NTT's global strategy after re-organization

Abstract

Nippon Telegraph and Telephone Corporation (NTT), the largest telecommunication carrier in the world, was broken up, and reconstituted NTT mad a new start on July 1, 1999. On that day, free competition in the telecommunication industry began in Japan. And, NTT Communication, new subsidiary, launched international telecommunication services as a no-regulated company. In many other countries, the telecommunication market has already been deregulated. Since there is no longer a distinction between long-distance and local telecommunication carriers, competition has become more severe. Globally, telecommunication has turned into a commodity. It is difficult to differentiate the service from rivals. Furthermore, due to recent data communication and Internet growth, the demand for the integrated network has increased. As business is becoming borderless, to overcome the time and distance, a global network is necessary for multinational companies. In this severe situation, Japanese telecommunication carriers, including NTT and new common carriers (NCCs), have to play the game with these strong experienced players. The mission of NTT, the leading company in the Japanese telecommunication market, is not only to win among Japanese competitors, but also to help strengthen the Japanese telecommunication industry as well. Therefore, at this point, NTT's global strategy is critically important. This thesis begins with an analysis of the Japanese telecommunication industry. It comparatively analyzes NTT's global strategy with those of global rivals, taking NTT's capabilities into consideration, and concludes by offering recommendations concerning NTT's global strategy.