Migration of Communications Networks to IP and the Cloud; Expansion of the MVNO Market

「As PBX systems used by many companies and local governments are being discontinued, we will address replacement demand for those systems and business telephone systems while advancing the transition to next-generation voice communications systems centered on cloud services.」

「We completed the major undertaking of replacing the public switched telephone network, the network for Japan’s fixed-line telephone services, with internet technology. This dramatically improved the efficiency of voice communications and consequently substantially reduced domestic voice call charges.」

「In recent years, more companies have been switching from servers installed at their own sites to cloud services, and demand for cloud-based PBX systems remains strong.」

「Regarding PSTN migration, demand for the software SBC “NX-B5000” among major telecommunications carriers has settled down as migration approaches completion in 2025. Recently, however, demand for IP telephone services at general companies has expanded as workplaces and devices have become more diverse.」

「Regarding PSTN migration, projects involving additional functions for the software SBC “NX-B5000” for major telecommunications carriers have settled down as the migration approaches completion in 2025. Recently, however, demand for IP telephone services at general companies has expanded with the promotion of remote work and other factors.」

「Although the number of projects involving additional functions has declined as migration nears completion, we continue to sell the software SBC “NX-B5000” to telecommunications carriers to address traffic for corporate IP telephone services and add equipment for their operation as remote work expands.」

「Although the number of projects involving additional functions related to PSTN migration has declined as the migration nears completion, traffic for corporate IP telephone services has been increasing with the promotion of remote work. The software SBC “NX-B5000,” required for inter-carrier IP interconnection, was added at new sites of telecommunications carriers.」

「In addition to 5G provided by mobile telecommunications carriers, a market for local 5G, which companies and local governments can use privately in closed environments, began to emerge in 2020. The Ministry of Internal Affairs and Communications also began proof-of-concept testing to address regional issues using local 5G and other technologies.」

「The rollout by telecommunications carriers of cloud PBX services for corporate customers has accelerated, while concerns about the spread of COVID-19 have accelerated remote work at general companies. As use of cloud telephone services provided by regional electric utility-affiliated telecommunications carriers increased, we won a large number of orders for new installations and additional licenses for web directory services, call-recording systems, and terminals.」

「The information and communications sector surrounding our group continues to undergo structural change, including the increasing capacity of communications, the expansion of cloud services, the development and establishment of an environment for using fifth-generation mobile communications systems (5G) and IoT solutions, and the provision of services utilizing AI technology.」

「We proposed to telecommunications carriers the products required for IP interconnection beginning in 2021 in connection with PSTN migration. We have also begun paid proof-of-concept testing with a major telecommunications carrier, with the aim of winning future commercial deployment projects.」

「Telecommunications carriers continue to develop their own cloud PBX services for corporate customers. Revenue was recognized from a project for a major telecommunications carrier won in the previous year. In addition, based on the case won in the previous year, we made the same proposal to an electric utility-affiliated telecommunications carrier and won a project in the current fiscal year.」

「As the transition from the PSTN (telephone network) to IP networks progresses, we are actively addressing demand for infrastructure development, including interconnection among telecommunications carriers. We expect to expand our business while addressing the evolving needs of telecommunications carriers by providing solutions required for inter-carrier IP connections and enhancing functions such as virtualization for session border controllers (SBCs).」

「Telecommunications carriers are increasingly developing their own cloud PBX services for corporate customers. Based on a case acquired from and continuing with an electric utility-affiliated telecommunications carrier, we made the same proposal to a diverse range of telecommunications carriers, including major carriers, and won a large-scale project. The cloud PBX market is expected to continue expanding. Our group will provide total integration services.」

「As the cloud PBX market expands, telecommunications carriers are increasingly developing their own cloud PBX services for corporate customers. Based on a case acquired from and continuing with an electric utility-affiliated telecommunications carrier in the previous fiscal year, we made the same proposal to a diverse range of telecommunications carriers, including major carriers, and won a large-scale project. We will provide total integration services.」

「As the cloud PBX market expands, telecommunications carriers are increasingly developing their own cloud PBX services for corporate customers. Based on a case acquired from and continuing with an electric utility-affiliated telecommunications carrier in the previous fiscal year, we have made the same proposal to a diverse range of telecommunications carriers, including major carriers, and inquiries are increasing.」

「In the communications systems and solutions field, we expect sales of session border controllers (SBCs) and Class 5 servers to expand, driven by IP interconnection between telecommunications carriers against the backdrop of PSTN migration and rising demand for cloud PBX services.」

「• As PBX migration to the cloud advances and major telecommunications operators move to develop their own cloud PBX systems, our software SBC has been introduced on a trial basis. Additional development is continuing, and full-scale adoption is expected upon future commercialisation. • As network virtualisation advances, demand for software SBCs is growing.」

「NTT's publication of a schedule to switch its PSTN to an IP network by 2025, together with the entry of diverse operators into the broadband market following the spread of NTT's wholesale fibre-optic services, has accelerated the transition to IP and the trend toward greater activity across the market continues.」

「The Company secured additional licences for its products as users of telecommunications operators' cloud PBX services increased.」

「NTT has reiterated its policy of switching its public switched telephone network (PSTN) to an IP network by 2025, and the transition to IP is expected to continue as major telecommunications operators expand wholesale fibre-optic services.」