<PAGE>
THE TOTAL NUMBER OF PAGES CONTAINED IN THIS DOCUMENT IS 16
FORM 6-K
--------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
For the month of February 1999
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
(Translation of registrant's name into English)
19-2, NISHI-SHINJUKU 3-CHOME
SHINJUKU-KU, TOKYO 163-19, JAPAN
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
--- ---
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
--- ---
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b):
82-_______________.
<PAGE>
2
SUBMISSION OF BUSINESS OPERATION PLAN FOR FISCAL YEAR ENDING
MARCH 31, 2000
On February 26, 1999, the registrant announced that it had submitted its
business operation plan for the fiscal year ending March 31, 2000 (the "Plan")
to the Minister of Posts and Telecommunications of Japan for approval. Attached
hereto is a press release and initial description of the Plan. The financial
information included in the press release was prepared on the basis of
accounting principles generally accepted in Japan and, accordingly, is not
directly comparable to the financial information included in the registrant's
Annual Report on Form 20-F for the fiscal year ended March 31, 1998 which
information was prepared on the basis of accounting principles generally
accepted in the United States.
The Plan contained in the attachments contains forward-looking
statements. The registrant desires to qualify for the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995, and consequently is
hereby filing cautionary statements identifying important factors that could
cause the registrant's business operation plan as actually implemented or the
registrant's actual results to differ materially from those set forth in the
attachments.
The registrant's business operation plan and earnings projections are
based on a series of projections and estimates regarding the economy and the
telecommunications industry in Japan in general. The projections and estimates
regarding the telecommunications industry may be affected by pricing of services
and new businesses.
No assurance can be given that the business plan as ultimately
implemented, or the registrant's actual results will not vary significantly from
the projected earnings.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
NIPPON TELEGRAPH AND TELEPHONE
CORPORATION
By /s/ TOYOHIKO TAKABE
------------------------
Name: Toyohiko Takabe
Title: Executive Manager
Department V
NTT-Holding Provisional
Headquarters
Date: February 26, 1999
<PAGE>
[LETTERHEAD OF NTT]
NEWS RELEASE
February 26, 1999
FOR IMMEDIATE RELEASE
NTT Submits Business Operation Plan for Fiscal Year Ending March 31, 2000,
to Minister of Posts and Telecommunications for Approval
Nippon Telegraph and Telephone Corporation (NTT) announced today that it has
submitted its business operation plan for the fiscal year ending March 31, 2000,
to the Minister of Posts and Telecommunications for approval.
Under this plan and amid the ongoing severe economic climate, NTT will upgrade
services by surveying customer needs and continue enhancing its operational
management by making efforts to reduce costs, increase sales and establish
smooth interconnection and open access networks. NTT will strengthen its R&D
and disaster-prevention measures. It will also promote staff member training,
new business development and smooth corporate reorganization scheduled for
fiscal 1999 and contribute to its customers and shareholders as well as to
society.
The telecommunications industry is expected to actively contribute to the
development and efficiency of social and economic activities in this information
society. Its market is developing further to meet more sophisticated, diverse,
and global customer needs and taking major steps in the world trend toward the
multimedia era through outstanding technological developments. Due to increasing
trend toward globalization and multimedia, competition, which has been mainly
focused in the long-distance market, is now expanding into full-scale service
competition including mobile and international markets. Competition is also
developing in local communications markets.
Under such circumstances, NTT is continuing to provide both stable and
high-quality universal services. It is also developing the field of information
sharing by
<PAGE>
providing innovative new services for a wide range of corporate and individual
activities using digital infrastructure. NTT is also working to promote the
deployment of optical access networks that meet customer needs, actively promote
its global business, contribute to the advancement of telecommunications markets
through fair competition, strengthen and enhance R&D and ensure that the
telecommunications industry is open to the public.
Furthermore, NTT remains dedicated to contributing meaningfully to society and
meeting customer expectations. NTT will continue to fulfill these important
missions by further stabilizing and maintaining its business base.
Note: All financial information stated in this release was prepared on the
basis of generally accepted accounting principles in Japan. Also, this plan
will be altered when the time and content of the reorganization is confirmed.
# # #
For further information, please contact:
Norihiko Ohkuba or Megumi Inaji
Public Relations Office
NTT Long Distance and Global Provisional Headquarters
Telephone: (03) 3500-8020
E-mail: [email protected]
2
<PAGE>
Attachment 1
NTT's Business Operation Plan for Fiscal Year Ending March 31, 2000
1. VOICE TRANSMISSION SERVICES
(1) Subscriber telephones:
Additional installations: -2.3 million
Relocations: 7.8 million
Expected subscribers at the end of March 2000: 56.23 million
(2) Additional installations of social-welfare telephones (Silver Phone
series):
Anshin (Relief): +1,500 units
Meiryo (Clearness): +200 units
Hibiki (Sound): +100 units
Fureai (Communication): +100 units
(3) Additional installations of public telephones:
NTT will promote installation of IC card public telephones. Also, the
company will continue to promote the installation of specially equipped
public telephone booths for the handicapped and improve services.
IC card public telephones: +84,000 units
Public telephones with voice adjustment functions: +84,000 units
Public phone booths for wheelchair users: +100 units
(4) INS-Net digital services:
NTT plans to add 3 new INS-Net service areas, thereby providing services to
nearly all areas with foreseeable demand in digital telecommunications
services by the end of fiscal year ending March 31, 2000.
INS-Net 64 subscriber lines: +1,720,000 circuits
INS-Net 1500 subscriber lines: +13,000 circuits
INS-Net service areas: +3 areas
Expected service areas at the end of March 2000: 4,378 areas
3
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2. DATA TRANSMISSION SERVICES
(1) Telex service:
NTT will continue to improve the efficiency of telex service operations
(2) Digital data exchange services:
The Type I packet exchange service covers most areas of expected demand.
The Type II packet exchange service covers all areas nationwide; therefore,
NTT plans to build equipment for packet exchange services in response to
public demand.
Packet exchange service (Type I): -4,000 circuits
Packet exchange service (Type II): -6,000 circuits
(3) Facsimile communication network services:
NTT provides facsimile communication network services for all areas
nationwide and plans to build equipment for the network services in
response to public demand.
Facsimile communication network service: +117,000 circuits
(4) Videotex communication services:
NTT provides videotex communication services for all areas nationwide.
Videotex communication service: -177,000 circuits
(5) Open Computer Network services:
Open Computer Network service area has been expanding since its launch in
December 1996, and will continue building service equipment in response to
public demand.
4
<PAGE>
Type I Open Computer Network service: +22,000 circuits
Type II Open Computer Network service: +395,000 circuits
3. LEASED CIRCUIT SERVICES
Facilities for leased circuit services are scheduled to be installed to
actively respond to demands, including those for high-speed digital
transmission services, data transmission services and voice and image
transmission services. The number of conventional leased circuits is
expected to decrease with further shifts to Signal Supervisory Communication
Service.
Conventional leased circuits: -85,000 circuits
High-speed digital transmission circuits: +52,000 circuits
4. TELEGRAPH SERVICES
NTT will promote such measures as the maintenance and replacement of
telegraph operation systems to enhance services and raise efficiency.
5. IMPROVEMENTS AND ADVANCES IN TELECOMMUNICATIONS EQUIPMENT
(1) Optical Access Network:
The deployment of Optical Access Network will be actively promoted in
coordination with public demand and the replacement of existing metallic
cables.
Optical subscriber cable: +3.2 million fiber km
(Nationwide cover rate at the end of March 2000 will be 36%.)
(2) Telecommunications Network:
NTT will enhance network services as well as improve network economy and
efficiency while meeting customer needs.
5
<PAGE>
(3) Disaster-prevention measures:
NTT will promote needed disaster-prevention measures for telecommunications
equipment. To this end, NTT will establish emergency communication and
crisis management measures, as well as procedures for restoring systems and
distributing vital information in the event of a large-scale disaster. It
will also promote measures to deal effectively with the year 2000 problem.
(4) Installation of underground transmission cables:
NTT will install underground transmission cables to aid transmission
stability, secure safe and comfortable passage spaces and improve the
appearance of urban areas, in corporation with the local and national
governments or other companies.
(5) Facility maintenance:
NTT will implement facility maintenance, including cable and wooden
telephone-pole replacement, to improve customer services, ensure safety and
harmony with social environments and stabilize communications systems.
6. PROMOTION OF RESEARCH AND DEVELOPMENT ACTIVITIES
To meet public demand for the development of multimedia and to further
strengthen the basis of NTT's business operations, it is essential to
achieve the harmonious development of application technology, network
service technology and network infrastructure technology. To this end, NTT
will work toward the realization of
(1) the electrum cyber society, an affluent society characterized by the
distribution of electronic information, products and currency;
(2) the mega media, a higher-speed and lower-cost network service; and
6
<PAGE>
(3) the next-generation infrastructure to attain ultra-high-speed and high-
capacity communications. Accordingly, NTT will contribute to domestic and
international standardization activities as well as standardize its R&D
results through technical cooperation with other laboratories to promote
R&D.
More specifically, NTT will conduct R&D activities as follows:
(1) Network Systems
For the purpose of upgrading the telecommunications network and enhancing
ISDN, NTT will promote R&D in network architecture, access type
telecommunications system and high-speed/wide-range telecommunications
system. NTT will also continue promoting R&D in operation systems to
improve the reliability of its networks and customer services.
(2) Terminals Technology
NTT will progress in R&D on communication terminals so that customers can
select from various useful services that NTT provides via an advanced
telecommunications network.
(3) User Systems
NTT will promote progress in user-oriented applications and information
service system to provide diverse and useful multimedia information
communications services via advanced telecommunications network.
(4) Basic and Core Technology
NTT will seek revolutionary telecommunications technology to contribute to
the development and improvement of Japan's telecommunications industry as
well as to take the lead in advanced and basic technologies for future
telecommunications.
7
<PAGE>
Attachment 2
Construction Plan for Fiscal Year Ending March 31, 2000
Estimated expenses
(billions of yen)
1. Expansion and improvement of services 1,215*
(1) Voice transmission 1,098
(2) Data transmission 26
(3) Leased circuits 89
(4) Telegraph 2
2. R & D facilities 117
3. Other facilities 188
- ------------------------------------------------------------------------------
Total 1,520
Note: *Approximately 260 billion yen will be invested in Optical Access Network.
8
<PAGE>
Attachment 3
Revenues and Expenses Plan for Fiscal Year Ending March 31, 2000
<TABLE>
<CAPTION>
(billions of yen)
Revenues
- --------
<S> <C>
Operating revenues 6,013
(1) Voice transmission 4,423
(2) Data transmission 166
(3) Leased circuits 643
(4) Telegraph 83
(5) Others 698
Non-operating revenues 103
- -------------------------------------------------------------------------------
Total revenues 6,116
Expenses
- --------
Operating expenses 5,796
(1) Operating costs 4,209
(2) Taxes and dues 184
(3) Depreciation 1,403
Non-operating expenses 104
- -------------------------------------------------------------------------------
Total expenses 5,900
- -------------------------------------------------------------------------------
Recurring profit 216
- ----------------
</TABLE>
2
<PAGE>
Attachment 4
Plan of Sources and Applications of Funds for
Fiscal Year Ending March 31, 2000
<TABLE>
<CAPTION>
(billions of yen)
Sources:
<S> <C>
Operational:
Operating revenues 7,024
Non-operating revenues 108
- --------------------------------------------------------------------------------
Subtotal 7,132
Financial:
Long-term loans and bonds 447
Others 0
- --------------------------------------------------------------------------------
Subtotal 447
Estimated consumption tax 308
Brought forward from the previous fiscal year 1,026
- --------------------------------------------------------------------------------
Total 8,913
Applications:
Operational:
Operating expenses 5,321
Non-operating expenses 100
- --------------------------------------------------------------------------------
Subtotal 5,421
Financial:
Capital investments for property, plant and equipment 1,520
Other financial expenses 548
- --------------------------------------------------------------------------------
Subtotal 2,068
Closing account expenses 1,014
Temporarily-paid consumption tax 206
Carry forward to following year 204
- --------------------------------------------------------------------------------
Total 8,913
</TABLE>
10
<PAGE>
Outline of Business Operation Plan for
Fiscal Year Ending March 31, 2000
1. Basic Concepts
Nippon Telegraph and Telephone Corporation (NTT) will continue to meet customer
demands to become a corporation contributing to society. The corporation will
encourage stability and strengthening of its management base as well as promote
active operations for the development of information sharing
-------
(1) Contributing to society:
. Operations toward the development of information sharing
-------
. Active promotion of global businesses
. Provision of high-quality and stable universal services
. Provision of various services
. Promotion of optical access networks meeting customer demand
. Enhancing and strengthening of R&D
. Promotion of open access networks
(2) Establishment of management base:
. Reduce costs and increase sales
(3) Development of stable business:
. Strengthening of R&D
. Strengthening of disaster-prevention measures
. Training of staff
. Development of new businesses
. Smooth reorganization
2. Reformation and Expansion of Services
(1) Development of information sharing network service and its effective
-------
establishment considering customer demand.
(2) Actively promote and promptly meet demands for optical access networks.
1
<PAGE>
3. NTT's Business Operating Plan
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Note
Item Fiscal Year ending (Projected numbers as of
March 31, 2000 fiscal year ending
March 31, 2000)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
Subscriber telephone -2.300 thousand 56,230 thousand
subscribers subscribers
- -----------------------------------------------------------------------------------------------------
IC card public telephones 84 thousand 763 thousand
- -----------------------------------------------------------------------------------------------------
INS-Net digital service
INS-Net 64 1,720 thousand units 5,540 thousand units
INS-Net 1500 13 thousand units 59 thousand units
- -----------------------------------------------------------------------------------------------------
Facsimile communication network 117 thousand units 1,337 thousand units
service
- -----------------------------------------------------------------------------------------------------
Open Computer Network services
Type I OCN service 22 thousand units 46 thousand units
Type II OCN service 395 thousand units 794 thousand units
- -----------------------------------------------------------------------------------------------------
Leased circuit service
conventional leased circuit -85 thousand units 733 thousand units
high-speed digital transmission 52 thousand units 273 thousand units
circuit
- -----------------------------------------------------------------------------------------------------
</TABLE>
4. Improvement of Telecommunication Facilities
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Item Fiscal Year ending Note
March 31, 2000
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
Optical access network 3,200 thousand kms Nationwide cover rate at the end of
March 2000 will be 36%
- -----------------------------------------------------------------------------------------------------
</TABLE>
2
<PAGE>
5. Construction Plan for Fiscal Year Ending March 31, 2000
<TABLE>
<CAPTION>
(billions of yen)
- ---------------------------------------------------------------------------------------------------------------------------
Fiscal year Fiscal year
Item ending ending Increase Note
March 31, 2000 March 31, 1999 (Decrease)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Expansion and Improvement
of services 1,215 1,408 -193
Voice transmission 1,098 1,268 -170* *Includes both
Data transmission 26 44 -18 telephone and
Leased-circuit 89 89 0 ISDN services
Telegraph 2 7 -5
- ---------------------------------------------------------------------------------------------------------------------------
Part of R&D
R&D facilities 117 150 -33 Investment used
as expense: -50
- ---------------------------------------------------------------------------------------------------------------------------
Other facilities 188 192 -4
- ---------------------------------------------------------------------------------------------------------------------------
Total 1,520 1,750 -230
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: "R&D facilities" figure for "Plan for fiscal year ending March 31, 2000"
is influenced by the 50 billion yen, which is a part of R&D investment used as
--- -----------------------------------------
expense
- -------
6. Revenues and Expenses Plan for Fiscal Year Ending March 31, 2000
<TABLE>
<CAPTION>
(billions of yen)
- ---------------------------------------------------------------------------------------------------------------------------
Fiscal year Projected for fiscal year
Item ending ending March 31, 1999 Increase
March 31, 2000 (from first-half results) (Decrease) rate
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total revenues 6,116 6,297 -161 -2.9%
Voice transmission 4,423 4,652 -229 -4.9%
Data transmission 166 116 50 43.1%
Leased-circuit 643 658 -13 -2.0%
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses 5,900 6,004 -104 -1.7%
[before reclassification [6,038]
of enterprise tax]
Operating costs 4,208 4,155 14 0.3%
Depreciation 1,403 1,501 -98 -6.5%
- ---------------------------------------------------------------------------------------------------------------------------
Recurring profit 216 293 -77 -26.3%
[reclassification of enterprise [259]
tax]
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: Pursuant to an amendment of the Regulations Concerning Terminology, Forms
and Preparation Method of Financial Statements, the enterprise tax is being
reclassified. Accordingly, recurring profit has increased 34 billion yen for
fiscal year ending March 31, 1999 and 20 billion yen for fiscal year ending
March 31, 2000 compared to when previous accounting methods were used. The
projected recurring profit for fiscal year ending March 31, 1999 in parentheses
is the figure before the reclassification that was released in the first-half
results for fiscal year ending March 31, 1999.
8
