Japanese telecommunications giant NTT Corporation is bracing to face international competition, uniting its subsidiaries under the banner of a new holding company, NTT Inc.
It is also planning to boost its R&D division by launching a venture capital arm.
Merge and grow
The Nippon Telegraph and Telephone Corporation’s multi-billion business consists of a number of brands including NTT Communications, NTT Docomo, Dimension Data, NTT Data, NTT Security and the NTT Innovation Institute (NTT i3).
The creation of NTT Inc. and NTT Venture Capital, the company says, was driven by rapidly evolving technologies and business models, as well as “the aggressive expansion of innovative competitors.”
NTT hopes the new parent company will help it become more agile and profitable, as well as widening its international reach.
Additionally, within two years, it hopes to consolidate all its divisions - with the exception of NTT Data - into two companies, focusing on either Japanese or international operations.
NTT Data will remain independent in its management structure, autonomy and brand, and will keep its status as a listed company.
The launch of NTT Venture Capital hasn’t been assigned a timeframe, but the company says the fund will start with $500 million to invest.