The growth of the Internet has led to the increase in the popularity of Intranet. The use of the Internet for business, however, has been hampered by concerns over security and throughput.

The global network service that KDD has developed based on IP*1 interface not only retains the advantage of the Internet -- low, fixed rate -- while offering improved security and throughput but provides customers with an easy way of benefiting from Internet technologies. KDD plans to begin the service between Japan and New York, then gradually expand the service to cover such cities as Los Angeles, London, Dusseldorf, Hong Kong, and Singapore.

*1 IP: Internet Protocol, or the communication protocol used on the Internet.

A customer who wishes to form an Intranet within their company and an Extranet*2 that reaches out to other companies, such as business associates, can use two types of networks from one subscriber line. The customer can choose between the networks depending on the level of quality they require for the specific communication. Type A offers superior quality while type B offers better economy. For example, the customer may choose to use type A, which offers better quality, for exchanging large data such as design drawings with an American subsidiary, and use type B, which is more economical, for exchanging e-mail, sales information, or clerical data with an Asian office. In other words, the service allows the customer to build a network that can flexibly adapt to each destination and application.

*2 Extranet: A means where information is shared with certain companies such as customers and business associates through the connection based on Internet technology.

KDD will initially offer the service primarily to and from cities where it has overseas operations. The company is negotiating with overseas telecommunications carriers to introduce a similar service with other areas. KDD plans to quickly expand the service area, primarily in Asia, to match the direct connection destinations of Internet KDD.

Along with the Business IP Service, KDD plans to provide application services compatible with the IP technology including:
<1> TCP booster*3 that enables the high-speed transfer of bulk data
<2> Groupware*4 that greatly improves the efficiency of office tasks including electronic circular and electronic conference
<3> EDI*5 that electronically handles inter-corporate transactions such as orders and procurement.

As a result, the Business IP Service frees customers from the hassle of installing and managing a server and the initial cost of implementing application programs so they can build the most convenient intranet or extranet that is best suited to their needs.

*3 TCP booster: This application program compensates for the shortfall of TCP/IP -- the delay in sending a bulk data -- to realize high-speed transmission.
*4 Groupware: The software and the mechanism for assisting a group whose members work on PCs connected to a network within the company.
*5 EDI (Electronic Data Interchange): The exchange of various information related to transactions between companies, such as order data, between computers over a network.

KDD plans to set up several domestic access points by July to meet the domestic need for intranet and extranet.

KDD has been actively involved in Internet-related businesses. The company launched in April 1995 Internet KDD a high-quality and economical Internet international gateway service.
Then, in April 1996, the company established KDD Communications Inc., an Internet service provider. KDD has also developed its Internet service provider business overseas.

Today Internet KDD boasts of circuits in excess of 100 Mbps to the U.S. and, due to the expansion of direct service area primarily in Asia, it has the largest international network in Asia. The service has attracted many customers including domestic and foreign Internet service providers.

KDD will continue to cooperate with overseas KDD group companies and domestic and foreign telecommunications carriers to aggressively promote the Internet and Intranet businesses between Japan and overseas, within Japan, and between and within countries abroad. The company will also advance its application businesses to meet the global and diverse needs of its customers.

Figure
Envisioned Business IP Service Fees

Type	Port	Dedicated path	Application service
Type-A	A port common to both types is used. 64 Kbps: Approximately 200,000 per month. To receive the service, a subscriber line of the same speed as the port is also necessary.	One dedicated path (PVC) is established for every destination. A fee is charged for each path. The fee is based on a zone rate system by speed. First PVC to the U.S.: Approximately 64,000 Each additional PVC to the U.S.: Approximately 32,000 (Both PVCs are 16 Kbps)	Various application services common to both types will be offered. A separate fee will be charged for each application. - TCP booster - Groupware - EDI - Directory function
Type-B		No additional fee is charged for Asian destinations. Connection surcharge will be charged for U.S. and European destinations. No restriction is placed on the number of destinations. The service speed is "best effort type."