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Telecommunications businesses affiliated with Tokyo Electric Power Co. and Nissho Iwai Corp. said Friday they have reached a basic agreement to integrate their fixed-line phone operations on July 1.

The planned integration involves Tepco’s telecommunications affiliate Poweredcom Inc. and Nissho Iwai’s Internet protocol telecom service affiliate Fusion Communications Corp.

The two firms said the integration is intended to make a leading telecommunications company offering IP telephony and other services by making good use of their management resources to further strengthen their technological edge and marketability.

It will create Japan’s fourth-largest fixed-line telecom business after Nippon Telegraph and Telephone Corp., KDDI Corp. and Japan Telecom Holdings Co.

Poweredcom will spin off its fixed-line operations for integration with Fusion Communications, in which Poweredcom will take a majority stake, the two companies said.

Fusion Communications President Tadahisa Sumida will continue serving as president after the integration, they said, noting other management lineups are subject to future negotiations.

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