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Is 'bottleneck' a viable concept for the breakup of NTT?



In this paper the NTT divestiture is examined mainly from two aspects. First, it is alleged that NTT is a bottleneck monopolist, or essential facility, in the local telephone network. Is this still true with the technological innovation and the liberalization of NTT's local switch? Secondly, can the breaking up of NTT into pieces be an effective means of realizing competition in the local telephone network? The author concludes that the introduction of a reasonable interconnection charge could contribute to dissolve the NTT bottleneck, and a divestiture policy is an ineffective way of realizing competition.

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