NTT Corp unveils new operating structure to boost global growth
NTT Corporation – the parent company of NTT Communications – has announced a restructure of its operating units, with a new focus international business.
NTT’s operating companies include the likes of NTT Com, Dimension Data, NTT DATA, and NTT Security, which when combined have generated revenue outside of NTT’s home market of Japan worth more than $20 billion through collaboration.
This, and changes in the flobal telecoms market along the lines of new business models and expansion of competitors, has led NTT to create a new structure that will oversee its global businesses.
The new entity, which has been named NTT Inc. will operate under NTT Corp CEO Jun Sawada. It has an estimated operating revenue of $38 billion based on figures from the fiscal year ending 31 March 2018.
NTT said the new unit will comprise of NTT Communications, Dimension Data, NTT DATA, NTT Security, and NTTi3 by the third quarter of fiscal year 2019.
NTT also unveiled further plans, saying it will look at integrating these businesses – excluding NTT DATA – into two new business units by the end of the fiscal year 31 March 2020. The businesses will be split between domestic in Japan and the global business.
The restructure at the Japanese telco will also see the creation of a new global innovation fund, named NTT Venture Capital, which will be used to actively invest in high-growth opportunities. These are to include digital technology and R&D in global markets. The fund will be up to $500 million, NTT said.