News Release: August 2, 1999

NTT Communications Corporation announced today that it has commenced a program to commercialize flexible and low-cost IP network services by constructing new networks using the next-generation IP basic technology of multiprotocol label switching (MPLS). This is the first such program to be introduced in Japan. NTT Communications aims to completely replace current data and voice networks with IP networks for corporate users.

MPLS technology allows high-speed packet forwarding, secures the exclusiveness of networks, and permits the handling of different protocols. With an MPLS network, IP packet is assigned a label at the entrance of the network and within the network packet forwarding occurs using only the label and not the IP address.

NTT Communications hopes to complete the development and construction of MPLS networks by March 2000. By using this network the company is to provide IP network services for corporate users from the second quarter of 2000. This service aims to reduce cost, by over 2/3rds of the former cost of corporate networks, and to provide various large-scale application services for the intranet.

Features of New IP Network Service for Corporate Users

NTT Communications will provide new IP network services by making full use of its know-how and technology achieved through its development, construction and operation of the Internet, for which is stands out as one of Japan's largest Internet service providers.

Key features:
1.	Reduces the cost of setting up corporate networks by using various network interfaces and flexible scalability*1
	a)	Initially, network speeds of 64 Kb/s to 135 Mb/s, and Ethernet (10Mb/s) and Fastethernet (100 Mb/s) for housing*2 will be provided.
	b)	For the future standard, speeds of 600 Mb/s, 2.4 Gb/s and Gigabitether are being considered
2.	Secures easy network design and reliability for customers
	a)	Security of quality with a service level agreement (SLA)
	b)	Network setup (speed increase/decease, transfer) without influencing other networks.

3.	Secures network exclusiveness necessary for corporate networks
4.	Provides a variety of value-added services
	NTT Communications plans to provide an agency service for Voice over IP (VoIP = voice telephony services over IP connections), a housing service*3, a hosting service, an Internet connection service, network management, and security management.

About MPLS

MPLS, of which standards are being developed by the Routing Area of Internet Engineering Task Force (IETF)*3, is viewed as the next-generation of technology to enable fast switching capabilities for use by IP networks. Major telecommunications vendors actively seek MPLS development.

Over the same network, MPLS can provide multiple protocols such as IPv4*4, IPv6*5, FR and ATM. MPLS can also provide, over a single network, multiple IP networks with overlapping addresses. The new network with MPLS will boast the potential to integrate packet communications for the coming gigabit-speed era.

NTT Communications made the decision to adopt MPLS, taking into consideration the development of its standardization and its promising future. Other factors influencing its choice were the reliability and scalability of the communication equipment using MPLS and the high quality of its operating service.

The network will provide speeds ranging from 64kb/s to gigabits, with the adoption of telecommunications equipment with interfaces such as OC12, OC48 and OC192*6 made by Cisco Systems, Inc. of the United States. This level of service will fulfill the quality requirements of the next-generation IP networks and ensures that the basic network of NTT Communications is adaptable to the gigabit capacity use in the future.

Notes:

*1 Scalability: Ability to adapt to network scale expansion in accordance with increasing communications volume.

*2 Housing service: A service in which NTT Communications houses the client server in the NTT Communications facility and supervises and maintains related telecommunications network and facility on a 24 hour basis.

*3 Internet Engineering Task Force: One of the major standardization organizations for Internet technology. Homepage at http://www.ietf.org/.