For Immediate Release
May 22, 1998
NTT to Review PHS Business
Personal Handy-phone System (PHS) services, which was launched in July 1995, created
a personal communications boom by providing inexpensive services with small and light
weight terminals. Over the last two-and-half years, PHS services have attracted seven
million customers. Since October 1997, however, the number of customers has steadily
fallen and NTT Personal Group companies' ("NTT Personal", hereafter) liabilities have
exceeded assets. Therefore, NTT Personal began a review of its operations.
In the meantime, major shareholders of NTT Personal also began to review PHS businesses
and NTT has concluded that it would be difficult to continue such services through NTT
Personal. As a result of its deliberations, NTT decided to transfer its PHS businesses to
NTT DoCoMo companies. NTT expects to complete the transfer within the current fiscal
year and to liquidate NTT Personal following the transfer. NTT will cover the costs required
to liquidate NTT Personal.
NTT believes the transfer to NTT DoCoMo will create synergetic effects and improve its
PHS business operations, as well as develop new services based on the features of PHS.
