond the 20% or 50% thresholds. But NTT, which looks to turn Docomo into a , already owns 66.2% of the carrier.The commission chief's remarks show how regulatory thinking on the mobile market has changed since the early 2000s, when there were concerns about NTT's dominance.When companies in a takeover already belong to the same corporate group and no new relationships are involved, "there should be almost no impact on competition," Sugahisa said.Docomo led Japan's mobile market by subscriber numbers at the end of June&nbsp;with a 37% share, ahead of KDDI's 28% and SoftBank's 22%, government data shows.&nbsp;Docomo was spun off from former state telephone monopoly NTT in 1992 as part of a government effort to ensure fair competition in the telecommunications market. The concern was that NTT, which dominated the market for fixed-line telephones, would extend its influence into the then-nascent mobile market as well.The Fair Trade Commission argued at the time that the two companies should act independently of each other.A report compiled by the agency in 2000 contended that NTT's de facto monopoly on telecom&nbsp;networks should&nbsp;be addressed&nbsp;as a competition policy issue. It recommended that NTT reduce its stake in Docomo to less than 50% or sever the capital relationship entirely."Twenty&nbsp;years ago, fixed-line phones predominated, and wireless communications were emphasized as a factor that could promote competition," Sugahisa said on how the market has changed. "But the situation is different now."Sign up to our newsletters to get our best stories delivered straight to your inbox.Stay ahead with our exclusives on Asia; the most dynamic market in the world.Stay ahead with our exclusives on AsiaGet trusted insights from experts within Asia itself.Get trusted insights from experts within Asia itself.Stay ahead with our .Get within Asia itself.Offer ends October 31stYou need a subscription to...You need a subscription to:Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.By continuing to browse this website, you accept cookies which are used for several reasons such as personalizing content/ads and analyzing how this website is used. Please review ourto learn how you can update your cookie settings.

Created with Sketch.Created with Sketch.TOKYO -- Nippon Telegraph &amp; Telephone's plan to take subsidiary NTT Docomo private is unlikely to present any problems from the standpoint of merger regulations,&nbsp;Japan Fair Trade Commission Secretary General Shuichi Sugahisa told reporters Wednesday.The antitrust watchdog must be notified if a shareholder increases its stake in a company beyond the 20% or 50% thresholds. But NTT, which looks to turn Docomo into a , already owns 66.2% of the carrier.The commission chief's remarks show how regulatory thinking on the mobile market has changed...

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NTT's Docomo takeover given green light by Japan antitrust chief

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