NTT plans move into non-telecoms related ventures

3 Jul 2007

Japanese telecoms behemoth Nippon Telegraph & Telephone (NTT) says it plans to increase its focus on non-core businesses such as real estate and intellectual property to staunch the flow of declining profits from telecoms-related activities. In an interview with the Financial Times, Satoshi Miura, president of NTT, said that he needed to bring the company’s telecoms businesses ‘back on track’, but crucially added that ‘only doing such things is not enough to create a growth trend. That’s why we would like to expand our operations in non-telecoms businesses.’ The paper notes that Mr Miura’s strategic plan bucks the current trend of global companies, which are tending to hive off non-core businesses – largely under pressure from aggressive activist shareholders. However, the NTT supremo believes it makes sense for the operator to fully utilise its valuable real estate, which includes telephone offices in prized locations in town centres across the country. Mr Miura plans to boost revenue from non-telecoms business from JPY700 billion (USD5.7 billion) to JPY1,000 billion in the short-term, although he declined to provide a profit forecast for non-core businesses.