Microsoft's communications sector will join Japan Telecom and Softbank BB in a cooperative effort to develop an integrated communications service using Microsoft's solution for enhanced voice-over-IP services, Softbank's voice platform and Japan Telecom's managed network services.

The security-enhanced suite of services will include voice-over-IP, e-mail, Internet access, groupware, presence, instant messaging and desktop services. They will be aimed at Japan Telecom's business customers as a managed information communications technology platform.

The Microsoft solution for enhanced VoIP services comprises hosted versions of Microsoft server products including Microsoft Exchange Server 2003, Microsoft Office Live Communications Server 2005 and Windows SharePoint Services with Sylantro Systems' application feature server. The companies plan to begin trials of the integrated communications services this Spring.

Softbank BB is Japan's largest carrier of IP phone services. It was established in May 2000 to provision broadband infrastructure and provide technical development, marketing, sales and support. Japan Telecom, a wholly owned subsidiary of Softbank BB, is one of the largest information and communications technology service providers in the country. It has over 13,000 kilometers of fiber optics deployed.

Recent forecasts by Dittberner Associates show that the Japan market could be one of the most lucrative for Microsoft. In a recent report on opportunity in next-generation network deployment, Dittberner ranked Japan fifth among all countries in the number of NGN ports already deployed. The country ranked first in markets with the strongest development dynamics for NGN over the next few when considering several factors such as gross domestic product growth, the age of its installed base, fiber deployment, 3G availability and cable TV infrastructure.

Japan ranks third in actual opportunity for vendors of NGN network solutions behind only China and the U.S., which are practically off the charts because of their sheer scale.