The recent liberalization of international Internet telephone services is leading to a variety of rates and a mushrooming of service operators.
This development is seen by many as a prelude to further competition later this year in Japan's 470 billion yen international telephone market. In late August, the Posts and Telecommunications Ministry deregulated Internet-based telephone services for international calls, triggering the entry of unconventional service providers into the market.
Two days after the announcement, Chiyoda Corp., a Tokyo-based call-back service provider, started Internet telephone service from Japan to 230 countries. It started domestic Internet telephone service in June. "Venture businesses have the advantage (over existing carriers) because we use a leased telephone line and do not need large-scale investment," Chiyoda President Tetsuji Yamada said. "We can offer the service at much lower costs than existing carriers."