By:(c)Monex.inc.
Medium-Term Management Strategy Highlights
Last updated : October 22, 2009
Road to Service Creation Business Group - Full-scale rollout of broadband and ubiquitous service
As a new step forward in the implementation of its Medium-Term Management Strategy, on May 13, 2008, NTT Group announced its five-year plan for rolling out its broadband and ubiquitous services and the related restructuring of its business portfolio.
Broadband and ubiquitous services rollout strategy
- Creating and deploying broadband and ubiquitous services in accordance with customer needs, leveraging NTT Group's full-IP network infrastructure
- Promoting the transformation of NTT Group's business portfolio, centering on IP and solution businesses
- Promoting reforms to the business operations of group companies in conjunction with the transformation of NTT Group's business portfolio
NTT will aim to reinforce and enhance NGN and 3G network services and to promote new service creation through partnerships with application providers. NTT Group will continue to work toward the goal of achieving full deployment of its IP network infrastructure for both fixed line and mobile services and the full rollout of broadband and ubiquitous services utilizing this network infrastructure by the fiscal year ending March 31, 2011.
* 3G mobile communications
Transformation of business portfolio
- Transform NTT Group's business portfolio, shifting the main sources of revenue from legacy businesses to IP and solution businesses and other new businesses
- → Current: Legacy business accounts for 1/2 of consolidated revenue (fiscal year ended March 31, 2008)
After transformation: IP and solution businesses and other new businesses account for 3/4 (fiscal year ending March 31, 2013)
Consolidated Revenue Composition (image)
In the fiscal year ended March 31, 2008, IP and solution businesses accounted for half of NTT Group's consolidated sales; we aim for transition to a structure where this ratio increases to three-quarters by the fiscal year ending March 31, 2013, with a consolidating operating income of 1.3 trillion yen.
Further, it is envisioned that in the fiscal year ending March 31, 2011, investment in facilities development will have passed its peak period, and that the ratio of capital investments to consolidated sales will in the fiscal year ending March 31, 2013 show a decrease of 5% over the fiscal year ended March 31, 2008.
To learn more about the NTT Group's Medium-Term Management Strategy (in more detail), please click here [Management Strategy].
