NTT to switch focus to fibre-optic

2 Mar 2005

Nippon Telegraph and Telephone Corp (NTT) has revealed plans to increase investment in its fibre-optic network by around 17.9% in the year beginning 1 April, in a bid to shift its customers over to the service. NTT East and NTT West plan to spend JPY330 billion (USD3.2 billion) on upgrading their fibre-optic networks in fiscal 2005, up from JPY280 billion this year. The move towards fibre-optic technology comes in the face of increasing competition in the sector from the likes of KDDI and Japan Telecom, which have pledged to invest JPY5 trillion in connecting 30 million customers to fibre-optic lines by 2010. NTT said it expects to double its own number of fibre-optic subscribers to around 3.49 million in the year ending 31 March 2006. It will cut spending and investment in its other networks as part of the programme.

NTT East has projected annual sales of JPY2.15 trillion and an operating profit of 80 billion for fiscal 2004, ending 31 March 2005, while it expects to see sales of JPY2.12 trillion in 2005/06 and operating profit of JPY15 billion. NTT West has forecast sales of JPY2.09 trillion and operating profit of JPY66 billion for fiscal 2004, with sales of JPY1.966 trillion and operating profit of JPY4 billion predicted for the following year. The two units expect their number of fixed line users to fall by around 8.3% in 2005/06 as customers switch to rival carriers; KDDI and Japan Telecom have both launched fixed line services which undercut NTT’s offering.

Japan, NTT (NTT East & NTT West)