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March 1, 2023
Submission for Approval of Business Operation Plan for the Fiscal Year Ending March 31, 2024
Nippon Telegraph and Telephone East Corporation ("NTT East") today submitted its business operation plan (non-consolidated) for the fiscal year ending March 31, 2024 to the Minister for Internal Affairs and Communications for approval, as set forth below.
Ⅰ. Environment Surrounding Information and Communications
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 revitalization of local communities, while also improving corporate efficiency, creating new businesses and enhancing industry-wide international competitiveness. Their importance has further increased as social life has changed as a result of the spread of the COVID-19 pandemic with the trend towards increased digitalization and going online, in all aspects of business and life, having accelerated and stabilized.
The information and communications market is undergoing structural changes beyond the existing framework, including an increasing shift to broadband services and globalization, the development of new technologies such as AI, digital twin computing, quantum computing, Web3, and the upgrading of mobile communications devices, in addition to initiatives to apply smart agriculture information and communications technologies to resolve social issues.
Regional telecommunications markets are also changing dramatically. The competition in services based on fiber-optic access is intensifying and new services using a variety of wireless devices are also expanding, leading to diversification in the way customers use these devices and to the expansion of the volume of data communications resulting from teleworking, among other factors.
Ⅱ. Responsibilities of NTT East
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 providing high-quality, stable universal services and further strive to ensure that it strictly abides by fair competition and seeking to secure a stable and solid foundation for its business, as well as complying with applicable regulations.
In addition, NTT East will work to develop a sophisticated and strong information and communications network of the highest quality that is responsive to large-scale natural disasters, cybersecurity threats and the increasing volume of data traffic, and that promptly restores services in times of disasters and other calamities, based on improving resilience from strengthened relationships with regional infrastructure business, ensuring their reliability as part of the social infrastructure, and responding to network migration appropriately.
Ⅲ. Fundamental Management Policy
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 telecommunications infrastructure with customer-friendly and long-term appealing pricing. NTT East will contribute to the further enrichment of society and the achievement of sustainable development goals ("SDGs") by committing to the resolution of various economic and social issues, including the low birthrate and related decline of the working-age population, and the achievement of carbon neutrality, through various measures that facilitate the use of ICT to contribute to the vitalization of local economies, work style reforms and improvement of productivity and convenience, among other things.
Ⅳ. Management Policy for the Fiscal Year Ending March 31, 2024
With regard to the management of its business operations for the fiscal year ending March 31, 2024, NTT East plans to continue expanding and promoting the use of fiber-optic access, and aims to achieve the upgrade and increase of the speed of its broadband network infrastructure on the basis of its fundamental management policy and contribute to the advancement of society's digital transformation. These objectives will be achieved through the creation of new uses for ICT that are closely connected to daily life at home and in the community, the enhancement of the ICT environment through, among other things, the use of SaaS and cloud computing, and the development and provision of services for business users that utilize local 5G and other various kinds of networks. NTT East will develop new use cases applying the high-capacity, low-latency characteristics of the All-Photonics Network (APN) service that was commercialized in March 2023. At the same time, with respect to the migration of landline phones to the IP network beginning in January 2024, NTT East will promote a smooth transition toward the completion of migration (approximately January 2025), beginning with transfers to IP connections with connection service providers and the development of systems to increase quality assurance.
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 a "social innovation company that supports the future of its community," NTT East aims to contribute to the expansion of regional value though the expansion of ICT and digital technologies, and the creation of customer value by achieving the Digital Garden City concept. 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 advance its own digital transformation and, utilizing joint procurement in compliance with guidelines, will take steps to build a stable and stronger management base and to ensure steady business growth into the future by further increasing operating efficiency and productivity. NTT East will strive to return the results of these measures to customers, the local community and, through its holding company, to its shareholders.
Ⅴ. Conclusion
NTT East plans to manage its business in the fiscal year ending March 31, 2024 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 5.64 million by the end of the fiscal year ending March 31, 2024.
| Item | Planned number (subscriptions) |
|---|---|
| Additional installations | (0.45 million) |
| Relocations | 0.53 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) Meiryo (clearness) |
3,200 0 |
(3) Public telephones
NTT East plans to continue to ensure at least a minimum means of communication for safety and when outdoors, and, with respect to low-usage public telephones, will be streamlined in accordance with installation standards. 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 54,000 by the close of the fiscal year ending March 31, 2024.
| Item | Planned number (units) |
|---|---|
| Public telephones | (6,000) |
(4) Integrated digital communications services
The numbers of INS-Net 64 and INS-Net 1500 subscriber lines are projected to total approximately 533,000 and 6,000, respectively, by the close of the fiscal year ending March 31, 2024.
| Item | Planned number (subscriptions) |
|---|---|
| INS-Net 64 subscriber lines | (87,000) |
| 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 13.56 million by the close of the fiscal year ending March 31, 2024 (an estimated net increase of 0.2 million for the fiscal year ending March 31, 2023).
| Item | Planned number (subscriptions) |
|---|---|
| FLET'S Hikari* | 0.20 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 87,000 and 6,000, respectively, by the close of the fiscal year ending March 31, 2024.
| Item | Planned number (subscriptions) |
|---|---|
| Conventional leased circuit services | (3,000) |
| High-speed digital transmission services | (3,000) |
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 | 0.7 |
(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, NTT East will also conduct research and development in such areas as AI, IoT and digitalization to resolve local social issues through safe and convenient telecommunications services, 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.
- Table 1-Principal Services Plan for the Fiscal Year Ending March 31, 2024
- Table 2-Capital Investment Plan for the Fiscal Year Ending March 31, 2024
- Attachment 1(Reference)-Revenues and Expenses Plan for the Fiscal Year Ending March 31, 2024
- Attachment 2(Reference)-Planned Sources and Applications of Fundsfor the Fiscal Year Ending March 31, 2024
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.
