NTT Advances IOWN and AI-Driven Infrastructure Despite Profit Decline in FY2025
NTT reported consolidated revenues of ¥13.70 trillion ($87.8 billion) for the fiscal year ended March 31, 2025, up 2.5% year over year, led by its Global Solutions segment. However, operating profit fell 14.2% to ¥1.65 trillion ($10.6 billion), and profit attributable to NTT declined 21.8% to ¥1.0 trillion ($6.4 billion) amid rising costs and strategic investments. The company forecasts a rebound in FY2026 with projected revenues of ¥14.19 trillion and a 7.3% increase in operating profit.
Technologically, NTT marked several industry-firsts with its IOWN (Innovative Optical and Wireless Network) initiative. In December 2024, NTT East and NTT West launched All-Photonics Network (APN) services offering up to 800 Gbps throughput, while international data centers in Japan, India, and Taiwan were interconnected over IOWN infrastructure. The firm expanded its generative AI efforts via the “tsuzumi” LLM, securing over 1,100 project engagements globally. NTT also reported a 1,000x improvement in optical quantum entanglement and breakthrough multi-core fiber designs supporting 10x transmission capacity.
NTT announced a ¥2.37 trillion ($15.5 billion) tender offer to acquire full ownership of NTT DATA Group, reinforcing its strategic role in global cloud and system integration markets. The company also unveiled plans to monetize data center assets through a Singapore-listed REIT and expects to book a ¥155.4 billion gain in FY2026. Capital expenditures totaled ¥2.13 trillion, supporting AI infrastructure, autonomous driving systems, sustainable food and energy innovation, and enhanced customer and employee experiences.
Key Tech and Business Milestones:
- Launched 800 Gbps All-Photonics Network (APN) services under IOWN in Japan
- Enabled international IOWN APN connectivity between Japan, India, and Taiwan
- Began APN integration with the MIST submarine cable (India–Singapore–Malaysia)
- Generated over 1,100 generative AI project deals using NTT’s tsuzumi LLM platform
- Commercialized “LITRON Sales” AI agent suite for autonomous business operations
- Established NTT AI-CIX to develop linked AI platforms across industries
- Built seven new data centers in FY2024, totaling 163 sites across 216 buildings
- Announced plan to spin off data center assets into a Singapore-listed REIT
- Achieved world-first: 1,000x boost in optical quantum entanglement generation
- Developed multi-core fiber with spatial multiplexing for 10x higher capacity
- Formed JV with Toyota for AI-powered mobility and zero-accident systems
- Gained exclusive rights to deploy May Mobility’s AV platform in Japan
- Deployed quantum-proof network architectures and explored blockchain with quantum PoW
- Advanced autonomous driving pilots in Aichi Prefecture and invested in Navya Mobility
- Opened land-based aquaculture facilities using IoT for vannamei shrimp farming
- Launched AI-driven energy management platforms for solar and battery systems
- Initiated “docomo data clean room” for privacy-preserving cross-industry analytics
- Formed NTT Precision Medicine to enable data-driven preventive healthcare
- Discontinued legacy services like telephone directories and weather forecast lines
- Improved mobile quality via expanded 5G base stations and network upgrades
- Introduced contactless “Tap to Pay” smartphone payment system with Yamato Transport
- Boosted employee engagement rate to 61% through open internal job programs
- Continued flexible treasury stock repurchases and increased dividend payouts
- Finalized ¥2.37T tender offer to acquire remaining shares in NTT DATA Group
- Prepared for a ¥155B gain from the sale of data centers into new REIT
- Announced board reshuffle including Jun Sawada as Chairman and Akira Shimada as continuing CEO
“We are accelerating next-generation innovation through IOWN, AI, and quantum to drive digital transformation globally,” said Akira Shimada, President and CEO of NTT. “Our ongoing investments reflect our commitment to delivering value through advanced infrastructure and services.”
