Nippon Telegraph and Telephone
Encyclopedia
, commonly known as NTT, is a Japanese telecommunications company headquartered in Tokyo, Japan. Ranked the 31st in Fortune Global 500
, NTT is the largest telecommunications company in Asia
, and the second-largest in the world in terms of revenue
.
While NTT is listed on Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, New York, and London stock exchanges, the Japanese government
still owns roughly one-third of NTT's shares
, regulated by the NTT Law (Law Concerning Nippon Telegraph and Telephone Corporation, Etc.).
Established as a monopoly government-owned corporation
in 1953, was privatized
in 1985 to encourage competition in the telecom market. In 1987, NTT made the largest stock offering
to date, at US$36.8 billion.
Because NTT owns most of the last mile
, it enjoys oligopolistic
control over land lines in Japan. In order to weaken NTT, the company was divided into a holding company (NTT) and three telecom companies (NTT East, NTT West, and NTT Communications) in 1999. The NTT Law regulating NTT East and West requires them to serve only short distance communications and obligates them to maintain telephone service all over the country. They are also obligated to lease their unused optical fiber (dark fiber
) to other carriers at regulated rates. NTT Communications is not regulated by the NTT Law.
In July 2010, NTT and South Africa
n IT company Dimension Data Holdings announced an agreement of a cash offer from NTT for Dimension Data's entire issued share capital, in £2.12bn ($3.24bn) deal.
In late 2010, NTT's Japan-to-US transpacific network reached 400 Gbps. In August 2011, its network capacity was expanded to 500 Gbps.
Fortune Global 500
The Fortune Global 500 is a ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by Fortune magazine....
, NTT is the largest telecommunications company in Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
, and the second-largest in the world in terms of revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
.
While NTT is listed on Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, New York, and London stock exchanges, the Japanese government
Government of Japan
The government of Japan is a constitutional monarchy where the power of the Emperor is very limited. As a ceremonial figurehead, he is defined by the 1947 constitution as "the symbol of the state and of the unity of the people". Power is held chiefly by the Prime Minister of Japan and other elected...
still owns roughly one-third of NTT's shares
Share (finance)
A joint stock company divides its capital into units of equal denomination. Each unit is called a share. These units are offered for sale to raise capital. This is termed as issuing shares. A person who buys share/shares of the company is called a shareholder, and by acquiring share or shares in...
, regulated by the NTT Law (Law Concerning Nippon Telegraph and Telephone Corporation, Etc.).
History
Government-owned corporation
A government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government...
in 1953, was privatized
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
in 1985 to encourage competition in the telecom market. In 1987, NTT made the largest stock offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
to date, at US$36.8 billion.
Because NTT owns most of the last mile
Last mile
The "last mile" or "last kilometer" is the final leg of delivering connectivity from a communications provider to a customer. The phrase is therefore often used by the telecommunications and cable television industries. The actual distance of this leg may be considerably more than a mile,...
, it enjoys oligopolistic
Oligopoly
An oligopoly is a market form in which a market or industry is dominated by a small number of sellers . The word is derived, by analogy with "monopoly", from the Greek ὀλίγοι "few" + πόλειν "to sell". Because there are few sellers, each oligopolist is likely to be aware of the actions of the others...
control over land lines in Japan. In order to weaken NTT, the company was divided into a holding company (NTT) and three telecom companies (NTT East, NTT West, and NTT Communications) in 1999. The NTT Law regulating NTT East and West requires them to serve only short distance communications and obligates them to maintain telephone service all over the country. They are also obligated to lease their unused optical fiber (dark fiber
Dark fiber
A dark fiber or unlit fiber is an unused Optical fiber, available for use in fiber-optic communication.The term dark fiber was originally used when referring to the potential network capacity of telecommunication infrastructure, but now also refers to the increasingly common practice of leasing...
) to other carriers at regulated rates. NTT Communications is not regulated by the NTT Law.
In July 2010, NTT and South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
n IT company Dimension Data Holdings announced an agreement of a cash offer from NTT for Dimension Data's entire issued share capital, in £2.12bn ($3.24bn) deal.
In late 2010, NTT's Japan-to-US transpacific network reached 400 Gbps. In August 2011, its network capacity was expanded to 500 Gbps.
Subsidiaries
NTT Group consists of the following major companies, divided into five segments. NTT East, NTT West, NTT Communications, NTT DoCoMo, and NTT Data are most major subsidiaries. NTT DoCoMo and NTT Data are listed on the stock markets.Long distance & international
- NTT Communications
- Verio IncVerioVerio is a global web hosting provider headquartered in the United States. Incorporated in 1996 in Denver, Colorado, it is currently a wholly owned subsidiary of Nippon Telegraph and Telephone Communications, who acquired the company in 2000...
- NTT America
- On July 28, 2011, NTT America announced that it will use Bloom fuel cells at one of its data centers. It will power those Bloom fuel cells with biogas instead of natural gas to be more environmental-friendly.
- NTT EuropeNTT Europe LtdNTT Europe provides Managed Network Services, Managed Hosting, IP Network Services, Co-location Services and related services such as IT Service Management and security management for many types of business....
- NTT Europe OnlineNTT Europe OnlineNTT Europe announced on January 17, 2011 that it will merge NTT Europe Online, its managed hosting subsidiary, into the company as another step towards becoming an ICT service provider...
- HKNetHKNetHKNet is an internet service provider in Hong Kong. It is a part of the Nippon Telegraph and Telephone Group. Previously one of the major players in the broadband market, HKNet began retreating from the consumer market, and in 2005, transferred its residential customers to the larger Netvigator ISP...
- Plala NetworksNTT PlalaPlala is a major Japanese Internet service provider operated by NTT Plala Inc. It was established in 1995 and focuses on personal internal service. Its major stockholder is NTT Communications Corp. The company's name was changed to "NTT Plala" from "Plala" on March 1, 2008. -External links:...
- NTT Europe
Other businesses
- NTT Urban Development
- NTT Facilities
- NTT Finance
- NTT Electronics
- NTT Advanced Technology
R&D laboratories
- Cyber Communications Laboratory Group
- Cyber Solutions Laboratories (YokosukaYokosuka, Kanagawais a city located in Kanagawa, Japan. As of 2010, the city had an estimated population of 419,067 and a population density of 4,160 people per km². It covered an area of 100.62 km²...
) - Cyber Space Laboratories (Yokosuka)
- Cyber Solutions Laboratories (Yokosuka
- Information Sharing Laboratory Group
- Service Integration Laboratories (MusashinoMusashino, Tokyois a city located in Tokyo, Japan.As of October 1, 2010, the city has an estimated population of 137,222 and a population density of 12,788.63 persons per km². The total area is 10.73 km².The city was founded on November 3, 1947...
) - Information Sharing Platform Laboratories (Musashino)
- Network Service Systems Laboratories (Musashino & MakuhariMihama-ku, Chibais one of the six wards of the city of Chiba in Chiba Prefecture, Japan. As of 2011, the ward had an estimated population of 150,382 and a population density of 7,110 persons per km². The total area was 21.16 km².-Geography:...
) - Access Network Service Systems Laboratories (TsukubaTsukuba, Ibarakiis a city located in Ibaraki Prefecture, Japan. It is known as the location of the , a planned city developed in the 1960s.As of 2008, the city has an estimated population of 207,394 and a population density of 730 persons per km². Its total area is 284.07 km².Mount Tsukuba, particularly well-known...
, Yokosuka & Makuhari) - Energy and Environment Systems Laboratories (AtsugiAtsugi, Kanagawais a city located in central Kanagawa Prefecture, Japan. As of 2010, the city has an estimated population of 225,622 and a population density of 2,410 persons per km². The total area was 93.83 km²...
)
- Service Integration Laboratories (Musashino
- Science and Core Technology Laboratory Group
- Network Innovation Laboratories (Yokosuka)
- Microsystem Integration Laboratories (Atsugi)
- Photonics Laboratories (Atsugi)
- Communication Science Laboratories (KeihannaKansai Science Cityis an unincorporated city located in the , a border region between Kyoto, Osaka, and Nara Prefectures of Japan. The name is commonly shortened to or...
) - Basic Research Laboratories (Atsugi)
Sponsorship
- Omiya ArdijaOmiya Ardijais a professional football club which play in the J. League Division 1, and are based in Ōmiya-ku in Saitama, Japan. Its "hometown" as designated by the league is the whole of Saitama city, which is shared with neighbours Urawa Red Diamonds...
and Roasso KumamotoRoasso Kumamotois a Japanese football club based in Kumamoto, the capital city of Kumamoto Prefecture. Roasso Kumamoto was promoted to J. League Division 2 for the first time at the end of the 2007 season, and played their first season in 2008 where they finished 12th...
(Japanese football clubs formerly affiliated with NTT)