Nippon Telegraph and Telephone Corp. completed its reorganization into five businesses and began operating under its new corporate structure July 1.
The company split into three companies under the control of a single holding company. The new companies include two separate telephone companies covering east and west Japan and a long-distance and international global communications services company named NTT Communications Corp. NTT also controls NTT DoCoMo, the company’s wireless business and systems integrator NTT Data Corp.
NTT America Inc., a company operating under the NTT Communications umbrella, has been making a push into the North American market. NTT Communications’ mission is to provide corporate users a one-stop shop for communications services under the brand name Arcstar.
NTT America’s goal is to provide communications services to Japanese multinational companies doing business in North America as well as U.S. multinational companies with interests in Japan and the Asia/Pacific region.
Keisuke Nakasaki, president and chief executive officer of NTT America, said the company’s established relationships in several Asian countries, including Thailand, Singapore and Vietnam, should give the company an advantage in securing customers with interests in both Asia and the United States.
The company’s primary service offerings include managed frame relay service, managed bandwidth service, managed ATM service, Internet service and technical and customer support.
“In the United States so far we are providing services to Japanese banks and manufacturers and also to U.S. multinationals,” said Nakasaki. “So far we have received good response from U.S. companies who are doing business in Asia.”
NTT America has made investments in Internet service provider Verio Inc. as well as broadband wireless company Teligent Inc.
The reorganization has been underway for several years. Japan’s Ministry of Posts and Telecommunications announced plans for NTT’s breakup in 1996.
In other news, the United States and Japan today reached a new telecommunications procurement agreement for NTT Corp. and its successor companies
The new accord replaces a 1997 deal, which lapsed Friday, and will remain in effect for two years.
The U.S. trade representative said the new procurement agreement-which provides for transparent, non-transparent, non-discriminatory and competitive opportunities for both foreign and domestic suppliers-will cover NTT after it restructures.
Washington Bureau Chief Jeffrey Silva contributed to this article.
