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NEWS RELEASE June 10, 1999 | |||||||||||||||||||||
| Nippon Telegraph and Telephone Corporation Microsoft Co., Ltd. NTT DATA Corporation | |||||||||||||||||||||
"Internet Billing Information Service Consortium" | |||||||||||||||||||||
June 10, 1999 (Tokyo, Japan): Nippon Telegraph and Telephone Corporation (NTT), Microsoft Co., Ltd., and NTT DATA Corporation are jointly proposing the creation of a new service to electronically deliver to consumers, via the Internet and other networks, utilities bills including such as telephone, electricity, gas and water, as well as regular statements from credit card, banking and other financial firms and various notices from other companies. It is envisaged that this new service will also enable consumers to pay submitted bills electronically. To study the feasibility of this new and potentially very important consumer service and promote its commercialization, the three companies will establish an organization, tentatively named the "Internet Billing Information Service Consortium,"in July of this year. The Consortium will invite a large number and variety of financial and other firms wishing to issue their bills and statements electronically to participate in its initiative. Already, the following organizations have announced their endorsement and plans to join the Consortium.
Banks (in the order of bank codes):
Electric Power Company (in the order of Japanese syllabication):
Gas Company (in the order of Japanese syllabication):
Credit Card Companies (in the order of Japanese syllabication):
Other (in the order of Japanese syllabication):
As Internet use continues to spread explosively, calls have been growing for replacing the traditional use of paper with digital information exchange, which offer advantages over paper in terms of processing and storage. Currently, almost all bills and financial firms´ statements are individually mailed, in writing on paper, to homes, making it difficult for consumers to fully leverage their inherent IT capabilities. Moreover, as the use of debit cards spreads in the future, the volume of bankbook updates alone is expected to increase at an astronomical pace. There is even now a strong opinion that this will lead to a widespread public recognition that conventional bankbooks as an information medium are obsolete. If billing and other similar information can be electronically offered to consumers via the Internet through the use of browser or personal financing software, firms will be able to improve efficiency in their related processes, while at the same time enabling consumers to better manage their positions with their individual financial services providers.
In the United States, major financial and other firms have been aggressively developing the "electronic bill presentment and payment (EBPP)" service in an effort to improve their operational efficiency. According to Gartner Group Inc., it is predicted that 10% of total annual transactions in 2001 will be made using this service.
Given this situation, NTT, Microsoft and NTT DATA will establish the "Internet Billing Information Service Consortium," through which to examine, develop and promote an EBPP business model suitable for the Japanese market and the necessary technologies to support it, to enable Japanese firms and consumers to bill and pay online. Through the Consortium, the three companies will commit themselves to developing this system into a secure and convenient Internet-based consumer service in the future, thereby contributing to the enrichment of Japanese society.
The outline of the service to be developed by the Consortium is outlined in Attachment 1. Simply put, billing information from companies is centrally stored at the Data Center, and the Center provides a relevant part of that information on demand by those being billed via the Internet or other networks. They can read their own information by using browser or personal financing software. The service will also enable them to make payments electronically.
Merits for Billing Organization
Merits for Consumer
This service has an intrinsic synergetic nature in that it will offer greater benefits for consumers in proportion to the volume of billing information, and the more consumers use this service the greater its benefits for those issuing bills and statements. Since the service will handle individual consumers´ private information, it will be crucial that it is operated by a fair organization with a high degree of credibility, as well as being able to fully ensure security. The treatment of personal billing information, in particular, will bear the greatest degree of importance in our future development efforts. The approach we are considering applying is to clearly define rules for treating private information by examining international legal frameworks and then ensuring full compliance with them by developing an appropriate technological foundation.
In light of the above, the strengths of the NTT Group - NTT being Japan´s largest biller, and NTT DATA being Japan´s largest systems integrator - and those of Microsoft - its technology and expertise amassed through developing relevant software including "Money," a personal financial management software, as well as its achievements in the United States through TransPoint - we will work to obtain endorsement from as many concerned companies as possible, thereby making this service feasible. We are determined to make ours the de facto standard in EBPP services on the Internet.
The organizational structure of the Consortium is outlined in Attachment 2. The Consortium will be a private organization established and operated by private-sector companies and other related organizations that endorse its purpose. It will consist of directors, members and special members. The board of directors will discuss and make decisions on important matters concerning the Consortium´s management and business activities. Under the board of directors will be established a Business Model Study Group and a Technical Specifications Study Group to examine the feasibility of the service from various perspectives. The Consortium´s major activities will be as follows: (1) Development of an Internet Billing Information Service business model: Optimum elements for an EBPP service acceptable in Japan, such as how the service should be provided, a tariff structure and the form of contracts, will be examined and developed. (2) Development of technical specifications for the service: Standardized technical specifications for protocols, security and other elements to enable the above-mentioned business model will be researched and developed. (3) Development of the implementation of the service: Optimum business and organization structures to implement the service will be examined and developed. The Consortium will be established in July 1999. The Consortium is scheduled to engage in its activities from the date of its foundation until March 31, 2001. Subsequent to its foundation, the Consortium will establish a Business Model Study Group and a Technical Specifications Study Group, through which to develop the service for commercialization during fiscal 2000. If interested in viewing additional information, please visit Consortium´s tentative homepage at http://www.nttdata.co.jp/profile/service/bill/index.html (Japanese Only)
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Attachment - Attachment1 Outline of the Service - Attachment2 Organizational Structure | |||||||||||||||||||||
Corporate Information
Nippon Telegraph and Telephone Corporation
Microsoft Co., Ltd.
NTT DATA Corporation
Internet Billing Information Service Consortium
Nippon Telegraph and Telephone Corporation
Microsoft Co., Ltd.
NTT DATA Corporation | |||||||||||||||||||||
 NTT NEWS RELEASE |