The recently proposed separation of NTT into three companies would hav
e caused changes in the ways in which telecommunication standards are
set in Japan: (a) there would no longer have been a virtual monopsony
market in telecommunication equipment in Japan, and no one firm would
have dominated; (b) NTT's research labs would have been divided up and
might no longer have been the primary source of Japanese standards re
search effort; (c) MPT's power relative to smaller firms would have be
en greater, allowing it a greater role in telecommunication standards
strategy, This paper explores what some of the effects of such changes
might have been. (C) 1997 Elsevier Science Ltd.