Nissan Motor Co. said last week it will sell its stakes in nine Japanese cellular operators, a move that is sure to pave the way for consolidation in a wireless industry crowded with eight operating groups, say analysts.
Choosing to focus on its ailing automotive operations, Nissan said it will sell its interests in the Tu-Ka companies to DDI Corp. and Japan Telecom Co. Ltd. Nissan holds ownership stakes in six Digital Tu-Ka Group companies with Japan Telecom and three Tu-Ka Cellular Group operators with DDI.
The Tu-Ka companies’ realignment will reduce the number of cellular operators into essentially three camps-NTT DoCoMo; DDI and Nippon Idou Tsushin (IDO) Corp., two cellular operators that offer nationwide cdmaOne service; and companies affiliated with Japan Telecom, which include Vodafone AirTouch plc.
These three groups are expected to pursue the three third-generation mobile-phone licenses the Ministry of Posts and Telecommunications hopes to grant this year.
AT&T Corp. and British Telecommunications plc together are acquiring a 30-percent interest in Japan Telecom. The deal received European Union clearance in July and is expected to close this fall, according to British Telecom.
“As a result of deregulation, falling prices and an increasing number of new market entrants, including foreign carriers, I believe further consolidation of not only the wireless market, but the overall communications services market is inevitable,” said George Hoffman, analyst with the Yankee Group in Tokyo. “The direction of all carriers with sufficient resources are headed to is to become full service providers.”
