News Release

October 17, 2003

Provision of Corporate IP Telephone Service

To meet the diversifying needs of corporate customers, NTT East Corporation (NTT East) will release the Corporate IP Telephone Service and today filed notice of the service contract terms and rates.

1. Service Description
The Corporate IP Telephone Service is a service for large-lot corporate customers. Using IP technology, the service provides corporate customers with a dedicated IP telephone network (corporate IP telephone network) allowing them to make calls both inside the network and to outside fixed-line and other destinations at low rates. Moreover, customers can receive incoming calls with the same telephone numbers that they have been using for their fixed-line and other telephones.

The IP Centrex Function will also be available as an optional service.

Service Features
1) Voice quality comparable to fixed-line telephone service
Provision of a guaranteed-service dedicated IP telephone network , along with management of simultaneous connections in the network and of access line channels, assure voice quality on the same level as that of a fixed-line telephone network.

2) Provision of conventional 0AB-J telephone numbers
Service is provided using the same 0AB-J numbering scheme as the existing fixed-line telephone network. Moreover, current customers of NTT East fixed-line telephone services who migrate to this service in the same location are able to keep their existing telephone numbers. (Number portability)

3) Economical dialing charges
Unlimited calls inside the same subscriber group can be made with no charge beyond the basic monthly charge. Calls to fixed-line and other telephones in the same prefecture are only 6 yen per 3 minutes and calls across prefectures are only 10 yen per 3 minutes. These rates represent a significant saving for voice communication.

4) Use of existing PBX or IP-PBX system made possible
By installing a gateway or similar equipment, customers can continue to use their existing PBX and IP-PBX systems for effective utilization of existing assets without changing the functions or operations.

5)IP Centrex Function offered as an optional service
The IP Centrex Function is available as an optional service. This function provides standard PBX functions such as call handling and station transfer as part of the IP telephone network, enabling customers to eliminate the cost of installing, operating, and maintaining a PBX.

6) Provision of customer control functions
Customer control functions let customers configure their own pilot groups and change other feature settings in real time. The changes do not require making applications to NTT East.

See Attachment 1 for an overview of the service.

2. Charges
See Attachment 2.

3. Service Requirements
- Customers must have guaranteed-bandwidth 100 Mbps Ethernet lines dedicated to this service as access lines. The Metro Ether high-speed Ethernet service offered by NTT East may be used for this purpose.
- If existing PBX or IP-PBX equipment is to be used, a gateway or other equipment may be required.

4. Service Area
Service will be available initially in the 23 wards of Tokyo.

5. Scheduled Start
Wednesday, October 29, 2003

- Attachment 1: Service Overview
- Attachment 2: Charges

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