(Reference) Progress on Plan to Provide Next- Generation Network ( ) Commercial Services February 27, 2008 Nippon Telegraph and Telephone West Corporation ( NTT West )
1.ServiceSummary (FLET SHikariNext) enables provision of various types of optical broadband services (Family Type, Mansion Type and Business Type) based on the customer usage In addition to "best efforts" services, enables provision of stable telecommunication quality according to application even in times of heavy traffic, utilizing the Quality of Service ( QoS ) quality assurance function Gbpsbroad-band QoS Triple-Play Usinghigh-speed1Gbpsaccess line Ensuringstabletelecommunication qualityintimesofheavytraffic EnablingtheuseofTV(DTT/VOD), telephoneandinternetwithone opticalfiberaccessline ISP NTTOffice OpticalFiber <Max.1Gbps> Circuitterminatingequipment STB FamilyType Max.100Mbps Content provider *Customersmayadditionall ysubscribeto FLET SSPOT NTTOffice SaaS OpticalFiber <Max.1Gbps> Circuitterminatingequipment STB MansionType Max.100Mbps DTTretransmission business NTTOffice OpticalFiber <Max.1Gbps> Circuitterminatingequipment STB BusinessType Max.1Gbps(approx.) Security EasySet-up Integrationofterminals Block! Includessecurityfunctionsasthe standardfeatures EasySetuptool Enablescustomerstoeasilysetuptheirterminals Simplifiescustomers home environmentsbyproviding terminalsthatintegratevarious functions
2.ServiceSummary (VideoTelephoneEquivalenttoSD/HDquali ties) Improve image quality of conventional video telephone by utilizing access lines (WAN access) and functions (i.e. bandwidth control) Offer high-definition video telephone, such as standard class (SD quality equivalent) and Hi-Vision class (HD quality equivalent) *Requiresaspecialterminal *ThelaunchofHikariDenwaOfficetypevideotelephonewil commencewith (EquivalentofSDquality) HikariDenwa HikariDenwaOfficeType (EquivalenttoHDquality) Interactionswithfamilymembers livingafar Betterproductivityinbusiness Clearimagesofgrowinggrandchildreninaction Verifycolorsandshapeof productswithouthavingtotravelfar(cuts timeandcostspentonbusinesstrips) Reliefandcomfort from seeinggrandfather'shealthycomplexion Home Home (EquivalentofSDquality) Community,nursing facilities,etc. Corporation Corporation Improvedservicefor Movementsareclearly residentsandtenants visi ble,evensign Consultincomfortbecausefacial language expressi onsareclearlyvisi ble Complexionand symptomsareclearlyvisi ble Increaseproductivitywithfeedb ack from businesspartnersandcoll eagues indistantlocations HDequivalentvideotelephoneimagequality (Source:NOTEOtemachi) (Note)VideotelephonewithHDequivalentqualityiscurrentlyunder considerationincludingthetimingofimplementation
3. ServiceSummary(FLET SCast/forDigi talterrestrialtelevisionipretransmissi onbusiness) In addition to the existing "best efforts"-type multiple channel services, enables digital terrestrial television IP retransmission services utilizing the Quality of Service ( QoS ) quality assurance function allows use of Video on Demand ( VOD ) services for viewing films and drama series at customers convenience, with high audiovisual quality made possible by the QoS quality assurance function allows customers to enjoy convenient and secure shopping by reviewing products on high-definition image catalogues allows customers to download (purchase) large-volume gaming software directly and enjoy a game with other customers in a distant location Content delivery business Retransmission business Video delivery business Online shops Catalogue shops Video game business Home Digital terrestrial television IP IP retransmission service Multiple channel broadcast TV broadcast/ live broadcast VOD (high-definition video delivery) Films and drama series Quality assurance, QoS Customer DB Product DB Online shopping Shopping Large-volume game delivery Server for playing a match w ith other distant customers Playing a match over the Internet Video game See i n det ails Purchase See i n det ails Purchase See i n det ails Purchase * A separate contract with content delivery company may be necessary
4. ServiceSummary (BusinessEthernetWide) Realize seamless intra-prefectural and inter-prefectural transmissions Realize enhanced reliability, enhanced security, simplified operation and management, fast trouble-shooting and cost reduction expected for transmissions by corporations Enhanced reliability Allows construction of a highly stable back-up system Data center (back-up) Error Circuit terminating equipment Automated switch Circuit terminating equipment Able to to achieve enhanced reliability at at important hubs through access redundancy menu Reduce the risk of interruption to operations caused by IT system failure Data center (main) High-speed transmission Shops Factory Regional office Reduce the cost of burdensome administrative taks through outsourcing Headquarte rs Secure transmission Regional office Enhanced security Simplified operation and management Transmission group can be be split up. By By limiting the transmission between hubs, enhanced security can be be achieved. We can structure a system where security is enhanced Circuit terminating equipment Monitor transmission System manager Regional office (NTT East) Terminal interface Server Alleviates system management workload Fast trouble-shooting NTT West (conservation center) Portal Email WEST Each of of customer s line will be be monitored. Provides integrated monitoring including the customer's system (monitoring of of equipment and performance). In In the case of of a failure or or error, customer will be be notified immediately and restoration process will be be conducted immediately. NTT West will conduct integrated monitoring of WAN /LAN, reducing the burden of system management and allowing early discovery and quick recovery upon system failure. * Menu for enabling simplified operation and management ( e.g. integrated monit oring sys tem) is currently under consideration including timing of implementation
5-1 Charges for Proposed Commercial Services (1) Combining the cutting edge nature of and our comprehensive brand name for optical services, FLET S Hikari, the proposed optical broadband service will be called FLET S Hikari Next Charge structures for products will be similar to those of existing products. NTT West plans to offer charges for content-distribution businesses at the same level as existing charges but the services provided will be enhanced by the addition of Quality of Service ( QoS ) function. NTT West plans to provide charge structures which will be convenient for customers and will enable collaboration with different businesses and industries to create a variety of services. Category Service Name Main Charge Structure (Tentative) Existing Service Optical Broadband Service FLET S Hikari Next For single-dwelling unit <Family Type> (up to 100 Mbps) For multi-dw elling unit <Mansion Type> (up to 100 Mbps) For office <Business Type> (up to approx. 1GB) The same as existing services e.g. Single-dwelling unit :JPY4,300 /month (incl. tax: JPY4,515 /month) Multi-dwelling unit (Plan 1) : JPY3,100 /month (incl. tax: JPY3,255 /month) The same as existing services FLET S HIKARI PREMIUM Family Type B FLET S Family 100 Ty pe B FLET s Basic Ty pe FLET S HIKARI PREMIUM Mansion Ty pe B FLET S Mansion Ty pe FLET S HIKARI PREMIUM Enterprise Type B FLET S Business Type For private customers /small to medium enterprise Basic charge The same as existing services Hikari D en wa: JPY500 /month (incl. t ax: JPY525 /month) Hikari D en wa Office T yp e: JPY1,300 /month (incl. tax: JPY1, 365 /month) Hikari Denw a / Hikari Denw a Office Type 0AB-J IPTelephone/ Video Telephone Hikari Denwa / Hikari Denwa Office Type Video telephony Standard quality High quality [7Khz] Standard quality SD quality Voice communications Communication charge Communication charge The same as existing service s JPY8 /3 min (incl. tax: JPY8.4 /3 min) The same as existing service s JPY15 /3 min (incl. tax: JPY15.75 /3 min) Voice communications Video telephony Voice communications Standard quality NA Standard type (Office type not provided) NA HD quality Communication charge JPY100 /3 min (incl. tax: JPY105 /3 min) NA Under Consideration For large commercial entity Under consideration Hikari Denw a Business Type Legends Underlined in red: New f unction :Planned for March 2008 : Planned for future < >: Type name * Hikari Denwa: Hikari (Fiber-based) IP phone serv ices prov ided by NTT East and NTT West
5-2 Charges for Proposed Commercial Services (2) Category Service Name Main Charge Structure (excluding tax) (Tentative) Existing Service Unicast transmission Additional fee to be paid b y customers receiving the services Charges to be paid by the service providers FLET S v6 Cast Content Distribution Service FLET S Cast Best Effort QoS Multicast transmission * Provided as an additional f unction to Unicast transmission Unicast transmission JPY0 /m onth JPY0 /m onth JPY200 /month (note) (Incl. tax: JPY210 /month) At or belo w existing services Basic ch arge (fixed charge at different bandwidth) e.g. 1G single: JPY2.8 m illion /month (incl. tax: JPY2.94 mi llion /month) The sam e l evel as exi sting services Basic charge (fixed charge at different bandwidth) +Additional charge (pro rata) e.g. 1G single: In addition to the basic charge of Unicast above, JPY2.5 million /month + JPY 200 /delivery or month (incl. tax: JPY2.625 million /month + JPY210 /delivery or month) The same level as existing Unicast transmission Basic Charge (fixed charge at different bandwidth) + Additional charge (pro rata) e.g. 1G single: JPY 3 million /month + pro rata transmission charge in excess of a certain hours FLET S v6 Cast N/A For digital terrestrial television IP retransmission business QoS For digital terrestrial television IP retransmission business Introduction of a new charge for retransmission busine ss N/A FLET S /VPNgate Best Effort Center-end type * One time contract at the center At or below existing services Basi c ch arge (fixed charge at different bandwidth) e.g. 1G center line (intra-prefectural): JPY1.164 m illion yen /month (incl. tax: JPY1.2222 mi llion /month) FLET S Office VPN FLET S /VPN Wide CUGtype /Center-end type * Indiv idual contract per line Under consideration FLET S Group Access Under consideration QoS CUG type /Center-end type * Individual contract per line Under consideration N/A Ethernet Service Business Ethernet Wide Wide-area Ethernet communication (intra-prefectural & inter-prefectural) Below existing services within prefecture Fixed charge for within Message Area, within prefecture and interprefecture depending on the bandwidth e.g. 100M (intra-pref ectural communication): Approx. JPY260, 000 /month (incl. tax: Approx. JPY270, 000 /month) 100M (inter-prefectural communication): Approx. JPY840,000 / month (incl. tax: Approx. JPY 880, 000 /month) * The charges are examples of model subscr iption per one access l ine Business Ethernet (intra-prefectural) : Planned for March 2008 : Planned for future Legend Underlined in red: New function (note) requires Hikari Denwa
6.CommercializationandDeploymentinWestJapan BegincommercializationincertainareasofOsakabytheendofthefiscalyearendingMarch31,2 08 BeginFLET Sseries *1 *1 andhikaridenwa(ip-based)series *2 *2 servicesinordinance-designatedcitiesandother citieswithsizeequivalenttoprefecturalcapitalwithinthenextfiscalyearandbytheendoffy2010,expand theservicestocovertheentirecurrentflet SHikariservicearea 07 FY 2008 FY 2009 FY 2010 FLET S series & HikariDenwa (IP-based) series services Ethernet service Launch of commercial services Launch in certain areas of Osaka Launch incertain areasofosaka Launch in 06 areas of Osaka Launch in ordinance-designated cities Rollout in cities with size equivalent to prefectual capital (one by one) Expansioninordinance-designated citiesandothermajorcitieswith sizeequivalenttoprefecturalcapital (onebyone) Expansion to entire current FLET S Hikari service area by the end of FY 2010 Serviceroloutaccording touserneeds *1 Optical broadband services, services for content delivery business, VPN *2 OAB-J IP telephone /video telephone ** FY in this material represents one fiscal year which is a 12-month period beginning on April 1 of the year indicated and ending on March 31 of the year subsequent to the year indicated.