At a time of frequent mergers and acquisitions in the global telecommunications market, Global One, partly owned by Deutsche Telekom AG, is ahead of its competitors and has already started to implement its alliance strategy, Eugen Angster, president of Deutsche Telekom (Tokyo) said.
“AT&T and BT’s forming an alliance now is what we did three years ago. … And we are already implementing our strategy with our partners,” Angster said. Global One is a joint venture of Deutsche Telekom AG, France Telecom S.A. and Sprint in the United States.
In contrast to the proposed merger of AT&T Corp. and British Telecommunications PLC announced in July, Global One has steadily grown to generate more than $1 billion in revenue a year since it was founded in February 1996, Angster said.
Global One Communications Network, Inc., a Japanese subsidiary of Global One, will specialize in international services for multinational companies and is expecting to obtain a Type I carrier license from the Ministry of Posts and Telecommunications probably by the end of the year, Angster said.
“That means that we are very clearly approaching this market in a very competitive way. Getting a Type I carrier license means reducing prices and being competitive,” Angster said.
Angster explained that compared with other licenses, a Type I carrier license enables the license holder to acquire better rates in carrier-to-carrier deals.
As family members of the Global One alliance, Deutsche Telekom (Tokyo) and Global One are not in direct competition, as each targets a different market, Angster added.
Deutsche Telekom (Tokyo), founded here in 1990, actively pursues business opportunities in the prospective Japanese market, particularly those made possible by the on-going deregulations here, Angster said.
As a Type II carrier that provides services based on leased telecommunication facilities, Deutsche Telekom (Tokyo) currently offers services ranging from private circuits to Internet connection services, mainly for business customers.
Deutsche Telekom (Tokyo) tries to reach out to as many firms as possible among more than 600 German companies operating in Japan, its primary target. “Deutsche Telekom AG is one of the biggest (telecommunications) companies in the world. Therefore, we always follow our customers in all countries. We want to serve as many German enterprises in Japan as possible,” Angster said.
Deutsche Telekom (Tokyo) is also highly interested in system integration services, namely, offering telecommunications systems customized for corporate clients and providing followup services for them.
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