Japan to privatise telecom giant

NTT is one of the world largest telecoms players

The Japanese Prime Minister Yoshiro Mori has called for the full privatisation of telecommunications giant, NTT.

He said he would ask for the full government sale of the company as soon as possible.

The Japanese government holds 59% of NTT and has been gradually selling off the company's shares, but a complete sale would require a change in legislation.

"We have to head to the direction of full privatisation," Mr Mori said.

"We say that NTT should make an effort in the global market. But the firm cannot make it if it is handcuffed and shackled," he said.

Late last year, the government announced a plan to sell up to one million shares in NTT by March 2001. The plan will lower the state's stake to 53%.

NTT is one of the world's largest telecommunications companies, controlling more than 90% of local telephone lines in Japan, the world's second biggest telecoms market.

It owns NTT DoCoMo, the world's second largest mobile telephone operator.

Analysts expect the company's shares to rise sharply on the Tokyo market on Monday following the announcement.

The company is one of the most popular listed on the Tokyo Stock Exchange.

The company has recently been boosting its global presence by buying up US web site manager Verio and through a mobile joint venture with the Netherlands' telecom operator, KPN.