Nippon Telegraph and Telephone Corp. plans to establish a new company for high-speed fiber-optic Internet services as early as this summer under a three-year business scheme, company sources said Wednesday.
NTT aims to begin providing high-speed fiber-optic telecom services at 100 megabits per second for about 9,000 yen per month, they said.
NTT will also cut the monthly bill for fiber-optic services at 10 megabits per second to about 5,500 yen from the current 13,000 yen, they said.
The plan also calls for reorganizing NTT’s two regional carriers, NTT East Corp. and NTT West Corp., into a number of smaller companies.
One will cover the planning functions and serve as headquarters while the others will be local entities accepting customer applications and providing repair and maintenance services, they said.
The entities will adopt a new wage system to slash costs as NTT East and NTT West reportedly have high personnel costs, the sources said.
The new entities would be set up in each prefecture or for each regional bloc covering several prefectures.
The plan also covers the June start of “L-mode” fixed line Internet services.
The lowering of rates for fixed-fee asymmetrical digital subscriber line services and integrated services digital network lines is also covered in the plan.
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