The ratings on Nippon Telegraph&Telephone Corp. (NTT) reflect the company's extremely strong position in fixed-line, mobile telecommunications, and broadband markets in Japan, as well as its strong financial profile, characterized by strong cash flow generation. The ratings are constrained by the risk of delay in significant earnings contributions from the fiber to the home (FTTH) business, and uncertainty over the outcome of the government's discussions over possible reorganization of NTT. Despite fierce competition with other telecommunications service providers and cable television (CATV) companies, the NTT group has an established position in the Japanese fixed-line telecommunications, mobile telecommunications, and broadband businesses, supported by an overwhelming customer base. In its Regional Communications Business, demand for fixed-line telecommunications services is declining,
