Nippon Telegraph and Telephone Corporation (NTT) has formally stated that NTT Communications, Dimension Data, NTT DATA, NTT Security, and NTTi3 will be transferred to NTT and “align together under its new leadership”.
The announcement follows several reports that NTT will launch a new company which will oversee its three major communications and data subsidiaries – NTT Data, NTT Communications, and Dimension Data.
“These steps will help us become more competitive and profitable, and create new ways of serving clients and society through our global business,” said NTT in an announcement on Tuesday morning.
“Our operating companies have continued to evolve and grow their respective capabilities. NTT Group has also been driving collaboration across these operating companies with great success.”
“To date, these activities have resulted in collective revenue outside of Japan of $20 billion,” it added.
The aggressive expansion of “innovative competitors”, however, has resulted in a need for the changes within NTT.
It will therefore establish a new holding company focused on global business, which falls under the NTT Corporation.
This will take place by Q3 fiscal year ending 31 March 2019.
“This entity will be called NTT, Inc., and Jun Sawada, current CEO of NTT Corporation, will also serve as its CEO,” said NTT.
The estimated operating revenue of NTT, Inc. is approximately $38 billion.
“NTT Communications, Dimension Data, NTT DATA, NTT Security, and NTTi3 will be transferred to NTT, Inc. and will align together under its new leadership.”
This will not only make the NTT Group more competitive and profitable, but its governance will benefit from embracing and integrating the diverse talent and skill sets it has.
“In addition, by the second quarter of the fiscal year ending 31 March 2020, we’ll consider integrating these businesses – except NTT DATA – into two new businesses. One will look after our global business, the other will cater for our domestic business in Japan.”
The company said it will also take steps to create a new global innovation fund – NTT Venture Capital, L.P.
“With this new fund, we’ll activate investment in high-growth areas, such as digital technology.”