Innovating the Future: The History of NTT

We all know what a global giant NTT Group is in 2024. With operating revenues of almost 13.4 trillion yen at the end of March and approximately 338,000 employees around the world, working at 967 related companies, it’s a universally recognized ICT services provider with an incredibly powerful research and development wing, boasting some 2,300 staff and 19,000 patents.

But what do you know about how Nippon Telegraph and Telephone reached such heights?

It’s a long story of innovation, commitment, hard work and invention.?

Origins and Early Development

The roots of NTT go all the way back to the 19th century. In 1869, engineers designed the country's first telegraph circuits between the Yokohama Lighthouse Government Office and the Yokohama Courthouse. The following year, the first telegraph service officially began in Tokyo and Yokohama. By 1890, Japan had launched its first telephone service, laying the groundwork for a future in advanced communications technology.

Post-War Reconstruction and Growth

In 1952, the Nippon Telegraph and Telephone Public Corporation was established, inheriting telephone and telegraph services from the Ministry of Communications and Ministry of Telecommunications. Japan, still recovering from the devastation of World War II, faced huge technological and infrastructural challenges. In response, the Corporation made it a mission to establish a nationwide telephone network, targeting the elimination of waiting lists and achieving 100% automatic connection. The Corporation’s effort was crucial for Japan’s economic revival and helped provide a critical infrastructure backbone for industrial growth.?

One milestone along the way was the release of the popular Number Four desktop telephone set, known as “daruma,” in 1950. The device symbolized the beginning of a strong communication network that would support Japan's industrial and economic rebirth.

Innovation and Vision

In 1970, NTT had the opportunity to showcase groundbreaking technologies at the Japan World Exposition, Osaka. The video telephone that connected Osaka and Tokyo and the new wireless phone were popular and exciting highlights, giving what was seen by many as a glimpse into the future of communication.

In 1979, NTT delivered its vision of the Information Network System (INS), which promoted the digitization of networks to provide more efficient and widespread services. The company put the first digital switching equipment into practical use in 1982. It was a huge step towards modernizing Japan's communication infrastructure.

Privatization and Innovation

The privatization of Nippon Telegraph and Telephone Corporation in 1985 was the beginning of a new era for NTT. The company adopted a new corporate identity and the iconic “Dynamic Loop” logo reflected its commitment to continuous improvement and customer-centric values.

NTT launched mobile telephone services in 1987, which were spun off into a new company in 1992: NTT DOCOMO. This period saw the introduction of cutting-edge products such as the "mova," the world's smallest and lightest mobile telephone at the time.

The 1990s were a decade of foresight and innovation for NTT. The company argued for its VI&P (Visual, Intelligent, and Personal) vision, which became a major influence on global concepts such as the "information superhighway" later proposed by United States Vice-President Al Gore. In 1994, NTT introduced its Basic Concepts of Multimedia, laying the foundation for the Open Computer Network (OCN) launched in 1996, which aimed to provide user-friendly internet services.

Transition to a Digital Age

The completion of network digitization in 1997 made possible the transition to the multimedia age and NTT DOCOMO's launch of the i-mode service in 1999 changed mobile communications forever. DOCOMO's i-mode expanded the reach of the internet to millions of users, transforming mobile phones into essential communication tools.

In 1999, NTT restructured into a holding company, creating NTT EAST, NTT WEST, and NTT Communications to handle local and international telecommunications operations. The company continued to innovate, with huge advancements such as the launch of the first commercial ISDN service, INS-Net 64, in 1988, and the introduction of FTTH (Fiber To The Home) services for general households in 2001.

Global Expansion

The 21st century brought global expansion for NTT. The company entered overseas markets, acquiring Dimension Data and Keane (now NTT DATA, Inc.) in 2010 to provide comprehensive ICT services worldwide. In 2018, NTT Group launched NTT Inc., bringing together a range of diverse skills and global management experience to strengthen its competitiveness.

In 2022, NTT put NTT Communications Corporation and NTT Comware Corporation under the aegis of NTT DOCOMO, Inc., forming a new DOCOMO Group. Beginning as a mobile services provider, DOCOMO now has a comprehensive range of services and solutions.

A Good Global Citizen

During its years of innovation and growth, NTT has also been at the forefront of sustainability and social responsibility. The company committed to the United Nations’ Sustainable Development Goals (SDGs) in 2016 with the goal of using ICT to transform the world.

NTT's commitment to sustainability can also be seen in its “Green Innovation toward 2040” vision. Announced in 2021, the vision aims for carbon neutrality for NTT Group’s activities by 2040. Meanwhile, the company created the NTT Group Global Sustainability Charter, also in 2021, which promotes a harmonious society based on the concept of "Self as We." The Charter focuses on connectivity and collaboration, aiming to resolve social issues and achieve sustainable growth.

NTT is a company that proves its ethics in actions as well as words.

NTT Group's response to the 2011 East Japan earthquake was proof of its role as a critical infrastructure provider. After the natural disaster, the company quickly restored communication services and showed the importance of resilient networks. Since the earthquake and subsequent tsunami, NTT has focused on building communication networks and equipment capable of withstanding natural disasters, improving network reliability through measures like multiple relay channels, dispersed communication buildings, and deep-sea cables.

Never Satisfied, Always Innovating

In 2019, NTT announced the IOWN (Innovative Optical and Wireless Network) concept, a new communication infrastructure using advanced technologies, created in collaboration with global partners including Intel and Sony.

NTT launched the All-Photonics Network 1.0 in 2023, marking the first commercial service realization of the IOWN concept. The company also announced a new medium-term management strategy and gave notice of its plans to heavily invest in new growth sectors and strengthen its business foundations.

Looking Forward

NTT's history is a testament to its unwavering commitment to innovation, resilience, and being a good citizen. From birth in the telegraph era to its current position as a global ICT leader, it has always adapted to the changing needs of society. As it looks towards the future, NTT Group will remain a trusted partner, supporting industry and society through its cutting-edge services and sustainable ways of doing business.

NTT—Innovating the Future