March 1, 2005 Nippon Telegraph and Telephone West Corporation (NTT West) |
Summary of the Business Operation Plan |
The information and telecommunications market has been undergoing drastic transformations that affect the structure of the market itself. 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. Furthermore, new competition is arising, triggered by the launch of telephone services by companies that are not using NTT's network. Meanwhile, the broadband market, the growing leader in telecommunications, has been 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 will continue to provide stable, high-quality universal services. The company has identified the fiscal year ending March 31, 2006 as critical to its strategy to achieve a dramatic increase of users of its optical access and IP services, and will actively engage in the enrichment of its broadband services, including provision of applications that take advantage of Fiber-optic IP Connection, as well as in the development of high-value-added solutions businesses such as security services, as the company endeavors to realize a resonant communications environment. Through these services, NTT West will strive to ensure earnings while carrying out such management innovation programs as continued improvements to business efficiency and trimming of costs, with a view to maintaining a surplus for the fiscal year ending March 31, 2006. <Specific Programs> (1) Promotion of the fiber-optic broadband business - We will increase fiber-optic IP Telephony Service sales by reinforcing the product portfolio of the service currently provided for condominiums (Hikari Denwa) and accelerating the introduction of other services for detached homes and small and mid-sized enterprises. - We will generate demand for our fiber-optic lines by providing such attractive applications as Triple-Play Service and two-way video communications, through stronger alliances within the NTT Group and with content providers. - We will achieve full-scale expansion in the fiber-optic broadband market by strengthening the sales structure for broadband access lines and taking advantage of the efficiencies of optical fiber in our marketing. (2) Capital expenditures that support aggressive marketing of broadband services - We will accelerate the construction of an innovative broadband optical IP network using GE-PON, IPv6 and other advanced technologies, and take aggressive measures to market our broadband services that include expansion of the service areas for fiber-optic IP Telephony and FLET's Hikari Premium. At the same time, we will ensure the quality and reliability of our existing services and enhance the efficiency of our capital investments. 2. Principal Services Plan  Note : * In terms of number of channels , transmission rate , and line use rate (base rate) , INS-Net 1500 is all cases roughly ten times greater than INS-Net 64 , one INS-Net 1500 subscriber is calculated as ten INS-Net 64 subscribers. (INS-Net 64 Lite Plan is included) 
 4. Capital Investment Plan  *Listed again 5. Revenue and Expense Plan (Attached)  *Listed again <Reference>  |
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