News Release nghk100514b

3. Business Operation Policy
(2) Issues Facing the Corporate Group

The Japanese economy is expected to gradually recover; however, expectations must be tempered by uncertainty regarding risks that may have a destabilizing effect on the economy, such as a decline in global economic conditions in addition to deflation.

In the information and telecommunications market, corporate capital investment has ceased to decline but is expected to remain at low levels. Additionally, convergence of fixed-line and mobile communications and of communications and broadcasting services is expected to accelerate in line with the shift to the use of IP networks and the expansion of ubiquitous broadband services, resulting in continuing fierce competition in this market.

It is in this difficult business climate that NTT Group is working to create and deploy broadband and ubiquitous services using its full IP network infrastructure in response to consumer preferences and pursuant to the Medium-Term Management Strategy, “Road to Service Creation Business Group”, adopted in May 2008. Specific actions include promotion of the three initiatives described below, transforming NTT Group’s business structure to focus on IP businesses, and solutions and new businesses, and further raise the percentage of consolidated sales revenues from IP and solutions businesses, which accounted for approximately 60% of consolidated sales during the fiscal year ended March 31, 2010.

Promotion of Service Creation

NTT Group will continue to construct the world’s most advanced broadband network infrastructure for both fixed-line and mobile communications, and devote its full efforts to the creation of services on this network platform.

In the field of fixed-line communications, NTT Group will move ahead with further expansion of the NGN coverage area and will seek to increase opportunities to provide services by promoting optical cabling for multi-unit dwellings. In the field of mobile communications, in addition to the FOMA service, which is already available across the country, LTE, a technology that offers increased speed and capacity, is scheduled to be introduced in December 2010 to further promote the development of broadband services.

Utilizing the world’s most-advanced broadband network platform, NTT Group will seek to expand its offerings of services that meet customer needs, such as cloud computing services, Home ICT, and e-learning. At the same time, NTT Group will contribute to the promotion of ICT use and the spread of broadband services by supporting the creation of new services through collaborations with business partners in a wide range of fields.

Deployment of Global Businesses

By further enhancing its data centers and security operations, NTT Group will expand its ICT service line-up and service areas. In addition, NTT Group will expand its global network services by enhancing its data communication networks and international roaming services for the mobile communications business, and will exert further efforts to develop its application services such as content distribution services.

Responding to Social Issues

NTT Group will utilize ICT in addressing various social problems, such as the aging of society and declining birth rate, the need to improve the quality of healthcare and education, and environmental issues, as well as in the operation and management of roads, water systems and other public infrastructure. NTT Group will seek to contribute to the solution of these problems by creating new systems for society through collaborations with partners in various fields.

In particular, NTT Group will bolster its efforts to address environmental issues, which are a global concern, through three initiatives known as “Green of ICT”, “Green by ICT”, and “Green with Team NTT.”

	-	Green of ICT This initiative is aimed at reducing the environmental burden resulting from ICT, such as energy conservation at NTT Group’s data centers and communication facilities, and promoting natural energy generation.
	-	Green by ICT This initiative promotes the use of ICT, such as telecommuting and teleconferencing, to help reduce the environmental burden on society as a whole.
	-	Green with Team NTT Under this initiative, each NTT employee’s action will help reduce the environmental burden at the workplace, at home and in the community.

In addition to working on the three initiatives discussed above, “Promotion of Service Creation,” “Deployment of Global Businesses” and “Responding to Social Issues,” NTT Group will continue its efforts to raise business efficiency by reviewing business processes throughout the group, consolidating business sites, and outsourcing operations.