NEW YORK—Any plans to take the J-Phone wireless business of Japan Telecom public must wait until the performance of its parent improves, said Chris Gent, chief executive of Vodafone Group, which recently announced its offer to acquire a controlling interest in the Japanese carrier.
“Chairman Koichi Sakata (of Japan Telecom) and I have discussed that possibility. … But improving the business performance of Japan Telecom is a higher priority at the moment,” Gent said, according to a Reuters report based on his presentation via satellite on 20 September to journalists based in Tokyo.
Vodafone Group said it was in talks to purchase East Japan Railway’s 15.2-percent stake in Japan Telecom, increasing the wireless giant’s share of Japan’s third-largest telecom company to around 67 percent. The move is seen as part of Vodafone’s intent to take control of Japan Telecom and expand its worldwide presence to Japan.
Japan Telecom owns 54 percent of mobile phone operator J-Phone, which recently announced the merger of its four operating companies into one central wireless company. By holding more than two-thirds of the carrier, Vodafone will gain the total management power of Japan Telecom, which will give Vodafone the right to make decisions on vital management issues by itself.
