The information and telecommunications market is undergoing various changes. Based on the new Medium-Term Management Strategy announced in November 2012, NTT will transform its revenue structure by making global cloud services the cornerstone of its business operations, comprehensively strengthening network service competitiveness, and continuing its efforts to become the “valued partner” that customers continue to select. NTT Group's research and development will also address initiatives in line with this basic policy.

“Global Cloud Service” as the Cornerstone of NTT's Business Operations

In order to strengthen global cloud services, NTT first established a research and development structure in Japan in April 2012. Specifically, NTT established “NTT Secure Platform Laboratories,” which specializes in research and development related to security to create safe and secure cloud services. Further, with a goal of investing efficiently in software and promoting the evolution of software development technology, NTT set up a “Software Innovation Center” that centralized disparate cloud engineers and basic software engineers who had previously been assigned to different labs.
These labs are focused on researching security technology and big data analysis technology for cloud services. With respect to security technology, NTT is focusing its research and development on a “secure dispersion platform” to protect against data theft and data loss within cloud networks, as well as cloud forensics to survey and track data operations and data movement. In addition, with respect to big data analysis, NTT is focusing research and development on Jubatus, a real-time analysis platform that can handle large amounts of constantly flowing data, and on natural language processing technology.
NTT is also promoting the global expansion of research and development in line with the expansion of services that support the global activities of corporate customers. In April 2013, in order to expand and enhance its research and development bases, NTT will establish a new company, “NTT Innovation Institute Inc.” (named: NTT I³ (I-cubed)) in North America, where information and research and development relating to ICT (information communications technology) will be centralized.
When creating “something that has not yet taken form” or “something new,” location is critical. In North America for instance, there is a concentration of companies attempting advanced endeavors in Silicon Valley. While taking into consideration business climate and regulatory issues, we believe we can fully focus on reaching the next stage in an environment that provides a creative stimulus. At these research and development bases in North America, we would like to build a system for security research and development that is conducted by the group as a whole, including not only the labs of NTT (holding company) but also through collaborating with acquired companies and other NTT Group companies globally carrying out research and development. NTT plans an initial capital injection of USD 100 million with 30 employees for the start-up. With active local hiring, NTT intends to increase the number of employees to 100 at an early stage.

Comprehensively Strengthen Network Service Competitiveness

NTT's research and development division is solidly engaged in research and development directed towards reducing capital investments and expenses related to NTT Group-owned networks. In addition, NTT Group implements research and development efforts relating to developing a new and seamless fixed and mobile network that considers the customer perspective, by providing a user-friendly system, and also the business perspective, by providing the most cost-effective system.
As a specific example of NTT's research success with respect to access networks, NTT developed the world's highest-density multi-core optical fiber cable for outdoor optical fiber networks. NTT has succeeded in increasing the fiber density of optical fiber cable to the maximum level by using optical fiber ribbon, which was developed to realize the highest fiber density, using optical fiber that prevents light loss through bending, and revising the fundamental structure of existing cables. It is expected that the improvement in installation efficiency and effective use of cabling space, due to the lighter and thinner optical fiber cable attributable to the increase in fiber density, will contribute to a reduction in network-related capital investment and expenses. In addition, with respect to core networks, following commercialization of the optical transmission method capable of transmitting 100 gigabit per second per channel, NTT has started joint research and development directed towards practical realization of a world-class 400 gigabit-level optical transmission technology.In so doing, NTT will aim to realize an economical network that is ultra-fast, energy efficient and flexible.