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1. Summary of Results for the Fiscal Year Ended March 31, 2013 |
With respect to the global economy, in the fiscal year ended March 31, 2013, despite the relative stabilization of the U.S. economy, Europe’s bond-related economic downturn had a ripple effect on China and other emerging countries, leading to continued economic stagnation. The Japanese economy, despite showing signs of mild recovery mainly from domestic demand stemming from rebuilding after the Great East Japan Earthquake, has shown weakened growth from the effects of the global economic slowdown. However, the outlook for the Japanese economy has started to show signs of improvement from December 2012 through the close of the fiscal year in anticipation of the new monetary easing policy adopted by the Bank of Japan.
In the information and telecommunications market, as Japan moves towards the formation of a ubiquitous network society where information and communications technologies (ICT) will be utilized extensively, ICT is expected to play a leading role in improving the efficiency and vitality of socio-economic activities and bringing greater convenience to the Japanese public. The public and private sectors are collaborating to achieve this vision. In addition, with the growth of broadband, globalization and the increased popularity of smartphones and tablet devices, user needs have diversified and become more sophisticated, and platform-type services and cloud services have expanded, leading to structural changes in the information and telecommunications market. In the regional communications market, competition among broadband service carriers utilizing optical access and cable TV, and competition between services due to the increased speed in mobile networks, has progressed. Furthermore, there have been drastic changes in the industry, including the convergence between fixed and mobile communications and between communications and broadcasting and the convergence among services utilizing a diverse range of wireless devices.
In this challenging and evolving business environment, NTT West endeavors to be a “customer-oriented corporate group” that meets customer expectations, contributes to society and provides high quality, stable universal service. NTT West has devoted its energy to promoting and expanding safe, secure, reliable, and desirable broadband and ubiquitous services that meet customers’ needs, through new services and products that utilize the framework of the NGN and its networks. |
<1> Efforts to Promote Fiber-optic and IP services
NTT West has been promoting fiber-optic and IP services to expand the use of fiber-optic services by establishing ubiquitous broadband networks and offering customer-friendly price menus and attractive services.
For example, NTT West is expanding opportunities to use FLET’S Hikari in a wide variety of applications while developing and expanding services that can support the day-to-day lives and business activities of a broad range of customers, from individuals to businesses.
NTT West’s goal is to further develop “FLET’S Hikari” fiber-optic broadband services and promote their use. To achieve this, NTT West worked to expand services by, among other things, launching “FLET’S Hikari Next Super High-Speed Type Hayabusa,” introducing “FLET’S Hikari Wi-Fi Access,” an Internet connection service for multi-dwelling units, and lowering monthly charges for “FLET’S Hikari Light Apartment Type.”
In addition, as part of its initiative to enhance and strengthen its pricing service, NTT West launched “Hikari Motto Motto Wari,” a discount service for long-term customers designed to encourage continued use, as well as “Group Wari,” a monthly charge discount service available to FLET’S Hikari subscribers who can form a group to use the service.
Furthermore, NTT West has a goal of readily offering more customers an enjoyable communication environment necessary for playing online games by entering into alliances with other business operators. In furtherance of this goal, NTT West collaborated with Square Enix Co., Ltd., the provider of Dragon Quest X: Rise of the Five Tribes Online, the series' first online game, and Nintendo Co., Ltd., the company that offers the “Wii” and the “Wii U” home video game consoles, to promote and provide Internet connection support.
NTT West has worked to improve customer convenience of “Hikari Denwa” by introducing “Free Access Next,” a collect call service, and provided a speed dialing service connection (#dial), with the aim of promoting the use of video communication services. NTT West also worked to expand its services and began offering “TV Denwa Choice Teigaku,” a flat rate service for high-quality video phone calls.
To meet the growing needs of public Wi-Fi access due to the rapid increase in smartphone and tablet device users, NTT West also launched a roaming service with DoSPOT, a Wi-Fi service for retailers provided by NTT Media Supply Co., Ltd., and implemented other measures to increase access points of “FLET’S Spot (web authentication),” a public wireless LAN service.
Furthermore, as part of the initiative to create new lifestyles, NTT West launched services such as “FLET’S Eco-megane,” a cloud-based energy use visualization service, and “Hikari Danran TV,” which enables space sharing communication by sharing high-quality real-time videos on home televisions and various applications through an alliance with “Hikari Box+,” a set-top box that allows customers to use the Internet and to enjoy videos on home televisions.
In addition, with respect to support services, in order to address new security threats against Android handsets as a result of the recent rapid increase in the number of smartphones and tablet devices running the Android operating system, NTT West worked to increase the number of devices with remote support service by implementing support for Android smartphones and “Hikari Box+” through the “remote support service,” and making its security tools compatible with Android devices. |
<2> Efforts Concerning Solutions Business
As part of NTT West’s initiatives for expanding its service coverage of large as well as small-and-medium-sized businesses, NTT West developed efficient and effective marketing activities in both the public and private sectors with a focus on industry-specific solutions based on each industry’s unique characteristics and trends, and made further use of ICT tools such as cloud services to enhance the satisfaction of its regional customers.
As part of NTT West’s efforts to expand its cloud services, NTT West began offering a cloud-based remote access service and a web conferencing service to local governments and corporations in order to support BCP (business continuity planning) in a secure telework environment. For universities, NTT West launched a cloud-based education support service that provides study-support and encourages interactive communication between teaching staff and students. NTT West also began offering a service to agricultural cooperatives that digitizes and stores important documents handled by their credit business on a cloud storage system.
As part of its collaborative efforts with local governments, NTT West worked to further promote the “Smart Hikari Town Kumamoto” project, launched in February 2012 in conjunction with Kumamoto prefecture and Kumamoto city, to realize “Smart Hikari Town.” As part of the project, NTT West introduced “Smart Airport,” which utilizes digital signage, began distributing “Kumamoto Smart Station,” which enables travelers to check train and bus schedules and other information, and developed a model business for “visualizing home energy consumption and controlling home appliances.” In addition, in the town of Shodoshima, Shozu-gun, Kagawa Prefecture, NTT West introduced “Hikari Kenko Sodan,” a cloud-based health consultation service as part of the town’s “Olive Healthcare System Project,” a health maintenance project carried out by community members.
Moreover, NTT West has worked to expand services for corporate customers. NTT West added Android smartphones to the devices eligible for remote support on “Office Net Omakase Support Service,” and improved the customer IT support screen in its service’s menu to further enhance support services. |
<3> Business Operation Structures
NTT West’s aim with respect to business operational structure is to enhance cooperation among the facility businesses such as those responsible for the building, maintenance and management of communication facilities. To achieve this goal, NTT West established a “Facilities Headquarters,” with three departments under it: “Network,” “Service Management” and “Interconnection Promotion.” NTT West also set up the “Alliance Promotion Office” to promote alliances with other companies. Moreover, based on the view that the fundamental goal of service development is to use fiber-optic services to “design a lifestyle that connects everything and enriches everyday life,” the Service Creation Department was renamed the Business Design Department.
In the area of facility maintenance, NTT West held a bloc forum aimed at learning from the major Hikari Denwa failure, strengthening execution capabilities and improving service quality, and carried out information distribution and assessment drills. NTT West also worked to enhance its disaster preparedness framework, carrying out a preparedness exercise designed to mimic events in the event of a large earthquake along the Nankai Trough. NTT West also executed planned facility inspections with “Hikikomisen Team Zero” with the goal of eliminating third-party accidents caused by fallen lines.
As part of its comprehensive cost control efforts to maintain profitable management, NTT West worked to further enhance the efficiency of fiber-optic service installation work, shorten and improve delivery dates through concurrent development of KAIZEN measures, increased installation jobs that do not require the dispatch of NTT employees by setting up fiber-optic outlets at properties with high tenant turnover, and decreased back orders and order cancellations with a back order hotline. NTT West also improved the efficiency of maintenance work by accepting voice messages on weekends and holidays at the 113 center. |
<4> Corporate Social Responsibility (“CSR”) Activities
The NTT Group CSR Charter (adopted in June 2006) stipulates that, as responsible members of the information and communication industry, NTT Group companies will provide services of the highest quality and trust and contribute to the development of a safe, secure and prosperous society where people, society and the earth are connected through communications. Based on the CSR Charter, NTT West set up three new core CSR principles - thorough compliance, development of a safe and secure society, and creation of value through business activities - and set a “visualization” benchmark. Each NTT West employee takes part in CSR activities, including working to maintain legal compliance, providing safe and reliable communication services and reducing the burden on the environment.
In particular, with respect to thorough compliance, NTT Group has promoted groupwide initiatives in five high risk areas that have the potential to erode consumer trust in NTT West group companies, namely “misconduct in performing services,” “driving under the influence,” “information security breaches,” “power harassment” and “respect for human rights.”
In order to achieve its environmental grand design (new self-determined action plan targets) based on the NTT Group Environmental Vision (The Green Vision 2020) established in November 2010, NTT West has been working to decrease its power usage, amount of paper used, and the waste it produces. In addition, NTT West, under its biodiversity conservation activity entitled “Midori Ippai Project,” carried out foresting activities and engaged in other activities that contribute to the environment of local communities.
To promote the principles of the NTT Group CSR Charter and group-wide CSR activities, NTT West enhanced its CSR management and issued the “NTT West Group CSR Report 2012” and the “NTT West Group Environmental Report 2012” to proactively disclose relevant information to its stakeholders.
In addition, with respect to major damage caused by Typhoons 4 and 17 and torrential rainfall in the Kyushu region to NTT West’s communications facilities, NTT responded by quickly restoring communications services through around the clock restoration efforts by employees from companies throughout NTT Group.
With respect to power shortages and energy-saving efforts since the Great East Japan Earthquake, NTT West implemented the maximum power saving measures possible at both its exchange offices and office buildings. |
<5> Financial Standing
As a result of these efforts during the fiscal year ended March 31, 2013, operating revenues totaled 1,627.9 billion yen (a decrease of 2.9% from the fiscal year ended March 31, 2012), operating income was 19.2 billion yen (a decrease of 48.2% from the fiscal year ended March 31, 2012), recurring profit was 28.3 billion yen (a decrease of 33.0% from the fiscal year ended March 31, 2012), and net profit totaled 20.9 billion yen (an increase of 2.2% from the fiscal year ended March 31, 2012). |
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