On Monday, Nov. 1, Fujitsu
                          formally merged its 650,000-member InfoWeb
                          ISP with the 2.85-million-member Nifty-Serve online service operated
                          by its wholly-owned Nifty Corp. subsidiary. 
                          With 3.5 million members, the newly created @nifty “megaprovider”
                          ranks as Japan’s largest ISP, ahead of NEC’s Biglobe (2.7 million
                          members). 
                          The @nifty service becomes the world’s second-largest ISP, slightly
                          larger than Germany’s T-Online (3.3 million members) but far behind the
                          US’s 19-million-member AOL. 
                          Currently, the merged @nifty offers some 800 user
                          communities/discussion forums, 1,400 free and fee-based online content
                          services, and 300 online store. 
                          Nifty has announced several new services in conjunction with the @nifty
                          launch. 
                          These include an i-mode cellular phone notice board service and a
                          Mobile Fitter conversion service (using Spyglass Prism) that will enable
                          standard Web pages to be displayed on mobile terminals such as cellular
                          phones or palm-size computers. 
                          Other new services are personalized log-on pages, a digital photo print
                          service (in cooperation with Fuji Film), online insurance sales, and a
                          combined shopping@nifty portal service that will have more than 500
                          stores by the end of March. 
                          Fujitsu and Nifty are counting on the merger to give @nifty a major boost
                          in both performance and prestige, and thus help them to leverage its
                          further growth. 
                          They hope the prospect of reaching Japan’s largest single Internet user
                          base will lure more top advertisers and content providers, while the
                          promise of one-stop access to the most extensive online selection of
                          Japanese-language content and services will, in turn, attract more
                          subscribers.


