The Posts and Telecommunications Ministry released a draft policy plan Oct. 2 on the reorganization of Nippon Telegraph and Telephone Corp., which will be split into three firms under the control of a single holding company.Under the basic draft, the ministry proposed that the disintegration of NTT, which is to be separated into two local carriers and one long-distance company, take place at the earliest between April 1 and Dec. 20, 1999.In the draft, the ministry made it a requirement that the convenience of users, such as receiving the service nationwide, be ensured and that the quality of service be maintained after the reorganization of the giant carrier.To ensure fair competition in the future telecom industry, the ministry proposed setting up a fire wall between the local carriers and the long-distance firm. The fire wall includes prohibiting personnel exchanges at the management level between the long-distance firm and the local carriers and ensuring the long-distance firm provides the same connecting conditions to the local carriers and other carriers.Under the draft, NTT subsidiaries that currently operate nationwide will be transferred to the holding firm, while affiliates related to international business will belong to the long-distance firm, a ministry official said.
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