To: Chemsync who wrote (29035 ) 11/28/1997 7:14:00 PM From: pat mudge Respond to of 31386
[NTT] Steve -- I suspect this report will be duplicated by other telecommunications companies going forward. <<< NTT: Spread of multimedia eats into results MONDAY NOVEMBER 24 1997 By Michiyo Nakamoto in Tokyo The rapid spread of PC communications and mobile phones were clearly evident in the business performance of NTT, Japan's largest telecoms carrier in the first half of the fiscal year. NTT, which reported flat sales and profits, said that the growth of mobile communications and networking had eaten into its traditional telephone business. The number of new telephone subscribers had, as a result, fallen by 200,000 at the end of September. "New subscribers are opting to use cellular phones and personal handyphone systems, rather than fixed lines which require a subscription fee of 70,000," notes Hironobu Sawake, industry analyst at Nikko Securities in Tokyo.Meanwhile subscribers to NTT's integrated services digital network, high-speed digital services for private leased lines and to data transmission services had increased significantly, highlighting the growing popularity of intranets and other PC communications among both corporations and individuals. "The figures show NTT's earnings structure is changing, reflecting the emergence of the multimedia age," Junichiro Miyazu, president, said. However, the increase in advanced communications usage was not sufficient to wipe out the impact of the decline in telephone subscriptions and NTT posted a slight decline in sales and profits. Parent sales came to 3,153.3bn ($25bn) against 3,155.8bn while recurring profits declined slightly to 207.3bn from 207.7bn. Net profits were up 24 per cent to 136.8bn from 110.2bn.Competition in the local market, where NTT is a virtual monopoly, will increase when TTNet, an operator affiliated with the electric power companies, starts services in January. Meanwhile, long-distance competition has been severe. NTT said it planned to cut staff numbers to 147,500 from 161,500 by 2000 and to cut capital spending this year to 3,065bn from 3,080bn. On a consolidated basis, NTT performed better as a result of the strong contribution from NTT Docomo, its cellular phone subsidiary. Of group operating revenues of 4,637.1bn, NTT Docomo contributed 1,309.4bn. The company also contributed 161bn out of group recurring profits of 350.5bn.>>>