NTT announced its new medium-term management strategy, “New value creation & Sustainability 2027 powered by IOWN.” This medium-term management strategy is a five-year plan from fiscal 2011 to fiscal 2015.
The basic idea is condensed into the words “NTT will continue to take on challenges for the creation of new value and the sustainability of the earth.”
President Akira Shimada said, “For that reason, we will expand investment in growth fields. Over the next five years, we will invest about 8 trillion yen, an increase of 50% from the previous level. Combined with investment in existing fields, we will invest 12 trillion yen in five years. It’s an investment,” he said.
The medium-term management strategy will proceed with three pillars. In other words, (1) “To NTT to create new value and support a global sustainable society”, (2) “Enhancement of Customer Experience (CX)” and (3) “Enhancement of Employee Experience (EX)” to support (1). .
The point is to promote new value creation by IOWN and raise the phase from conception to realization.
As part of this, a new company “NTT Innovative Devices Corporation” will be established in June for the early commercialization of optoelectronic convergence devices, which will be IOWN’s core technology. The new company will start with an investment of 30 billion yen and will be increased in stages. The initial sales target is about 200 billion yen. The new company will also be integrated with NTT Electronics (NEL). The merger is expected to begin in August at the earliest.
President Shimada said, “In fiscal 2023, we will invest 100 billion yen in research and development of IOWN, including 6G, to accelerate its practical application. accelerate the transformation,” he said.
In addition, the research and development promotion function, marketing function, and alliance function will be integrated and strengthened, and the “R&D Marketing Headquarters” will be newly established within NTT Holdings as an R&D organization that includes marketing functions. Strengthen product-oriented research and development, and work with customers and partners on a global basis to develop a comprehensive process from research and development to product provision.
In fiscal 2023, we expect operating revenue of 13.06 trillion yen (down 76.2 billion yen from the previous year) and operating profit of 1.95 trillion yen (up 121.0 billion yen from the previous year). Operating revenue is expected to decline due to the impact of exchange rates and a decrease in income from ENNET.
NTT docomo’s fiscal 2023 targets are operating revenue of 6.11 trillion yen (up 51 billion yen from the previous year) and operating profit of 1.164 trillion yen (up 70.1 billion yen from the previous year).
Further expand the corporate business and smart life business, which are growth fields. The Consumer Telecommunications Business is on a downward trend due to price cuts and other factors, but in FY2011, we will focus on sales of medium- and large-capacity plans to increase profits.
It will also focus on the monetization of network technology.
President Motoyuki Ii said, “We will provide the optimized Open RAN service ‘OREX’ to overseas operators using the network technology we have cultivated. We want to reach a level exceeding 10 billion yen as soon as possible.”
NTT East’s FY2023 target is operating revenue of 1,705 billion yen (up 2.8 billion yen from the previous year) and operating profit of 286 billion yen (up 600 million yen from the previous year). The target net increase in optical broadband services is 200,000. 10 gigabit services are doing well, and corporate needs for a second line are emerging, so we will seize this momentum. Capital investment is expected to be 245 billion yen.
President Naoki Shibutani said, “High value-added services are growing steadily. By introducing DX human resources in advance in growth strategic fields such as cloud, SI, and agritech, we will increase the sales ratio of growth strategic fields in FY2025. to 50% or more, and create a profit structure that does not depend on network lines.”
On the other hand, we will work on further evolution of access networks. Fixed network traffic continues to grow more than mobile traffic, and with the development of video distribution, remote work, and IoT sensing, the importance of fixed networks is expected to increase further. From this point of view, the company plans to further improve the reliability of its fixed network as a foundation that supports a recycling society.
As part of this, in October we will establish a comprehensive engineering company that brings together on-site capabilities and engineering capabilities.
“Regional communities face issues such as aging roads and bridges, increasing disaster severity, and decarbonization, but there is a shortage of human resources who can solve them. We will bring together our engineers around NTT-ME and launch a comprehensive engineering company with a scale of 10,000 people,” explains President Shibutani.
NTT West aims for operating revenue of 1,515 billion yen (up 13.4 billion yen from the previous year) and operating profit of 162 billion yen (up 27.1 billion yen from the previous year) in FY2023.
The policy is to significantly expand growth businesses that utilize the “regional revitalization cloud”, including fiber-optic broadband services such as “FLET’S Hikari Cross”.
We will also focus on creating new businesses through collaboration centered on the open innovation facility “QUINTBRIDGE”.