America Online Inc. of the United States will effectively withdraw from Internet connection services in Japan as its wholly owned Japanese subsidiary decided to turn over its business to a Tokyo firm, the subsidiary said Monday.
AOL Japan Inc. said it will turn over its Internet connection service division June 30 to eAccess Ltd., a provider of asymmetrical digital subscriber line services.
Under the 2.1 billion yen deal, all of AOL Japan's facilities and assets associated with its Web hookup service as well as all its 200 employees will be transferred to eAccess, the company said.
AOL Japan said eAccess will maintain its technological cooperation with AOL Japan to provide all types of services that AOL Japan currently offers its subscribers.
Set up in 1996, AOL Japan has been offering Net hookup services by concluding capital affiliation arrangements with NTT DoCoMo Inc.
But it has experienced problems in attracting new subscribers to its Net hookup services as a result of intensifying competition in the market.
In December, it ended its capital affiliation with NTT DoCoMo and Mitsubishi Corp., and became a wholly owned subsidiary of the U.S. parent. It has since been searching for new business partners.