Management Strategy of NTT Group

The telecommunications market has seen significant transition, experiencing the rapid spread of broadband services, the quick shift to IP networks and the ongoing convergence of fixed-line and mobile communications, as well as telecommunications and broadcasting. In response to this changing market, the NTT Group announced its Medium-Term Management Strategy in November 2004 with the chief goals of establishing a broadband access infrastructure that includes the Next-Generation Network (NGN) with high reliability and security and offering ubiquitous broadband services to meet diverse customer needs.

In line with the Medium-Term Management Strategy, we steadily promoted business activities, such as commencing commercial-use NGN services. Through this effort, we clearly saw the opportunities in streamlining our infrastructure for future services. Foreseeing the Group's future business activities and structure, in May 2008 we announced a new Medium-Term Management Strategy, the "Road to a Service Creation Business Group," with the aim of developing and offering new services compatible with full IP networks that cover both fixed-line and mobile communications.

As a Service Creation Group, the NTT Group intends to engage in its business activities toward the full-scale development of ubiquitous broadband services in fiscal 2012.

Broadband and ubiquitous services rollout strategy

• Creating and rolling out broadband and ubiquitous services in accordance with customer needs, leveraging full-IP network infrastructure
• Driving the transformation of business portfolio centering on IP and solution businesses
• Promoting reforms to the business operations of group companies in conjunction with the transformation of business portfolio

* "FY" in this material indicates the fiscal year ending March 31 of the succeeding year.

Launch of NGN service commercialization(March 2008) FY 2009 Reinforce and enhance NGN & 3G network services Create services through partnerships with application providers etc. FY 2010 Deployment of both fixed and mobile full-IP network infrastructure (Establishment of the service convergence infrastructure) FY 2011 Progress full-fledged service convergence FY 20112 Full-scale rollout of broadband and ubiquitous services