Nippon Telegraph and Telephone

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Nippon Telegraph and Telephone Corporation
Native name
日本電信電話株式会社
Romanized name
Nippon Denshin Denwa Kabushiki-gaisha
Formerly
Nippon Telegraph and Telephone Public Corporation
日本電信電話公社
1985-Present: Public KK
1952-1985: State-owned enterprise
Traded as TYO: 9432
OTC Pink: NTTYY
LSE:  NPN
TOPIX Core 30 Component
Industry Telecommunications
PredecessorJapanese telecommunications network owned by the Ministry of Communications/Ministry of Telecommunications and adminstered by AT&T Corporation during the Occupation of Japan
FoundedAugust 1, 1952 (1952-08-01) (as government monopoly)
April 1, 1985 (1985-04-01) (Private Company)
FounderGovernment of Japan by command of
Supreme Commander for the Allied Powers
GEN Douglas MacArthur
Headquarters Ōtemachi, Chiyoda, Tokyo, Japan
Key people
Satoshi Miura
(Chairman)
Jun Sawada
(President and CEO)
Products
RevenueIncrease2.svg ¥11.8 trillion (2018) [1]
Increase2.svg¥1.64 trillion (2018) [1]
Increase2.svg¥1.21 trillion (2018) [1]
Total assets Increase2.svg¥21.7 trillion (2018) [1]
Total equity Increase2.svg¥12.0 trillion (2018) [1]
Owner Government of Japan (32.6% by law) [2]
Number of employees
282,550 (2018) [1]
Subsidiaries NTT Communications
Dimension Data
NTT Data
NTT DoCoMo
NTT i3
NTT Security
Website www.ntt.co.jp
www.ntt-global.com

The Nippon Telegraph and Telephone Corporation(日本電信電話株式会社,Nippon Denshin Denwa Kabushiki-gaisha), commonly known as NTT, is a Japanese telecommunications company headquartered in Tokyo, Japan. Ranked 55th in Fortune Global 500, NTT is the fourth largest telecommunications company in the world in terms of revenue, as well as the third largest publicly traded company in Japan after Toyota and MUFG, as of September 2018. [3]

Tokyo Capital of and largest city in Japan

Tokyo, officially Tokyo Metropolis, is one of the 47 prefectures of Japan. It has served as the Japanese capital since 1869. As of 2018, the Greater Tokyo Area ranked as the most populous metropolitan area in the world. The urban area houses the seat of the Emperor of Japan, of the Japanese government and of the National Diet. Tokyo forms part of the Kantō region on the southeastern side of Japan's main island, Honshu, and includes the Izu Islands and Ogasawara Islands. Tokyo was formerly named Edo when Shōgun Tokugawa Ieyasu made the city his headquarters in 1603. It became the capital after Emperor Meiji moved his seat to the city from Kyoto in 1868; at that time Edo was renamed Tokyo. The Tokyo Metropolis formed in 1943 from the merger of the former Tokyo Prefecture and the city of Tokyo. Tokyo is often referred to as a city but is officially known and governed as a "metropolitan prefecture", which differs from and combines elements of a city and a prefecture, a characteristic unique to Tokyo.

The Fortune Global 500, also known as Global 500, is an annual ranking of the top 500 corporations worldwide as measured by revenue and the list is compiled and published annually by Fortune magazine.

Revenue income that a business has from its normal business activities

In accounting, revenue is the income that a business has from its normal business activities, usually from the sale of goods and services to customers. Revenue is also referred to as sales or turnover. Some companies receive revenue from interest, royalties, or other fees. Revenue may refer to business income in general, or it may refer to the amount, in a monetary unit, earned during a period of time, as in "Last year, Company X had revenue of $42 million". Profits or net income generally imply total revenue minus total expenses in a given period. In accounting, in the balance statement it is a subsection of the Equity section and revenue increases equity, it is often referred to as the "top line" due to its position on the income statement at the very top. This is to be contrasted with the "bottom line" which denotes net income.

Contents

The company is incorporated pursuant to the NTT Law (Law Concerning Nippon Telegraph and Telephone Corporation, Etc.). [4] The purpose of the company defined by the law is to own all the shares issued by Nippon Telegraph and Telephone East Corporation (NTT East) and Nippon Telegraph and Telephone West Corporation (NTT West) and to ensure proper and stable provision of telecommunications services all over Japan including remote rural areas by these companies as well as to conduct research relating to the telecommunications technologies that will form the foundation for telecommunications.

On 1 July 2019, NTT Corporation launched NTT Ltd., an $11 billion de facto holding company business consisting of 28 brands from across NTT Security, NTT Communications and Dimension Data. [5]

NTT Ltd.

NTT Ltd. is a global technology and services provider headquartered in London, United Kingdom, operating under the brand name NTT. It employs more than 40,000 employees across 73 countries, and delivering services in over 200 countries.. It was known as de facto holding company of all companies that operated under NTT.

While NTT is listed on Tokyo, Osaka, New York, and London stock exchanges, the Japanese government still owns roughly one-third of NTT's shares, regulated by the NTT Law.

Tokyo Stock Exchange stock exchange located in Tokyo, Japan

The Tokyo Stock Exchange, which is called Tōshō (東証) or TSE/TYO for short, is a stock exchange located in Tokyo, Japan. It is the third largest stock exchange in the world by aggregate market capitalization of its listed companies, and largest in Asia. It had 2,292 listed companies with a combined market capitalization of US$4.09 trillion as of April 2015.

Government of Japan constitutional monarchy

The government of Japan is a constitutional monarchy in which the power of the Emperor is limited and is relegated primarily to ceremonial duties. As in many other states, the Government is divided into three branches: the Legislative branch, the Executive branch, and the Judicial branch.

Share (finance) single unit of ownership in a corporation, mutual fund, or any other organization

In financial markets, a share is a unit used as mutual funds, limited partnerships, and real estate investment trusts. The owner of shares in the company is a shareholder of the corporation. A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder. The denominated value of a share is its face value, and the total of the face value of issued shares represent the capital of a company, which may not reflect the market value of those shares.

History

NTT was established as a government-owned corporation in 1952 Establishment of Nippon Telegraph and Telephone Public Corporation.JPG
NTT was established as a government-owned corporation in 1952

Established as a state monopoly in August 1952 to take over the Japanese telecommunications system operated by AT&T during the Occupation of Japan [ citation needed ], Nippon Telegraph and Telephone Public Corporation( 日本電信電話公社 ,Nippon Denshin Denwa Kōsha, shortened into Den-Den Kōsha(電電公社)) was privatized in 1985 to encourage competition in the country's telecom market. In 1987, NTT made the largest stock offering to date, at US$36.8 billion. [6] [7]

In economics, a government monopoly is a form of coercive monopoly in which a government agency or government corporation is the sole provider of a particular good or service and competition is prohibited by law. It is a monopoly created by the government. It is usually distinguished from a government-granted monopoly, where the government grants a monopoly to a private individual or company.

AT&T Corporation Subsidiary of AT&T that provides voice, video, data, and Internet telecommunications

AT&T Corporation, originally the American Telephone and Telegraph Company, is the subsidiary of AT&T Inc. that provides voice, video, data, and Internet telecommunications and professional services to businesses, consumers, and government agencies.

Occupation of Japan Allied occupation of Japan following WWII

The Allied occupation of Japan at the end of World War II was led by General Douglas MacArthur, the Supreme Commander of the Allied Powers, with support from the British Commonwealth. Unlike in the occupation of Germany, the Soviet Union was allowed little to no influence over Japan. This foreign presence marks the only time in Japan's history that it has been occupied by a foreign power. At MacArthur's insistence, Emperor Hirohito remained on the imperial throne. The wartime cabinet was replaced with a cabinet acceptable to the Allies and committed to implementing the terms of the Potsdam Declaration, which among other things called for the country to become a parliamentary democracy. Under MacArthur's guidance, the Japanese government introduced sweeping social reforms and implemented economic reforms that recalled American "New Deal" priorities of the 1930s under President Roosevelt. The Japanese constitution was comprehensively overhauled and the Emperor's theoretically-vast powers, which for many centuries had been constrained by conventions that had evolved over time, became strictly limited by law. The occupation, codenamed Operation Blacklist, was ended by the San Francisco Peace Treaty, signed on September 8, 1951, and effective from April 28, 1952, after which Japan's sovereignty – with the exception, until 1972, of the Ryukyu Islands – was fully restored.

Because NTT owns most of the last mile (FTTC or FTTB/FTTH), 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.

The last mile or last kilometer is a phrase widely used in the telecommunications, cable television and internet industries to refer to the final leg of the telecommunications networks that deliver telecommunication services to retail end-users (customers). More specifically, the last mile means the portion of the telecommunications network chain that physically reaches the end-user's premises. Examples are the copper wire subscriber lines connecting landline telephones to the local telephone exchange; coaxial cable service drops carrying cable television signals from utility poles to subscribers' homes, and cell towers linking local cell phones to the cellular network. The word "mile" is used metaphorically; the length of the last mile link may be more or less than a mile. Because the last mile of a network to the user is conversely the first mile from the user's premises to the outside world when the user is sending data, the term first mile is also alternatively used.

Fiber to the <i>x</i> any broadband network architecture using optical fiber to provide all or part of the local loop used for last mile telecommunications

Fiber to the x (FTTX) or fiber in the loop is a generic term for any broadband network architecture using optical fiber to provide all or part of the local loop used for last mile telecommunications. As fiber optic cables are able to carry much more data than copper cables, especially over long distances, copper telephone networks built in the 20th century are being replaced by fiber.

An oligopoly (ολιγοπώλιο) is a market form wherein a market or industry is dominated by a small number of large sellers (oligopolists). Oligopolies can result from various forms of collusion which reduce competition and lead to higher prices for consumers. Oligopolies have their own market structure.

In July 2010, NTT and South African 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. [8]

In late 2010, NTT's Japan-to-US transpacific network reached 400 Gbit/s. In August 2011, its network capacity was expanded to 500 Gbit/s. [9]

Corporate history timeline

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. NTT Urban Development is a subsidiary involved in real estate. [10] NTT Communications, a former part of the NTT Group, became part of NTT Ltd. on 1 July 2019. [5]

Regional

NTT phonebooth Uji-PhoneBooth-M1437.jpg
NTT phonebooth

Long distance and international

Mobile

Data (system integration)

Information security

Applied R&D laboratories

Sponsorship

See also

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References

  1. 1 2 3 4 5 6 "Financial Results Release for the Fiscal Year ended March 31, 2018" (PDF). Nippon Telegraph and Telephone Corporation. May 13, 2018. Retrieved July 29, 2018.
  2. "The Japanese Government Asset System and Current Conditions" (PDF). Ministry of Finance Japan. March 2019. Retrieved May 27, 2019.
  3. "The World's Largest Public Companies". Forbes. Retrieved 2018-09-26.
  4. "English translation of the "Law Concerning Nippon Telegraph and Telephone Corporation, Etc."" (PDF).
  5. 1 2 Duckett, Chris. "Dimension Data, NTT Communication, and NTT Security bundled into NTT Ltd". ZDNet. Retrieved 2019-07-10.
  6. Vartan, Vartanig G. (November 9, 1987). "Market Place; Big Stock Sale By Japanese". The New York Times.
  7. "U.S. set to make $8 billion from bailing out Citi". 27 March 2010.
  8. "NTT buys South Africa's Dimension Data". BBC News. July 14, 2010. Retrieved July 14, 2010.
  9. Sean Buckley, Fierce Telecom. "NTT's Japan to U.S. network route reaches 500 Gbps mark." Aug 3, 2011. Retrieved Aug 4, 2011.
  10. Melby, Caleb (March 13, 2018). "Kushner Conflict Cloud Hovers Over Brooklyn Sale Linked to Japan". Bloomberg News. A spokesman for the subsidiary, NTT Urban Development, said the company knew the deal involved Kushner Cos. The subsidiary describes itself as the real estate arm of NTT.
  11. "Dimension Data is now NTT Inc - TechCentral". techcentral.co.za. Retrieved 2019-07-10.
  12. "NTT Communications Acquires 86.7% Stake in e-shelter, Germany's top data-center operator".
  13. "IndyCar Names NTT as IndyCar Series Title Sponsor, Official Technology Partner". Sports Video Group. Retrieved 2019-01-19.