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In the fiscal year ended March 31, 2015, while the economies of Europe and certain emerging countries weakened, the U.S. economy remained stable, leading to a gradual recovery of the global economy. The Japanese economy grew steadily overall, despite decreases in consumer spending levels and other areas due to the increase in the consumption tax rate enacted in April 2014.
Information and communications services are expected to make significant contributions to invigorating and increasing the efficiency of social and economic activities, improving lifestyle convenience, and vitalizing 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 structural changes 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, as well as the convergence of services through 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 possible by faster mobile connections.
Within this challenging and dramatically changing business environment, NTT West strove to ensure its reliability and public utilization in the information and communications market by, for example, promoting the smooth migration to optical, IP-based networks and enhancing the fiber-optic access network that is the backbone of broadband services, while continuing to provide and maintain high-quality, stable universal services.
NTT West also aimed to realize a broadband and ubiquitous network environment that enables customers to connect “anytime, anywhere, and with anyone or anything” “in comfort, safety, and with peace of mind,” and to provide various reasonably priced services that match each customer’s patterns of usage.
NTT West worked to provide a more comfortable, safer, and more secure next-generation network (NGN) to promote its fiber-optic and IP services. In addition to providing services that take advantage of fiber-optic access, such as optical IP telephone and video distribution services, NTT West was committed to expanding the use of optical services by collaborating with other businesses to promote new lifestyles through the creation and launch of new services. NTT West also strove to realize a broadband and ubiquitous network environment, including by expanding Wi-Fi platforms.
The number of subscriptions to FLET’S Hikari surpassed eight million in June 2014 as a result of efforts to advertise the service as one that supports lifestyles and businesses, to expand the range of services provided and to increase the number of reasonably priced offerings. In February 2015, NTT West launched the “Hikari Collaboration Model,” which provides “FLET’S Hikari” and various other services to service providers on a wholesale basis, with the aim of contributing to the resolution of social issues and strengthening Japan’s industrial competitiveness through the revitalization of the ICT market as a whole, by creating new value with a wide range of industries and business categories.
In the area of optical IP telephone services, NTT West worked to expand services utilizing video communications through, among other things, the launch of “Mimamori Video Phone Pack,” a service intended for nursing care and welfare purposes, which supports communications between individuals requiring nursing care and in-home caretakers. NTT West also worked to expand “Hikari Denwa Office A (Ace)” for its corporate IP telephone customers, to lower the costs of communication between the customers’ main offices and branch offices.
In order to launch new collaborative services, NTT West expanded its alliance businesses using ICT services in a range of areas, beginning with the launch of “Unlimited Software on FLET’S powered by OPTiM” in collaboration with OPTiM Corp. NTT West also launched a variety of services for “Hikari BOX+” through collaboration with a number of businesses, while also updating the home screen to improve maneuverability and increase customer usage. NTT West also worked to generate a new communication channel through its “Smart Hikari Heartbeat Project,” and endeavored to generate new services via the Internet and television by co-hosting a hackathon with Tokyo Broadcasting System Television, Inc., the first such collaboration between a communications company and television company in Japan.
In the area of Wi-Fi services, NTT West worked to expand its Wi-Fi platform by making an effort to improve convenience for tourists by providing seamless Wi-Fi connection under the “Japan Connected-Free Wi-Fi” application designed by NTT Broadband Platform, Inc. for visitors to Japan, through “DoSPOT,” a Wi-Fi service developed for retail stores provided by NTT MEDIA SUPPLY CO., LTD. NTT West also promoted the establishment of Wi-Fi environments through partnerships with local governments.
NTT West also launched the “Security Function Marugoto Web Filter” web filtering service for customer support, to ensure safe and secure Web access by its customers. In addition, NTT West engaged in efforts to improve customer service including enhancing the special benefits available to long-term customers of its membership program, “Club NTT-West.”
NTT West launched the “Biz Hikari Cloud” service, which mainly provides data center and platform service menus and also provided a wide range of solution services to guide local governments and companies toward solutions to the business issues they face.
NTT West added “Hikari Signage,” a cloud-based digital signage service that displays on a wide range of devices, from tablets to 4K televisions, as a new component of the “Biz Hikari Cloud” service to expand its line-up of cloud services.
In February 2014, NTT West collaborated with Wazuka town in Kyoto to use ICT to revitalize regional communities and improve community services. After successful field trials of the television-based government information delivery system, NTT West launched sales of the “Hikari Town Channel,” a local government information delivery system for television using “Hikari BOX+,” as a new service for local governments.
NTT West also worked to expand support services for small- to medium-size businesses by launching the “Office Anshin Pack,” an ICT support service that addresses customers’ specific support needs in response to a corporate ICT environment that has become increasingly sophisticated and complex in recent years, in addition to launching “Smart Hikari Business Wi-Fi,” a corporate Wi-Fi service that provides total support for everything from installation to operation of the office Wi-Fi environment.
In order to consolidate its total resource management and centralize its sales support structure in its Corporate Business Headquarters, NTT West integrated the distributor response function of its Business Partner Sales Department into the Office Sales Department of its Corporate Business Headquarters in July 2014, and changed the department’s name to the “Smart Business Promotion Department.” In the area of group management, NTT West established NTT WEST-BUSINESS FRONT CORPORATION as a new group company aimed at improving sales efforts in the small- to medium-sized business market, which began operations in July 2014. NTT West also simplified the procedures to apply for and make changes to a variety of services from the NTT West members’ site in response to an increase in web-based applications and inquiries resulting from expanded internet use, in order to enhance user convenience. In addition, NTT West modified the cut-off time for telephone applications for FLET’S Hikari (0120-116116 and other contact numbers) from 9:00 pm to 5:00 pm, effective November 2014.
In the area of facility maintenance, NTT West worked to enhance its disaster preparedness framework by conducting disaster drills designed to simulate events in the event of a large earthquake along the Nankai Trough, as well as practical exercises aimed at maintaining and enhancing service quality and strengthening IP service operations. NTT West also implemented measures to prevent accidents involving facilities, such as planned facility inspections, with the goal of eliminating third-party accidents caused by fallen lines. To prevent site accidents involving physical injury, NTT West worked to expand safety measures by establishing a timeframe for improving safety promotion initiatives.
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, including reducing material costs by utilizing terminal equipment and streamlining procurement operations for materials, increasing construction projects that do not require the dispatch of NTT West employees, and reducing the number of back orders resulting from emergency pipe work. NTT West also worked to achieve greater efficiency in its maintenance and operational work, including by increasingly having customers perform repairs by replacing equipment themselves.
In the area of CSR promotion, the “NTT Group CSR Charter” (adopted in June 2006) provides that, as responsible members of the information and communication industry, NTT Group companies will provide services of the highest quality and reliability and contribute to the development of a safe, secure and prosperous society in which people, society and the earth are connected through communications. Based on the NTT Group CSR Charter, NTT West established three core CSR principles — “thorough compliance,” “development of a safe and secure society” and “creation of value through business activities” — as well as 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.
To ensure “thorough compliance,” NTT West Group has focused on promoting group-wide initiatives in five high-risk areas that have the potential to erode consumer trust in NTT West group companies, namely “eradicating on-the-job misconduct,” “scrupulous management of customer information,” “eradicating incidences of driving while under the influence,” “eradicating power harassment” and “respect for human rights.” In conjunction with these initiatives, NTT West also established “Corporate Culture Kaizen” Month to implement measures intended to “create a positive workplace with open communication” at all work sites, thereby working to ensure even greater employee awareness.
Based on the “Green NTT West Strategy” established in June 2012, in order to “achieve its environmental grand design,” NTT West has been working to decrease power usage, the amount of paper it uses, and the volume of waste it produces. In addition, with respect to “developing an environment and energy business,” NTT SMILE ENERGY Inc. began generating its own power and promoted increased capacity utilization of its solar power generation system. NTT West also contributed to reducing its environmental burden by undertaking community-based activities centered around tree-planting pursuant to the “NTT West Midori Ippai Project” in order to “promote biodiversity preservation activities.”
While instilling the principles of the NTT Group CSR Charter, in addition to promoting its group-wide CSR activities and enhancing its environmental management, NTT West also issued the “NTT West Group CSR Report 2014” and the “NTT West Group Environmental Report 2014” to proactively disclose relevant information to its stakeholders.
As a result of these efforts during the fiscal year ended March 31, 2015, operating revenues totaled 1,574.2 billion yen (a decrease of 1.0% from the previous fiscal year), operating income was 35.6 billion yen (an increase of 117.8% from the previous fiscal year), income before income taxes was 28.8 billion yen (an increase of 10.7% from the previous fiscal year), and net profit totaled 13.9 billion yen (a decrease of 25.6% from the previous fiscal year).
* 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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