BT and AT&T to invest $1.83bn in Japan Telecom

BT and AT&T to invest $1.83bn in Japan Telecom
Tom Foremski
BT and AT&T will buy a 30 per cent stake in Japan Telecom for $1.83bn as the first step in their nine month old joint international venture.
The two companies will each hold 15 per cent stakes in Japan Telecom and the companies said that their $10bn joint venture will look for similar opportunities worldwide. The deal with Japan Telecom calls for it to become the sole distributor of BT and AT&T branded services and as a supplier of services to BT and AT&T.
“When BT entered the Japanese market in 1985, our ambition was to become a strong force in the world’s second largest telecommunications market, which is worth about US$100bn a year,” said BT head Peter Bonfield. “This deal will allow Japan Telecom to become the number one challenger in Japan.”
Japan Telecom has about 17 million customers and has plans for a third generation wireless system that is compatible with 3G systems from BT and AT&T.

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