NTT to Provide New "VCN" Corporate Service System

Value Chain Management is designed to rationalize and restructure the entire business process (value chain), from materials procurement through production, distribution and sales to customer service, with a view to achieving greater customer satisfaction. The system will connect customers with the divisions and business partners that make up their value chain, through information networks. This will allow synchronicity and speedy exchange of information, enabling customers to achieve real-time demand assessment, give flexible feedback to customer requests, cut delivery times and inventory, and avoid product shortages (see Figure 1).

NTT will offer strong support to companies which are conducting Value Chain Management, building information systems through the provision of a single service system (VCN) incorporating a full and complete range of services relating to hosting, security and outsourcing, centering on the existing network services it has been providing to corporate users. NTT is also establishing systems that will allow it to respond to inquiries and offer advice in a timely manner to customers building systems on every scale, all the way from domestic to global.

VCN Service System (see Figure 2)

-	Network Services: Caters to demand for IP transmission services offering certain bandwidth and high-speed data transmission.
-	Hosting Services: Allows customers to set up a home page without requiring technical expertise.
-	Security Services: Prevents unauthorized access and information leakage.
-	Outsourcing Services: Reduces the burden on customers of operating a network.

2. Providing the new VCN service system

NTT today submitted to the Minister of Posts and Telecommunications an application for authorization and a proposal for a new charge system in respect of forthcoming additions to its menu of OCN (open computer network) services, etc., with a view to expanding the network and hosting services under the umbrella of the VCN service system.

NTT is responding to increasing sophistication and diversity of customer needs stimulated by the growth of the Internet, and, once the approval of the Minister for Posts and Telecommunications has been obtained, plans to launch the new services in April 1999.

The new services are as follows.

(1) Expansion of Network Service

(i) New Super IP Business Class

-Outline

Customers connect to an OCN access point via a digital leased line, providing stable transmission conditions even when traffic is high at the access point. NTT will be offering a new Super IP Business Class, which provides a certain bandwidth. This service is ideally suited to small and mid-sized businesses, which require an Internet connection with stable quality.

Initially, a single service category of 128 kbps will be offered.

Access points will initially be provided in Tokyo and Osaka, and the number of points will be increased gradually (see Figure 3 for image of the new service).

-Charges (monthly)

Category	Fixed subscription
128 kbps	38,000 yen

Note: Charges for leased-line contracts are separate.

(ii) Reduction of fixed subscription for Super OCN 128 kbps service

-Outline

NTT has reduced the fixed subscription charge for its Super OCN 128 kbps service, designed for customers who require high-quality and highly reliable Internet connection at all times.

-Charges (monthly)

	Current	Reduced
Fixed subscription	132,000 yen	98,000 yen

Note: Charges for leased-line contracts are separate.

(iii) Reduction of basic charge for OCN Dial Access Long service

-Outline

NTT is increasing the call time covered by the basic charge for its OCN Dial Access Long service. The increase represents a cut of up to 76% from the present level. (Assumes 100 hours on-line.)

-Charges (monthly)

	Current	Reduced
Basic charge	up to 50 hours: 4,800 yen	up to 100 hours: 4,800 yen
Each additional minute	5 yen	5 yen

Note: Communication fees will be charged in addition to the aforementioned charges.

(2) Expansion of Hosting Service

Provision of Web hosting service "Original Domain Web"

-Outline

In addition to the "Original Domain Mail" email hosting service to be launched in April 1999, NTT will also be offering a new Web hosting service entitled "Original Domain Web". As a result, users will be able to create home pages for their own domain using our server located on the OCN backbone. This will free them from having to purchase and maintain their own server.

The service is offered to OCN Economy and Super IP Business Class subscribers. Three sizes of Web space for home page creation will be offered: 20 MB, 50 MB or 100 MB.

-

Example of own domain name: xxx.co.jp (where xxx is customer's company name, etc.)

-Charges (monthly)

Home page sizes available	Additional function charge
20 MB	4,000 yen
50 MB	5,500 yen
100 MB	8,000 yen
Customers also subscribing to Original Domain Mail will benefit from a discount of 2,500 yen (monthly) on the above charges.

Reference: Charges for mail hosting service "Original Domain Mail"(monthly)

A service that provides the user with an original domain e-mail address through NTT's server. The service is offered to OCN Economy and Super IP Business Class users.

Category	Additional function charge
Basic charge (up to 10 email addresses)	5,500 yen
Additional Charge: Every 10 additional addresses	3,000 yen

* The maximum number of email addresses that can be registered is 30.

Attachment

Figure1:Image of Value Chain Management
Figure2:Services of VCN
Figure3:Image of Super IP Business Class

For further information, please contact:

Norihiko Ohkubo or Megumi Inaji
Public Relations Office
NTT Long Distance and Global Provisional Headquarters
Telephone: (03) 3500-8020