NTT to chase China, Southeast Asia

NTT to chase China, Southeast Asia

TOKYO (Reuter): Japanese telecommunications giant Nippon
Telegraph and Telephone Corp , virtually freed last week from
strict governmental controls on its business, is gearing up to
pursue Asian markets and multimedia services.

NTT president Junichiro Miyazu told Reuters yesterday that NTT
would shift its investment target overseas, particularly to China
and Southeast Asia.

He added that the company plans to invest in new multimedia-
related services, moving away from domestic infrastructure
projects.

"NTT has entered a new era," Miyazu said in an interview.

"We need to look more at Asian countries for investment now
that we are allowed to enter the international market...and the
construction of domestic basic telephone networks has almost been
completed," Miyazu said.

The new projects may boost NTT's overall investment in the
next few years, Miyazu said.

NTT, the world's largest telecoms company in terms of market
capitalization, currently already spends a staggering two
trillion yen (US$17.6 billion) a year in capital investment.

Japan last Friday changed its telecoms laws, including one
governing NTT, in preparation for "Big Bang" deregulation reforms
in the nation's lucrative telecommunications sector.

The Upper House of parliament passed a law to allow the
telecoms titan to be split up into three units under a single
holding firm in June 1999, paving the way for NTT to realize its
long-held dream of entering the global market.

With Japan's Finance Ministry widely expected to resume the
sale of NTT shares later this year for the first time in nine
years, NTT is likely to enjoy more freedom in its management with
less government control.

NTT, which was privatized in 1985, is still 65 percent owned
by the government because the Finance Ministry suspended its
offerings of NTT shares due to Japan's prolonged stock market
doldrums in 1989.

"We will also need to focus more on profit and shareholder-
orientated management," Miyazu said.

He also said that the company plans to announce in June next
year its profit forecasts for after the restructuring, which is
due to be completed in June 1999.

Asked if NTT was considering inviting outside directors to
join the company, Miyazu said: "We have no plans for the time
being."

However, he added that the firm would invite outside directors
in the future. Asked whether this would happen at the time of the
restructuring, he replied: "That would be well after
restructuring."