Enron set to enter Japanese broadband market

All,

Here is what the press have to say about our Japanese office opening, the=
=20
last sentence is of particular importance to the regulatory team.

Xi Xi

-----------------------------------------------------------

02 November 2000
??=20

Enron Broadband Services (EBS) has announced plans to enter Japan's telecom=
s=20
market with a variety of broadband-related services scheduled to start with=
in=20
the next three years.=20

The announcement came at the launch of its wholly-owned subsidiary in Tokyo=
,=20
Enron Japan Corp., where Kenneth L. Lay, chairman and chief executive offic=
er=20
of U.S.-based energy giant Enron Corp., spelled out the company's plans for=
=20
Japan.=20

Enron is to offer its clients, including other service providers and=20
corporates, a broadband fibre optic network - a backbone infrastructure for=
=20
network-based video content distribution - and the leasing of bandwidth on=
=20
high-capacity telecoms circuits, amongst other services, he said. The compa=
ny=20
plans to have its Japanese fiber-optic network in place within the next two=
=20
or three years.=20

=01&Japan is a large and technologically advanced market, and we believe th=
e=20
opportunities for our business here are tremendous,=018 said Ken Rice, chai=
rman=20
and chief executive of Enron Broadband Services. =01&We look forward to=20
developing mutually beneficial relationships with content providers and=20
distribution partners in Japan. This will extend our global reach and provi=
de=20
our Japanese partners with the opportunity to give their customers the=20
highest quality Internet experience.=018

EBS recently announced an agreement with i2, a U.S. electronic software=20
developer, to provide bandwidth capacity to meet its international networki=
ng=20
needs, including linking i2's Dallas headquarters with its Tokyo location. =
In=20
addition, EBS is developing a pooling point in Tokyo, which will facilitate=
=20
the buying and selling of bandwidth between Japan and the U.S.=20

The company also said it hoped to eventually supply Japan with the same=20
video-on-demand service planned for the U.S., which it is developing with=
=20
video rental store chain Blockbuster Inc.=20

As a first step to competing in Japan, Enron must find a Japanese affiliate=
=20
to obtain a Type 1 telecoms carrier license.=20