The panel recommended the breakup of the former state monopoly by 2010-2011, either by splitting it up or abolishing its holding company structure. The panel reports to Heizo Takenaka, the Japanese minister of internal affairs and communications, and is made up of academics and industry specialists.
The Japanese carrier was privatized way back in 1985 and is essentially made up of five units, namely NTT DoCoMo (Japan’s largest mobile operator), NTT Communications (long distance fixed-line calls), NTT East and NTT West (local calls in two regions of Japan); and NTT Data (the services unit).
The Japanese government remains the largest shareholder, with a 43% stake in the group, which is the world’s largest carrier in terms of market cap.
It is believed the recommendations include the spinning off as independent entities NTT East and NTT West. However the proposals are likely to encounter stiff opposition from Japanese politicians and the carrier itself.
Its ADR shares fell 0.20% on the New York Stock Exchange to $24.95 following the news.
