A Different Time, A Different Place: Breaking Up Telephone Companies in the United States and Japan

Currently, the Japanese government is in the midst of a decision with respect to the future of the now privatized Nippon Telegraph and Telephone (NTT) of Japan. The divestiture of AT&T, NTT\u27s United States counterpart, occurred over a decade ago. The Japanese government is contemplating the use of AT&T as a model for the break up of NTT. Because of NTT\u27s history as a monopoly service provider, the central issue confronting Japan is how to create a market that can withstand competition nationally and globally. The Author adopts a comparative approach in seeking to provide guidance to policymakers in Japan. First, the Author highlights some of the fundamental differences between the American and Japanese telecom munications markets, including the different regulatory structures. Ultimately, the Author suggests that if the divestment of NTT mirrors the break up of AT&T, Japan\u27s ability to compete effectively with global counterparts in the near future could be undermined