Astel Tokyo-TTNet Merger and Resulting New Services


On April 1, 1999, Astel Tokyo Corporation (ASTEL) was merged into Tokyo Telecommunication Network Co., Inc. (TTNet). “Astel” continues to be used as the service name.

TTNet is a Type I telecommunications carrier (facility-based carrier), established in March 1986 with capital from Tokyo Electric Power Co., Inc. (TEPCO), Mitsubishi Corp., Mitsui & Co., Ltd. and others. Since its inception, TTNet has deployed its business based on fiber-optic networks, including leased line service and “Tokyo Denwa (Tokyo telephone),” its discount service package for relaying local and long-distance calls, in the Tokyo Metropolis and its surrounding areas (the Kanto region).

Meanwhile, ASTEL was capitalized by 155 companies, including TEPCO, Mitsubishi and Mitsui - the three major TTNet shareholders and began to provide PHS service in the Kanto region.
Under severe competition in the mobile communications market and the trend toward reorganization of telecommunications operators in Japan, shareholders of ASTEL and TTNet agreed to their merger, noting the excellent potential of the PHS mobile communications business. The merger will allow TTNet to offer comprehensive wire and wireless communications services. New Astel services will focus more on corporate users and data communications, not just on individual users as they did in the past.

TTNet is striving to realize the following strategies with this merger:

  • One-stop shopping by offering packages combining wire and wireless communications services
  • Enhancement of subscriber networks by integrating wireless communications systems with conventional fiber-optic lines
  • Responding to demand for data communications by combining Internet communications and PHS’s strengths as a mobile tool.

    On May 1, the “new” TTNet launched its first discount program, “Tokyo Set,” based on their new strategy of one-stop shopping.’ This service gives a discount to customers who subscribe to both “Tokyo Denwa” and ASTEL PHS service 300 yen off each month for any of the four PHS basic monthly charges that range from 980 to 2,700 yen.

    TTNet will promote its PHS business vigorously, integrating fixed network services and PHS mobile communications services.