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(Nikkei BP Group)

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

  • IIJ, Toyota, Sony Launch Data Communications Company
  • November 3, 1998 (TOKYO) -- Internet Initiative Japan Inc. (IIJ), a major Internet service provider, Toyota Motor Corp. and Sony Corp. set up a telecommunications company called Crosswave Communications on Oct. 28.
    The company aims to provide high-capacity data communications lines, according to information obtained by Nikkei Communications.

    Crosswave Communications is capitalized at 100 million yen (US$836,000), with IIJ, Toyota and Sony holding equity stakes in a 4:3:3 ratio. Koichi Suzuki, president of IIJ, has been appointed president.

    The objective of the new company is to enter into "telecommunications business activities as prescribed in the Telecommunications Business Law, and all incidental business activities."

    Crosswave Communications will build an optical-fiber backbone to provide a high-speed data communications infrastructure that operates independently of existing telephone networks. This will be the first time in Japan that a backbone network will be built by a Type-1 telecommunications carrier acquiring an indefeasible right of use (IRU) for optical-fiber capacity.

    Synchronous Optical Network (SONET)/Synchronous Digital Hierarchy (SDH) technology will be utilized, to significantly reduce the cost of network construction.

    Crosswave Communications aims to provide innovative services, in terms of charges, and readily available bandwidth and service options. It will respond to the growing demand for data communications, an area that is expanding at a brisk pace as the Internet and other technologies become more widely available.

    The company will start building the domestic infrastructure when it receives approval as a Type-1 carrier, and national services will begin in April 1999. International services are planned to begin in April 2000.

    (Nikkei Communications)

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    Updated: Mon Nov 2 20:46:46 1998 PDT