| 3. Business Operation Policy | ||
|
||
For over 100 years, the NTT Group has been the mainstay behind the growth and development of Japanese telecommunications; this track record, the confidence that comes with it, and our R&D capabilities, which are second to none in the world, serve as the foundation from which we will "continue to provide safe and secure service, and continue always to earn the trust of our customers and stakeholders." With these words as our guide, amidst fierce competition in the marketplace, we will fulfill the legal responsibilities and social mission demanded of each of our businesses in a market environmental characterized by intense competition, and at the same time move proactively to develop our businesses to meet the needs of the ubiquitous broadband society of the 21st century. Our aim is for sustainable development backed always by a high level of trust from both our customers and our shareholders. In order to respond to the increasingly diversified and complex needs of customers in the wake of the rapid developments taking place in the information and telecommunications market, NTT Group set forth the following three managerial goals in NTT Group's Medium-Term Management Strategy. As NTT Group makes steady progress towards achieving these goals, NTT Group will proactively work to provide greater convenience to its customers, contribute to overcoming social problems, and implement management that emphasizes shareholder value. a) Use the combined strengths of NTT companies to proactively build a ubiquitous broadband market that responds to customer needs and contributes to the realization of the National ICT Policy. b) Build a safe, secure and convenient communications network environment and broadband access infrastructure, while achieving a seamless migration from fixed line to IP telephony services and from metal wire systems to optical fiber. c) Strive to increase corporate value and achieve sustained growth. |
||
|
||
Although it is necessary to monitor overseas developments carefully, we anticipate that private sector demand will remain strong and that the Japanese economy will continue its moderate expansion supported by solid corporate earnings and moderately increasing employee incomes. In the information and telecommunications market, ubiquitous broadband communications continue to spread and the development of IP networks is accelerating the convergence of services. Under such circumstances, market entry by new companies, corporate mergers, and the formation of business alliances are expected to intensify competition even further. In addition, the use of information and communications technologies such as the Internet is rapidly taking root, resulting in higher expectations for convenient networks that are safe and secure. Under this environment, in December of last year, the NTT Group started field trials for the construction of a next-generation network that can provide efficient and flexible services based on the roadmap set forth in the NTT Group's Medium-Term Management Strategy. The field trials are confirming technologies for network construction such as quality control and security functions and are being conducted with the participation of customers to determine customer preferences and wishes. We are also collaborating with businesses from a wide range of fields to develop full-scale services. Through these activities, we will combine the next-generation network with optical access services to create high-quality and flexible services that bring together the features and strengths of fixed-line telephone service and IP services. We seek to have 30 million optical access service subscribers by fiscal 2010. Specific business developments include ongoing measures to expand use of the B FLET'S service including the provision of convenient services and establishment of business processes that can respond accurately and promptly to customer comments and requests. With respect to FOMA, the NTT Group is raising its overall competitiveness by improving and expanding its handset lineup including handsets compatible with One Segment broadcasts and HSDPA, raising network quality, strengthening music services and i-mode search services, and establishing new revenue sources such as the DCMX credit service. To respond to the convergence of fixed-line telephone and mobile phone communications, we are also developing services for handsets that can be used as cordless IP phones indoors and mobile phones outdoors. Measures directed towards collaboration between and convergence of communications and broadcasting include centralized operation of the intra-group video distribution services (OCN Theater, 4th Media, and On-Demand TV) as well as expansion of multi-channel broadcasting services and simultaneous re-broadcast of terrestrial digital broadcasts in collaboration with broadcasters. To expand businesses that do not depend on communications traffic, we are taking measures to enhance marketing and development capabilities regarding solutions for business customers and are addressing requests from customers in Japan and overseas. The NTT Group is also working together to review work processes and reduce procurement costs and continues to raise business efficiency through lower costs. NTT will continue to allocate the managerial resources of the NTT Group in a proactive and flexible manner, promote unified research and development of fundamental technologies, and otherwise take advantage of the benefits of NTT's holding company structure. NTT will also provide individual NTT Group companies with advice, intermediary services, and other assistance including support for their efforts to obtain cost-effective financing. On the research and development front, the NTT Group will continue to focus its efforts on the creation of basic technologies required to support the development of secure, dependable, and convenient broadband and ubiquitous services and will reinforce research and development directed towards the commercialization of the next-generation network. We will promote the commercialization of the products of research and development in collaboration with NTT Group companies through the "Comprehensive Commercialization Functions." NTT will also continue to promote the dissemination of the results of basic research and development and to contribute to the standardization of technologies and will actively move forward with research and development activities carried out in collaboration with other research institutions. Through the activities described above, the NTT Group will continue to work to improve the NTT Group's corporate value. |
||
Note: The forward-looking statements and projected figures concerning the future performance of NTT and its subsidiaries and affiliates contained or referred to herein are based on a series of assumptions, projections, estimates, judgments and beliefs of the management of NTT in light of information currently available to it regarding the economy, the telecommunications industry in Japan and other factors. These projections and estimates may be affected by the future business operations of NTT and its subsidiaries and affiliates, the state of the economy in Japan and abroad, possible fluctuations in the securities markets, the pricing of services, the effects of competition, the performance of new products, services and new businesses, changes to laws and regulations affecting the telecommunications industry in Japan and elsewhere and other changes in circumstances that could cause actual results to differ materially from the forecasts contained or referred to herein. |
||
|
Copyright (c) 2007 Nippon telegraph and telephone corporation |