This English text is a translation of the Japanese original. The Japanese original is authoritative.
March 1, 2010


Submission for Approval of Business Operation Plan
for Fiscal Year Ending March 31, 2011


Nippon Telegraph and Telephone Corporation (NTT) today submitted its business operation plan for the fiscal year ending March 31, 2011 to the Minister for Internal Affairs and Communications for approval.


Business Operation Plan for Fiscal Year Ending March 31, 2011

In the building of 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 optical fiber 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 upgrading of mobile phone services and handsets and an intensified competitive environment such as price competition and Mobile Virtual Network Operators' entry into the market; the convergence of fixed-line services with mobile services in IP networks as well as of communication services with broadcasting services; 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 in order to respond to society's demands for the development of a ubiquitous internet society.

In addition, under the NTT Group's "Road to Service Creation Business Group" announced in May 2008, NTT will help enrich communication environments for individuals and communities, make corporate activities more efficient, and create new services and business opportunities through ubiquitous broadband 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 ("NGN"), while ensuring fair competitive conditions under the framework of the existing laws. In addition, NTT will actively promote alliances with these providers. Through such efforts, NTT intends to contribute not only toward solving various social problems, but also toward 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 the NTT Group as a whole.

Based upon these fundamental concepts in the management of business operations for the fiscal year ending March 31, 2011, NTT will aim: to improve the management efficiency of the NTT Group operations, including those of the regional companies; to develop new businesses to promote information sharing, including expansion of the ubiquitous broadband market mainly through NGN; and to continue to strengthen research and development that will contribute to the advancement of telecommunications, with particular focus on the advancement of NGN, which serves as the foundation of NTT's efforts to achieve the "Road to Service Creation Business Group." In this way, NTT will seek to ensure stable development of the NTT Group 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, 2011, 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 operating 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 materials 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 the human resources that form the core of the NTT Group.


2.  Promotion of Basic Research and Development

One prerequisite for realizing NTT Group's "Road to Service Creation Business Group" and for responding to the societal requirements for the formation of a ubiquitous internet society is the harmonious and coordinated development of network-based technologies, technologies that provide a basis for new services and applications, and advanced and basic technologies in general. NTT will conduct research and development activities to create enriched communications environments through ubiquitous broadband 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 this basic research and development, NTT will seek to further increase research efficiency, and research costs will be borne by the regional companies and other NTT Group companies, which in turn will benefit from these 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 NGN infrastructure to realize a network environment for ubiquitous broadband services that can offer customers not only "fast and convenient," but also "safe and secure" connections "anytime, anywhere and with anyone or anything" to achieve a seamless migration from fixed-line to IP telephone services and from metal wire systems to optical fiber, NTT will promote research and development in the sphere of base network technologies, including technologies for configuring economical and diverse access networks, technologies for building networks that can adapt readily to diverse network services, node architecture technology, optical multiplexing technology, and next-generation IP network technologies. At the same time, NTT will pursue basic research and development in the field of operation systems to improve the reliability of telecommunications networks and the quality of customer services. Additionally, as a countermeasure for the effects of economic activities on global environments, especially in relation to issues arising from the increase in the consumption of resources and energy, NTT will promote research and development focused on reducing energy consumption and conserving use of resources at communication facilities and for promoting the re-deployment 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 the electronic exchange of information, goods, currencies, and value among people, corporations and objects is further enhanced through ubiquitous broadband networks. Specifically, this will include research and development in information-distribution technologies 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 cloud computing technologies such as storage, decentralized processing and retrieval of a variety of information; user interface technologies making services readily accessible to all users; technologies of open source software (OSS); 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 to contributing to the innovative improvement and development of telecommunications in Japan. To fulfill these commitments, NTT will pursue research and development activities on new optical components technologies that will contribute to 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 such areas as; ultra high-density wavelength division multiplexing and other new optical communications technologies; optical packet router technologies to further enhance transmission capacity and fundamentally reduce energy consumption; 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 advanced cryptographic theory. These will be combined with research on innovative new principles and new concepts for the next generation.

The following tables present an overview of the capital investment plan for all of these activities.



Table  Capital Investment Plan for Fiscal Year Ending March 31, 2011
Attachment 1  Revenues and Expenses Plan for Fiscal Year Ending March 31, 2011
Attachment 2  Sources and Applications of Funds Plan for Fiscal Year Ending March 31, 2011
Reference  Summary of Business Operation Plan for Fiscal Year Ending March 31, 2011



For more information, please contact:

Business Planning Group
Corporate Strategy Planning Department
Nippon Telegraph and Telephone Corporation
E-mail: jigyou@hco.ntt.co.jp


NTT NEWS RELEASE

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