Japan's Computer and Communications Industry: The Evolution of Industrial Giants and Global Competitiveness

By Martin Fransman | Go to book overview

Table 2.3 NEC's Sales to the Ministry of Communications (MoC), 1925-1931
Total expansion
budget (MoC)
NEC sales
to MoC
Share
(%)
1925 37,000 13,945 37.8
1926 48,620 16,041 33.0
1927 47,000 13,027 27.7
1928 40,770 8,481 20.8
1929 30,950 6,500 21.0
1930 21,051 1,862 8.8
1931 11,859 1,341 11.3
Source: NTT, Twenty-Five Years of Japan's Automatic
Telephone Switches
(in Japanese), NTT, Tokyo, 1953.

Conclusion

In 1949 the Japanese government, in consultation with the Supreme Commander for the Allied Powers (SCAP), disbanded the Ministry of Communications and created two new ministries, the Ministry of Postal Affairs ( Yuseishō) and the Ministry of Telecommunications ( Denki Tsushinshō). Simultaneously, the government established the Advisory Council for the Reconstruction of Telegraph and Telephone Networks to consider an appropriate framework for the postwar telecommunications sector in Japan.

The Advisory Council published its final report in March 1950, recommending that the Japanese telegraph and telephone networks should be run by a public corporation, rather than as a direct government monopoly. In 1952 a large part of the Ministry of Telecommunications was transferred to the newly created Nippon Telegraph and Telephone Public Corporation (NTT). Unlike the Japanese National Railways, which had to compete in some areas with private railways, NTT was given a monopoly over telegraph and telephone services. The Ministry of Postal Affairs was renamed the Ministry of Posts and Telecommunications (MPT) and given regulatory responsibility in some telecommunications areas.

NTT's first President was Takeshi Kajii. Kajii was Director of the Engineering Bureau of the Ministry of Communications until 1938, when he became Managing Director of NEC. In 1943 he became President of NEC, the same year that NEC was designated under the government's Munitions Company Law of October 1943 as a munitions company under the jurisdiction of the military-run government. Kajii was made the officer responsible for production under this law. In January 1946 he was purged by the Allied authorities and resigned as president of NEC. In 1952 he became the first president of NTT.

Although the metamorphosis of the Ministry of Communications into NTT took place at the formal level, at the more substantive level there was a far greater

-40-

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