Japan’s second largest carrier KDDI Corp is planning to spin out its fixed-line business to enable it to focus on its fast-growing mobile operation that is closing on market leader NTT DoCoMo Inc.
While an official at the company would only confirm that the idea is under consideration, reports in the Japanese press suggested that the operation could be completed by the end of the year.
The fixed-line operation, which accounts for about 20% of KDDI’s revenue has been struggling as a result of intense competition in the broadband access market and a decline in fixed-line voice revenue as customers make more use of mobile phones.
Without the drag of its fixed-line business, KDDI’s mobile operation would be free to post impressive results as it is recruiting a majority of new mobile phones customers in Japan.
UnitedGlobalCom Inc also boasted gross proceeds of roughly $1bn from a fully subscribed rights offering, which will provide the broadband provider with working capital to pay off outstanding debt and for use in future acquisitions.
UGC issued approximately 83.0 million shares of the UGC Class A common stock offered in the rights offering. In addition to this, Class B and Class C rightsholders have subscribed for approximately 2.3 million shares of UGC Class B common stock and approximately 84.9 million shares of UGC Class C common stock.
UGC is the one of the largest international broadband communications providers of video, voice, and high-speed internet services, with operations in 15 countries. At the end of last September, its network was available in 12.6 million homes, serving 7.4 million video subscribers, 717,900 voice subscribers, and 868,000 high-speed internet access subscribers.
In other news, ISP Wanadoo SA is to provide the European Commission with accounts for its ADSL services for the next three years in a bid to curb its aggressive pricing policy, according to French business daily Les Echos.
Last year, the Commission fined Wanadoo 10.3m euros ($13.1m) for predatory pricing though the company says it will appeal against the ruling. Les Echos said Wanadoo will now have to provide the commission with monthly accounts to ensure its prices are not anti-competitive.
Wanadoo, which is 70% owned by France Telecom, now has more than half the French market for broadband connections. Rival companies complained to the Commission about what they regard as an aggressive pricing policy.
This article is based on material originally published by ComputerWire
