Maintenance of a diversified business mix and leading market position in Japan's fixed-line and mobile communications markets World-leading technology System integration (SI) business' increasing contribution to earnings Intense competition in mobile communications and fiber-to-the-home (FTTH) markets Limited geographic diversification Profitability slightly lower than the average for telecom carriers globally, but likely to recover somewhat, albeit slowly, over the next one to two years, thanks to new services and cost cuts Sound financial profile, supported by solid ability to generate cash flow Low likelihood that capital spending, mergers and acquisitions (M&A), and returns to shareholders would substantially erode the group's current financial profile The stable outlook on Nippon Telegraph&Telephone Corp. (NTT) reflects Standard&Poor's view that the company's
