For the last few years, the videoconferencing system and multi-point connection service market represented by multimedia technology have enjoyed strong growth in Japan. Behind the recent upturn in this market was the strategic alliance of NTT, Japan's largest telecommunications carrier, and PictureTel of the USA, followed by the birth of business communities centered around or outside NTT, thus intensively creating and boosting a new market referred to as interactive video communication. This paper reviews the challenges that faced NTT, one of the big businesses in Japan, followed by PictureTel and other players within and outside NTT, all of which created various strategic business communities. Copyright © 2001 John Wiley & Sons, Ltd.
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