NTT Flexing Overseas Muscles - Analyst Blog
September 22 2011 - 11:25AM
Zacks
Nippon Telegraph and
Telephone Corp. (NTT), the largest integrated telecom
operator of Japan, is gradually establishing its strong foothold in
the overseas markets. Recently, the company declared that its
revenue from overseas operations will reach at least $131 million
in 2012. Near saturation of the Japanese telecom segment has forced
Nippon to explore foreign markets in order to maintain growth.
Management is hopeful that by 2013, the company will offer a
worldwide cloud computing network to its clients.
Nippon has taken a major strategic
move to boost cloud computing and its integrated communications
services business. The company acquired South Africa-based leading
global IT solutions firm, Dimension Data. Further, Nippon is
integrating the Dimension Data business with its NTT Communications
division, which offers IP VPN, data center, and network security
services to several large and geographically diversified business
enterprises. Dimension Data is concentrated mainly on the West
Coast of the U.S., Latin America, Western Europe, Africa, the
Middle East, Australia, and the Indian subcontinent. On the other
side, NTT Communications has a solid presence in South-East Asia,
Central & Eastern Europe, and East Coast of the U.S.
Dimension Data has over 6,000
customers in 49 countries, whereas NTT Communications has more than
3,000 global customers throughout the world. We believe the merged
entity will become an international giant offering virtually a
complete suite of integrated communications and IT services to any
enterprise in any part of the world. Acquisition of Dimension Data
will provide Nippon with the necessary scale and technology to
formidably compete with other giant cloud computing firms.
Nippon’s wireless wing NTT
DoCoMo (DCM) started pursuing global ambitions long back
in 2009. NTT DoCoMo entered into a significant international
business agreement through which the company purchased 26% stake of
Tata Communications Ltd. (TCL), the sixth largest
telecom service operator in India, in May 2009. This partnership
agreement gave the company a strong foothold in the second largest
emerging market of the world.
NTT DOCOMO -ADR (DCM): Free Stock Analysis Report
NIPPON TELE-ADR (NTT): Free Stock Analysis Report
TATA COMMUNICAT (TCL): Free Stock Analysis Report
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