Thursday, May 13, 2004

NTT Cites Rising Competition, Focuses on Optical Access and 3G

NTT,
Japan's incumbent service provider, reported overall revenue of
11,095 billion yen, up 1.6% over fiscal 2003, for its fiscal
year ending 31-March-2004. Net income for fiscal 2004 was 644
billion yen, up 176% compared with the 233 billion in net income
for 2003. However, the company said revenues would decline and
profit growth is likely to fall this year due to increased
competition, a shrinking fixed line market, and a difficult
business environment. Some highlights:


  • The NTT Group said its highest strategic priorities are
    optical access and 3G wireless. The Group is making
    "every possible effort" to build out its fiber
    access network, while reducing fees and strategically
    improving facilities in high-demand areas. To help realize
    its "Vision for a New Optical Generation," a new
    company, NTT-Resonant, was recently established to develop
    the new broadband market. At the same time, the NTT Group is
    moving aggressively to expand sales of its 3G FOMA mobile
    network. Key initiatives include extending the 3G coverage
    areas and upgrading consumer handsets.

  • Despite restructuring efforts, NTT said its results were
    affected by a "severe business environment with
    intensified competition and the shrinking fixed-line market.
    The operating revenues at NTT East amounted to 2,267.1
    billion yen (a decrease of 3.6% from the prior year), and
    the operating revenues at NTT West amounted to 2,166.8
    billion yen (a decrease of 2.2% from the prior year).

  • NTT East and NTT West have each launched IP telephony
    services for corporate customers. The program features
    reduced rates for outgoing calls to the IP telephone network
    and to subscriber numbers, as well as the option to retain
    in-use subscriber telephone numbers for receiving incoming
    calls. New services were also launched enabling users to
    call from subscriber telephones and public pay phones to IP
    telephones with the prefix number 050. The two companies
    have also launched a new VPN service called "FLAT
    ETHER" that provides flat-rate intra-prefectural WAN
    connectivity.

  • NTT East and NTT West are also continuing to implement
    cost-reduction measures and to expand the amount of work
    outsourced to the Group's regional companies.

  • NTT Communications began offering the IP telephone
    "OCN .Phone" to users of ADSL and "B FLET'S"
    services as a standard set requiring no initial fees and
    monthly basic fees. The company also introduced ADSL pricing
    tiers and increased the use of IP phones by extending the
    service network to include mobile phones.
  • NTT DATA is further reducing its costs to boost
    competitiveness in the systems integration field. At the
    same time, NTT DATA is pursuing structural reform by
    re-organizing NTT Group companies involved in regional
    businesses and in maintenance and operations services. NTT
    DATA is focused on the promotion of new businesses including
    the "IT Partner Business" program where NTT Data
    works together with its customer firms in the form of
    business alliances or joint investments to conduct
    IT-related businesses.
  • NTT DoCoMo highlighted alliances with overseas affiliates
    and partners, including new "i-mode" services that
    were newly launched in Spain and Italy, and 3G services that
    were launched in Hong Kong.


http://www.ntt.co.jp

14-May-04
























































NTT
Group -- Fiscal 2004 Performance

(billions of Yen)


  NTT
Holding Company
NTT
East
NTT
West
NTT
Comm.
NTT
Data
NTT
DoCoMo
Operating
Revenues
258 2,267 2,167 1,107 847 5,048
Change
from previous year
16.2% (3.6%) (2.2%) (3.9%) 1.8% 5.0%
Net
income (loss)
240 58 62 24 27 650
Change
from previous year
159 55 42 11 (1.6) 438



 
























































































































































NTT
Subscriber Numbers
  31-Mar-02 31-Mar-03 31-Mar-04 

 
31-Mar-05 

 
(projected)  
NTT
East Fixed Telephone lines
25,084,000 25,139,000 25,264,000   25,317,000
NTT
East  INS-Net Subscriber Lines
5,851,000 5,260,000 4,756,000   4,340,000
NTT
East Total
30,956,000 30,399,000 30,020,000   29,657,000
NTT
West Fixed Telephone lines
25,654,000 25,575,000 25,674,000   25,707,000
NTT
West  INS-Net Subscriber Lines
5,299,000 4,868,000 4,378,000   3,930,000
NTT
West Total
30,952,000 30,442,000 30,053,000   29,637,000
         
NTT
East FLET's ISDN lines
653,000 651,000 514,000   364,000
NTT
East FLET's ADSL lines
513,000 1,430,000 2,283,000   2,983,000
NTT
East B-FLETS optical access lines
12,000 111,000 426,000   1,026,000
          
NTT
West FLET's ISDN lines
651,000 621,000 466,000   359,000
NTT
West FLET's ADSL lines
454,000 1,127,000 1,806,000   2,506,000
NTT
West B-FLETS optical access lines
6,000 88,000 414,000   1,014,000
         
DoCoMo
Cellular
  43,861,000 45,927,000 47,700,000
DoCoMo
Cellular -FOMA
  330,000 3,045,000 10,600,000
DoCoMo
i-Mode
  37,758 41,077,000 43,400,000
DoCoMoi-Mode FOMA 303,000 303,000

2,997,000

 

http://www.ntt.co.jp