Press Release
 

March 14, 2000

 
FOR INFORMATION:
 

NTT Communications Announces Business Vision

 
Since July 1 of last year, NTT Communications Corporation (NTT Com) has been developing its business operations as a challenger in the global info-communications market. NTT Com has developed its businesses based on its mission to provide the best global services to benefit its customers.

Today’s information and telecommunication market is undergoing dramatic changes. The industry is witnessing an information technology (IT) revolution, with new players entering the market and raising the level of competition to ever-higher levels.

In order to compete in the expanding IT market, NTT Com will strengthen its IP-service business systems operations in addition to its conventional transport-business systems operations. As for global services, NTT Com will aim to become a full-service player in the tri-polar regions: Asia, the United States, and Europe.


1. Slogan: “NTT Com Changes Communications to ‘.com’”

IP services are expanding globally, not only in advanced nations but also in developing countries. Such services are being provided to businesses, individuals and governments. In this sense, they are gaining positions as the infrastructures of society. This expansion of IP services does not only signal a transition from telephones to the Internet, but is changing the way people conduct businesses and their personal lives. Given this, NTT Com has created a new slogan entitled “NTT Com Changes Communications to ‘.com,’” which enables the company to provide telecommunication services and, at the same time, to realize:
1-1. creation of new business models for business users, and
1-2. communication services that match the new lifestyles of personal users and home users.
NTT Com’s slogan also incorporates the company’s goal of becoming a full-service consultant that can comprehensively assist customers when they change their lifestyles and businesses. Under this slogan, NTT Com will simultaneously renovate both its corporate and cultural structures.


2. How to Implement NTT Com’s Basic “e-theater” Strategy

NTT Com will provide a broad scope of communication services focusing on IP and platform businesses. Geographically, NTT Com will extend these services to not only in Japan, but also in the United States, Asia, and the global market. NTT Com’s operational nucleuses will range from network services to platform services that ensure speedy and safe transactions for customers. In terms of high-layer services, NTT Com will provide application contents by working together with major partners. With the partnerships, NTT Com will also provide extensive, high quality services to customers. NTT Com has named its core businesses foundation, which range from networks to platforms, as “e-theater.” Allegorically, NTT Com will set the stage and invite customers to the “theater,” where customers can enjoy the performances (Attachment 1).


3. Strategies for the Time Being

NTT Com will implement the following four business strategies for the time being (Attachment 2).

3-1. NTT Com intends to become a leading player for global IP connectivity and data center services:
* Provide high quality, value-added data center services:
- provide data center services by combining high value-added large-volume IPBB and managed services to isp/NSP and .com companies
* Secure large-volume backbone:
- secure large-volume and seamless IPBB at home and abroad to acquire high-layer services
* Provide high-speed and broad-band access line services:
- start broad-band Internet access services to distribute high-speed Internet and visual stream services
* Expansion of OCN:
- continue to establish OCN connectivity services and also to initiate other services such as online contest malls, and as a result, NTT Com expects users to exceed10 million by fiscal 2003
* Development of IP services in global markets:
- provide high-value-added IPNW services to integrate data link, hosting and EC platform

3-2. Establish strong approval and settlement platforms:
* Develop platform business:
- provide ISP-free approval and settlement platforms as a foundation for “.com” businesses
- make logistics, commercial and information distribution more efficient by structuring industrial and intra-industrial platforms

3-3. Reinforce application services
* Provide extensive application contents
- provide interesting application contents that meet each segmented customer needs through partnering and joint ventures
* Develop ASP businesses for industrial customers
- develop ASP businesses for industrial customers through partnering and alliances

3-4. Propel enterprise management service (EMS) that fully supports corporate IT strategies:
* Develop EMS businesses
- provide secure, high-grade end-to-end services to fully outsource the IT system for corporate customers
- provide common bases for major ISP providers

Based on these business strategies, NTT Com will utilize close partnerships in every business field and prepare portfolios of extensive services to address all customers’ needs. (Attachment 3)


4. Structural realignment

For corporate renovation and establishment of IP-based business operations, NTT Com will realign and strengthen its organizational structure as follows:

4-1. E Platform Service Department:
NTT Com will newly establish the E Platform Service Department to provide Enterprise Management Service on April 1st. The service forms the common basis of structuring by-industrial and intra-industrial platforms as well as ASP common platforms to support corporations in their efforts to become “.com” companies.

4-2. .com Business Incubation Taskforce (nicknamed “.com bit”)
This taskforce, launched on February 1 as “.com bit,” and comprised of various experts whose average age is 27, will aggressively propel EC platform businesses, create contents, and expedite joint ventures, business alliances and collaborations.

 
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