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STRATEGY FOR LEADERSHIP IN ASIA NTT Communications 30th October 2014

2 Strategy for Leadership in Asia - 30th October 2014

AGENDA

Who is NTT? What is NTT’s strategy for APAC?

How will NTT deliver on this strategy?

What assets will NTT own, build, develop?

Where will it partner

01 02 03

01

WHO IS NIPPON TELEGRAPH & TELEPHONE?

4

NTT IN NUMBERS

NTT Communications is the long-distance & international communications and ICT solution provider of NTT, one of the top 3 telecom companies in the Fortune Global 500 ranking.

Strategy for Leadership in Asia - 30th October 2014

239,000 employees

Presence in

69 countries Network coverage in

196 countries/ regions

Largest DC provider

2nd largest ISP

Largest ISP in Asia

Top 10 in marine cable capacity

OPERATING REVENUE 430.8 Billion JYP (Approx. 4.6 Billion AUD)

DATA CENTRES 130

OFFICES In 42 countries/ regions, 120 cities


WORLD’S MOST FINICALLY STABLE TELECOM COMPANY

Best credit rating of all telecommunication companies worldwide

AA+

AA AA

AA-

A+

A A

A-

BBB+

BBB BBB

BBB-

BB+

BB BB

BB-

High

Low

Reliability

Credit rating

Revenue (Billions USD) 30 60 90 120

Saudi Telecom

NTT

Telstra

Telia Sonera Vodafone

BT Group

Telefonica

Orange

China Mobile

AT&T

Verizon

Softbank

Sprint Corp.

Telecom Italia


NTT COMMUNICATIONS WITHIN NTT GROUP

Regional communication

ICT Solutions and international communication

Application integration

R&D Mobile communication

Managed ICT Service

02

NTT’S STRATEGY FOR APAC


OUR MISSION


WHAT DO QUALITY SENSITIVE ORGANISATIONS NEED?

QUALITY METRIC

RESPONSIVENESS

Low Latency Network Tier-1 internet Peering Capacity Available to Expand Burstability Self-Service Capacity Short Deployment Times Smart Content Deliver / Smart Cache

Sample Service Aspects

AVAILABILITY Full Redundancy Top-Tier DCs DR Solutions in Region and in Country

SECURITY

PCI Compliance / ISO 27001 Managed Security Services Cloud Based DDOS Support Local and International Regulatory Compliance


NTT HAS THE LARGEST FOOTPRINT IN ASIA OF ANY TELECOMS PROVIDER

Global IP Network (GIN)

MPLS and IP-VPN (Closed Networks)

Utility Computing

Data Centre

Enterprise Cloud

Managed Security

Managed Services

Security Consulting

MONGOLIA

JAPAN

AUSTRALIA

Tokyo Osaka

Yokohama Takamatsu

East West

TAIWAN Taipei

Sydney Melbourne

Canberra Unanderra

Silverwater Perth

KOREA Seoul

LAOS

VIETNAM Hanoi

PHILIPPINES Manila

CAMBODIA

BRUNEI Bandar Seri Begawan

NEW ZEALAND Auckland

Singapore Serangoon

Jurong Tai Seng

SINGAPORE

INDONESIA Jakarta

THAILAND Bangkok

Amata Nakom

BANGLADESH

MYANMAR

NEPAL

PAKISTAN

CHINA Macao

Hong Kong Tai po

Shanghai Shanbhai Pudong

Beijing Guangzhou

INDIA New Delhi

Mumbai Bangalore Chennsai

Noida

SRI LANKA

MALAYSIA Kuala Lumpur

Cyberjaya Penang


AND HAS BEEN RECOGNISED FOR THIS

Positioned in the Leaders Quadrant of Gartner's “Magic Quadrant for Global

Network Service Providers” report

Source: Gartner, “Magic Quadrant for Global Network Service Providers” by Neil Rickard, Robert F. Mason 20 March 2014

COMPLETENESS OF VISION

ABIL

ITY

TO E

XEC

UTE

Challengers Leaders

Visionaries Niches players

T-Systems

Tata Communications

AT&T

BT Global Services

Orange Business Services

Verizon

Vodafone Reliance Globalcom

CenturyLink

Sprint

Telefonica Level 3 Communications

As of March 2014

NTT Communications

The graphic below was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from NTT Communications website at http://www.gartner.com/technology/reprints.do?id=1-1S5Y8TI&ct=140325&st=sg Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

INDUSTRY AWARDS

Magic Quadrant for Asia/Pacific Network Service Providers - Leaders

Gartner recognised ‘Visionaries’ for Cloud Enabled Managed Hosting for Asia & Pacific

Best Asian Telecom Carrier (Best of the Best)

Best Enterprise Services 2014 CEO of the Year NTT Communications Corporation (Akira Arima)

Data Center Service Provider of the Year at 2013 Frost & Sullivan Japan Excellence Awards

“Champions" in the Frost Industry Quotient (IQ) - Asia Pacific Unified Communications-as-a-Service Providers for 2014


CASE STUDY: HONDA SAVES 30% USING NTT IN ASIA

NTT Communications' Enterprise Cloud Service Enables Honda to Strengthen Global Supplier Network

- 14X faster CAD data transfers, 30% reduced annual operating costs

Honda Group companies

countries (six regions)

54 in

Asia N. America S. America

Europe China Japan

10,000 suppliers

56 countries

Enterprise Cloud SDN

Huge CAD Data

ARCSTAR UNIVERSAL ONE INTERNET


CASE STUDY: SONY’S CONNECTIVITY IN ASIA

NTT Communications has assisted Sony in establishing and introducing IPv6 architecture into its network, connecting Japan with offices in other Asian countries. – Reduced Network total cost of ownership –

Flexibility to launch new businesses quickly – unencumbered communication for close, group-wide collaboration

IPv4/IPv6 dual stack

Office A

Arestar Global IP-VPN

IPv6 dual stack access line

IPv6 device

IPv4 device

Features •  Combines IPv4 and IPv6 in IPv4/IPv6 dual stack service •  Enables smooth transition from IPv4 to IPv6 •  Allows wide range of optional services, as before

PE PE CE

Global Data Center in Asia-Oceania

IPv4/IPv6 device

IPv4 device

CE

IPv6 dual stack access line

Office B IPv4 access line

IPv4 device

IPv4 device

PE PE CE

IPv4 device

IPv4 device

CE

IPv4 access line

Office C

IPv6 IPv4

03

APPROACH TO SUCCEED

15

NTT’S APPROACH TO BEING THE BEST PROVIDER

TO DELIVER THE SERVICES REQUIRED BY THE QUALITY-SENSITIVE ORGANISATION, NTT CONSIDERS IT CRITICAL TO KNOW WHEN TO INVEST AND ALSO WHEN TO UTILISE PARTNERSHIPS


We invest to own the best infrastructure,

technology & service capability

We partner in order to expand

01 02

16







01 02

17

WHERE WE INVEST

TO DELIVER THE SERVICES REQUIRED BY THE QUALITY-SENSITIVE ORGANISATION, NTT CONSIDERS IT CRITICAL TO INVEST IN, DEVELOP AND OWN THE FOLLOWING ASSETS:


Top-Tier Backbone and Local Country POP infrastructure

  Network   Tier 3 DC’s   Public / Private /

Hybrid cloud   Largest internet backbone

in Asia

Proprietary / Protected Technology to Improve Service Capability

  DC Design Technologies   Virtual / Software Defined

Networking   UCAAS   Customer Portal and Cloud

Orchestration Technology

Local and Regional Service Delivery Resources

  Global Seamless Service Initiative

  Increasing Local Presence

18

WHERE WE INVEST – NETWORK BACKBONE

NTT COMMUNICATIONS RUNS ONE OF THE WORLD'S TOP-RANKED GLOBAL TIER 1 IP BACKBONES


"Asian Triangle” Asian Submarine cable Express – Map of Cable Route

LinkS Core Data Centers Via High-Speed Backbone Network strategically built in close proximity

to major financial institutions

EUROPE

HONG KONG

US

SINGAPORE

JAPAN

Avoiding an area known for Frequent Cable failures

Japan

Republic of the Philippines

Malaysia

Singapore

Asia Submarine-cable Express (“ASE”) Began operating on August 20, 2012 Began operating on February 8, 2013 Areas with frequent cable failures

Hong Kong

(ASE routes are designed to bypass areas where frequent cable failures occur)

19

WHERE WE INVEST – TIER 3 DATA CENTRES IN ASIA

SUPPORTING THE QUALITY SENSITIVE MARKET WITH LARGEST NETWORK OF DATA CENTRES


Tokyo

Osaka

Beijing

Shanghai

Taipei

Hong Kong

Wuxi

New Delhi-Noida

Mumbai

Bangalore Chennai

Cyberjaya

Singapore

Jakarta

“NTT Communications invests aggressively in data centre facilities

in Asia/Pacific to create a strong presence in the region...

It has the best data centre footprint in Asia/Pacific, with coverage in 12 Asia/Pacific countries.”

# GARTNER New Data Centre under planning in Asia:   Shanghai Pudong DC   India Bangalore 2   India Mumbai Vikhroli 5   Thailand New DC   Hong Kong Financial DC 2nd Building

NTT CONTINUES TO BUILD DATA CENTERS

PHYSICALLY CLOSE TO ALL THE MAJOR

FINANCIAL INSTITUTIONS

Hanoi

Bangkok


WHERE WE INVEST – MOST EXTENDED PRESENCE OF CLOUD INFRASTRUCTURE IN ASIA

China

NTT Communications Enterprise Cloud 12 locations in 9 countries

Hong-Kong

Shanghai

Singapore

Thailand

United Kingdom

Germany Malaysia

Japan East/West

USA East/West

Australia

NTT Group Positioned in ‘Winner’s Circle’ of HFS Cloud Infrastructure Services Blueprint Report 2014

NTT Com Positioned as ‘Leader’ in IDC MarketScape Asia/Pacific Next-Generation Telcos: Hosted Cloud and Data Centre Services 2013-2014 Vendor Analysis

Expansion - 13 locations in 11 countries by 2015

21

TIER 1

WHERE WE INVEST – INTERNET BACKBONE

NTT COMMUNICATIONS RUNS ONE OF THE WORLD'S

TOP-RANKED GLOBAL TIER 1 IP BACKBONES AND THE LARGEST BACKBONE

IN ASIA

NTT COM EXPANDS THE FOOTPRINT IN SOUTHEAST

ASIA BY WITH RECENT POP ESTABLISHMENT IN

INDONESIA, BRUNEI AND THAILAND


Taiwan

Japan

Korea

Hong Kong

Brunei

Australia

Thailand POP was launched in July 2014

Thailand POP was launched in July 2014

Indonesia

Malaysia

To Europe

Brunei POP was launched in Jan 2014 Singapore

Thailand

22

WHERE WE INVEST – PROPRIETARY TECHNOLOGY


SPENDING OVER 1,892.8 BILLION JYP IN *2014/3 (APPROX. 20.3 BILLION AUD) IN R&D EACH YEAR, NTT CONSIDERS THAT DIFFERENTIATED SERVICE WILL BE DELIVERED BY DEPLOYING TECHNOLOGY THAT YOU OWN AND NOT ONLY FROM TECHNOLOGY THAT YOU BUY.

NTT ESTABLISHES INNOVATION INSTITUTE

Based in the heart of Silicon Valley to;   pursue the commercialisation of advanced technologies,   leverage NTT’s expertise in multimedia communications

and telecommunications services

NTT I3 Setting a new global standard of agility, quality, and value creation for open service innovation

*Fiscal year ended March 31 2014

23

R

WHERE WE INVEST – DC DESIGN TECHNOLOGY


NTT acquires Raging Wire

RagingWire’s patented power,

cooling, and control systems allow the delivery of world-

class, mission critical enterprise data centre

colocation with twice the redundancy of a standard Tier 3

data centre

  100% AVAILABLE - Zero downtime, even during maintenance windows – guaranteed

  Patented 2n+2 approach to building DCs

  Own their metal stamping plant so that others cannot access their design

  Their design approach is being ported to all new Dc builds

NTT acquires competitive data centre designs to

support our Cloud Infrastructure

Why is this important? The powerful combination of combining this advanced technology with NTT’s presence for an unbeatable service.

California DC

* Size of circle means server room area

NTT Com DC RagingWire DC

R N

N N

N

N

N R R

R N

N N

24

WHERE WE INVEST – VIRTUAL NETWORKING


NTT acquires Virtela

Virtela’s optimised network operation

enhances NTT Com’s global enterprise network service

expanding its service coverage from 160 to

196 countries

Provide new network products such as

‘Cloud Type managed network’ by utilising Virtela’s FW/WAN

accelerator virtualisation technology

Virtella’s Software Defined Networking

provides click-to-activate virtualized IT

cloud services to transform global

branch office networking

Why is this important? The powerful combination of combining this advanced technology with NTT’s backbone for an unbeatable service.

Europe 50 55

Asia 22 26

America 30 37

Oceania 13 14

Middle East

11 13 Africa

34 51

25

WHERE WE INVEST – UCAAS


NTT Com acquires Arkadin

Arkadin is one of the largest and fastest growing providers of Unified Communications &

Collaboration services. Recognised as ‘Champions’ in the APAC Collaboration Services Market Frost IQ

matrix 2014

Why is this important? The powerful combination of combining this advanced technology with NTT’s presence and utilising our reliable network expands our service offering for our customers who want one point of contact.

31 COUNTRIES 37K

CUSTOMERS

18 LANGUAGES

3rd

GLOBAL CSP

51 OFFICES

NEW OFFICES IN 2012   Taiwan   Czech Republic   Brazil   Poland   Mexico

Global collaboration player Arkadin people are always close to you

26

WHERE WE INVEST – CUSTOMER PORTAL AND CLOUD ORCHESTRATION

Contribute to customers’ management innovations by realising Global Total ICT Outsourcing, an optimal combination of services such as Cloud, Network, Security, Colocation, and Application October 2014 NTT will offer immediate on-demand management of cloud-connected Internet and VPN circuits, as well as cloud-based settings for server and network segments in virtual servers


Manage multiple clouds using one

interface The new networking revolution - Service

deployments that took months now only

takes minutes

CUSTOMER PORTAL ENTERPRISE CLOUD

Visualisation via Customer Portal   Contract information, setting, alarm status, etc.

On-demand configuration changes   Virtual server creation, resource allocation, various intra-DC network

configuration changes

27

NTT COMMUNICATIONS BUSINESS PORTAL

PROVIDE ONE-STOP ACCESS TO 13 SERVICES AND ENABLE CUSTOMERS TO VIEW SERVICE INFORMATION AND MANAGE THEM ON DEMAND


<SERVICES ACCESSIBLE FROM BUSINESS PORTAL>

Operations Management/Security Service

Customers/ NTT Com Operators

Business Portal

SIN

GLE

SIG

N-O

N

  Global Management One   WideAngle

General Application Service

  Arcstar UCaaS   Arcstar SIP Trunking (Arcstar IP

Voice)   Arcstar Smart PBX*   Arcstar Contact Center*   050 plus for Biz/W-mode*   Enterprise Mail   Enterprise Virtual Desktop

Infrastructure Cloud Service

  Enterprise Cloud   Cloudn

  Nexcenter

Network Service

  Arcstar Universal One

*These services are available only in Japan

(More services to be added)

WHERE WE INVEST – INCREASING LOCAL PRESENCE


Deploy Offices in 87 cities (excluding Japan)

Strategy for Leadership in Asia - 30th October 2014 28 Strategy for Leadership in Asia - 30th October 2014

60 March 2010 March 2011 March 2012 March 2013

65

70

75

80

85 87 Expansion in FY2012   Phoenix, US

  Hemel Hempstead, UK

  Pune, India

  Shenyang/Shenzhen/Chengdu, China

  Cebu/Quezon, Philippines

  Yangon, Myanmar

29







01 02

30

WHERE WE PARTNER IN ORDER TO EXPAND

WITH A FOCUS ON WHAT ASSETS WE WILL OWN, NTT SEEKS AND SIGNS PARTNERSHIPS WITH ORGANISATIONS THAT ALLOW THEM TO LEVERAGE THESE ASSETS.


Use our assets to enable the strategy of others

  Telco’s – PLDT Example   SI’s & ISV’s

Gain Access to Local Markets

  Telco partnerships

USE OUR ASSETS TO ENABLE OTHER TELCOS

PLDT (PHILIPPINE LONG DISTANCE TELEPHONE COMPANY)

largest Telecom in Philippines is partnering with NTT provide globally standardised IaaS services combining Enterprise Cloud and its own network services for Philippine-based enterprises.

Enterprise Cloud, which enables enterprises to virtually access their individualised customer portal to configure virtual data centres, is offered via multiple servers in multiple international locations, including Japan, US, UK, Germany, Australia, Thailand, Hong Kong, Singapore and Malaysia, totalling nine countries and 11 data centre locations.

Strategy for Leadership in Asia - 30th October 2014 31 Strategy for Leadership in Asia - 30th October 2014

32

Global IP-VPN Network Solution Enterprise Network Solution Traffic Management Solution

USE OUR ASSETS TO ENABLE ISVS AND SYSTEM INTEGRATORS

NTT recognises that we own the assets that enable the delivery of high quality platforms and software delivered as a service. However, it’s services do not include addressing problems that require implementing an organisation’s business-logic. ISVs and System Integrators do this and we provide the platform to do it well.

Comprehensive Turnkey Services of your Choice

Network Integration Service

CUSTOMER SUPPORT HELPDESK

Operation & Maintenance Service System Integration Service

Law/Wireless System Implementation – Messaging Solution – Security Solution – Antivirus/Anti Spyware Solution – Voice System Solution – Disaster Recovery Solution


33

GAIN ACCESS TO LOCAL MARKETS

57 CARRIERS (INCREASED BY 30 FROM LAST YEAR)

Australia

China

France

Hong Kong

India

Indonesia

Korea

Malaysia

Philippines

Singapore

South Africa

Taiwan

Thailand

UK

USA

Vietnam

THANK YOU

www.nttict.com

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