
I would like to present here a brief introduction to “NTTis... Report on the Interim Financial Results of the 25th Term,” and to take this opportunity to thank all shareholders for your continued support.
In the first half of the fiscal year ending March 31, 2010, NTT Group took measures to expand its broadband*1 and ubiquitous*2 services pursuant to its new medium-term management strategy entitled “Road to Service Creation Business Group” adopted in May 2008.
In the fixed-line communications market, NTT Group expanded the coverage area of “FLET'S Hikari Next” and worked to expand the sale of services that take advantage of the capabilities of the NGN, such as video distribution service. In addition, NTT Group made efforts to explore the multi-dwelling unit market through the advancement of its optical cabling method. As a result of these efforts, the number of “FLET'S Hikari” subscriptions reached 12.28 million.
In the mobile communications market, in addition to expanding its handset lineup to meet customer needs, NTT DOCOMO revised its billing plans for its two-tier flat-rate service for packet access and enhanced video content services, thereby continuing to expand the packet communications use of its customers. NTT DOCOMO also endeavored to enhance its after-sales service, starting a free mobile handset check-up service. As a result of these measures, the number of mobile phone subscriptions reached 55.19 million, of which 51.26 million were FOMA service subscriptions.
With respect to solution services*3 for corporate customers, each NTT Group company made efforts in collaboration with business partners to pioneer new markets by providing cloud computing service*4 that meets the needs of its customers by combining such advantages as reliable and highly secure NGN, service sustainability at the time of disaster using wide-spread data centers, and energy saving environmentally-friendly data centers.
In its global businesses, NTT Group established new overseas business sites and formed capital and business alliances with local businesses to further improve its services from the perspective of coverage area expansion, support service enhancement and quality improvement.
NTT Group will continue its efforts in accordance with its medium-term management strategy.
First, NTT Group will put its utmost effort into “service creation” using the world's most advanced broadband networks in both the fixed-line and mobile communications fields. It will also accelerate its efforts in cross-industry service convergence through collaboration with business partners.
At the same time, on the basis of its track record and know-how in service creation, NTT Group will advance “global development” of its comprehensive solutions and services. It will put forth new efforts such as the globalization of its content delivery and other application services and actively involve itself in international standardization efforts for its pioneer technologies.
Lastly, although prevention of global warming is an issue of a global scale, NTT Group will take initiatives towards “contributing to a low-carbon society” through service creation and global development under the banner of its “Green of ICT*5” (reducing CO2 emissions generated by NTT Group business operations), “Green by ICT” (providing solutions that contribute to the reduction of CO2 emissions by customers), and “Green with Team NTT” (reducing CO2 emissions at the homes and in the communities of NTT Group employees) initiatives.
In this edition of NTTis, as a change from the topics covered in previous editions such as “research and development” and “upper-layer services”, we have introduced here NTT Group's social action programs, including “contributing to a low-carbon society”.
With regards to dividends to shareholders for the fiscal year ending March 31, 2010, dividends of ¥120 per share for the full year (an increase of ¥10 over the previous fiscal year) are planned as announced in May. The interim dividend was determined to be ¥60 per share (an increase of ¥5 over the previous fiscal year).
I would like to conclude this message by thanking our shareholders in advance for your further understanding and support.
*1: broadband: high-speed, high-capacity communications.
*2: ubiquitous: having connections to the Internet and other information networks anytime, anywhere.
*3: solution service: identifying customer problems and providing systems or other services that bring about resolutions.
*4: cloud computing service: A collective name for services provided through cloud computing. Cloud computing is a computer technology whereby software and services can be used through a network. It is unique for the fact that the service can be used on an on-demand basis without the need for purchasing hardware including server or software. The term cloud is used based on how a network such as the Internet is depicted in computer network diagrams.
*5: ICT (Information and Communication Technology): A collective name for the technologies used in hardware, software, system and data communications for information communications conducted through computers.