


Our internet protocol (IP) revenues increased consequent to the increase in subscribers to B FLET'S, FLET'S ADSL, and other services, and revenues from systems integration also increased. Nevertheless, the size of the market for fixed line continued to shrink, and we provided rate discounts in order to make ourselves more competitive in the mobile communications market. As a result, our operating revenue declined, resulting in a decrease in operating income. Note that through the sale of shares in AT&T Wireless, and the sale of stock consequent to the listing of NTT Urban Development on the stock market, we ended with an increase in net income.


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