Japan Satellite Systems Inc. (JSAT) operating 5 satellites (including onestand-by satellite ) for domestic/international communications services and DTH (Direct to the Home), and NTT Communications Corporations (NTTCommunications) operating 2 satellites* for domestic communicationsservices, agreed today on the following points:
1) NTT Communications' investment in JSAT
2) Transfer of NTT Communications' ownership in its satellites to JSAT
3) Development and promotion of domestic and international satellitecommunications business by utilizing both companies satellites
Both companies will proceed to the discussions on the details of the alliance, seeking for the new business horizon and dynamic synergy effects in combining the satellites.
Global satellite business has been undergoing dramatic change, as seen withthe recent introduction of the global low/middle earth orbit (LEO/MEO)satellite systems and satellite-based Internet services. Responding to thegrowing demands for the Internet and multinational corporations (B needs,
world (Bs major satellite operators are constructing global networks andentering into business tie-ups.
The two companies already have been collaborating in satellite business,such as the establishment of NTT Satellite Communications Inc. in April1998. The company provides high-speed satellite Internet/Intranet services.
*Jointly owned by NTT Communications, NTT Mobile Communications Network, NTT East and NTT West.