Enhancing Profitability of Domestic Network Business
Last updated : October 31, 2016
Aggressively Streamlining Capital Investment and Reducing Costs
In network services, we are working to thoroughly increase efficiency in existing businesses and to strengthen profitability.
Streamlining Capital Investment
We will invest aggressively to expand business in growth fields, such as the global cloud business. On the other hand, we will implement thorough measures to increase efficiency in capital investment in the domestic network business.
We have a target of reducing capital investment in the domestic network business by at least ¥200.0 billion over the three-year period ending March 31, 2018. The expansion of DOCOMO's LTE service area has transitioned from wideranging expansion to spot-based initiatives, and as a result investment has been reduced. In addition, NTT East and NTT West have reduced fiber-optic related investment.
Consequently, we achieved reductions of ¥95.7 billion in the fiscal year ended March 31, 2016. We are making favorable progress toward the achievement of our medium-term financial targets.
Moving forward, we will work to achieve our reduction target by continuing to cooperate with Group companies and advancing initiatives to further increase efficiency.
- *1 Excluding capital investment related to real estate and solar power generation businesses
- *2 Excluding NTT Communications' data centers and certain other assets
In regard to cost reductions in fixed-line/mobile access networks, we were targeting reductions of at least ¥600.0 billion over the three-year period ending March 31, 2018, and we achieved reductions of ¥414.0 billion in the fiscal year ended March 31, 2016. We now expect to achieve the target in the fiscal year ending March 31, 2017, which will be one year ahead of plan. We will implement rigorous initiatives to achieve further cost reductions, such as thorough measures to increase operational efficiency. To accelerate profit growth, our revised target calls for cost reductions of at least ¥800.0 billion.
Moving forward, we will continue to thoroughly increase efficiency in investment and operations at each company, and we will implement rigorous Groupwide efficiency measures to thoroughly reduce costs.
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