The ratings on Nippon Telegraph&Telephone Corp. (NTT; AA/Stable/A-1+) reflect the company's extremely strong position in fixed-line, mobile telecommunications, and broadband markets in Japan, as well as its minimal financial risk profile, which is characterized by strong cash flow. The ratings are constrained by the risk that greater regulation and intensifying competition will delay a significant improvement in earnings from its fiber-to-the-home (FTTH) service and uncertainty over the outcome of the government's discussions about possible reorganization of NTT. NTT has established a solid position in mobile telecommunications through NTT DOCOMO INC. (AA/Stable/A-1+), a 100%-owned subsidiary that generates about half of the group's EBITDA. NTT DOCOMO has strong earnings and a roughly 50% market share in terms of mobile subscribers,
