Announced the acquisition of two subsidiaries, including NTT DoCoMo NTT Communications

NTT DoCoMo announced that it will make NTT Communications, which develops long-distance fixed communications, and NTT Comware, which develops systems, into subsidiaries.

By utilizing the management resources of the three companies, we aim to expand new services in the fields of entertainment and medical care.

According to the announcement, NTT Communications and NTT Comware will become a subsidiary of NTT DoCoMo in January next year and will become a new group.

In addition to aiming for efficient management and operation by centralizing mobile and long-distance fixed-line communication networks to DoCoMo, we will consolidate corporate sales to Communications and strengthen businesses that make use of 5G, four years later. It means that it is expected to increase profits by 200 billion yen in 2025.

In addition, the company plans to strengthen software development by utilizing the management resources of the three companies, including human resources, and expand new services in the entertainment and medical fields.

DoCoMo's president Motoyuki Ii told NHK that "the competition for software development is not limited to telecommunications carriers but also to Google and others, and we believe that this reorganization will strengthen our competitiveness." Said.

This reorganization was announced later than originally planned due to the entertainment issues of NTT management and Ministry of Internal Affairs and Communications executives that were revealed in March.

The transition of the NTT Group

NTT was the predecessor of the former Nippon Telegraph and Telephone Public Corporation and was privatized in 1985.

After that, in 1992, NTT DoCoMo was spun off from NTT.

Then, in 1999, the group was reorganized, and operating companies such as NTT East, West Japan, and NTT Communications were established under the holding company.

In addition, after the overseas business was reorganized, the holding company NTT acquired 100% of DoCoMo's shares and made it a wholly owned subsidiary last year.

NTT's operating revenue, which is the sales of the entire group, was about 12 trillion yen last year, of which NTT DoCoMo was about 4.7 trillion yen and NTT Communications was about 1 trillion yen, accounting for nearly half of the entire group. I am.

On the other hand, KDDI and Softbank have expressed concern about the reorganization of the group, and the Ministry of Internal Affairs and Communications will regularly verify whether a fair competitive environment is secured.