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NTT Press Releases

(News Release)

March 1, 2012

This English text is a translation of the Japanese original.
The Japanese original is authoritative.

Submission for Approval of Business Operation Plan for the Fiscal Year Ending March 31, 2013

Nippon Telegraph and Telephone Corporation (“NTT”) submitted today its business operation plan for the fiscal year ending March 31, 2013 to the Minister for Internal Affairs and Communications for approval.

Business Operation Plan for the Fiscal Year Ending March 31, 2013

In building a ubiquitous internet society where Information Communication Technology (“ICT”) is available “anytime, anywhere and with anyone or anything,” information and communications are expected to make a substantial contribution to invigorating and increasing the efficiency of socioeconomic activities, enhancing lifestyle convenience and more. Today, the public and private sectors in Japan are working together to make such a society a reality. With the rapid progress of broadband and ubiquitous services, the market is undergoing dramatic changes and development due to the following factors: in the fixed-line communications field, the expansion of fiber-optic access services and the resulting progress of service migration from conventional fixed-line to optical IP telephones; in the mobile communications field, the diversification and advancement of mobile phone services and handsets and an intensified competitive environment such as price competition and Mobile Virtual Network Operators’ participation in the market; the demand for a more reliable communications infrastructure after experiencing the Great East Japan Earthquake during the last fiscal year; the convergence of fixed and mobile services in IP networks, as well as of communications and broadcasting; and the creation of various new services using networks.

To help ensure that universal services are maintained amid this information and communications environment, NTT intends to provide all necessary advice, mediation, and other assistance to Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and Telephone West Corporation (the “regional companies”). It will also endeavor to promote research and development in telecommunications technology which serves as a foundation for telecommunications in order to respond to society’s demands for the development of a ubiquitous internet society.

In addition, under NTT Group’s “Road to Service Creation Business Group” announced in May 2008, NTT will help create enriched communication environments for individuals and communities, make corporate activities more efficient, and create new services and business opportunities through broadband and ubiquitous networks that provide customers with not only “fast and convenient” but also “safe and secure” connections “anytime, anywhere and with anyone or anything.” To these ends, NTT will provide open network environments enabling a diverse range of service providers and other business entities to create broadband and ubiquitous services and deploy a variety of services taking advantage of the next-generation network, while ensuring fair competitive conditions under the framework of existing laws. In addition, NTT will actively promote alliances with these providers. Through such efforts, NTT intends to contribute not only towards solving various social problems, but also towards maintenance and enhancement of Japan’s international competitiveness. NTT will also work to raise corporate value by transforming its business structure to a structure centering on IP and solution services and carry out constructive group management for the development of NTT Group as a whole.

Based on these fundamental concepts in the management of business operations for the fiscal year ending March 31, 2013, NTT will aim to improve the management efficiency of NTT Group operations, including those of the regional companies and develop new businesses to promote information distribution, including expansion of the broadband and ubiquitous market. NTT will also continue to contribute to the advancement of telecommunications, in particular, by working to realize service creation that aggressively responds to structural changes in the ICT market, and by strengthening its research and development to develop a disaster-resistant network based on the experience from the Great East Japan Earthquake. In this way, NTT will seek to ensure stable development of its operations in the future, and to return the fruits of these efforts to customers, shareholders and the community at large.

Based on the above, under the business operation plan for the fiscal year ending March 31, 2013, NTT will conduct its business management by giving priority to the following activities, and will do so in a flexible manner so as to respond to changes in the business environment.

1.Advice, mediation, and other assistance

For the regional companies, NTT will provide all necessary advice, mediation, and other assistance to ensure the maintenance of high-quality and stable universal services. These will include planning and coordination relating to the quality and upgrading of telecommunications networks, deployment of control and coordination capabilities when natural disasters and other emergencies occur, efficient fund-raising, and formulation of policies for material procurement. NTT will also exercise its shareholder rights, as necessary, in order to assure the smooth flow of dividends to shareholders.

NTT will support the efforts of each of the NTT Group companies, including the regional companies, to streamline their business operations and expand their business opportunities, and will assist with the development of human resources that will form the core of NTT Group.

2.Promotion of basic research and development

In order to realize NTT Group’s “Road to Service Creation Business Group” and to respond to the societal demand for the formation of a ubiquitous internet society, it is necessary to harmoniously coordinate and develop network-based technologies, technologies that provide a basis for new services and applications, as well as advanced and basic technologies in general. NTT will promote research and development activities to create enriched communications environments through broadband and ubiquitous networks that provide customers with not only “fast and convenient” but also “safe and secure” connections “anytime, anywhere and with anyone or anything.”

In conjunction with these efforts, NTT will continue to actively disseminate the results of its research and development and conduct active technology exchanges with institutions both within Japan and overseas, including ongoing contributions to standardization activities, industry standardization of research and development results, and research and development activities in collaboration with other research institutions.

To ensure the continuous execution of these basic research and development, NTT will seek to further increase research efficiency with costs being borne by the regional companies and other NTT Group companies on an ongoing basis, who will in turn utilize the results of such efforts.

Specifically, priority will be given to the following areas in NTT’s research and development activities:

(1) Infrastructure-related research and development

In order to upgrade the base network for broadband and ubiquitous services, streamline its network for future increases in the number of users and communications traffic, and achieve seamless migration from fixed-line to IP telephone services and from metallic access to fiber-optic access services, NTT will promote research and development, including technologies for configuring access networks, node architecture technology, optical multiplexing technology, and next-generation IP network technologies. At the same time, in order to improve the quality of customer services, NTT will pursue basic research and development in the field of operation systems to foster the enhancement of telecommunications network reliability through economical means. Additionally, in order to develop a disaster-resistant network and as a countermeasure to the effects of economic activities on the global environment, NTT will promote research and development focused on improving the resistance to electric outages, reducing energy consumption and conserving use of resources at communication facilities and promoting the reuse of communication facilities.

(2) User-related research and development

NTT will pursue research and development activities on infrastructure for providing customers with diverse telecommunications services, including video services / Home ICT, in order to realize a ubiquitous internet society in which smooth electronic exchange of information, goods, currencies and values among people, corporations and objects is further enhanced through broadband and ubiquitous networks. Specifically, this will include research and development in information-distribution technologies that are adaptable to various information communication services and media-processing technologies, such as those for the compression, recognition and sharing of image and audio data. NTT Group will further promote research and development in, among other areas, cloud computing technologies such as storage, decentralized processing and retrieval of a variety of information, user interface technologies that make services readily accessible to all users, open source software (OSS) technologies, and security-related technologies such as authentication technology for ensuring the security of information communications.

(3) Research and development in basic technologies

NTT is committed to securing a leadership position in the basic and cutting-edge technologies that will underpin the future of telecommunications and contribute to the innovative improvement and development of telecommunications in Japan. To fulfill these commitments, NTT will pursue research and development activities that will contribute to realizing a photonic network enabling ultra high-speed, ultra high-volume petabit-level communications, for an age in which massive volumes of digital information circulate through networks. Specifically, this will include research in areas such as: ultra high-density wavelength division multiplexing and other optical communications technologies; optical packet router technologies to further enhance transmission capacity and fundamentally reduce energy consumption; optical component technologies, including optical amplification, optical wavelength multiplexers and demultiplexers, and optoelectronic fusion devices; quantum information processing technologies and nanodevice technologies, which serve as the foundation of innovative networks and have the potential to greatly surpass the existing optical and electronic technologies; communication sciences such as human science, which explore new possibilities in communications; and cutting-edge cryptographic theory. These will be combined with research on innovative new principles and new concepts for the next generation.

The following table presents an overview of the capital investment plan for the above-mentioned activities.

Attachment·Reference
Table: Capital Investment Plan for the Fiscal Year Ending March 31, 2013
Attachment 1: Revenues and Expenses Plan for the Fiscal Year Ending March 31, 2013
Attachment 2: Sources and Applications of Funds Plan for the Fiscal Year Ending March 31, 2013
Reference: Summary of Business Operation Plan for the Fiscal Year Ending March 31, 2013
Entire Report [128KB]

For more information, please contact:

Business Planning Group
Corporate Strategy Planning Department
Nippon Telegraph and Telephone Corporation

E-mail: jigyou@hco.ntt.co.jp

Information is current as of the date of issue of the individual press release.
Please be advised that information may be outdated after that point.

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