The investment will allow the group to take advantage of relatively cheap internet technology, dramatically reduce the cost of its voice traffic and seamlessly link email and traditional phone services. The investment would see the workforce at IDC double over the five-year period. The number of internet access nodes will be increased from 40 to 160. NTT, for instance, already has completed the transition of its backbone to optical fibre and has completed about 35 per cent of the work from its office to feeder points. The market for overall IP and data services is forecast to overtake the traditional voice market by 2003.
Japan is the second largest market in the world for telecommunications services.
It has achieved this through a series of acquisitions and divestments made by current chairman, Mr. Graham Wallace. The company has made several divestments for which it has been part-paid in stocks. Most of these stocks have fallen sharply in value. The Hong Kong Telecom deal was originally worth 13.3 billion but was yesterday worth around 7.7 billion. This was a result of PCCW shares being caught up in the bloodbath of Internet stocks.