Nippon Telegraph and Telephone West Corporation (NTT West) today
submitted its business operation plan for the fiscal year ending March 31, 2006
to the Minister for Internal Affairs and Communications for approval.
Information and communications are expected to play a key role in the process
of forming a ubiquitous network society by enhancing the efficiency and vitality
of socioeconomic activities and the convenience of national life. To that end,
the public and private sectors are working closely together under the u-Japan
Initiative to bring the network society to reality. At the same time, the information
and telecommunications market has been undergoing drastic transformations affecting
the structure of the market itself. These changes include the growing sophistication
and diversification of user needs, the steady progress of globalization, and
the explosive growth in demand for Internet communications. The regional communications
market is feeling the impact of the progressive contraction in the conventional
fixed-line telephone market as consumers switch from fixed to mobile communications,
and from voice transmission to Internet and data communications, while IP telephony
is expected to expand rapidly. Further, new competition is emerging, triggered
by the launch by other companies of telephone services that do not rely on NTT's
network. The broadband market, the growing leader in telecommunications, continues
to be the scene of intense competition for greater market penetration among ADSL
and optical providers in both services and price.
In this intensely competitive environment, NTT West has identified the fiscal
year ending March 31, 2006 as critical to its strategy to achieve a dramatic
increase in users of its optical access and IP services. NTT West will actively
engage in the enrichment of its broadband services, including provision of applications
that take advantage of Fiber-optic IP Connection, and in the development of high-value-added
solutions businesses such as security services, as the company endeavors to realize
a resonant communications environment. As well as contributing to provide stable,
high-quality universal services, NTT West has set up the following goals to fulfill
the NTT Group's Medium-Term Management Strategy:
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Migrate seamlessly from its existing network to the optical and
IP network. |
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Enhance optical access network that constitutes the backbone for its broadband
services. |
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Contribute to the development of a fair telecommunications market. |
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Advance its research and development capabilities in applied fields. |
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Work towards ensuring the reliability and public availability of telecommunications
services. |
As a reflection of these fundamental principles, NTT West will strive in its
business management during the fiscal year ending March 31, 2006, to offer high-value-added
services that cater to diverse modes of use by creating new broadband services
and technologies and improve its services by responding effectively and quickly
to customer needs and demands. Further, in the face of the severe business environment,
NTT West will make every effort to secure the continued flow of profits through
such management innovation programs as greater improvements in business efficiency
and trimming of costs, while still responding to any changes in the market. In
other areas, NTT West will implement measures for maintaining smooth interconnection
and open networks. It will seek to promote its research and development position
in applied fields, improve disaster prevention measures, promote human resources
development, and actively pursue new business opportunities in cooperation with
NTT group companies. Through this line of action, NTT West will endeavor to achieve
a stable course of future development. NTT West stands ready to share the benefits
of these initiatives with its customers, local communities and the shareholders
in the holding company.
The above outlines NTT West's basic strategies for the fiscal year ending March
31, 2006. While special emphasis will be assigned to the matters summarized below,
NTT West will respond with appropriate flexibility to any changes in the business
environment.
1. VOICE TRANSMISSION SERVICES |
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(1) Subscriber Telephones: |
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NTT West stands ready to respond speedily to all demand for subscriber telephones,
including the relocation of existing lines. The total number of subscribers is
projected to reach approximately 23.29 million by the end of the fiscal year
ending March 31, 2006.
| Item |
Planned Number (subscribers) |
| Additional Installations |
(1.91 million) |
| Relocations |
4.01 million |
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(2) Social-Welfare Telephones: |
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The progress of social welfare has generated demand for various telecommunications
services. To respond to welfare-related needs, NTT West shall promote the installation
of its "Silver Phones series" (Anshin (Relief), Meiryo (Clearness),
Hibiki (Sound), Fureai (Communication)) and other welfare-oriented products.
| Item |
Planned Number (units) |
Silver
Phones |
Anshin (Relief) |
2,500 |
| Meiryo (Clearness) |
100 |
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(3) Public Telephones: |
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While maintaining public telephones to ensure a minimum level of access to
outdoor communications, NTT West will continue to review and to remove low-use
public telephones. On the other hand, in its commitment to improved services
and welfare, NTT West will promote the installation of public telephone boxes
for wheelchair users.
| Item |
Planned Number (units) |
| Public Telephones |
(23,000) |
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(4) INS-Net Digital Services: |
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INS-Net Digital Services are now available in all areas with potential demand.
The total number of INS-Net 64 subscriber lines and INS-Net 1500 subscriber lines
is projected to reach approximately 3,276,000 circuits and approximately 20,000
circuits, respectively, by the end of the fiscal year ending March 31, 2006.
| Item |
Planned Number (circuits) |
| INS-Net 64 Subscriber Lines |
(524,000) |
| INS-Net 1500 Subscriber Lines |
(1,000) |
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2. DATA TRANSMISSION SERVICES |
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NTT West will reinforce its Fiber-optic IP Connection Service and other access
services as well as provide new services to respond to the expanding demand for
broadband services.
| Item |
Planned Number (subscribers) |
| B FLET’S |
800,000 |
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3. LEASED CIRCUIT SERVICES |
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Facilities for leased circuit services are scheduled to be installed to actively
respond to demand, including high-speed digital transmission services and voice
and image transmission services.
| Item |
Planned Number (circuits) |
| Conventional Leased Circuits |
(49,000) |
| High-Speed Digital Transmission Circuits |
(71,000) |
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4. TELEGRAPH SERVICES |
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NTT West shall promote such measures as the maintenance of telegraph operation
systems to enhance services and raise efficiency. |
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IMPROVEMENTS AND ADVANCES IN TELECOMMUNICATIONS EQUIPMENT |
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(1) Optical Access Network: |
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NTT West shall actively promote the deployment of the Optical Access Network
in coordination with expanding demand for broadband services.
| Item |
Planned Number (million fiber km) |
| Optical Subscriber Cables |
1.5 |
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(Coverage rate at the end of March 2006 will be 84%.) |
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(2) Telecommunications Network: |
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NTT West shall enhance network services as well as improve network economy
and efficiency while meeting demand for broadband services. |
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(3) Disaster-Prevention Measures: |
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NTT West shall promote necessary disaster-prevention measures for telecommunications
equipment. To this end, it shall establish emergency communication and crisis
management measures, as well as procedures for restoring systems and distributing
vital information in the event of a large-scale disaster. |
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(4) Installation of Underground Transmission Cables: |
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NTT West shall install underground transmission cables to aid transmission
stability, secure safe and comfortable passage spaces and improve the appearance
of urban areas in cooperation with the local and national governments or other
companies. |
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(5) Facility Maintenance: |
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NTT West shall implement facility maintenance, including the replacement
of cables, to maintain customer services, ensure safety and harmony with social
environments and stabilize communications systems.
NTT West shall pursue cost reduction by making exhaustive use of existing equipment
and facilities in improving and upgrading communications facilities. |
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PROMOTION OF RESEARCH AND DEVELOPMENT ACTIVITIES |
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The information and telecommunications market is at a significant crossroads.
NTT West shall promote research and development in the spheres of network systems
and access systems which create more sophisticated and reliable telecommunications
networks. In addition, to meet diverse public demand for information and telecommunications,
NTT West shall also promote research and development in such areas as information
distribution applications and communications terminals of various types which
expand the range of choices available to customers in their selection of reliable
and convenient services through sophisticated telecommunications networks. |
The summary of the business plans for the above principal services
and the plant and equipment investment plans are outlined in the attached
tables. |
