Attachment 1
Summary of Results
Nippon Telegraph and Telephone West Corporation (NTT West) was established and launched its operations on July 1, 1999 following the reorganization of Nippon Telegraph and Telephone Corporation. NTT West operates as a telecommunications enterprise in the western Japan region.
During the interim under review, the Japanese economy showed some signs of improvement, including a mild recovery in personal consumption. However, a full-fledged recovery proved elusive as plant and equipment investment continued to decline and employment conditions remained bleak.
In the telecommunications markets, the dramatic increase in mobile telephone and Internet users has resulted in a sharp increase in demand for digital data transmission services which are taking the place of conventional voice-based communication services. Parallel to this development, market conditions have become increasingly competitive with the growing diversity in services and fee structures, and the entry of new participants from other industries.
Given this rapid pace of change and increasing competition, NTT West faces an extremely difficult business environment. Against this background, NTT West has launched various initiatives aimed at supporting its development into an information-sharing company.
The principal initiatives launched during the reporting period are as follows.
With the growing number of Internet users, sales of ISDN lines have been increasing rapidly. For improved customer convenience and the promotion of wider use, NTT West launched "i･Number," a system allowing INS-Net 64 subscribers to use two telephone numbers on one line. NTT West also started marketing its "Magic Box" for voice mail services which operates when the line is busy or in the case of an unanswered call. For users subscribing to two or more services among the "Magic Box," "i･Number," "Number Display" and "Push Phone" services, NTT West has started offering a discount on the monthly service charges on the combined services. As an experimental program targeting schools, NTT West is offering the "i･School" service featuring special telephone rates for connecting to the Internet. For individual customers connecting to the Internet, NTT West has decided to launch the "i･ai Plan." NTT West has also actively entered the solution provider business, marketing the "multi-net debut mini-server," an all-in-one compact, simple and low-cost Internet server designed for small- and medium-sized companies, and making a proposal for "MI-24," a telecommunications system operating and maintenance service. As a result of the ongoing changes in lifestyles, an increasing number of requests have been received from customers asking us to maintain certain operations on Saturdays and holidays. In response to these requests and in order to improve the quality of our services, NTT West has decided to extend the operating hours of its "dial 116" service to include Saturdays, Sundays and holidays. The "dial 116" service is responsible for processing inquiries and orders for the relocation of subscriber telephone lines and various other services.
As of September 30, the number of principal service installations was as follows: 28.87 million ordinary telephone subscriber lines, 2.35 million INS-Net 64 digital lines, and 183 thousand dedicated high-speed transmission lines.
NTT West's three-months ended September 30, 1999 were as follow: operating revenues amounted to 679.8 billion yen, ordinary loss amounted to 21.7 billion yen, and net loss came to 27.1 billion yen.
