KDD (Japan's Global Communications) filed a request today for approval on providing domestic telecommunications services, changing its articles of incorporation, and revising its fiscal year 1997 business plan. The approval is needed for KDD to launch domestic communications services in accordance with the changes to the KDD Law.

Following the necessary preparation, the company will implement its business plan and its domestic communications services as outlined below.

(1) Future Business plan

KDD will expand into the domestic telecommunications market while maintaining a foothold in international telecommunications business that it has provided since its inception. The aim of KDD, then, is to become a global telecommunications company that provides a seamless combination of domestic and international services.

KDD will launch the domestic telecommunications services with attractive rates in July this year. The company will become the first Type 1 telecommunications carrier to offer seamless domestic and international services. KDD is also preparing to start in early part of next fiscal year a domestic long-distance telephone service catering to customers across the country.

When the nationwide low-cost network is completed with the inauguration of the JIH cable in March 1999, KDD will use the network as the transmission channel for domestic telecommunications services and as a supplementary facility for international telecommunications services. KDD will use the saving to further reduce domestic and international telecommunications rates to provide competitive, high-quality services.

KDD will use its overseas bases to build a global backbone network to provide telephone and leased circuit services, as well as multimedia-related services, in a seamless fashion.

At the same time, the KDD group will improve and strengthen its overseas customer support system. KDD's aggressive overseas plans include investments in telecommunications infrastructure projects in developing nations.

Through such businesses, in fiscal year 2000, KDD aims to generate 450,000 million yen in operating revenues, 30,000 million yen in ordinary income, 600,000 million yen in group operating revenues, and 40,000 million yen in group ordinary income.

(2) Expansion into domestic telecommunications market

As the first step, KDD plans to launch in July this year eight types of services including a domestic telephone service from Route KDD and a domestic leased circuit service. The services will tentatively be offered primarily to corporate customers who currently use the company's international telecommunications services. From October this year, the company plans to add frame relay service, Business IP service, and Internet connection service, etc., to its domestic service line.

As the second step, KDD plans to launch a full domestic long-distance telephone service, including a composite domestic-international discount service, in early part of fiscal year 1998. The company plans to make the service available nationwide by allowing customers to use the service, without prior registration, just by dialing 001.

The third step will be made in 1999 or later, when the JIH cable to be inaugurated in March 1999 will be used to form a low-cost nationwide network and further improve service rates and quality.

Profile of the domestic telecommunications services slated to begin in July this year is as follows:

<1> Route KDD

In the beginning, KDD plans to offer calls between Route KDD customers and calls from a Route KDD customer to an NTT subscriber at competitive rates.

<2> IC Global Phone

KDD plans to offer a domestic pubic telephone service from IC Global Phones at rates far less than those of current NTT public telephone services over any distance and at any time of the day.

<3> Leased circuit service

KDD will use its domestic transmission channel to provide the leased circuit service in every major city from Tokyo to Okinawa. The seamless domestic-international leased circuit system allows KDD to provide an inexpensive global network and total customer support.

(3) Revised fiscal year 1997 business plan

Shown below is an outline of the revised fiscal year 1997 business plan reflecting the commencement of domestic telecommunications services:

<1> Income plan

As opposed to the initial forecast of 323,000 million yen in operating revenues, KDD now expects 325,000 million yen due to 2,000 million yen including domestic telephone service revenues anticipated from Route KDD. Operating expenses have been revised from the initial forecast of 310,000 million yen to 312,000 million yen to reflect the 2,000 million yen required to reinforce, among other activities, marketing for providing the domestic telecommunications services. As a result, KDD foresees 17,000 million yen in ordinary income, the same amount as in the initial business plan.

<2> Capital investment plan

As opposed to the initial plan of 104,000 million yen, KDD plans to raise capital investment to 126,000 million yen to reflect the 922,000 million yen required for expanding and improving domestic transmission channels to provide the domestic telecommunications services.

(Attachment)

KDD's Domestic Telecommunications Services

Services Scheduled to Begin in July 1997

Service	Service Profile
Route KDD	The customer and KDD's switching facility are connected by a dedicated circuit, without going through NTT's domestic telephone network, to provide an inexpensive telephone service.
IC Global Phone	A prepaid public telephone service using an IC card.
Domestic leased circuit service	KDD provides the customer with an exclusive, around-the-clock use of a telecommunications circuit.
KDD PLANS System-PLAN PLAN-E PLAN-M PLAN-H	A line of services that offers the customer support in building, operating, and maintaining their network.
	With this made-to-order service, KDD builds, manages, and maintains the telecommunications system for the customer.
	A total engineering service that provides the customer with support that is fine-tuned to their needs in every step from network design to network connection and testing.
	KDD monitors the customer's telecommunications network for failures and restores the network in the event of a failure.
	KDD houses the customer's telecommunications network system in the safe and dependable KDD Building to monitor, operate, and maintain the system.

InternetKDD (Internet international gateway service)

Designed primarily to provide major providers with an international backbone, InternetKDD connects the customer and KDD's gateway facility with a leased circuit to allow high-throughput, high-quality data transfer by IP (Internet Protocol). This service, which has been limited to international use, will be available for domestic use.

Services Scheduled to Begin in October 1997

Service	Service Profile
KDD Frame Link	This service transfers data in variable-length units called "frames." It is economical for communications that generate large-volume bursts of traffic, such as in LAN-to-LAN communications.
Business IP service	An ideal service for using an IP interface to build an intranet that is superior in security, throughput, and dependability.
Internet connection service	An Internet connection service that offers dial-up connection and leased circuit connection to individual and corporate customers.
INMARSAT Land Mobile Satellite Communications service	This service provides communications between a telephone and a land mobile earth station or between two land mobile earth stations in Japan via INMARSAT satellites and earth stations.
Television transmission service	A service providing occasional television transmission by setting transmission section and time according customer's request.

Long-term television service

A service providing customers with exclusive around-the-clock television transmission.

Services Scheduled to Begin in Early 1998

Service	Service Profile
Domestic long-distance telephone service	KDD plans to make the service available nationwide by allowing customers to use the service, without prior registration, just by dialing 001.
KDD Super World Card	A prepaid card that allows the customer to call from any touch-tone telephone, whether a subscriber or public telephone. The customer merely needs to dial the number on the card to place a call from Japan to overseas, from overseas to Japan, or to place a domestic call.