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News Release Submission for Approval of Business Operation Plan for the Fiscal Year Ending March 31, 2016
This English text is a translation of the Japanese original. The Japanese original is authoritative.
February 27, 2015
Nippon Telegraph and Telephone West Corporation (“NTT West”) today submitted its business operation plan for the fiscal year ending March 31, 2016 to the Minister for Internal Affairs and Communications for approval.
Information and communications services are expected to make significant contributions to the invigoration and increased efficiency of social and economic activities, improvements in lifestyle convenience and the vitalization of local economies. Accordingly, the government and the private sector are working in partnership to achieve the development of a ubiquitous broadband network society in which there is an advanced level of utilization of information communication technology (“ICT”). Moreover, the information and telecommunications market is undergoing a structural change as a result of the shift to broadband and globalization, as well as the spread of smartphones, tablets and social media. The market is catering to increasingly sophisticated and diversified needs by, among other things, expanding platform services and cloud services. Regional telecommunications markets are also undergoing significant changes, such as the convergence of fixed and mobile services, and of telecommunications and broadcasting, and the introduction of new services as a result of the use of a diverse range of wireless devices. This is due in part to an increase in competition not only between the providers of fiber-optic access services and cable television-based broadband services but also between the various services made available by faster mobile connections.
Within this challenging and dramatically changing business environment, NTT West is striving to promote the smooth migration to optical, IP-based networks and enhance the fiber-optic access network that is the backbone of broadband services, as well as continue to provide high-quality, stable universal services. NTT West also aims to contribute to the development of fair telecommunications markets and promote applied research and development to ensure the reliability and public utilization of telecommunications services. While rigorously ensuring fair terms of competition within the current legal framework as well as encouraging thorough compliance, NTT West will also aim to realize a broadband and ubiquitous network environment that will enable customers to connect “anytime, anywhere and with anyone or anything” and “in comfort, safety and with peace of mind.” NTT West will achieve this by offering an open next-generation network (“NGN”) that utilizes the unique characteristics of fiber optics and by expanding its Wi-Fi platform. At the same time, NTT West will endeavor to contribute to the development of an information distribution society and the creation of a new lifestyle by expanding the use of fiber-optic services, including the provision of various lower-rate plans that match each customer’s patterns of usage, and a variety of other services.
These are the basic concepts that underlie the business plan for the fiscal year ending March 31, 2016. In its broadband services, NTT West expects to provide a more comfortable, safer and more secure NGN. In addition, NTT West will strive to provide customers with greater convenience by developing Hikari Denwa services that make use of fiber-optic access lines, video distribution services and services for corporate users, as well as by creating new services through the fair and equal provision of the Hikari Collaboration Model to, and promotion of collaborations with, a variety of service providers. NTT West also plans to maintain its community-oriented sales activities in order to respond to customers’ opinions and requests in an appropriate and timely manner, improving both the range and quality of services and contributing to the development of local communities. In conjunction with this, and in recognition of its responsibilities as an operator of social infrastructure, NTT West will aim to contribute to the creation of a safe and secure society by seeking to ensure the stable provision of its broadband access, Hikari Denwa and other services, attempting to prevent equipment failures, strengthening facilities countermeasures in preparation for possible large-scale disasters, responding vigorously to restore service in times of disaster, and bringing all of its group resources to bear on activities and services that will earn the continued trust of its customers. Amid a difficult business environment, NTT West will strive to continue to improve the efficiency of its operations so as to maintain profitability.
NTT West will work to lay the foundations for the stable development of its business into the future by proactively working to facilitate connectivity and ensure the openness of its networks, actively promoting human resource development, expanding into new business areas in coordination with its group companies, and making a positive contribution to reducing its burden on the environment. As these policies and programs bear fruit, NTT West will endeavor to share the benefits with its customers, local communities and, through its holding company, its shareholders.
NTT West foresees difficult financial conditions in the fiscal year ending March 31, 2016, but will respond flexibly to the changing business environment by prioritizing the following items, as called for by the concepts and strategies outlined above.
NTT West will aim to promptly respond to all demands for telephone subscriptions, including the relocation of existing lines, and forecasts that it will have approximately 10.01 million subscriptions by the close of the fiscal year ending March 31, 2016.
| Item | Projected number (subscriptions) |
| Additional installations | (0.77) million |
| Relocations | 1.30 million |
As social welfare programs continue to expand and develop, social demand for welfare-oriented telecommunications services has increased. In response to this need, NTT West plans to continue to promote the provision of welfare-oriented products, such as its “Silver Phone series” (“Anshin” (relief), “Meiryo” (clearness), “Hibiki” (sound) and “Fureai” (communication)).
| Item | Projected number (units) | |
| Silver Phone | Anshin (relief) | 3,000 |
| Meiryo (clearness) | 0 | |
NTT West plans to continue to maintain public telephone facilities to ensure public safety and meet the minimum requirements for providing a public means of communication. At the same time, NTT West will review its plan with respect to underutilized public telephones, and will also strive to provide social welfare services by continuing the maintenance of wheelchair-accessible public telephone booths.
| Item | Projected number (units) |
| Public telephones | (1,000) |
The total numbers of INS-Net 64 subscriber lines and INS-Net 1500 subscriber lines are projected to be approximately 1.281 million and 9,000, respectively, by the close of the fiscal year ending March 31, 2016.
| Item | Projected number (circuits) |
| INS-Net 64 subscriber lines | (120,000) |
| INS-Net 1500 subscriber lines | (1,000) |
To respond to the increasing demand for broadband services, NTT West will endeavor to expand its fiber-optic access services and provide a wider range of services.
| Item | Projected number (contracts) |
| FLET’S Hikari* | 0.20 million |
Subscriptions for conventional leased circuits and high-speed digital transmission circuits are projected to total approximately 122,000 and 52,000, respectively, by the close of the fiscal year ending March 31, 2016.
| Item | Projected number (circuits) |
| Conventional leased circuits | (3,000) |
| High-speed digital transmission circuits | (11,000) |
NTT West will conduct maintenance of its systems in order to promote the enhancement and operational efficiency of its telegraph services.
NTT West plans to actively promote the shift to the use of fiber optics in its access network in response to, among other things, the demand for broadband services.
| Item | Projected number (million fiber km) |
| Optical subscriber cables | 1.5 |
(Coverage rate at the end of the fiscal year ending March 31, 2016 is expected to be 93%.)
In its telecommunications network, NTT West will aim to upgrade network services and improve network economy and efficiency, among other things, while working to meet demand for broadband services.
NTT West expects to take necessary measures in response to disasters. Such measures would include disaster prevention measures to prepare for damage to telecommunications equipment and facilities, securing lines for emergency communications, strengthening its organizational structure for crisis management and restoring systems in the event of large-scale disasters, and supporting information distribution after a disaster.
In order to improve the reliability of communications facilities, ensure safe and pleasant roads and other transit areas, and enhance the appearance of the urban landscape, NTT West will work in coordination with the national and local governments and with other companies in installing transmission cables underground.
NTT West will conduct necessary cable maintenance and replacement to provide stable and high-quality services and ensure quality customer services, safe operations, harmonization with the social environment and stabilization of communications systems.
NTT West will seek to minimize costs by making full use of existing equipment and facilities in improving and upgrading communications facilities.
NTT West will promote experimental and research measures and policies for technical areas by focusing on the following four points, in order to create new services that are responsive to the diversified needs of its customers and to develop an economical and eco-friendly network and safe and secure service platform.
The following tables present an overview of the business plan for the above principal services and capital investment plans.
Business Management Unit,
Corporate Strategy Planning Department
Nippon Telegraph and Telephone West Corporation
Tel: +81-6-4793-3371
* Information is current as of the date of issue of the individual press release.
Please be advised that information may be outdated after that point.
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