<PAGE>
THE TOTAL NUMBER OF PAGES CONTAINED IN THIS DOCUMENT IS 33.
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 March 2000
NIPPON TELEGRAPH AND TELEPHONE CORPORATION
(Translation of registrant's name into English)
3-1, OTEMACHI 2-CHOME
CHIYODAKU-KU, TOKYO 100-8116, 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, 2001
On March 7, 2000, the registrant announced that it had submitted its business
operation plan for the fiscal year ending March 31, 2001 (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, 1999 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.
<PAGE>
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/ Kazuto Tsubouchi
------------------------
Name: Kazuto Tsubouchi
Title: Senior Manager
Investor Relations Group
Department IV
Date: March 7, 2000
<PAGE>
March 7, 2000
For Immediate Release
Nippon Telegraph and Telephone Corporation Submits Business
Operation Plan for Fiscal Year Ending March 31, 2001
to Minister of Posts and Telecommunications for Approval
Nippon Telegraph and Telephone Corporation (NTT) today submitted its business
operation plan for Fiscal Year Ending March 31, 2001, to the Minister of Posts
and Telecommunications for approval.
1
<PAGE>
Business Operation Plan for Fiscal Year Ending March 31, 2001
In the building of an advanced information society, information and
communications are expected to make a substantial contribution to invigorating
and enhancing the efficiency of socioeconomic activity, and as needs grow more
sophisticated, diverse, and global in character, the market for them will expand
and develop further. In addition, rapid progress towards a multimedia age is a
global trend, powered by the substantial strides that are being made in
technological innovation.
To help ensure that universal services are maintained amid this environment
for information and communications, Nippon Telegraph and Telephone Corporation
(NTT) intends to provide necessary advice, coordination, and other assistance to
Nippon Telegraph and Telephone East Corporation and Nippon Telegraph and
Telephone West Corporation (the "East and West Regional Companies"). It will
also endeavor to promote research and development in the sphere of
telecommunications technology--the base on which telecommunications function--in
order to respond to social requirements for the development of multimedia.
In addition, NTT intends to utilize the total management resources of its
corporate Group, and research and development capabilities, to foster active
Group management that will bring about the development of the entire Group.
In the management of business operations for the fiscal year ending March
31, 2001, based upon this fundamental thinking it is NTT's aim to enhance the
efficiency of the management of NTT subsidiaries and affiliates (the "NTT
Group") operations, including those of the East and West Regional Companies, to
expand new businesses with the aim of enhancing the circulation of information,
and to continue to strengthen research and development that will contribute to
the advancement of telecommunications. In this way NTT will seek to ensure the
stable development of the NTT Group operations in the future, so as to enable it
to return the fruits of these efforts to customers, shareholders, and the
community at large.
Based on this thinking, under the business operation plan for the fiscal
year ending March 31, 2001, NTT will conduct its business management by giving
priority to the following categories, and will do so in a flexible manner so as
to respond to changes in the operating environment.
2
<PAGE>
1. Advice, Coordination, etc.
For the East and West Regional Companies, NTT will provide all necessary
advice, coordination, etc. to ensure the maintenance of high-quality and stable
universal services. These will include planning and coordination relating to
the quality and upgrading of telecommunications networks, the deployment of
control and coordination capabilities when natural disasters and other
emergencies occur, efficient fund-raising and the formulation of policies for
materials procurement, and intra-NTT Group coordination to ensure the smooth
implementation of the Mid-term Restructuring Plan that was announced in November
1999 in light of the harsh operating environment facing the East and West
Regional Companies. NTT will also exercise its shareholder rights, if
necessary, for such purposes as assuring the smooth flow of dividends to
shareholders.
For all the NTT Group companies, NTT's other activities will include
research for the purpose of cultivating new business activities, management
support for operations such as business expansion and withdrawals from business
activities, and assistance with the development of human resources that form the
core of the NTT Group.
2. Promotion of Fundamental Research and Development
To meet the growing demands of society for the development of multimedia,
the harmonious development of network infrastructure technologies, network
services and application technologies, and advanced and basic technologies is
indispensable. NTT will work toward the realization of (1)an affluent Electrum
Cybersociety, in which information, products, and money circulate electronically
(2)the Megamedia, the higher transmission speed and less expensive network
services, and (3)next-generation infrastructure that achieves ultrahigh
transmission speed and ultralarge-capacity communications.
NTT will continue to actively disseminate the results of its research and
development and will conduct active technical interchanges with institutions
both within Japan and overseas, including through ongoing contributions to
standardization activities, industry standardization of research and development
results, and research and development in collaboration with other research
institutions.
To ensure the continuous implementation of this fundamental research and
development, the costs will be continuously borne by the companies including the
East and West Regional Companies which will benefit from the results of this
research and development.
3
<PAGE>
More specifically, NTT will conduct R&D activities as follows :
(1) Network Systems
In order to provide the "Megamedia" network services of the future that
will bring about the sophisticated telecommunications networks and the
economical transmission of signals ranging from low-speed, narrowband to high-
speed, broadband, NTT will promote research and development in the sphere of
network technologies, including technologies for constructing economical access
networks, technologies for building flexible networks for diverse network
services, and next-generation IP network technologies. NTT will also promote
fundamental research and development of operation systems to improve the
reliability of telecommunications networks and the quality of service. Cognizant
of the sharp increase in energy consumption induced by the full-scale multimedia
development, NTT will promote research and development to help reducing the
electric power usage.
(2) User Systems
To realize the "Electrum Cybersociety" for electronically transmitted
information, products and money on the sophisticated telecommunications
networks, NTT will promote research and development that will provide our
customers with a safe and convenient information platform for electronic
commerce. Specifically, it will be conducted in such areas as security
technologies to ensure the safety of information communications; technologies
for e-commerce transactions, such as billing, authentication, and authorization;
information-sharing technologies for flexible information sharing under various
network environments; media-processing technologies such as compression and
recognition of video and voice data; and multimedia database technologies for
the multimedia data storage and searching of a variety of media.
(3) Basic and Core Technologies
With a view to securing leadership in basic and core technologies that will
underpin the information and communications of the future, and to contribute to
the creative advancement and development of telecommunications in Japan, NTT
will devote its attention to the creation of a photonic network that makes it
possible to achieve ultrahigh-speed, ultrahigh-volume terabit- and petabit-level
communications, in preparation for an age in which massive volumes of digital
information circulate through networks. To this end NTT will seek out the
4
<PAGE>
potentialities of technologies such as wavelength division multiplexing and
other new optical communications technologies; technologies for optical
components such as optical amplification, optical wavelength division
multiplexer/demultiplexer, and optoelectronic fusion devices; and technologies
for optical information processing, and will promote research and development in
such areas as nanoelectronics and new materials with new characteristics. This
will be combined with research seeking for innovative new principles and new
concepts for the next generation.
The table below contains an overview of the capital investment plan for the
above.
Capital Investment Plan for Fiscal Year Ending March 31, 2001
(billions of yen)
- --------------------------------------------------------------------------------
Item Investment required
- --------------------------------------------------------------------------------
1. R&D facilities 43
2. Other facilities 9
Total 52
- --------------------------------------------------------------------------------
5
<PAGE>
Attachment 1
Revenues and Expenses Plan for Fiscal Year Ending March 31, 2001
(billions of yen)
- --------------------------------------------------------------------------------
Division Amount
- --------------------------------------------------------------------------------
Revenues
Operating Revenues 364 (Note)
Non-Operating Revenues 108
Total Revenues 472
- --------------------------------------------------------------------------------
Expenses
Operating Expenses 253
Non-Operating Expenses 100
Total Expenses 353
- --------------------------------------------------------------------------------
Recurring Profit 119
- --------------------------------------------------------------------------------
Note:
This includes income from basic research and development of (YEN)202 billion,
income from the NTT Group management of (YEN)25 billion, and the dividend of the
three reorganized companies of (YEN)102 billion (the entire amount of disposable
profits based on the forecast results for the fiscal year ending March 31,
2000), including (YEN)36 billion of the east regional company.
6
<PAGE>
Attachment 2
Plan of Sources and Applications of Funds for
Fiscal Year Ending March 31, 2001
(billions of yen)
- --------------------------------------------------------------------------------
Division Amount
- --------------------------------------------------------------------------------
Sources:
Operational: 465
Operating Revenues 357
Non-Operating Revenues 108
Financial: 938
Long-term Loans and Bonds 132
Others 806
Estimated Consumption Tax 14
Brought Forward from Previous Fiscal Year 5
Total 1,422
- --------------------------------------------------------------------------------
Applications:
Operational: 673
Operating Expenses 577
Non-Operating Expenses 96
Financial: 577
Capital Investments for Property, Plant and
Equipment 52
Other Financial Expenses 525
Closing Account Expenses 85
Temporarily Paid Consumption Tax 10
Carry Forward to Following Year 77
Total 1,422
- --------------------------------------------------------------------------------
7
<PAGE>
For further information, Please contact:
Kenya Nakatsuka
Press Relations
Nippon Telegraph and Telephone Corporation
Telephone: 03-5205-5550
E-mail: [email protected]
<PAGE>
March 7, 2000
For Immediate Release
Nippon Telegraph and Telephone East Submits Business Operation Plan for Fiscal
Year Ending March 31, 2001
to Minister of Posts and Telecommunications for Approval
Nippon Telegraph and Telephone East Corporation (NTT East) today submitted to
the Minister of Posts and Telecommunications for approval its business operation
plan for Fiscal Year Ending March 31, 2001.
For further information, please contact:
Kazuhiko Nishizawa or Isao Yoshikawa
Public Relations Office
Nippon Telegraph and Telephone East Corporation
Telephone: (03) 5359-3711
E-mail: [email protected] or [email protected]
--------------------------------- --------------------------
<PAGE>
In the building of an advanced information society, information and
communications are expected to make a substantial contribution to invigorating
and enhancing the efficiency of socioeconomic activity, and as needs grow more
sophisticated, diverse, and global in character, the market for them will expand
and develop further. In addition, rapid progress towards a multimedia age has
become a global trend, powered by the substantial strides that are being made in
technological innovation. On the other hand, the structure of the
communications market is undergoing dramatic change, characterized by surging
demand for mobile communications and data communications. At the same time, a
stream of companies are making new entries into markets with growth potential,
and competition is also growing swiftly in regional communications markets.
Amid this operating environment, NTT East will not only strive to provide high-
quality, stable universal services, but will also devote itself to promoting the
development of optical access networks, contributing to the formation of a fair
telecommunications market, improving applied research and development, and
ensuring reliability and communality in the field of telecommunications,
including the appropriate management of customer information. At the same time
it will strive to contribute to the community by fostering the development of
information distribution, including through the provision of new services--using
digital infrastructure--that are useful for a wide range of both corporate and
individual activity, and by enhancing the stability and strength of its
management base.
In the management of business operations for the fiscal year ending March 31,
2001, based upon this fundamental thinking NTT East will make every effort to
ascertain people's opinions and demands swiftly and accurately, including their
growing needs in the area of connection to the Internet, and to develop and
deploy services accordingly. In the face of the present very difficult
operating environment it will also devote its full energies to reducing costs
and generating earnings based on the Mid-term Restructuring Plan announced in
November 1999. In addition, it will ensure the ongoing development of stable
operations by working vigorously to assure the smoothness of connections and the
openness of networks, to strengthen disaster countermeasures, to develop its
human resources and undertake new business operations, and to position itself
<PAGE>
to return the fruits of these measures to customers, the community, and--through
the holding company--to shareholders.
In line with this thinking, for the fiscal year ending March 31, 2001, NTT East
will give priority to the following categories in the conduct of its business
management, and will do so flexibly so as to respond to changes in the operating
environment.
<PAGE>
1. Voice Transmission Services
(1) Subscriber Telephones
NTT East will respond to all demand for subscriber telephones, including the
relocation of existing lines. The number of subscribers is projected to total
approximately 25.77 million by the end of the fiscal year ending March 31, 2001.
Item Planned Number
Additional Installations (1.74) million subscribers
Relocations 4.47 million subscribers
(2) Social-Welfare Telephones
The advance of the welfare society has been accompanied by a greater social
requirement for telecommunications services in the sphere of welfare. To
respond to this need, NTT East will continue to promote the installation of
welfare-related products, such as its "Silver Phones Series" (Anshin [Relief],
Meiryo [Clearness], Hibiki [Sound], and Fureai [Communication]).
Item Planned Number
Silver Phones
Anshin (Relief) +600 units
Meiryo (Clearness) +200 units
(3) Public Telephones
NTT East will promote the installation of IC-Card public telephones, and also
continue to promote the installation of social welfare public telephones such as
public telephones with a volume adjustment function, and public telephone boxes
usable by people in wheelchairs. In this way, it will strive to improve social
welfare facilities and public services.
Item Planned Number
IC-Card Public Telephones +20,000 units
Public Telephones with Volume Adjustment Function +20,000 units
<PAGE>
(4) INS-Net Digital Services
INS-Net digital services can be provided in all of the regions in which there is
forecast to be demand. The numbers of INS-Net 64 lines and INS-Net 1500 lines
are projected to total approximately 4,931,000 and 67,000, respectively, by the
end of the fiscal year ending March 31, 2001.
Item Planned Number
INS-Net 64 Subscriber Lines +1,502,000 circuits
INS-Net 1500 Subscriber Lines +20,000 circuits
2. Data Transmission Services
IP connection services, which enable all connection from INS-Net to the Internet
to be made for a standing charge, will be provided on a full-scale basis after a
trial period of provision of the services has been completed.
3. Leased Circuit Services
In the field of leased circuit services, NTT East is planning to install the
facilities needed to cater to the increasingly varied demand for circuits,
including for high-speed digital transmission and voice and image transmission.
Item Planned Number
Conventional Leased Circuits (53,000) circuits
High-Speed Digital Transmission Circuits +49,000 circuits
4. Telegraph Services
NTT East will continue to conduct the maintenance of systems and other
operations in order to further improve services and to promote increased
operating efficiency in its telegraph services.
<PAGE>
5. Improvements and Advances in Telecommunications Equipment
(1) Optical Access Network
The switchover to the use of optical fibers in the access network will be
actively promoted in accordance with factors such as the state of public demand.
Item Planned Number
Optical Subscriber Cables +1 million fiber km
(Cover rate at the end of March 2001 will be 48%.)
(2) Telecommunications Network
In its telecommunications network, NTT East will not only meet demand, but at
the same time will further upgrade network services and improve network economy
and efficiency.
(3) Disaster-Prevention Measures
NTT East will take all necessary measures in the sphere of disaster-prevention
measures. These will include disaster-prevention measures for
telecommunications equipment and facilities, measures to ensure emergency
communications, and measures to strengthen the structure for crisis management
and the restoration of systems if large-scale disasters occur, and to assist
with the distribution of information.
(4) Installation of Underground Transmission Cables
With regard to the burying of transmission cables, from the standpoint of
improving the reliability of communications facilities, ensuring safe and
pleasant passage spaces, and enhancing the appearance of urban areas, NTT East
will work in cooperation with the national and local governments and with other
companies.
(5) Facility Maintenance
The maintenance of facilities will be directed at ensuring stable and high-
quality services, including by the ongoing replacement of cables and of wooden
<PAGE>
telephone poles. Through this, NTT East will aim not only to maintain customer
services, but also to ensure stable operations, harmonization with the social
environment, and the stabilization of communications systems.
Given the very difficult operating environment during the year under review, NTT
East will seek to minimize costs by making very exhaustive use of existing
equipment and facilities.
6. Promotion of R&D Activities
To further strengthen the foundation of its activities, and to respond to public
demand for multimedia development, NTT East will promote research and
development in the spheres of network systems and access systems, so as to
improve the sophistication of telecommunications networks. In addition, to
position itself to give customers the choice of a diverse range of convenient
services through sophisticated telecommunications networks, NTT East will also
conduct research and development in such areas as multimedia applications, with
a view to providing communications terminals of various types and information
and communications services that make possible safe and convenient information
distribution.
A summary of the business plans for the above principal services and plant and
equipment investment plans are outlined in the attached tables.
<PAGE>
Table 1
Principal Services Plan for Fiscal Year Ending March 31, 2001
<TABLE>
<CAPTION>
Type of Service Plan
<S> <C>
Voice Transmission Services
Subscriber Telephones
Additional Installations (1.74) million subscribers
Relocations 4.47 million subscribers
Social-Welfare Telephones (Silver Phones) 800 units
IC-Card Public Telephones 20,000 units
INS-Net Digital Services
INS-Net 64 Subscriber Lines 1,502,000 circuits
INS-Net 1500 Subscriber Lines 20,000 circuits
Leased Circuit Services*
Conventional Leased Circuits (53,000) circuits
High-Speed Digital Transmission Circuits 49,000 circuits
</TABLE>
<PAGE>
Table 2
Plant and Equipment Investment Plan
for Fiscal Year Ending March 31, 2001
<TABLE>
<CAPTION>
(billions of yen)
Estimated Expenses
<S> <C>
1. Expansion and Improvement of Services 467*
(1) Voice Transmission 434
(2) Leased Circuits 32
(3) Telegraph 1
2. R&D Facilities 4
3. Other Facilities 79
- ---------------------------------------------------------------------------------------
Total 550
</TABLE>
* This includes approximately (Yen)90 billion to be invested in the Optical
Access Network.
<PAGE>
Attachment 1
Revenues and Expenses Plan for Fiscal Year Ending March 31, 2001
(billions of yen)
Revenues
- --------
Operating Revenues 2,770
(1) Voice Transmission 1,970
(2) Leased Circuits 375
(3) Telegraph 38
(4) Others 387
Non-Operating Revenues 37
- --------------------------------------------------------------------------------
Total Revenues 2,807
Expenses
- --------
Operating Expenses 2,733
(1) Operating Costs 2,031
(2) Taxes and Dues 81
(3) Depreciation 621
Non-Operating Expenses 56
- --------------------------------------------------------------------------------
Total Expenses 2,789
- --------------------------------------------------------------------------------
Recurring Profit 18
- ----------------
<PAGE>
Attachment 2
Plan of Sources and Applications of Funds for
Fiscal Year Ending March 31, 2001
(billions of yen)
Sources:
Operational: 3,759
Operating Revenues 3,720
Non-Operating Revenues 39
Financial: 199
Long-term Loans and Bonds 20
Others 179
Estimated Consumption Tax 141
Brought Forward from Previous Fiscal Year 175
- --------------------------------------------------------------------------------
Total 4,274
Applications:
Operational: 3,123
Operating Expenses 3,068
Non-Operating Expenses 55
Financial: 849
Capital Investments for Property, Plant and Equipment 550
Other Financial Expenses 299
Closing Account Expenses 81
Temporarily-Paid Consumption Tax 97
Carry Forward to Following Year 124
- --------------------------------------------------------------------------------
Total 4,274
<PAGE>
FOR IMMEDIATE RELEASE
March 7, 2000
Application for Approval of the Business Operation Plan
for Fiscal Year Ending March 31, 2001
Nippon Telegraph and Telephone West Corporation (NTT West) today submitted its
business operation plan for the fiscal year ending March 31, 2001 to Minister of
Posts and Telecommunications for approval.
<PAGE>
The telecommunications industry is expected to actively contribute to the
development and efficiency of social and economic activities in today's
information society. In response to the increasing sophistication of consumer
needs and the processes of diversification and globalization, this market
continues to enjoy accelerated growth, while the introduction of outstanding
technological innovations and the dawning of a global multimedia era is lending
further momentum to its expansion. The market is undergoing rapid transformation
from fixed-line to mobile communication, and from voice to data transmission.
Due to the combination of this transformation and the increasing trend towards
globalization and multimedia, competition, which has been mainly focused on the
long-distance market, is now expanding into full scale service competition
including the international and mobile communication markets. Competition is
also developing in local communications markets.
Under such circumstances, Nippon Telegraph and Telephone West Corporation (NTT
West) is continuing to provide both stable and high-quality universal services.
NTT West shall also pursue the following objectives: it shall promote the
deployment of Optical Access Network enabling it to respond promptly to customer
demand; it shall contribute to the advancement of telecommunications markets
through fair competition; it shall strengthen and enhance its research and
development capabilities in applied fields and it shall ensure that the
telecommunications industry is open to the public and reliable such as strict
controls on customer information. Moreover, NTT West is developing the field of
information sharing by providing innovative new services for a wide range of
corporate and individual activities using digital infrastructure, including
services corresponding to the widespread use of the Internet. Throughout all
these efforts, NTT West shall do its best to strengthen and to stabilize its
business foundations.
Reflecting these fundamental principles, one of the primary objectives of NTT
West during the fiscal year ending March 31, 2001 is to accurately and speedily
grasp the views and needs of customers in order to make the necessary
improvements in services. At the same time, given the severe business conditions
which prevail today, NTT West shall make its best effort to further cut costs
and to maintain profits in line with its medium-term business improvement
<PAGE>
plan. NTT West shall also implement measures for maintaining smooth
interconnection and open networks. In other areas, it shall seek to strengthen
its research and development position in applied fields, improve disaster
prevention measures, promote human resources development, and actively pursue
new business opportunities. Through this line of action, NTT West shall endeavor
to achieve a stable course of future development. NTT West stands ready to share
the benefits of these programs with its customers, local communities and the
shareholders in the holding company.
The above outlines the basic strategies of NTT West for the fiscal year ending
March 31, 2001. While special emphasis shall be assigned to the matters
summarized below, NTT West shall respond with due flexibility to any changes in
the business environment.
Note: All financial information stated in this release was prepared on the basis
of generally accepted accounting principles in Japan.
<PAGE>
1. VOICE TRANSMISSION SERVICES
(1) Subscriber Telephones:
NTT West stands ready to respond speedily to all demand for subscriber
telephones, including the relocation of existing lines. The total number of
subscribers is projected to reach approximately 26.42 million by the end of the
fiscal year ending March 31, 2001.
Item Planned Number
Additional Installations (1.73) million subscribers
Relocations 4.04 million subscribers
(2) Social-Welfare Telephones:
The progress of social welfare has generated various demands for
telecommunication services. To respond to welfare-related needs, NTT West shall
promote the installation of its "Silver Phones series" (Anshin [Relief], Meiryo
[Clearness], Hibiki[Sound], Fureai[Communication]) and other welfare-oriented
products.
Item Planned Number
Silver Phones
Anshin (Relief) +800 units
Meiryo (Clearness) +100 units
(3) Public Telephones:
NTT West shall promote the installation of IC-card operated public telephones.
It shall continue to promote the installation of social-welfare public
telephones including those with voice adjustment function and public phone
booths for wheel chair users to achieve improved services and welfare-oriented
functions.
Item Planned Number
IC-Card Public Telephones +10,000 units
Public Telephones with Volume Adjustment Function +10,000 units
<PAGE>
(4) INS-Net Digital Services:
INS-Net Digital Services are now available in all areas with potential demand.
The total number of INS-Net 64 subscriber lines and INS-Net 1500 subscriber
lines are projected to reach approximately 4,484,000 circuits and approximately
47,000 circuits lines, respectively, by the end of the fiscal year ending March
31, 2001.
Item Planned Number
INS-Net 64 Subscriber Lines +1,490,000 circuits
INS-Net 1500 Subscriber Lines + 14,000 circuits
2. DATA TRANSMISSION SERVICES
NTT West shall continue its trial of IP Connection Services featuring complete
flat-rate Internet access via the INS network. Based on the outcome of these
trials, NTT West will consider the possibility of extending this service.
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, and voice and image transmission services.
Item Planned Number
Conventional Leased Circuits (43,000) circuits
High-Speed Digital Transmission Circuits +43,000 circuits
4. TELEGRAPH SERVICES
NTT West shall promote such measures as the maintenance of telegraph operation
systems to enhance services and raise efficiency.
<PAGE>
5. IMPROVEMENTS AND ADVANCES IN TELECOMMUNICATIONS EQUIPMENT
(1) Optical Access Network:
NTT West shall actively promote the deployment of Optical Access Network in
coordination with public demand.
Item Planned Number
Optical Subscriber Cables +1.2 million fiber km
(Cover rate at the end of March 2001 will be 37%.)
(2) Telecommunications Network:
NTT West shall enhance network services as well as improve network economy and
efficiency while meeting customer needs.
(3) Disaster-Prevention Measures:
NTT West shall promote necessary disaster-prevention measures for
telecommunications equipment. To this end it shall 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.
(4) Installation of Underground Transmission Cables:
NTT West shall install underground transmission cables to aid transmission
stability, secure safe and comfortable passage spaces and improve the appearance
of urban areas, in cooperation with the local and national governments or other
companies.
(5) Facility Maintenance:
NTT West shall implement facility maintenance, including cables and wooden
telephone poles replacement, to maintain customer services, ensure safety and
harmony with social environments and stabilize communications systems.
<PAGE>
Given the severe business environment, for the fiscal term ending March 31,
2001, NTT West shall pursue cost reduction by maximizing the utilization of
existing facilities.
6. PROMOTION OF RESEARCH AND DEVELOPMENT ACTIVITIES
Further strengthening the foundations of the business operations and meeting
public demand for the development of multimedia, NTT West shall promote research
and development activities in the area of various types of telecommunications
terminals which expand the range of choices available to customers in their
selection of convenient services, multimedia applications which enable safe and
convenient telecommunications services for information sharing, operations
systems which provide higher quality service systems which create more
sophisticated telecommunications networks and others.
The summary of the business plans for the above principal services and the plant
and equipment investment plans are outlined in the attached tables.
<PAGE>
Table 1
Principal Services Plan for Fiscal Year Ending March 31, 2001
Type of Service Plan
Voice Transmission Services
Subscriber Telephones
Additional Installations (1.73) million subscribers
Relocations 4.04 million subscribers
Social-Welfare Telephones (Silver Phones) +1,000 units
IC-Card Public Telephones +10,000 units
INS-Net Digital Services
INS-Net 64 Subscriber Lines +1,490,000 circuits
INS-Net 1500 Subscriber Lines +14,000 circuits
Leased Circuit Services
Conventional Leased Circuits (43,000) circuits
High-Speed Digital Transmission Circuits +43,000 circuits
<PAGE>
Table 2
Plant and Equipment Investment Plan
for Fiscal Year Ending March 31, 2001
(billions of yen)
Estimated Expenses
1. Expansion and Improvement of Services * 498
(1) Voice Transmission 469
(2) Leased Circuits 29
(3) Telegraph 0
2. R&D Facilities 3
3. Other Facilities 31
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Total 532
Note *Approximately 100 billion yen will be invested in Optical Access Networks.
<PAGE>
Attachment 1
Revenues and Expenses Plan for Fiscal Year Ending March 31, 2001
(billions of yen)
Revenues
- --------
Operating Revenues 2,636
(1) Voice Transmission 1,904
(2) Leased Circuits 295
(3) Telegraph 41
(4) Others 396
Non-Operating Revenues 42
- --------------------------------------------------------------------------------
Total Revenues 2,678
Expenses
- --------
Operating Expenses 2,729
(1) Operating Costs 2,076
(2) Taxes and Dues 77
(3) Depreciation 576
Non-Operating Expenses 48
- --------------------------------------------------------------------------------
Total Expenses 2,777
- --------------------------------------------------------------------------------
Recurring Profit (99)
- ----------------
<PAGE>
Attachment 2
Plan of Sources and Applications of Funds for
Fiscal Year Ending March 31, 2001
(billions of yen)
Sources:
Operational: 3,749
Operating Revenues 3,707
Non-Operating Revenues 42
Financial: 228
Long-term Loans and Bonds 61
Others 167
Estimated Consumption Tax 135
Brought Forward from Previous Fiscal Year 163
- --------------------------------------------------------------------------------
Total 4,275
Applications:
Operational: 3,294
Operating Expenses 3,247
Non-Operating Expenses 47
Financial: 749
Capital Investments for Property, Plant and Equipment 532
Other Financial Expenses 217
Closing Account Expenses 1
Temporarily-Paid Consumption Tax 93
Carry Forward to Following Year 138
- --------------------------------------------------------------------------------
Total 4,275
