March 7, 2000

Application for Approval of the Business Operation Plan for Fiscal Year Ending March 31,2001

Nippon Telegraph and Telephone West Corporation (NTT West) today submitted its business operation plan for the fiscal year ending March 31, 2001 to Minister of Posts and Telecommunications for approval.

The telecommunications industry is expected to actively contribute to the development and efficiency of social and economic activities in today's information society. In response to the increasing sophistication of consumer needs and the processes of diversification and globalization, this market continues to enjoy accelerated growth, while the introduction of outstanding technological innovations and the dawning of a global multimedia era is lending further momentum to its expansion. The market is undergoing rapid transformation from fixed-line to mobile communication, and from voice to data transmission. Due to the combination of this transformation and the increasing trend towards globalization and multimedia, competition, which has been mainly focused on the long-distance market, is now expanding into full scale service competition including the international and mobile communication markets. Competition is also developing in local communications markets.

Under such circumstances, Nippon Telegraph and Telephone West Corporation (NTT West) is continuing to provide both stable and high-quality universal services. NTT West shall also pursue the following objectives: it shall promote the deployment of Optical Access Network enabling it to respond promptly to customer demand; it shall contribute to the advancement of telecommunications markets through fair competition; it shall strengthen and enhance its research and development capabilities in applied fields and it shall ensure that the telecommunications industry is open to the public and reliable such as strict controls on customer information. Moreover, NTT West is developing the field of information sharing by providing innovative new services for a wide range of corporate and individual activities using digital infrastructure, including services corresponding to the widespread use of the Internet. Throughout all these efforts, NTT West shall do its best to strengthen and to stabilize its business foundations.

Reflecting these fundamental principles, one of the primary objectives of NTT West during the fiscal year ending March 31, 2001 is to accurately and speedily grasp the views and needs of customers in order to make the necessary improvements in services. At the same time, given the severe business conditions which prevail today, NTT West shall make its best effort to further cut costs and to maintain profits in line with its medium-term business improvement plan. NTT West shall also implement measures for maintaining smooth interconnection and open networks. In other areas, it shall seek to strengthen its research and development position in applied fields, improve disaster prevention measures, promote human resources development, and actively pursue new business opportunities. Through this line of action, NTT West shall endeavor to achieve a stable course of future development. NTT West stands ready to share the benefits of these programs with its customers, local communities and the shareholders in the holding company.

The above outlines the basic strategies of NTT West for the fiscal year ending March 31, 2001.While special emphasis shall be assigned to the matters summarized below, NTT West shall respond with due flexibility to any changes in the business environment.

Note: All financial information stated in this release was prepared on the basis of generally accepted accounting principles in Japan.


(1) Subscriber Telephones:

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 26.42 million by the end of the fiscal year ending March 31, 2001.

Item Planned Number
Additional Installations (1.73)million subscribers
Relocations 4.04 million subscribers

(2) Social-Welfare Telephones:

The progress of social welfare has generated various demands for telecommunication 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
Silver Phones   
Anshin (Relief) +800 units
Meiryo (Clearness) +100 units

(3) Public Telephones:

NTT West shall promote the installation of IC-card operated public telephones. It shall continue to promote the installation of social-welfare public telephones including those with voice adjustment function and public phone booths for wheel chair users to achieve improved services and welfare-oriented functions.

Item Planned Number
IC-Card Public Telephones +10,000 units
Public Telephones with Volume Adjustment Function +10,000 units

(4) INS-Net Digital Services:

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 are projected to reach approximately 4,484,000 circuits and approximately 47,000 circuits lines, respectively, by the end of the fiscal year ending March 31, 2001.

Item Planned Number
INS-Net 64 Subscriber Lines +1,490,000 circuits
INS-Net 1500 Subscriber Lines +14,000 circuits


NTT West shall continue its trial of IP Connection Services featuring complete flat-rate Internet access via the INS network. Based on the outcome of these trials, NTT West will consider the possibility of extending this service.


Facilities for leased circuit services are scheduled to be installed to actively respond to demands, including those for high-speed digital transmission services, and voice and image transmission services.

Item Planned Number
Conventional Leased Circuits (43,000)circuits
High-Speed Digital Transmission Circuits +43,000 circuits


NTT West shall promote such measures as the maintenance of telegraph operation systems to enhance services and raise efficiency.


(1) Optical Access Network:

NTT West shall actively promote the deployment of Optical Access Network in coordination with public demand.

Item Planned Number
Optical Subscriber Cables +1.2 million fiber km
(Cover rate at the end of March 2001 will be 37 %.)

(2) Telecommunications Network:

NTT West shall enhance network services as well as improve network economy and efficiency while meeting customer needs.

(3) Disaster-Prevention Measures:

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.

(4) Installation of Underground Transmission Cables:

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.

(5) Facility Maintenance:

NTT West shall implement facility maintenance, including cables and wooden telephone poles replacement, to maintain customer services, ensure safety and harmony with social environments and stabilize communications systems.
Given the severe business environment, for the fiscal term ending March 31, 2001, NTT West shall pursue cost reduction by maximizing the utilization of existing facilities.


Further strengthening the foundations of the business operations and meeting public demand for the development of multimedia, NTT West shall promote research and development activities in the area of various types of telecommunications terminals which expand the range of choices available to customers in their selection of convenient services, multimedia applications which enable safe and convenient telecommunications services for information sharing, operations systems which provide higher quality service systems which create more sophisticated telecommunications networks and others.

The summary of the business plans for the above principal services and the plant and equipment investment plans are outlined in the attached tables.

Table 1 Principal Services Plan for Fiscal Year Ending March 31, 2001
Table 2 Plant and Equipment Investment Plan for Fiscal Year Ending March 31, 2001
Attachment 1 Revenues and Expenses Plan for Fiscal Year Ending March 31, 2001
Attachment 2 Plan of Sources and Applications of Funds for Fiscal Year Ending March 31, 2001