For Immediate Release
January 8,1997


NTT Unveils New Strategy for Global Telecommunications Business

Nippon Telegraph and Telephone Corporation (NTT) announced today that it will actively pursue global telecommunications businesses using its extensive research and development resources and capital investment capabilities and relying on its vast customer base. The objective of NTT's move is to better meet its customers' global telecommunication needs and to contribute to the development of both domestic and overseas information communications industries.

NTT's global businesses are as follows:

1. Integration of multinational companies' information and communications systems

The NTT Group will actively expand and promote its systems integration business for corporate information and communications network systems to meet multinational companies' global information needs. To achieve this, the NTT Group is establishing service branches for the systems integration business in major cities worldwide.

2. International communications services

The NTT Group will construct a high-speed information communications highway linking European countries, the U.S., and Asian countries, including Japan, and provide global end-to-end services.

Targeted users: Users ranging from domestic and overseas
multinational companies to residential users

Services: Various multimedia services from basic
communications services for voice, data and video to enhanced
intranet services.

Deployment plan:

(1) Services for multinational companies

   (i)
In the first stage, the NTT Group plans to provide multinational companies with communications services in European countries, the United States, and Asian countries with the exception of international communications service in Japan. In these countries, the NTT Group will install its own nodes and lease line facilities from local carriers.
To implement these services, the NTT Group will apply for operating licenses in the U.K., Germany, France, the U.S., and other Asian countries in the fourth quarter of fiscal 1996, ending March 31, 1997. NTT will begin its services in each country as soon as the application procedures are completed (see Attachment 1).

   (ii)
In the second stage, the NTT Group plans to provide international communications services in Japan shortly after Japan's regulations on international communications services are revised to enable the NTT Group to enter into international communication business. NTT hopes the regulations are revised before NTT's reorganization.

(2) Services for business users and residential users

After the NTT Group can provide international communications services in Japan, it will strive to meet any needs of business users and residential users. The NTT Group plans to provide various services ranging from basic voice communications to multimedia communications services. In providing these services, NTT will always take into consideration fair competition.

3. Businesses in foreign countries

NTT will continue to construct basic telecommunications networks in Asian countries. In response to new needs, the company will also construct sophisticated networks and develop advanced multimedia systems in Asia, such as the Multimedia Super Corridor Project (see Attachment 2).
NTT will also actively pursue business opportunities, such as telecommunications business, in European countries and the United States.

4. Market expansion through tie-ups with domestic and overseas companies

NTT in cooperation with domestic and overseas manufacturers and software companies will promote high-quality communications services worldwide by offering NTT's advanced technologies such as PHS, optical access system, and ATM switches.

5. Collaboration and capital investment

To achieve the business goals above, NTT is willing to collaborate with and invest in companies and even enter into partnerships. M&As are also a consideration.



Attachment 1

NTT Seeks Licenses to Provide Global Network Services

1. Basic idea

The NTT Group plans to provide global communications services in major regions of the world to meet the needs of multinational companies.

NTT Europe will today apply to a British authority for a license to carry out communications service businesses and register as a communications operator in Germany and France.

NTT America will also apply for a license to provide communications service businesses in the U.S. when all application procedures are completed.

In the near future, the NTT Group will begin the necessary procedures to apply for licenses in Asian countries.

2. Services

NTT will provide high-quality data communications services for multinational companies, such as frame relay and managed bandwidth, and provide enhanced IP network services by connecting services between the U.K., Germany, France, and the U.S.

In addition to these high-quality communications services, NTT will provide systems integration services in these countries to comprehensively support customers' corporate information and communications networks.

3. License applications and business registrations

Applications and registrations will be handled by the following NTT Group companies:

-The U.K.: NTT Europe will apply to the Department of Trade and Industry for communications service licenses between the U.K. and the U.S., the U.K. and Germany, and the U.K. and France.
-Germany: NTT Europe will register with the Bundesministerium fr Post und Telekommunikation (BMPT) as a provider of communications services between Germany and the U.K.
-France: NTT Europe will notify the Autorit de Rgulation des Tlcommunications (ART) of France on the operation of communications services between France and the U.K.
-The U.S: NTT America will apply to the Federal CommunicationsCommission (FCC) for a license to provide communications services between the U.S. and the U.K.

Attachment 2

NTT's Involvement in the Malaysian Multimedia Super Corridor Project

1. NTT's Activities

Since April 1996, NTT has been given the opportunity to take part in Malaysia's Multimedia Super Corridor (MSC) project. NTT participated in designing the master plan of the project and President Jun-ichiro Miyazu as a member of the project team attended the final presentation to Prime Minister Mahathir last October.

Now at the start of the implementation stage, NTT will continue to cooperate with the Malaysian Government to complete MSC. Specifically, NTT is considering contributing in the following areas.

Cooperating in the development of information systems and R&D activities

-Contributing to human resource development through Multimedia University (tentative name) and other means.

-Cooperating in the development of IT City (tentative name) and its infrastructure

2. Presentation by Prime Minister Mahathir on MSC Project

In response to Prime Minister Mahathir's request to visit Japan to explain the MSC plan to top executives of Japanese companies, NTT will sponsor a seminar on behalf of the Malaysian Government on January 20, 1997.



(Reference) Profile of the MSC Project

The MSC project is a national project calling for the creation and development of a global multimedia hub for the 21st century. The site, 15 km x 50 km, will include the Kuala Lumpur City Center (the world's tallest b uilding), the new administrative capital Putrajaya, and a new international airport.

The MSC site will also include IT (information technology) City (tentative name) which will be constructed at the center of the MSC site. The city will be the home of information technology companies and service industries and is expected to be the driving force of information technology and multimedia development in Malaysia.

The Malaysian Government has a national vision, VISION 2020, which envisions Malaysia becoming an advanced country by the year 2020. The Government is strongly promoting MSC to achieve this goal, recognizing that it is indispensable for Malaysia to shift from a manufacturing base to one centered on services and high technology.

The MSC is unique in the world in the sense that it focuses on multimedia and information technology (IT). This project calls not only for the development of sophisticated communications systems but also for the creation of an ideal environment for companies to develop multimedia. Creation of an ideal environment will require revision of the Digital Signature Act and Telecommunications Law and the introduction of a strong incentive package to attract foreign companies.


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