| HBS Case Collection
(Revised March 2007)
The managers of eAccess, Japan's third largest provider of digital subscriber line (DSL) service, must decide whether to enter the mobile communications business. Japan's mobile services are among the world's most expensive, and incumbent carriers' profits are high. To introduce more competition, the government plans to license new mobile carriers in 2005. eAccess could realize marketing and operational synergies between its DSL and mobile businesses. Also, the company has a proven ability to influence government policy--a crucial concern for mobile entrants. However, launching a mobile carrier would require enormous capital expenditures and could expose eAccess to the risk of a price war, particularly if, as expected, its aggressive DSL rival, Softbank, also receives a mobile license.
Keywords: Technology Networks;
Eisenmann, Thomas R., Masako Egawa, and Ariko Ota. "eAccess, Ltd." Harvard Business School Case 805-117, April 2005. (Revised March 2007.)