An advisory panel to the telecommunications minister said that Nippon Telegraph and Telephone Corp. should be reorganized or split up if steps to promote competition in the telecom market fail.
The proposal was put forward Tuesday in a report by an ad hoc group of the Telecommunications Council that is studying ways to promote competition in sectors related to information technology.
The report recommends that NTT's regional phone companies -- NTT East Corp. and NTT West Corp. -- open their telecom networks to other carriers to achieve widespread use of broadband Internet access services and stimulate competition.
If these moves fail to show progress in two years, NTT -- the holding company -- should reduce its equity in mobile phone unit NTT DoCoMo Inc. and in NTT Communications Corp., the long-distance and international call arm, the report says.
It also says NTT East and NTT West should be divided into a wholesale unit to lease phone facilities and a retail unit to provide telecom services.
Other changes recommended in the report include a ban on interlocking directorates among NTT group companies.
The panel will hear outside opinions until January before it submits a final report to Toranosuke Katayama, minister of public management, home affairs, posts and telecommunications.
NTT is expected to oppose the report, as it has repeatedly stressed the need to maintain its strong unity.
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