Last updated : May 22, 2012

Overview of Business Results by Business Segment (April 1, 2011 - March 31, 2012)

(Billions of yen)

	Fiscal Year Ended March 31, 2011 (April 1, 2010 - March 31, 2011)	Fiscal Year Ended March 31, 2012 (April 1, 2011 - March 31, 2012)	Change	Percent Change
Operating revenues	4,027.2	3,764.8	(262.4)	(6.5)%
Operating expenses	3,900.0	3,677.9	(222.1)	(5.7)%
Operating income	127.3	86.9	(40.3)	(31.7)%

Number of Subscriptions

(Thousands)

		March 31, 2011	March 31, 2012	Change	Percent Change
FLET'S Hikari		15,059	16,564	1,506	10.0%
	NTT East	8,511	9,353	842	9.9%
	NTT West	6,547	7,211	664	10.1%
Hikari Denwa		12,113	13,900	1,788	14.8%
	NTT East	6,446	7,402	956	14.8%
	NTT West	5,667	6,498	831	14.7%

Notes:

1. The figures for "FLET'S Hikari include NTT East's B FLET'S and FLET'S Hikari Next (launched in March 2008) and NTT West's B FLET'S, FLET'S Hikari Premium, FLET'S Hikari Mytown and FLET'S Hikari Next (launched in March 2008).
2. The figures for Hikari Denwa indicate the number of channels (in thousands).

Nippon Telegraph and Telephone East Corporation (NTT East) and Nippon Telegraph and Telephone West Corporation (NTT West), which are the main subsidiaries of NTT in the regional communications business segment, worked to secure solid revenue structures by collaborating with other business operators, expanding FLET'S Hikari service menus, promoting fiber-optic and IP related services through expansion of Hikari use scenarios utilizing Wi-Fi, and improving support services that lead to customer retention.

[1] Number of Subscriptions for Major Services

• FLET'S Hikari: 16.56 million subscriptions (an increase of 1.51 million subscriptions from the same period of the previous fiscal year)
• Hikari Denwa: 13.90 million channels (an increase of 1.79 million channels from the same period of the previous fiscal year)
• FLET'S TEREBI: 0.86 million subscriptions (an increase of 0.27 million subscriptions from the same period of the previous fiscal year)

[2] Promotion of Fiber-optic and IP Services

Major Services Launched in the Fiscal Year Under Review

Service or Product	Description
FLET'S Hikari Light (NTT East / NTT West)	Optical broadband service providing a two-tier fixed rate system with low basic monthly charges for customers who are just starting to use the Internet or have few opportunities to use the Internet.
FLET'S Joint (NTT East / NTT West)	A service of delivering software (remote control system of digital electronics or surveillance cameras, etc.) held in a software delivery server on behalf of service providers, to home gateways of FLET'S Hikari Next users.
Hikari Portable "Wi-Fi Cradle" (NTT East)	A desktop holder equipped with high-speed wireless LAN available for rent as an option for the mobile Wi-Fi router, "Hikari Portable." Allows the use of wireless LAN at home even while taking "Hikari Portable" outside.
Hikari Station (NTT East)	A service offered for "FLET'S Hikari Next" customers operating chain stores, stores in shopping arcades and public facilities, etc., that provides an Internet connection environment for visitors by installing Wi-Fi access points, and distributes store information and coupons.
Ninen-wari (NTT East)	A discount plan for single-unit family type of FLET'S Hikari Next and B FLET'S services, conditioned on the user staying subscribed for a period of 2 years.
Hikari BOX (NTT West)	A device that enables the viewing of video services on the Internet by connecting to the TV, easily operated via remote control.

Major Collaborative Projects with Other Businesses Relating to Provision of Services Entered into During the Fiscal Year Under Review

Business Partner	Description
OMRON Corporation (NTT West)	Established NTT Smile Energy, a joint venture providing energy-saving support services to households, utilizing the combined business know-how of OMRON Corporation's advanced sensing and control technology (an automatic control technology of devices using sensors) and NTT West's network technology. Began providing "Eco-Megane," a service of "visualizing" domestic power consumption and power generation of solar power systems.
Seven & i Holdings Co., Ltd. ("Seven & i") (NTT East)	(Entered into a comprehensive business collaboration agreement to utilize resources of both Seven & i and NTT East, including Seven & i Group's store locations and NTT East's optical broadband services. In addition to the development of Wi-Fi bases at store locations and the provision of shopping support, NTT East and Seven & i started working to prepare information stations (offering free public wireless LAN spots during disasters and installing special public telephones) for emergency situations in the 23 wards of the Tokyo metropolitan area.
Gurunavi, Inc. (NTT East)	Began collaboration of services, by utilizing Gurunavi, Inc.'s relationships with restaurants, in making suggestions to install "FLET'S Hikari + Wi-Fi" at such restaurants and combining invoices of Gurunavi's shopping sites with FLET'S Hikari's invoice.

[3] Improving Customer Service

Expanding and Enhancing Customer Support

• Subscriptions for "Remote Support Service," which provides remote responses to a broad range of customer inquiries concerning all aspects of broadband services, reached 4.30 million. (NTT East/NTT West)
• Subscriptions to the "FLET'S Hikari Members Club," (for NTT East) and "CLUB NTT-West" (for NTT West), membership privilege programs that offer points based on monthly usage and special content, reached a total of 7.76 million.

Major Collaborative Projects with Other Businesses Relating to Support Services Entered into During the Fiscal Year Under Review

Business Partner	Description
Canon Marketing Japan Inc. (NTT East · NTT West)	Call centers and maintenance support departments of each business partner. NTT East and NTT West are collaborating to establish a system for providing one-stop customer support (for breakdowns and other troubleshooting) to their respective customers in order to handle the increased variety of office ICT equipment, including network connectable PCs and business phones, and to respond to the increasingly complex user environment.
Epson Sales Japan Corp. (NTT East)
RICOH JAPAN Corporation (NTT West)
TOSHIBA TEC CORPORATION (NTT West)
Allied Telesis K.K (NTT West)

As a result of the above activities, and despite an increase in IP / packet communications revenues attributable to the increase in "FLET'S Hikari" and "Hikari Denwa" subscriptions, consolidated operating revenues in the regional communications business segment for the fiscal year ended March 31, 2012 decreased to 376.48 billion yen (a decrease of 6.5% from the previous fiscal year) due to a decrease in fixed voice related revenues resulting from the decline in fixed-line telephone subscriptions and the effect of an increase in revenues from the construction of fiber-optic facilities commissioned by local governments, which were recorded in system integration revenues for the previous fiscal year. On the other hand, due to a decrease in expenses in conjunction with the decline in commissioned revenues, as well as a decrease in personnel expenses and depreciation and amortization expenses, consolidated operating expenses were 3,677.9 billion yen in the fiscal year ended March 31, 2012 (a decrease of 5.7% from the previous fiscal year). As a result, consolidated operating income was 86.9 billion yen (a decrease of 31.7% from the previous fiscal year).

• Regional Communications Business Segment
• Long-distance and International Communications Business Segment
• Mobile Communications Business Segment
• Data Communications Business Segment
• Other Business Segments

Related Article

• Latest IR Information
• Financial Highlights

Sub Content Area