NTT Resonant will bring together group-wide resources to develop services, such as interactive video communications, e-learning and new portals.
The company currently faces dwindling revenues from its voice communications services due to the spread of low-cost Internet protocol (IP) phone services using Internet technology.
It has unveiled half-year results reflecting the debilitating impact of IP telephony, which NTT forecasts will reduce fixed-line voice revenues by Y1, 000 billion over the next three years. It expects fixed-line voice revenues to fall Y370 billion in the full year.
Revenues at the fixed-line companies were down also in the first half – NTT East by 5%, NTT West 4% and NTT Communications by 7%.
Although total group revenues rose a modest 0.8% at Y5, 412.4 billion, this was largely due to a firm rise in revenues at NTT DoCoMo, the group’s mobile communications arm. Pre-tax profits were 9.5% higher at Y842.7 billion, helped by cost cutting.
The sharp increase in net profits to Y383.6 billion was due to the absence of last year’s huge extraordinary loss reflecting write-downs on overseas investments.
Full year revenues are forecast to be Y11, 040 billion and pre-tax profits Y1, 412 billion. Net profits are expected to surge 149% to Y582 billion due to the absence of large write-offs.
