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This English text is a translation of the Japanese original. The Japanese original is authoritative.

March 1, 2018

Submission for Approval of Business Operation Plan for the Fiscal Year Ending March 31, 2019

Nippon Telegraph and Telephone East Corporation ("NTT East") today submitted its business operation plan for the fiscal year ending March 31, 2019 to the Minister for Internal Affairs and Communications for approval.

Information and communications services have become an essential part of the infrastructure of socio-economic activity. These services are expected to make significant contributions to increasing the convenience of people's daily lives and the vitalization of local economies, while also improving corporate efficiency, creating new businesses and enhancing industry-wide international competitiveness.

The information and communications market is undergoing structural changes beyond the existing framework, including an increasing shift to broadband services and globalization, fixed-mobile convergence, AI, Big Data and IoT utilization, cloud computing development, penetration of high-speed wireless and Wi-Fi compatible devices such as smartphones and tablet devices, and widespread use of applications that enable free phone calls and messaging.

Regional telecommunications markets are also changing dramatically. The competition in services based on fiber-optic access is intensifying. New services using a variety of wireless devices are also expanding. These lead to diversification in the way customers use these devices due to the expansion of the volume of data communications.

Amid such a challenging and volatile business environment, as a carrier with an important leadership role in the information and communications industry, NTT East will aim to continue to provide high-quality, stable universal services, work to develop a sophisticated and strong information and communications network that is responsive to disasters, cybersecurity threats and the increasing volume of data traffic, and to promptly restore services in times of large-scale natural disasters and other calamities in order to ensure their reliability as part of the social infrastructure, and respond to network migration appropriately. NTT East will do this while striving to ensure that it strictly abides by the requirements of fair competition and seeking to secure a stable and solid foundation for its business, as well as complying with applicable regulations.

Furthermore, NTT East will endeavor to enhance the broadband network environment and further expand fiber-optic access through offering services and products that leverage the advantages of the next-generation network ("NGN") with customer-friendly and long-term appealing pricing. NTT East will contribute to the further enrichment and sustained development of society by using ICT to confront the various economic and social issues facing Japan, such as the low birthrate and aging population, achieving a low-carbon society and work style reforms and productivity improvement.

With regard to the management of its business operations for the fiscal year ending March 31, 2019, amid expectations of continued strong economic growth, NTT East plans to continue expanding and promoting the use of fiber-optic access, and aims to achieve the upgrade, strengthening and expansion of its broadband network environment through the NGN on the basis described above. These objectives will be achieved through the creation of new uses for ICT that are closely connected to daily domestic life and community activities, the enhancement of the ICT environment through, among other things, the use of Wi-Fi, and the development and provision of services for business users.

NTT East plans to offer an even wider range of services including optical IP telephony services and video services as well as maintenance and support on this network infrastructure. As an "accessible, full-service ICT company," NTT East at the same time aims to develop and provide a variety of high value-added and user-friendly services designed to provide customers and local communities with a sense of security, safety and convenience through further collaboration with companies in diverse industries, and to further improve customer services. In addition, NTT East will provide service providers in a wide range of fields with fair and equal services on the basis of its world-class network through the Hikari Collaboration Model, as well as support a variety of value creation opportunities.

At the same time, NTT East will also take steps to build a stable and stronger management base and to ensure steady business growth into the future by further increasing operating efficiency. NTT East will strive to return the results of these measures to customers, the local community and, through its holding company, to its shareholders.

NTT East plans to manage its business in the fiscal year ending March 31, 2019 on the basis of the above outlined concepts, emphasizing the items outlined below, while maintaining the flexibility needed to respond to changes in the business environment.

1.Voice transmission services

(1) Telephone subscriptions

NTT East will aim to respond promptly to all demands for telephone subscriptions, including the relocation of existing lines. The number of subscriptions is projected to total approximately 8.12 million by the end of the fiscal year ending March 31, 2019.

Item Planned number (subscriptions)
Additional installations (0.60 million)
Relocations 0.97 million

(2) Social welfare telephones

As social welfare programs continue to expand and develop, social demand for welfare-oriented telecommunications services has increased. In response to this need, NTT East 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 Planned number (units)
Silver Phones
Anshin (relief) 2,000
Meiryo (clearness) 0

(3) Public telephones

NTT East plans to continue to meet the minimum requirements for providing a public means of communication for safety and when outdoors. NTT East will also strive to continue to improve convenience by, among other things, publicizing the locations of public telephones in order to promote their increased usage and to prepare for disasters and other emergencies. The number of public telephone units is projected to total approximately 69,000 by the close of the fiscal year ending March 31, 2019.

Item Planned number (units)
Public telephones (1,000)

(4) Integrated digital communications services

The numbers of INS-Net 64 and INS-Net 1500 subscriber lines are projected to total approximately 978,000 and 12,000, respectively, by the close of the fiscal year ending March 31, 2019.

Item Planned number (subscriptions)
INS-Net 64 subscriber lines (90,000)
INS-Net 1500 subscriber lines (1,000)

2. Data transmission services

To respond to the increasing demand for broadband services, NTT East will endeavor to expand its fiber-optic access services by targeting the appealing power of services unique to fiber-optic technologies, such as Hikari Denwa and video services, and will aim to provide a wide range of other services. The number of FLET's Hikari subscriptions is projected to total approximately 11.87 million by the close of the fiscal year ending March 31, 2019.

Item Planned number (subscriptions)
FLET'S Hikari* 0.40 million
  • *This figure for FLET'S Hikari includes subscribers to the Hikari Collaboration Model.

3. Leased circuit services

Subscriptions for conventional leased circuit services and high-speed digital transmission services are projected to total approximately 101,000 and 47,000, respectively, by the close of the fiscal year ending March 31, 2019.

Item Planned number (subscriptions)
Conventional leased circuit services (4,000)
High-speed digital transmission services (4,000)

4. Telegraph services

NTT East will conduct maintenance of its systems in order to promote the enhancement and operational efficiency of its telegraph services.

5. Improvements and advances in telecommunications facilities

(1) Optical access network

NTT East plans to promote the efficient shift to fiber optics in its access network in response to, among other things, the demand for broadband services.

Item Planned number (million fiber km)
Optical subscriber cables 1.0

(2) Telecommunications network

In its telecommunications network, NTT East will aim to upgrade network services and improve network efficiency, among other things, while continuing its efforts to meet demand for broadband services.

(3) Disaster prevention measures

NTT East 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.

(4) Underground installation of transmission cables

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 East will work, in coordination with the national and local governments and with other companies, to install transmission cables underground.

(5) Facility maintenance

NTT East will aim to provide stable and high-quality services by conducting cable maintenance and replacement, and by ensuring quality customer services, safe operations, harmonization with the social environment and stabilization of communications systems.

NTT East will seek to minimize costs by making full use of existing equipment and facilities in improving and upgrading its communications facilities.

6. Promotion of research and development activities

In order to further stabilize and strengthen its management base and to provide better communication services to its customers, NTT East will continue to promote research and development in network systems and access systems, with the aim of advancing its telecommunications networks. In addition, in order to offer customers more choices while providing a range of safe and convenient services through telecommunications networks, NTT East will also conduct research and development in such areas as applied AI technology, IoT platforms, security, and in new market development including, among other things, value-added businesses utilizing telecommunications networks.

The following tables present an overview of the business plans for the above principal services and capital investment plans.

For inquiries, please contact:

Corporate Strategy Planning Department
Nippon Telegraph and Telephone East Corporation

Tel +81-3-5359-2997

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.