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(Nikkei BP Group)

(No.1 High-Tech News Site in Japanese)

  • DDI to Test IP-Based Networking Infrastructure
  • January 18, 1999 (TOKYO) — DDI Corp. will start testing a next-generation network system to integrate voice and data traffic, within fiscal 1999, said DDI president Akira Hioki.
    DDI is a major long-distance telecom carrier.

    Due to the increasing demand for data communications, the company will study a low-cost network backbone based on Internet Protocol (IP).

    This trial will be the second among common carriers in Japan, following the progressive and revolutionary integration on service media (PRISM) of Japan Telecom Co., Ltd., which was announced in December 1998.

    “In the current fiscal year, 87 percent of DDI’s sales are projected to come from long-distance telephone services, but this percentage will decline to 52 percent in fiscal 2001. Data traffic will increase relative to voice, and thus investments must be made to establish new network infrastructures to meet changing network requirements,” Hioki said.

    In the trial network, no telephone switches will be deployed, Hioki noted. Instead, voice and data convergence service over an IP network will be pursued, although details will be announced later.

    Japan Telecom estimates that communications costs will be less than a tenth of the present level if an IP-based PRISM infrastructure is used. The company plans to begin a field trial in April 1999 and offer commercial service in April 2000.

    Japan Telecom will discontinue utilizing all of the existing costly telephone switches in 15 years.

    DDI is likely to set a similar objective.

    Related story: Japan Telecom, Nihon Cisco Systems to Begin IP Network Trials

    (Nikkei Communications)

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