(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
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| PSINet Japan to Offer Inexpensive Net Access Service
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September 9, 1998 (TOKYO) -- PSINet Japan K.K., the Japanese subsidiary
of PSINet Inc., a leading U.S. Internet service provider, will offer
an enhanced InterFrame-LA (Local Access) service from Oct. 1.
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InterFrame-LA provides inexpensive access to the Internet at a monthly
cost of 48,000 yen (US$350) for a continuous 128kbps connection.
In April, the InterFrame-LA service started on a trial basis in part
of Tokyo's Minato ward. The expanded service will cover virtually all
of central Tokyo as of October.
The company's InterFrame-LA uses Open Computer Network (OCN) access lines
provided by Nippon Telegraph and Telephone Corp. (NTT). NTT makes the
access line component of OCN available to telecommunications providers
as a separate deal from its OCN access service.
PSINet's flat rate of 48,000 yen a month includes the OCN access line
charges. Other providers are charging in excess of 100,000 yen (US$730)
for 128kbps services, excluding the access line charges.
InterFrame-LA is much less expensive than its competitors. It still costs
10,000 yen more than NTT's OCN Economy service, but the router rental
is included in the InterFrame-LA rate and customers have the advantage
of unlimited IP addresses.
PSINet uses firewall routers from Proteon Inc. of the United States.
The firewall capability is not being utilized, but PSINet plans to offer
firewall security as an optional service for an extra charge of around
20,000 yen (US$145) a month.
The most successful of the services offering full-time connectivity in
Japan is NTT's OCN Economy service, which has about 15,000 subscribers.
The main competition in pricing is from Type-1 telecommunications carriers
(common carriers) such as DDI Corp., Japan Telecom Co., Ltd. and Teleway
Corp. These three companies offer connection services via OCN access
lines for monthly rates of less than 40,000 yen (US$290).
Companies like PSINet, which are classified as Type-2 providers (leasing
rather than owning capacity), do not usually provide services via OCN
access lines. Most of these providers focus on high quality and reliability
to attract customers, offering services priced higher than OCN Economy.
In contrast, PSINet believes that the only way it can compete against
the popularity of OCN Economy is by positioning its services in roughly
the same price bracket. The company intends to continue offering inexpensive
alternatives.
PSINet Japan is making moves to enhance its services, following an announcement
Aug. 26 that its U.S. parent company will take over Rimnet Corp., a
midsize provider in Japan. Although still a Type-2 provider, PSINet
is projecting itself as a viable telecom carrier in Japan.
Related story: U.S.-Based
PSINet to Acquire Japanese ISP Rimnet
(Nikkei Communications)
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