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NTT Com to buy cloud-computing provider Virtela

Kyodo

NTT Communications Corp. plans to acquire Virtela Technology Services Inc., a U.S. provider of cloud computing services, to improve its ability to offer online access to software and data storage for clients globally, sources said Monday.

The NTT Corp. unit is also looking to acquire another foreign cloud service provider on top of Colorado-based Virtela, the sources said without identifying the firm. The investment in the two firms is expected to amount to ¥100 billion.

Virtela runs data communications networks for multilateral corporations. The acquisition will allow NTT Com to strengthen its cloud services for Japanese companies operating internationally, they said.

NTT Com is trying to enhance its cloud-related business to offset the sales drop in voice-related communications, they said.

In the NTT group, NTT Com has taken charge of long-distance domestic and international telecommunications services.

Docomo logs profit rise

JIJI

NTT Docomo Inc.’s consolidated operating profit in the April-September half rose 0.4 percent from a year before to ¥473.15 billion, thanks to a drop in smartphone procurement costs.

Revenue in the first half of fiscal 2013 slid 0.4 percent to ¥2.19 trillion, the carrier said Friday. Net profit grew 5.1 percent to ¥300.40 billion.

In its sales campaign this summer, Docomo adopted a “two top” strategy of focusing on smartphones produced by two makers — Samsung Electronics Co. and Sony Corp. The strategy helped reduce smartphone procurement costs.

During the half, Docomo took a net loss of 730,000 subscribers under the mobile number portability system that allows customers to switch carriers without changing phone numbers.

Meanwhile, the company posted overall net subscription growth of 240,000, although that was down sharply from the net growth of 660,000 posted a year ago.