| KDD is carrying out a reorganization effective June 29 toward an introduction of a virtual company system planned in the latter half of this fiscal year, with a view to enhancing its corporate strength, to responding to rapid changes in its business environment and to transforming its business structure into a new one with IP businesses as a mainstream. | ||
| 1. | Basic Concept | |
| (1) | KDD will form three units, Marketing & Sales Unit, Network Unit, and Corporate Affairs Unit, each of which is to be regarded as an independent company (virtual company) and will be engaged in its business with greater delegation of powers and clearer objectives for revenue increases and cost reductions. | |
| (2) | Under the new structure, each virtual company will be enhancing its profit center functions, seizing any business opportunities in a prompt and precise manner, and bringing the businesses into revenue as early as possible, while downsizing its indirect functions to more extent. | |
| 2. | Outline of Reorganization | |
| (1) | Marketing & Sales Unit Existing Marketing & Sales Headquarters will be reorganized into "Telephone Business Division" consisting of planning and marketing support functions for telephone services which are major sources of revenue for the time being, "Multimedia Business Division" consisting of planning and marketing support functions for multimedia services and other related businesses which are to be major sources of revenue in the future, and renewed "Marketing & Sales Division" responsible for marketing and sales of the above services, resulting in the formation of a sales structure with greater mobility. The Telephone Business Division includes newly formed "Communication Equipment Office" to further activities in development and marketing of telecommunications terminal equipment. | |
| (2) | Network Unit Existing Network Headquarters will be reorganized into "Network Development Division" responsible for construction and operation of network components and "Network Business Division" responsible for network businesses such as procurement and marketing of transmission facilities and for the furtherance of implementing new businesses such as ITS-related and other businesses making use of outcomes of research and development activities. The Network Development Division includes newly formed departments: "Advanced Network Development Department" aiming at reinforcement of efforts in implementing IP-based "KDD Terabit Highway Project" and other next generation networks; and "Access Systems Department" for facilitating entry into the areas of GC interconnection and local access lines. Also, the newly formed departments residing in the Network Business Division are: "Network Business Department" responsible for sales and efficient procurement of transmission facilities to and from other carriers and for promotion of the global network project now in deployment with and among KDD Group companies overseas; and "Advanced Technology Business Department" to work on commercialization of ITS-related businesses and outcomes of research and development activities. For the purpose of pursuing efficient business operation and enlarging outer sources of revenue, existing Cable Systems Department and a part of the function of Network Centers deployed at 12 locations throughout Japan will be spun off to form "KDD Highway Telecommunications Services Corporation" effective June 1. | |
| (3) | Corporate Affairs Unit Existing Administrative Headquarters and independent offices and departments such as Office of the Secretary and Office of Public Relations will be reorganized into "Group Business Development Division" and "Corporate Administration Division" with a view to attaining a further cutback in organization and personnel. | |
New Organization
