Japanese firms merge ISP operations

NEC, Matsushita, KDDI and Japan Telecom are to merge internet service operations.

The alliance will bring together 10m subscribers, surpassing Fujitsu's Nifty service by 5m.

The alliance reflects intensifying competition in broadband services.

Business is growing rapidly with more consumers logging on via cable TV and video game consoles.

The companies said they will share communication networks and data centres and co-develop next-generation services.

NEC spokesman Yasuhito Jyochi said: "We realised that it takes a great deal of investment to create attractive broadband content. The level of investment required is a huge burden for any one company."

The companies said they plan to begin joint operations by the end of this year.

Matsushita is best known outside Japan for the Panasonic brand.