IS BOTTLENECK A VIABLE CONCEPT FOR THE BREAKUP OF NTT

In this paper the NTI divestiture is examined mainly from two aspects. First, it is alleged that NTT is a bottleneck monopolist, or essentia l facility, in the local telephone network, Is this still true with th e technological innovation and the liberalization of NTT's local switc h? Secondly, can the breaking up of NTT into pieces be an effective me ans of realizing competition in the local telephone network? The autho r concludes that the introduction of a reasonable interconnection char ge could contribute to dissolve the NTT bottleneck, and a divestiture policy is an ineffective way of realizing competition. (C) 1997 Elsevi er Science Ltd.