Q11Didn't this cause the telephone companies problems?

A11 Yes. The value of the fixed-line telephone network, which has required large capital investment over many years, fell in an instant as a result.

The Nippon Telegraph and Telephone Corporation (NTT) Group was forced to introduce a rival service, which impacted on its existing telephone services, further shrinking its revenues. Nevertheless, when it started i-mode, an Internet service Increasing broadband penetrationfor mobile phones, it and other telephone companies found new revenue streams that compensated for the loss in revenue from fixed-line communications.

The NTT Group was able to promote a faster fiber-to-the-home (FTTH) broadband service, with a top speed of 100 megabits per second, using the fiber-optic cables it had throughout Japan.