May 11, 2000
Next Generation Information and Communications Network Services
Tokyo -- Nissan Motor Co., Ltd. and Japan Telecom Co., Ltd. signed a memorandum of understanding today to form a global partnership for the construction of a next-generation information and communications network based on the Internet Protocol (IP). The two companies aim to conclude a business tie-up agreement within this year. Nissan plans to use the cutting-edge global IP network services provided by Japan Telecom for improving the quality and speed of its global communications and reducing its communication costs substantially. The two companies aim to build a partnership concerning a comprehensive information and communications service package on a global scale. This will be one of the world's leading networks. The both companies have started detailed studies for the establishment of the next-generation network. While these studies are under way, the migration of voice transmission will start from this June and that of data transmission will start from this September. The next-generation network is scheduled to go into full services from January 2001.
Previously, Nissan has used various telecommunications carriers and protocols to construct its own information and communications network linking the company's worldwide operations. The plan is to unify these protocols to IP, the Internet's de facto standard, and to obtain a total service package from Japan Telecom on a global scale. This will enable Nissan to use high-quality, low-cost information and communications services based on state-of-the-art technologies.
The new network will link all of Nissan's worldwide operations to provide a seamless and high-speed communications environment. In addition to voice and ordinary data communications, the network will also support transmission of computer-aided design (CAD) data, images and other large-volume data communications at high speed and at low cost to all of Nissan's operations around the world.
It is expected to accelerate the pace of Nissan's business by facilitating quick communications and decision-making. Moreover, besides reducing the communications costs of the entire Nissan Group by an estimated 30%, the network will provide an environment that will support e-business and also readily accommodate innovations in information and communications technologies.
Nissan is currently fully implementing Nissan Revival Plan which aims at putting it back on track for a lasting profitable growth. "Accomplishing the Nissan Revival Plan requires swift and enriched decision making," notes Nissan's Chief Operating Officer Carlos Ghosn. "The new network will provide an efficient communications infrastructure that will fully support the achievement of Nissan Revival Plan and contribute to Nissan's long term strategy. We expect a great benefit from Japan Telecom's global total solutions. This is an obvious win-win partnership."
Japan Telecom, for its part, has alliances with AT&T, British Telecom (BT) and their global communications venture, Concert. It has strong capabilities for providing global network services capable of transmitting not only voice but also data. Moreover, Japan Telecom possesses a backbone network that can flexibly accommodate diverse user needs.
Japan Telecom President Haruo Murakami notes that, "The conclusion of this agreement with Nissan reflects a favorable assessment of our company's global competitiveness. We see it as a pioneering and epochal development amid the rising needs worldwide today for total solutions in the outsourcing of communications networks. We expect the conclusion of this agreement will enhance the reputation of our solutions business and also contribute significantly to the further strengthening of our business foundations."
The two companies intend to implement a next-generation information and communications network that will be superior in terms of global coverage, efficiency and reliability.
To facilitate fast, high-quality and low-cost communications among Nissan's domestic and overseas operations, Japan Telecom will form network service links with its partners, AT&T and BT, and with their Concert venture, to construct and provide the world's first seamless, global network of this kind. Japan Telecom is capable of handling efficiently and at low cost the explosive growth in demand for large-capacity data communications through the combined use of its SOLTERIA service and Concert's innovative global managed IP service (CMIP). SOLTERIA is the first managed IP service to be commercialized in Japan and is provided through Japan Telecom's IP-based PRISM next-generation network architecture. Moreover, to meet the demand for large-capacity communications service, Japan Telecom has put in place an organization for network operation, maintenance and management that is operational around the clock every day of the year. Japan Telecom also draws together the wide-ranging capabilities of its Group companies to provide highly reliable solutions support.
<Note>
PRISM:The abbreviation of "Progressive and Revolutionary Integration on Service Media."It represents IP-based backbone network system for the next generation, which is the first model of its kind in Japan.SOLTERIA: Japan Telecom's label for IP-based Virtual Private Network (IP-VPN)Services.
CMIP: Concert's Managed IP Services that is designed for global IP data transmission services.