Latest news with #NTTDataGroup
Yomiuri Shimbun
26-05-2025
- Business
- Yomiuri Shimbun
NTT Restructuring: Can Move Enhance Company's International Presence?
In the field of digital technology, Japanese companies are lagging far behind overseas tech giants. NTT Corp. should enhance its international presence with the opportunity afforded through the completion of its group restructuring. NTT will make NTT Data Group Corp., a major information technology services company, its wholly owned subsidiary. NTT currently holds a 58% stake in NTT Data Group. NTT will acquire the remaining 42% through a tender offer with a plan to delist the subsidiary. In Japan, NTT Data Group has advantages in the business of system development for government and public organizations as well as financial institutions. The company oversees the NTT group's overseas businesses, and it reportedly holds a third largest share in the global data center market. NTT was established in 1985 when Nippon Telegraph and Telephone Public Corporation was privatized. Forty years later, it can be said the NTT group's reintegration of its subsidiaries has entered its final stage of restructure. In 2020, NTT Docomo, Inc. was also made a wholly owned subsidiary. It is important for NTT to marshal its strengths in the group to create groundbreaking IT services. In pursuing further growth, NTT Data Group is expected to play a central role through the expansion of overseas businesses. In both the domestic and overseas markets, an increase in the demand for electricity is expected due to the rapid development of artificial intelligence. NTT is rushing to commercialize the Innovative Optical and Wireless Network (IOWN), a next-generation communications infrastructure that utilizes optical technology and can significantly reduce electricity consumption. By applying this new technology to its data center business, NTT may be able to take the lead in this field. The government's policy for the telecommunications industry is also at a turning point. Until now, the government has focused on facilitating competition in the industry by strictly regulating NTT through the law to prevent the firm from becoming excessively large. This was because the company had nearly monopolized the fixed-line telephone network business. For this reason, NTT separated its units of new businesses, such as mobile phone and data communication services, from itself as separate companies to list them on the stock exchange to avoid being overly regulated. However, during this period, Google and other U.S. tech giants emerged, leaving NTT and other companies in Japan's information and telecommunications industry behind. To deal with this situation, the government revised the NTT Law last year, relaxing the mechanism in which the internal affairs and communications minister's approvals were required for the appointment and dismissal of executives, thereby increasing operational flexibility. NTT's decision to make NTT Data Group its wholly owned subsidiary is also a move to capitalize on changes in the regulatory environment of the telecommunications industry. While ensuring fair competition is a prerequisite, it is desirable to constantly review regulations in such a way to enhance the freedom of NTT's management in order to foster companies in Japan capable of competing. (From The Yomiuri Shimbun, May 26, 2025)
08-05-2025
- Business
NTT Announces Plan to Fully Own NTT Data Group
News from Japan Economy Technology May 8, 2025 16:46 (JST) Tokyo, May 8 (Jiji Press)--Nippon Telegraph and Telephone Corp. said Thursday that it will make listed subsidiary NTT Data Group Corp. a wholly owned unit. The major Japanese telecommunications company, which currently has an equity stake of about 58 pct in NTT Data Group, plans to spend over 2.3 trillion yen to buy the rest of the outstanding shares including through a tender offer. The move is aimed at speeding up management decisions and accelerating the overseas expansion of NTT Data Group's information technology services for corporations. NTT Data Group has strength in services for data centers, for which demand has been rapidly increasing on the back of the spread of artificial intelligence. In recent years, NTT has been proceeding with organizational reform amid changes in the domestic market, such as a decrease in landline telephone service users. As part of the efforts, NTT made mobile phone carrier NTT Docomo Inc. a fully owned unit in 2020. [Copyright The Jiji Press, Ltd.] Jiji Press
The Mainichi
08-05-2025
- Business
- The Mainichi
NTT to turn NTT Data into wholly owned unit in overseas push
TOKYO (Kyodo) -- Japan's top telecommunications provider Nippon Telegraph and Telephone Corp. plans to make its publicly listed subsidiary NTT Data Group Corp. a wholly owned unit to boost the competitiveness of its overseas businesses, which are mainly run by the unit, sources close to the matter said Thursday. NTT, which already holds around 58 percent of NTT Data Group shares, will purchase the rest of the unit's stock in a tender offer, the sources said, adding the total investment for the reorganization will top 2 trillion yen ($14 billion). The unit will then be delisted from the Tokyo Stock Exchange. The purchase is aimed at speeding up decision-making by ending the situation where the parent company and subsidiary are both publicly listed with separate shareholder accountabilities, they said. NTT said Thursday it will vote on the plan at a board meeting later in the day. NTT Data Group runs businesses related to information technology services and data centers, which are in high demand amid the expanded use of generative artificial intelligence technology. The move is the latest by NTT, whose top shareholder is the Japanese government with around one-third of its shares, to reorganize its operations in response to changing market conditions, with demand for landlines decreasing but that for IT services expanding. Turning NTT Data Group into a wholly owned unit would be the largest investment by NTT since it spent around 4 trillion yen to purchase all shares of mobile phone carrier NTT Docomo Inc. in 2020. The predecessor of NTT Data Group spun off from NTT in 1988. It was listed on the Tokyo Stock Exchange in 1995 and assumed its current company name in 2023. It booked revenues of 4.37 trillion yen and a net profit of 133.87 billion yen in the business year that ended in March 2024.
08-05-2025
- Business
NTT to Take Full Control of NTT Data Group
News from Japan Technology May 8, 2025 13:07 (JST) Tokyo, May 8 (Jiji Press)--Nippon Telegraph and Telephone Corp. is poised to take full control of listed subsidiary NTT Data Group Corp., it was learned Thursday. The major Japanese telecommunications company plans to spend over 2 trillion yen on the move, which is aimed at promoting overseas expansion of NTT Data Group's information technology services for corporations by speeding up management decisions, sources familiar with the matter said. Both companies are expected to make a formal decision at their respective board meetings on the day. NTT, which currently has an equity stake of about 58 pct in NTT Data Group, plans to buy the rest of its outstanding shares through a tender offer. END [Copyright The Jiji Press, Ltd.] Jiji Press
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Nikkei Asia
24-04-2025
- Business
- Nikkei Asia
Japan's NTT Data partners with OpenAI to offer AI business tools
KAORU TAKATSUKI TOKYO -- NTT Data Group is joining forces with OpenAI, the San Francisco-based artificial intelligence pioneer, to roll out generative AI tools for businesses globally with a focus on enhanced data security. As part of the partnership, the Japanese IT services giant also aims to develop AI agents -- advanced AI tools capable of autonomously performing business functions such as sales and customer engagement.
