Press Release

May 16, 2001



NTT Communications' Financial Results
for Fiscal Year Ended March 31, 2001

NTT Communications Corporation (NTT Com) announced today its non-consolidated financial results for the fiscal year ended March 31, 2001. Operating revenue increased 26.1% from the previous year* to 1,355.5 billion yen, while recurring profit fell 36.1% to 81.6 billion yen and net income dropped 42.0% to 42.2 billion yen.


The IT revolution, which has evolved into a global phenomenon, is further accelerating with the explosive growth of the Internet and mobile phones. This revolution has triggered a structural change in the telecommunications industry from voice to data and IP communications.

Competition within the worldwide telecommunications industry is now fiercer than ever, amidst a slowdown in the global economy that initially began in the United States. Fiscal 2000 was a year when established overseas carriers struggled to transform their businesses from voice to data and IP, as well as when many emerging U.S. and Asian dot-com companies crashed. However, the Internet continues to dramatically alter the way people work and live.

Registration for the “Myline” carrier selection service began in the Japanese market, promoting rate-reductions and service competition in the shrinking fixed-telephone market.


Based on its “Dot-com Declaration,” a new business vision announced in March 2000, NTT Com developed its operations with the ultimate goal of strengthening its ability to deliver IP services on a global scale.

The acquisition of U.S.-based Verio Inc. in September 2000 enabled NTT Com to gain a solid foothold in the North American and European IP markets, as well as provide value-added IP networks and IP platforms in the Asian Pacific region. With this acquisition, NTT Com has clearly stated its goal of becoming a “Global IP Company” by fiscal year 2002. To this end, the firm will actively integrate IP into its services and will additionally reform management by altering key business processes, sales channels, and human resource systems.

NTT Com considers the commencement of the Myline service on May 1, 2001 as a great opportunity not just for users to select a telephone service, but for them to choose NTT Com based on the firm’s high-quality services and solid brand image. NTT Com has thoroughly revamped its operations by lowering rates, introducing new services, providing a seamless communications service that covers local to international calls, and creating a comprehensive customer support system with numerous contact channels and aftercare.


NTT Com set the groundwork for its transition into a “Global IP Company” in this fiscal year.

The company began to globally deploy services related to “e-theater,” the central concept behind its transformation into a “Global IP Company.” NTT Com cut rates for consumer users, introduced new discount schemes, and provided new services such as a communications service that covers local to international calls and an Internet access service that includes dial-up charges.

The company also launched “Internet Certification,” a new program that aims to enhance computer literacy and promote Internet usage nationwide.

"e-theater" - Related Services

NTT Com has introduced a variety of IP-based communications services under the concept of “e-theater.” This is a concept combining the company’s IP networks, global data centers and platforms, metaphorically put together as a stage, allowing customers to create new business models and enjoy new lifestyles..

IP Network Service
NTT Com has enriched its service menus for consumers. It introduced new services and rates for its OCN Internet access service, which is the basic IP service to individual users. The OCN Dial Access Flat Plan was added to the company’s OCN Dial Access service to offer flat-rate unlimited Internet access. For occasional Internet users, Komi de 400 was recently added to OCN Dial Access Komi de Plan, an affordable plan that packages both Internet and dial-up charges. NTT Com also launched OCN ADLS Access, an Internet access service which ensures speedy downloading of large-volume video, music and game content with the use of an ADSL access network. In addition, a new lineup was added to OCN PC Pack.

For corporate users, NTT Com unveiled a high-security, high-speed, and high-quality IP-VPN service which relies on multi-protocol label switching (MPLS) technology. For the benefit of multinational customers, Arcstar Global IP-VPN service, boasting the world’s largest service area with a total of 52 countries, was introduced. To help companies obtain maximum benefit from information technology, NTT Com enriched its hosting service by launching OCN Mail & Web and by introducing OCN Cisco Pack, which packages NTT Com’s Super OCN with Cisco Systems routers. Moreover, OCN Standard rates were reduced and access points for OCN Light were increased to meet a growing demand for broadband services.

Global Data Center Service
To help corporations focus on their main business activities, NTT Com began Data Center Service, which offers one-stop collocation, hosting and complete outsourcing. As of the end of fiscal 2000 (ended on March 31, 2001), the service was provided jointly by more than 100 bases in Japan and abroad, including Verio, NTT Com subsidiaries in Asia, as well as local partners.

Platform Service
NTT Com developed the following platform services for advanced supply chain management and cross-industry transactions via networks

- .com Market (online shop construction)
- Electronic Catalog Aggregation Platform (electronic catalog distribution)
- CAD Collaboration Service (collaborative 3D design)
- Web Site Approval-Guarantee System (online shop certification guarantee)
- e-Container (safe, secure and effective digital content distribution)
- ApparelArc Platform Service (process standardization for fashion business)
- .com Co-Buy (supports e-transactions between multiple vendors/suppliers)
- .com Exchange (next-generation information exchange network)

Arcstar Data Network Series

NTT Com has constructed a globally seamless network and expanded large-scale user discount schemes for its Super Relay FR, Super Relay CR, ATM Mega Link and Digital Leased Circuit services. It has also introduced large-scale user discounts to be applied to total charges for multiple services. NTT Com furthermore added Italy, Hawaii and Guam to its Arcstar High-Speed Digital International Leased Circuit service areas.

To meet burgeoning telecommunications needs, NTT Com promoted undersea optical-fiber cable construction with various partners. Current projects include the Asia-America Network and Korea-Japan Cable Network.

Telephone Services

To encourage customers to select NTT Com for their Myline registration, the company has introduced competitive rates, provided new telephone services linked to the Internet, and expanded customer channels.

Rates were reduced for out-of-prefecture long distance and international calls. In order to meet the needs of mainly corporate customers, NTT Com announced that it would begin in-prefecture long-distance and local call services in Tokyo, Aichi, and Osaka prefectures starting on May 1, 2001. As a result, NTT Com can now provide total services covering local to international.

A special “thank you rate” to mark the first anniversary of NTT Com’s 0033 International Telephone Service was offered for a limited time.

NTT Com began Home Office Discount, which offers reductions on out-of-prefecture long-distance and international call charges when the total monthly bill exceeds a certain amount. The company also launched Business Discount, which lowers charges for multiple contracted networks of out-of-prefecture long-distance and international calls, depending on the total monthly bill. NTT Com’s “Callage” Service was introduced to provide general users with various benefits, depending on usage term and volume, while Long-Term Discount for corporate users reduces costs even further according to periods of use. Moreover, e-Call and Communications Square services, both of which combine telephone use with the Internet, were newly launched.

*Note: “previous year” is counted as being from May 28, 1999 to March 31, 2000

1. NTT Communications Corporation NON-CONSOLIDATED BALANCE SHEET (Based on Japanese accounting principles)
2. NTT Communications Corporation NON-CONSOLIDATED STATEMENT OF INCOME (Based on Japanese accounting principles)
3. NTT Communications Corporation NON-CONSOLIDATED STATEMENT OF CASH FLOWS (Based on Japanese accounting principles)
5. BUSINESS RESULTS (NON-CONSOLIDATED OPERATING REVENUES) (Based on Japanese accounting principles)
6. Changes in NTT Communications’ Board of Directors (subject to shareholder approval)