1. KDDISOL

KDDISOL, fully supported by KDD, is providing housing and operation of the name servers of the existing gTLDs (.com, .net and .org) in Los Angeles and Tokyo and the company is planning to expand, jointly with KDD, its Internet-related business in Asia/Pacific Area.

2. KDD

2.1. Overview

KDD, established in 1953, has created a communications infrastructure which links Japan with the rest of the world. In the process, the company has formed tie-ups and alliances with overseas telecommunications providers and given technical support to developing countries. As a result, we have earned worldwide respect for the reliability and the diversity of our communications services. Today, global competition is intensifying in Japan’s information and communications market, in parallel with significant deregulation and technological innovation. Against this challenging operating environment, KDD will merge, as of October 1, 2000, with DDI Corporation (DDI) and IDO Corporation (IDO) to form a new company (KDDI), thus solidifying its position. As a consequence of the merger, Japan’s information and communications industry will consolidate with major three common carriers: NTT, JT and the newly created KDDI. As a result of this merger, KDDI will expand an already comprehensive global telecommunications and IT infrastructure. Under its corporate strategy of focusing on mobile and IP businesses, and through the accumulated expertise and the synergies of the three companies, KDDI will construct global backbone networks and launch mobile communications services throughout the nation. In this section we are providing a wide sampling of material that demonstrate the complex range of technical systems that are an integral part of KDD’s daily experience. We believe this, when combined with the other information provided in this proposal document, effectively demonstrates the range of our interest, abilities and commitment to the development of communications technology and systems for the betterment of the global community. To become a new gTLD registry is compatible with this corporate commitment.

Since establishment, KDD has been providing various international telecommunications services from telegram and telephone service to internet service. After deregulation, KDD entered into the domestic telecommunications market and currently has a seamless services lineup of all sorts on a fixed-line network. We look forward to the opportunity to expand our activities by becoming the first Asian-based gTLD registry.

2.2. Recent topics of new services

2.2.1. Fixed Wireless Access

On June 1, 1999, KDD WinStar Corporation began providing digital data transmission services through a fixed wireless access (FWA) system in Tokyo, Nagoya, Osaka, and Okinawa. The purpose of this joint venture is to offer a high-speed wireless access services mainly in urban areas by installing FWA antennas on users’ rooftops. Reduced charges of up to 60% discount is available compared to wired access lines supplied by NTT and other competitors. FWA allows users to choose any service items that match their applications at transmission speeds from 192 kbps to 150 Mbps. As a result, the number of subscribers has increased steadily since operations began.

2.2.2. E-commerce

On December 27, 1999, the company and Yoshimoto Kogyo Co., Ltd., Japan’s leading entertainment company, agreed to establish a joint venture, Fandango Inc., to supply customers with content such as variety show, sports, and animation produced by Yoshimoto Kogyo via the Internet. Fandango, established on January 18, 2000, will offer new services such as production and distribution of content, consulting on content and entertainment-based e-commerce.

2.2.3. KDD METRORING

On April 1, 2000, the company began to provide corporate customers direct optical access, KDD METRORING, to quickly respond to increasing communications and Internet demand. KDD METRORING is a low-cost communications optical-fiber cable network originating and terminating in the KDD Building in the Otemachi and Marunouchi commercial districts of Chiyoda-ku, Tokyo. KDD METRORING is laid in sewage drains, in a ring configuration. In addition, corporate customers using LANs and WANs in the buildings can access a variety of KDD services by accessing KDD METRORING system. This connects customers with domestic and overseas

2.2.4. Matching Service -- a Network Service for On-line Competition Games

On March 1, 2000, the company began offering a network service for on-line competition games called Matching Service. At present, these games are played via wired telephone lines with several participants remotely located. To allow several players to play against each other while ensuring their respective privacy, the intermediary network must have advanced security functions, including an accounting function whereby the game players fairly share communications fees and a function that enables many people to interface while keeping individual information confidential. The Matching Service meets these requirements and is the world’s first innovative network service suitable for on-line real-time games. The service was developed from previously supplied Data On Demand Service. It allows participating players to enjoy competing in real-time to a tolerance of delay of 70 milliseconds.

2.2.5. VoIP Field Trial on CATV Network

On April 1, 2000, the company initiated the CATV-based wide-area VoIP field trial called VIP 21 jointly with Cisco Systems K.K. VIP 21 allows local CATV subscribers to place domestic and international calls addressed to another subscriber’s phone through our Internet service network (NEWEB). This is the Japan’s largest scale Internet telephony field test.

2.2.6. Deployment of Data Center Business

The company has actively promoted data center businesses such as co-location services in Japan and overseas. Domestically, we have 19 housing sites in 13 major cities, with a total floor space exceeding 10,000 square meters. The KDD Otemachi Building is regarded as Japan’s biggest Internet hub. Overseas, the TELEHOUSE Group supplies co-location services in the United States and Europe, forming Internet hubs in the respective regions.

The company is working to meet recently increasing demand for new data center services such as Web-site hosting, server housing, and e-commerce platforms. It intends to expand floor space about 4,000 square meters in the Tokyo metropolitan area in the fiscal year ending March 31, 2001.

As a result, a total space of 12,000 square meters will be secured for the data center business solely within Tokyo. Moreover, TELEHOUSE International Corporation of Europe Ltd., headquartered in London, in November 1999 launched construction of the Administration Building and the Second Building adjacent to the Head Office Building, and is increasing co-location space.

2.2.7. ADSL Connection Service

In April 10, 2000, the company began providing the ADSL Connection Service on an experimental basis. This is an Internet-based connection service using asymmetric digital subscriber lines (ADSL). The ADSL Connection Service enables high-speed transmission at a maximum speed of 512 kbps for down-link and 224 kbps for up-link. This innovative service began in Minato-ku, Shinjuku-ku, Shibuya-ku, and Toshima-ku in Tokyo, and will be available in Chuo-ku, Tokyo, and Chuo-ku, Kita-ku, and Yodogawa-ku, Osaka-City, in August 2000.

2.3. Other Services

Other than above KDD provides variety of services from PSTN to IP related service, domestically and internationally. Especially supported by engineering capabilities KDD wins highly customers’ trust. The company was selected as No.1 international leased line service and ISDN service provider for three consecutive years to 1998 by US telecom magazine, Data Communications’ Users Survey .

2.3.1. ANDROMEGA - KDD Global Network Service

The Internet is part of a communication revolution that is changing the way a customer live and work, and opening a world of opportunities for business.

ANDROMEGA is the total solution for the global network, providing a customer with all the tools necessary to build an enhanced communication network and realize the exciting potential of the Information Age.

KDD has integrated its cutting-edge technology to create seamless cost-effective domestic and international services that cover all of Japan and every corner of the world via a high-capacity optical fiber cable network.

ANDROMEGA is a comprehensive selection of services that delivers total support for your corporate communication.

2.3.2. FR/CR Service

Strong Support for Inter-LAN Communications:

Frame relay can handle large bursts of high speed traffic because it enables communications up to port speed(access circuit speed) exceeding the Committed Information Rate(CIR). Different CIR speeds can be provisioned at the sending path and the receiving path. This means that circuit speeds can be tailored to the type of use at each business center.

Logical Link Provisioning Guarantees Economy:

Multiple logical link(PVC) provisioning can be made on a single port and this enables simultaneous transmission to multiple recipients. The benefits are visible in extremely high circuit use efficiency and economic communications. PVCs are provisioned across Japan and between Japan and overseas. (*PVC: Permanent Virtual Circuit)

Simple Protocol Permits High Through put:

The terminal communication protocol used in the network for flow and retransmission control, etc., has been simplified. The result is a significant improvement in data communications speeds.

(Meeting the Demand for High Volume Transmission Comfortably)

Reasonable Charges for High-speed Transmission of Large-Volume Data:

The ATM communications mode allows high-speed transmission of data from multiple terminals. Customers can send various kinds of multimedia data, including voice, graphics, video and other information using 53 byte cells. The latest high-speed, top quality optical fiber transmission lines ensure that there are no line errors and other cell losses. Permanent virtual circuits are also more economical than STM. (*ATM: Asynchronous Transfer Mode: STM: Synchronous Transfer Mode)

Logical Links Offer a Flexible Speed Menu:

An intermediate speed menu ranging from 16kbps to 135Mbps is also provided. This is a feature not available in digital leased circuits. Customers can select from a number of speeds to suit their requirements and PVC gives a flexible, prompt response to speed changes.

Diverse Range of PVC Provisioning:

Varied PVC provisioning is possible to allow compatibility with the type of use and application. The optimum speed and service class can be selected for each PVC.

-PVC service categories/ VP, VC

-PVC service classes/ CBR, VBR-nrt

-CBR (Constant Bit Rate) does not permit bursts in excess of the CIR but maintains the CIR at all times.

-VBR-nrt (Variable Bit Rate-non real time) class maintains the CIR when the network is in normal condition and allows bursts in excess of the CIR and up to the port speed when the network is inactive.

Using our unique optical fiber network with nationwide coverage, you can easily access from POI (Points of Interface) anywhere in Japan. By taking advantage of our nationwide uniform rate system, you can construct a network that is ideal for multimedia communications at a low cost. Providing a total network environment custom-made to fit your company's needs.

2.3.3. Domestic ATM Service

You can choose from a total of 136 levels of service (0.5Mbps and 1~135Mbps) and secure the ideal capacity for your system needs. It is perfect for inter-LAN communications and other wide-area network applications. (ATM : Asynchronous Transfer Mode Economical high-speed transmission of diverse multimedia information.)

2.3.4. Satellite IP Transmission Service

KDD has developed the first two-way satellite communications in Japan. This system enables speedy creation of intranets, extra nets, and high-capacity transmission networks for transmission of any type of media.

KDD is providing two-way, high-speed communications services over a wide area for the first time in Japan, making full use of the characteristics of satellite communications. Up links, which were done through ground cable networks such as telephone and ISDN lines, are now possible via satellite communications. This is the best solution for development of a high-speed, Point-to-Multi-point network to link multi-points.

Since the system has reasonable communications charges and is not affected by distance or the number of destinations, a wide-range, multi-point network can be created with lower costs. Connection contracts by point and monthly charge payments are not necessary. Even if you use the network from several points, the whole network is covered under one contract and one bill.

In addition to high-speed IP uni-cast communications, broadcast communication of high-capacity data is possible by IP multi-cast, making full use of the characteristics of satellite communications. Retransmission requests and efficient multi-cast communications with transmission confirmation functions are available as users' options.

Security functions such as satellite section scrambling and IP packet transmission ensure a high degree of reliability. VSAT uses enhanced error-correcting code technology and achieves superior operating rates even in the rain. Hub stations connected to customers' host servers by dedicated lines are located and operating in two sites, Tokyo and Okinawa, in case of emergency.

Specialized staff provide 24-hour-a-day, 365-day-a-year service at the network operations center (NOC). Through constant monitoring of the satellite status and automatic creation of backups at the Okinawa hub station, we always provide a stable and comfortable network.

Customer host servers and the network operations center are connected by dedicated lines and a high-speed up link to a communications satellite 38,000 kilometers above the earth at high speed. The communications satellite we use is Space Communications Corporation's "Super Bird."

2.3.5. Internet Service

A full menu of services for a variety of business needs and the convenience of nation-wide access points are just a few of the advantages of our support. Overseas connectivity has also been significantly upgraded by improvements such as high-speed leased circuits to the U.S.A. Our aim is to provide you with a more comfortable Internet environment.

Access Service:

From leased circuit and LAN connections to dial-up connections, a comprehensive menu of access services is available.

Server Hosting Service:

Host your server content in an ideal server environment and enjoy the advantages of advanced security and performance.

Gateway Service:

Answering the sophisticated needs of professionals, KDD provide a high-quality overseas backbone service.

Data Communications Service:

Enjoy convenient utilization of KDD's entire nationwide network at an economical uniform nationwide rate. "Data On Demand" service (ideal for Intranet applications) and "Data Delivery" service (perfect for nationwide distribution of faxes or "karaoke" data) are also available. Convenient data communications service at economical uniform rates.

High Security Intranet/Extra net Service:

Your server and other facilities are directly connected to KDD's network to build your Intranet and Extra net. Advanced security technology blocks all unauthorized access to your network. Low start-up costs result in significant cost savings. Sophisticated security for complete protection against unauthorized access.

Intranet Remote Access Service (IRAS):

By using the Internet and its worldwide coverage, this service enables a customer to build a global network easily and economically. Advanced tunneling technology and state-of-the-art authentication and encryption technologies provide complete protection of a customer’s valuable data from eavesdropping and hacking. Enjoy a highly secure and convenient remote access environment at a low cost.

Secure access to the corporate network from wherever business takes the customer around the world. Advanced tunneling technology and powerful authentication and encryption technologies realize secure remote access at low cost.

The globalization of business has further accelerated the utilization of Intranet and Extra net networks. For communication with distant business centers or with mobile users, corporate customers demand secure and reliable networks. Intranet Remote Access Service (IRAS) takes advantage of state-of-the-art Internet technologies to provide a corporate network with a secure remote access environment.

EDI Service:

Through an interconnection with the EDI network of GEIS(GE Information Services), KDD’s service can link a customer with over 100,000 companies in 110 countries around the world. By realizing reliable electronic data interchange based on both a global and a domestic standard, this service streamlines business transactions, promoting higher operational efficiency and revitalizing business.

KDD Internet FAX:

For an easier and a more reasonable way to realize PC-to-FAX communications. Internet FAX distribution service for providers.

Internet mail created on a PC can be sent directly to a FAX. All functions necessary for Internet FAX, including broadcasting, distribution report, and communications statement, are available as standard features. Transmission to FAX is all in high-quality G3 fine mode. It's the easy way to add Internet FAX to your service menu.

All you need to do is to connect to KDD's Internet FAX service. The routing server will automatically select the least expensive route for the destination and send the message. The service provides an immediate access to an economical domestic/international FAX distribution network. The only running cost is the communication charge. A volume discount also offers excellent cost performance. Impeccable security The authorization process at the routing server includes an address check and a double check by ID and password to positively prevent unauthorized use. KDD offers reliability and safety in addition to high-quality service.

Providers are free to customize user interfaces (e.g., FAX distribution from a web site or FAX-to-FAX). It makes it possible for providers to offer a varied service menu to end-users.

2.3.6. ISDN

ISDN stands for Integrated Services Digital Network. It is a digital network that provides integrated end-to-end digital telecommunications services for transmissions of different kinds of information, from voice and facsimiles to data and images.

KDD's ISDN service can be used for both domestic and international transmissions. The dialing method used for KDD's ISDN service is the same as that for an ordinary telephone.

Examples of ISDN Services:

While telephones provide only audio communications, video conferencing systems add a visual dimension that facilitates interpersonal communication. Before ISDN was offered, video conferencing systems could use only leased circuits at exorbitant costs. But with ISDN's digital circuit switching service, conferencing parties can be dialed up at practically the same cost as an ordinary telephone call, and in addition, smoother face-to-face communication is possible. Recently, as companies have decentralized functions to branches, factories and other operations, video conferencing through ISDN is becoming the communications method of choice between sites. By using video conferencing systems, not only can the cost, time and labor necessary for conferences be reduced, but strategic decision-making can be conducted more speedily. Video conferencing can be easily arranged for everything from a meeting of the board of directors to routine staff meetings. Video conferencing is being used not only in corporations but across a broad range of fields, including medicine, education, welfare, and research and development.

By using a multipoint control unit (MCU), video conferencing systems at several locations can be interconnected for conferencing not only between two locations but involving multiple locations. This improves the convenience of video conferencing. The equipment must be installed separately from the video conferencing system. While only a few models are presently available on the market, choices are expected to gradually expand in the future.

2.3.7. International Leased Circuit Service

From dedicated analog circuits for voice communications to super-high-speed digital leased circuits (45Mbps, 150Mbps), you can select from a comprehensive menu of services according to your business requirements. Enjoy seamless domestic and international communications at economical rates.

Network service for reliable links between your domestic and overseas business centers.

Circuit configuration:

The international leased circuit is composed of the domestic and international sections (Circuit configuration :The international leased circuit is composed of the domestic and international sections both on the sides of Japan and the other country with KDD's and the overseas carrier's operating offices as a relay point as shown after. International section: The circuit section is made up of submarine cables and/or international telecommunication satellite link, e.g., Intelsat links. Domestic section :The domestic section on the side of Japan, which connects you to the nearest international station of KDD, is set up using domestic leased circuits provided by NTT or other domestic telecommunication carriers.) on the sides of both Japan and the other country, with KDD's and the overseas carrier's operating offices as a relay point.

2.3.8. Domestic Leased Circuit Service

Telephone, fax, data communications... This service can satisfy all types of business needs. New super-high-speed service (50Mbps, 150Mbps) responds to your image and other high-capacity data transmission requirements. Monthly fixed charge system for economical usage anytime 24 hours a day.

2.3.9. System Integration Service

Network Engineering:

Supporting a customer every step of the way from network planning and design to operation. (Research & Analysis /Consulting System /Development Security Management )

Network Engineering is a consulting engineering service to provide customers with technical expertise and know-how according to their requirements to support the construction of a more efficient network.

Equipment Supply:

KDD assists you with the selection and supply (sale or lease) of optimal telecommunications and computer equipment needed to construct and operate network and system equipment.

Network Management:

Experienced staff are on duty 24 hours a day monitoring your network and its operation, keeping a watch for network malfunctions and implementing countermeasures to keep your communications on line.

Network Management will house your network observation system in KDD's network management center and assume responsibility for network operation, maintenance, and observations.

Telehousing:

Housing your telecommunications network system facilities in KDD's telehousing facility provides a customer telecommunications circuits and equipment with a total package of 24-hour monitoring, operation and maintenance by dedicated professionals.

With this service, the customer's communication system is set in KDD's Telecommunication Center and KDD provide 24 hour operation and maintenance surveillance of the system and circuits.

Router Management:

Router Management is a service providing procurement and installation, as well as isolation of fault part and maintenance of routers for KDD's customers who communicate between LAN's via international and domestic circuits provided by KDD.

2.3.10. Telephone

Route KDD:

Route KDD is a telephone service which bypasses a local telephone network. By the service, a customer can use both international and domestic telephone calls at economical rate. Telephone calls under this service are routed through a dedicated tie-line between a subscriber and KDD switching facilities.

Virnet:

Virnet is a virtual private network (VPN) service by building up an ideal telecommunications network for major corporations on PSTN. VPN, as a new business communications service, is rapidly becoming the primary media worldwide.

Virnet makes it possible for a corporate customer to construct a customized private telecommunications network by using KDD's public telephone network/ISDN network together with the database dedicated for this service.

The customers need not to arrange for their private leased circuits and any special equipment.

An extension number the subscriber dials will be automatically converted by KDD database to an overseas telephone number, and the connection will be set up with the number via international public telephone network/ISDN network.

The service for constructing an internal private telecommunications network using any public telecommunications network in combination with dedicated database is called VPN (Virtual Private Network). VPN service is now available in various overseas countries. Subscriptions to KDD's VIRNET and similar services in overseas countries will make it possible for subscribers to build up their worldwide private telecommunications network.

Third Party Dial:

To make business calls from home with billing to the office is easy by KDD THIRD-PARTY DIAL.

KDD World Free phone:

KDD World Free phone is an telephone service where the charges for calls made from overseas to a telephone number in Japan are automatically billed to the customer.

The Free phone subscriber is required to designate a called number in Japan. KDD World Free phone service is available for incoming calls originating in 53 countries as of July 1, 1999. KDD World Free phone calls can be made from public telephone boxes and hotel rooms as well as ordinary telephones in overseas countries.

KDD Card:

KDD Card is a card offering across-the-board convenience, allowing as it does long-distance Japan-based domestic calls, overseas-bound international calls from Japan, Japan-bound international calls from abroad, non-Japan-bound international calls from one foreign country to another, and domestic calls within foreign countries.

2.3.11. Video & TV Transmission

Occasional Television Transmission:

Occasional Television Transmission service is commonly known as "satellite TV relay". Occasional video and audio signals are transmitted using communications satellites of INTELSAT (International Telecommunication Satellite Organization).

Regular transmission:

This type of service is suitable for the transmission to be made regularly, for example in cases of transmitting programs on CATV, distributing corporate information on to branch offices and/or business connections, etc.

Fixed-term transmission:

This type of service is suitable and economical for the transmission of programs for example, on Summit Conferences and Olympic Games, etc., for a certain period of time, say, for 1 week to 1 month. Lending out of Big Shell (vehicle mounted type mobile earth station) KDD provides occasional television transmission service using Big Shell, a transportable earth station. In the event that television transmission service is temporarily required in somewhere else other than major big cities, considerable time is needed to arrange for domestic connecting circuits. In some cases, it is quite difficult to set up the circuits timely. Since Big Shell can have direct access to the INTELSAT satellites from any place the customer may specify, it is possible to make an instantaneous transmission of on-site visual images and news on worldwide events, such as summit conferences, expositions, trade fairs, etc. from everywhere in Japan.

2.3.12. Mobile Telecommunications

INMARSAT:

INMARSAT Service is a telecommunications service that links INMARSAT mobile terminals and telephone, telex and data terminals via INMARSAT satellites positioned in stationary orbits. INMARSAT mobile terminals can be broadly divided into terminals installed on ships and portable terminals for use on land. Depending on the functions required by the user, there are five types of mobile terminals: INMARSAT-A, INMARSAT-B, INMARSAT-M, INMARSAT-Mini-M and INMARSAT-C.

From INMARSAT-A mobile terminals, it is possible to use not only telephone and telex but also facsimile and data communications (all operating at a speed of approx. 4800 bps).

From INMARSAT-B equipment, it is possible to use not only telephone and telex but also facsimile and data communications (all operating at a maximum speed of 9600 bps).

From INMARSAT-M mobile terminals, it is possible to use not only telephone but also facsimile and data communications (all operating at maximum speed of 2400 bps).

The Inmarsat Mini-M Equipment is a very small portable satellite telephone. With this equipment, a customer can telephone, fax, and communicate data at almost any place in the world. This equipment is rented and sold by KDD Mobile INC., an affiliate of KDD.

From INMARSAT-C mobile terminals, it is possible to transmit messages to telex, facsimile and data communications terminals at extremely low cost. Because messages are transmitted by a Store & Forward method, it will take a minimum of 5 to10 minutes from the time of transmission until the time of reception.

Types of INMARSAT Mobile Terminals:

INMARSAT portable terminals are used by various types of users including news media, off-coast plants and research institutions, as they are handy to carry, and provide the capability of communicating from any remote places throughout the world except for the south pole and north pole regions. KDD's subsidiary, KDD Mobile INC. is acting as a distributor and lending agent of this INMARSAT portable equipment.

2.3.13. F-port

F-PORT is an exclusive facsimile service for enterprises whereby customer messages are stored in the KDD system, and then forwarded abroad and at home via a dedicated network at economical rates. When using F-PORT, just dial 0058 instead of 001

2.3.14. International Telephone Services

001 International Direct Dialing Call:

International telephone service that connects calls directly overseas without going through an operator. Start with 001, and a customer can get through direct to over 230 areas throughout the world. Economical 6 second unit charging

0051 International Operator-Assisted Call:

KDD operators will assist a customer to place international telephone calls. Just Dial 0051 from Anywhere Nationwide for Request Smart solution for people who think " placing an international telephone call is a little bit tough business ", or themselves "to be a poor speaker of foreign languages", or for people who want to have charges paid on the other side. KDD's unique service ready for a customer choosing a type of call suited to your purposes and needs.

0055 International/Domestic Automatic Credit/Prepaid Call:

When you are about to make an international or domestic long-distance telephone call while you are out on business or something, haven't you ever been embarrassed to find: "My charges must be billed on this telephone of others. I don't like it". These are situations you'll be likely to encounter in your daily life. You can use with ease KDD's international/domestic direct dialing credit/prepaid facility from anywhere in Japan.

KDD Super Japan Direct:

KDD Super Japan Direct lets you to dial yourself direct from overseas while you're on the road to reach a person dear to your heart.

KDD Japan Direct:

With KDD Japan Direct, a KDD operator will take on your call from overseas while on a trip, and connect it for certain to a person dear to heart.

---Post-merger Situation of KDD Services---

As a result of merger with DDI and IDO, KDD(KDDI as from October 1, 2000) will be the only telecommunications service provider which provides seamlessly all types of telecommunications service from mobile to fixed. With a corporate strategy focusing on mobile and IP business, the newly combined entity, KDDI will aggressively promote the construction of global backbone networks in Japan and overseas and the supply of mobile communications throughout the nation. In the process, KDD’s excellent engineering capabilities, communications infrastructure, and established brand will contribute to increasing synergies with the extensive management resources of the other two merging companies in the domestic and mobile communications fields. Through these business activities, therefore, we are confident that the newly created KDDI can fully contribute to the sound development of Japan’s future of global telecommunications.

2.4. Global Activities

Not only in and from Japan, KDD provides cutting-edge services cooperated with subsidiary companies overseas.

2.4.1.Global Presence – KDD’s foreign affiliates

2.4.1.1. KDD America, Inc.

Homepage URL : http://www.kdd.com/

Head Office Location : 375 Park Avenue 7th Fl., New York, NY 10152 U.S.A.

Telephone Number : +1-212-702-3720

Fax Number : +1-212-702-3765

Summary of business undertakings:

-KDD Global Network Service (ANDROMEGA)

-Dedicated lines

-Cell relay / Frame relay

-Internet

-Telephone services

-Public network connection-type, Dedicated line connection-type

-Calling cards

-Prepaid cards

-Data-storage fax services

-Telegram services

-Video Transmission services

Corporate profile:

(Established)

October 1, 1989

(Capital)

US$ 62.59 million

(Representative)

Naoki Kinoto

(Employees)

104 (as of May 1, 1999)

(KDD investment contribution)

KDD100%

Description of main areas of business:

Ever since starting the provision of telegraph services (US Denpoppo) in 1993, KDD America has extended its range of distinctively original services to provide today a vast spectrum of communications services catering to individual and corporate needs. Just some of the individual communications services currently provided include US domestic long-distance telephone and international telephone services and Internet dial-up connections, to name but a few. At the other end of the spectrum, KDD America provides large-scale data communications services, principally with the corporate user in mind. These include data-storage fax services, dedicated line services, cell relay / frame relay, and Internet dedicated connections, among many other services. As one of America's communications enterprises, KDD America brings the high-quality, finely-tuned "Japanese-style" services of the KDD Group not only to US-resident Japanese nationals, but also to a vast range of satisfied customers.

2.4.1.2 KDD Australia Pty Ltd.

Homepage URL : http://www.kdd.com.au

Head Office Location : Level 28, The Chifley Tower 2 Chifley Square, Sydney NSW 2000, Australia

Telephone Number : +61-2-9231-2617

Fax Number : +61-2-9392-0940

Summary of business undertakings:

-International and domestic long-distance telephone services

-International dedicated-line services

-International frame-relay services

Corporate profile:

(Established)

April 1, 1998

(Capital)

A$ 10 million

(President)

Masanori Egi

(Employees)

22

(KDD investment contribution)

KDD100%

Description of main areas of business:

KDD Australia Pty Ltd. centers its operations on the KDD Sydney Office, which was established back in 1974. KDD Australia was itself established in April 1998 as a local affiliate entirely invested in by KDD. February 1999 saw us initiate "Globridge," a venture undertaken by six member concerns of the KDD Group (including KDD). This was followed in March of the same year by the launch of our international telephone and domestic long-distance telephone services (including prepaid card services). October of the same year then saw us start our international frame-relay service. Primarily comprising a triple-sector organization consisting of the Business & Sales Division, the Technical & Operation Division, and the Accounting & General Affairs Division, KDD Australia assigns account managers to our corporate customers. We also provide a "Call Center" staffed by Japanese personnel capable of answering inquiries in Japanese.

2.4.1.3. KDD-CONOS AG

Homepage URL : http://www.kdd-conos.de/

Head Office Location : Lievelingsweg 125, 53119 Bonn, Germany

Telephone Number : +49-228-9829-0

Fax Number : +49-228-9829-899

Summary of business undertakings:

-Domestic and international telephone services

-Portable/cellular telephone services

-Internet-related services

Corporate profile:

(Established)

December 23, 1994

(Capital)

DM 12.8 million

(Representative)

Thomas R. Zeitelberger

Rolf Diederichs

(Employees)

70

(KDD investment contribution)

KDD TELECOMET Deutchland 51%

Description of main areas of business:

KDD-CONOS AG has the advantage of having gained an early foothold in the German telephone market, providing services designed for the corporate user. The liberalization of communications in 1998 saw us receive an investment contribution from KDD, whereupon the company entered the telephone service market targeting the residential customer. At the same time, it modified our corporate designation to the form it currently use, and an alliance with KDD Telecomet Deutschland has enabled us to provide the German public with high-quality telephone services at low cost. Backed by KDD's superlative know-how and technological prowess in the field of international communications, it is committed to providing a wide range of services in the days ahead, not only telephone services, but also Internet-related services.

2.4.1.4. KDD TELECOMET SINGAPORE PTE LTD.

Homepage URL : http://www.kddsin.com.sg/

Head Office Location : 133 Cecil Street #14-02, Keck Seng Tower, Singapore 069535

Telephone Number : +65-220-7001

Fax Number : +65-223-9161

Summary of business undertakings:

-System integration

-international communications services for the corporate user (dedicated-line services, frame-relay services)

-The sale of prepaid cards (KDD Super World card)

Corporate profile:

(Established) September 28, 1989

(Capital) S$ 2.43 million

(President) Takanobu Sugai

(Employees)

17

(KDD investment contribution)

KDD 100%

Description of main areas of business:

KDD TELECOMET SINGAPORE PTE LTD. came into being as the result of the integration of the KDD Singapore Liaison Office (opened in 1961) and the affiliate Telecomet Singapore (established in 1989). The company offers end-to-end customer support spanning such diverse areas as communications services for the corporate user, the installation and maintenance of communications equipment on personal computers and other terminals, and the planning, design and installation of global networking in the form of LAN/WAN. Our activities extend beyond Singapore, collaborating as it does with KDD groups in Thailand, Indonesia, Malaysia, and other countries to support the far-reaching operations of its customers working throughout Southeast Asia.

2.4.1.5. KDD TELECOMET Thailand Co., Ltd.

Head Office Location : Thaniya Bldg.5F, No.62 Silom, Road, Bangkok, Thailand

Telephone Number : +66-2-236-0232

Fax Number : +66-2-238-4706

Summary of business undertakings:

- Consulting services relating to the communications networking of the corporate user, equipment sales, installation work, maintenance

- The design, construction, sale, and maintenance of PC-LAN

- Across-the-board consignment-type coordinating of office removals and similar operations

Corporate profile:

(Established)

April 1, 1999

(Capital)

approx. B 20.6 million

(President)

Toru Kadomura

(Employees)

6

Description of main areas of business:

Harnessing the communications know-how accumulated over 27 years by KDD Liaison Office in Bangkok, Thailand with Telecomet's long and successful track record of customer support overseas, KDD TELECOMET Thailand Co., Ltd. began business in April 1999. As the third overseas affiliate offering total support after Singapore and Hong Kong, KDD TELECOMET Thailand provides global end-to-end support catering to an enormous spectrum of customer requirements.

2.4.1.6. KDD TELECOMET Deutschland GmbH

Homepage URL : http://www.kdd.de/index.html

Head Office Location : Immermannstrasse 45, 40210 Dusseldorf, Germany

Telephone Number : +49-211-93698-0

Fax Number : +49-211-93698-20

Summary of business undertakings:

- Communications services (domestic long-distance / international telephone services, Internet, dedicated lines, data-storage fax, telegrams, etc.)

- Telecomet services (PC, LAN / WAN construction, system integration, etc.) The sale and leasing of GSM, OA equipment (FAX, copy machine, PBX, etc.)

- The sale and rental of portable / cellular telephones

Corporate profile:

(Established)

April 1, 1992

(Capital)

DM 1.25 million

(President)

Masao Takenouchi

(Employees)

38

(KDD investment contribution)

KDD Europe Ltd.100%

2.4.1.7. KDD Europe Ltd.

Homepage URL : http://www.kddeurope.com

Head Office Location : 6F Finsbury Circus House, 12-15 Finsbury Circus London, EC2M 7EB U.K.

Telephone Number : +44-20-7382-0001

Fax Number : +44-20-7382-0005

Summary of business undertakings:

-Telephone services

-Internet services

-Dedicated-line services

-Data communications business (ATM/FR)

-Value-added telegraph service

-The sale of prepaid cards

Corporate profile:

(Established)

September 13, 1996

(Capital)

34,706,402 pound

(President)

Masaaki Nakanishi

(Employees)

37

(KDD investment contribution)

KDD 94.8%

Description of main areas of business:

With our head office located in Dusseldorf, KDD TELECOMET Deutschland GmbH is KDD's German-based local affiliate. KDD TELECOMET Deutschland provides a wide spectrum of communications services including telephone and Internet services, among others, by bringing to bear KDD's accumulated wealth of communications experience and cutting-edge communications technology. Committed to satisfying the needs not only of customers in Germany, but also of Japanese companies and local enterprises in all regions of Europe, the company offers total customer optimum networking solutions.

2.4.1.8. KDD TELECOMET HONG KONG Ltd.

Homepage URL : http://www.kdd.net.hk/

Head Office Location : Unit 2901, 29/F, Hongkong Telecom Tower, Taikoo Place, Quarry Bay, Hong Kong

Telephone Number : +852-2525-6333

Fax Number : +852-2868-4932

Summary of business undertakings:

- International telephone services

- Internet System integration

- Dedicated lines

- International telegrams

Corporate profile:

(Established)

March 1, 1997

(Capital)

HK$ 5,143.2 million

(President)

Takayuki Kawakita

(Employees)

40

(KDD investment contribution)

KDD 100%

Description of main areas of business:

KDD TELECOMET HONG KONG Ltd. offers a wide diversity of menus to meet a broad spectrum of customer communications needs. The company’s competitively priced and high-quality international telephone service has won popularity with many different local customers, not to mention Hong Kong-based Japanese companies. Its outstanding team of engineers caters to every possible customer requirement in the field of communications network construction, the introduction of the Internet, and so forth. Feel free to approach us with your inquiries at any time.

The company provides installation /maintenance /consulting /engineering services for information/communications hardware in Southern China areas including Guangzhou, Shenzen, Zhuhai and Dongguan. Its extensive services cover PC-LAN/WAN, building of Intranet, telephone system implementation, office removal coordination and implementation support for leased lines/frame relay lines.

2.4.1.9. KDD FRANCE SAS

Head Office Location : 6, Avenue Marceau, 75008 PARIS FRANCE

Telephone Number : +33-1-4720-6443

Fax Number : +33-1-4720-6549

Summary of business undertakings:

- GN telephone sales

- Internet services

Corporate profile:

(Established)

October 21, 1996

(Capital)

Fr 25.5 million

(President)

Kazuo Nakamura

(Employees)

12

(KDD investment contribution)

KDD Europe Ltd. 99.8%

Description of main areas of business:

KDD France SAS launched its operations as an Internet provider in September 1998, going on to start its long-distance telephone services in May 1999. KDD FRANCE has built up a strong base in France as a comprehensive communications supplier offering services ranging from individual to corporate use and including Telecomet services for the support of in-house LAN and network construction.

2.4.1.10. KDD Nethall Ltda.

Homepage URL : http://www.nethall.com.br/jpinfo/

Head Office Location : Rua Treze de Maio, 1633 - 9 andar Sao Paulo SP –Brasil, 01327-905

Telephone Number : +55-11-3141-1122

Fax Number : +55-11-3141-1120

Summary of business undertakings:

- Internet-related services (Dial-up and dedicated line connection, HP making)

- Housing

- Network construction, coordination

Corporate Profile:

(Established)

December 1, 1997

(Capital)

BRR 0.2 million

(President)

Hiroshi Nakayama

(Employees)

20

(KDD investment contribution)

KDD 86.4%

Description of main areas of business:

KDD Nethall Ltda. is a company primarily concerned with the provision of Internet-related services in Brazil. With our Internet connection service, we currently make available Internet access to approximately 80% of Brazil-based Japanese business concerns via the access points we have set up in Sao Paulo and Rio.

Whenever support is needed, it offers the assurance of a service in Japanese, Portuguese, and English. In addition, our highly experienced staff also cater flexibly for advanced needs in the field of network construction and coordination, including the construction of in-company LAN and WAN and housing services.

2.4.1.11. KDD KOREA Corporation

Head Office Location : 944-31, Daechi 3 Dong Kangnam-ku Seoul, Korea

Telephone Number : +82-2-528-0300

Fax Number : +82-2-528-0880

Summary of business undertakings:

- System integration

Corporate Profile:

(Established)

January 15, 2000

(Capital)

Yen 68 million

(President)

Hideo Ogi

(Employees)

10

(KDD investment contribution)

KDD 100%

2.4.1.12. PT.KDD INDONESIA

Head Office Location:Mid Plaza 9th Floor, Jl.Jend. Sudirman Kav 10-11 Jakarta 10220, Indonesia

Telephone Number : +62-21-570-6303

Fax Number : +62-21-570-6216

Summary of business undertakings:

- System integration

Corporate Profile:

(Established)

February 29, 2000

(Capital) Yen 25 million

(President)

Kazutaka Fujii

(Employees)

5

KDD 0.42%

2.4.1.13. KDD MALAYSIA SDN. BHD

Head Office Location : Letter Box 125, 16th Floor UBN Tower, 10, Jalan P.Ramlee, 50250, Kuala Lumpur, Malaysia

Telephone Number : +60-3-2305455

Fax Number : +60-3-2305466

Summary of business undertakings:

- System integration

Corporate Profile:

(Established)

February 29, 2000

(Capital)

Yen 22 million

(President)

Naoki Goto

(Employees)

4

(KDD investment contribution)

KDD TELECOMET SINGAPORE PTE LTD.100%

2.4.1.14. KDD Corporation(Philippines)

Head Office Location : Unit 1605 ANTEL 2000, Valero Street, Salcedo Village, Makati City, Metro Manila, 1200 Philippines

Telephone Number : +63-2-887-2536

Fax Number : +60-2-751-9815

Summary of business undertakings:

- System integration

Corporate Profile:

(Established)

December 29, 1999

(Capital)

Yen 21 million

(President)

Shigenobu Hatakeyama

(Employees)

7

(KDD investment contribution)

KDD TELECOMET HONG KONG Ltd. 100%

2.4.1.15. KDD Vietnam Corporation

Head Office Location : 17 Ngo Quyen Street, Unit 07, 4th Floor, International Centre, Hanoi, Vietnam

Telephone Number : +84-4-8262001

Fax Number : +84-4-8245001

Summary of business undertakings:

- System integration

Corporate Profile:

(Established)

March 3, 1999

(Capital)

Yen 23 million

(President)

Akira Nasu

(Employees)

9

(KDD investment contribution)

KDD TELECOMET HONG KONG Ltd. 100%

2.4.1.16. Mobicom Corporation

Head Office Location : P.O.B.20A Peace Prospect-3/1 Ulaanbaatar 210620, Mongolia

Summary of business undertakings:

- Wireless service

Corporate Profile:

(Established)

March 18, 1996

(Capital)

US$ 9 million

(President)

Regchaa Arvintsogt

(Employees)

62

(KDD investment contribution)

KDD 44.44%

2.4.1.17. Vostok Telecom Co., Ltd.

Head Office Location : 24 Okearsky Prospect, Vladiostok primorsky region, Russia 690091

Summary of business undertakings:

-Telephone service

-VSAT

-Internet connections

Corporate Profile:

(Established)

June 24, 1992

(Capital)

Yen 524 million

(President)

Dzema Boris Ivanovich

(Employees)

75

(KDD investment contribution)

KDD 37.5%

2.4.1.18. Swiftcall Ltd.

Homepage URL : http://www.swiftcall.com

Head Office Location :

(U.K.) Mc Dermott House, 26-42, Bond Street, Ealing, London W5 5AA U.K.

(Ireland) 294, Merrion Road, Dublin, 4 Ireland

Telephone Number :

+44-20-8280-0100 (U.K.),

+353-1-283-0709 (Ireland)

Fax Number :

+44-20-8280-0112 (U.K.),

+353-1-260-4660 (Ireland)

Summary of business undertakings:

-Competitively priced international dialing (for residences)

-Competitively priced prepaid cards

-Competitively priced calling cards

Corporate profile:

(Established)

May 1998

(Capital)

7 million pound

(President)

Masaaki Nakanishi, Shinichi Suzukawa

(Employees)

200

(KDD investment contribution)

KDD 100%

Description of main areas of business:

Swiftcall Ltd. was the first communications carrier to broach the British market dominated by British Telecom and Mercury. Featuring a prepaid-type service, the company offers an extremely inexpensive international telephone service that has won great popularity with customers. May of 1998 saw it become a 100% KDD-owned subsidiary, and it currently provide a service that accents quality and a high degree of customer satisfaction.

In July 1999, the company secured interconnectivity with Telecom Ireland, where it currently provide a quick-and-easy, cheaply priced telephone service. In September 1999, it also launched a service in Spain, and it currently look to being Europe’s largest prepaid-type international telephone company within the next five years.

2.4.1.19. Telecomet Inc.

Homepage URL : http://www.telecomet.com/

Head Office : Location375 Park Avenue, 7th Floor, New York, NY 10152

Telephone Number : +1-212-521-1100

Fax Number : +1-212-557-0140

- Integration and consulting

-The sale of related equipment and devices and software

-Installation, maintenance, operating, help-desk services, etc. for the entire range of information technology (IT) solutions in computing, networking, etc.

Corporate profile:

(Established)

July 15, 1981

(Capital)

US$ 15 million

(President)

Mamoru Hironaka

(Employees)

72 (as of September 1, 1999)

KDD investment contribution

69.9%(KDD 40%, KDD America 29.9%)

Description of main areas of business:

Telecomet Inc. is a solutions provider in all communications and information technology (IT). The company offers total support for customer IT environments through our four Liaisons offices and US subsidiaries located across the United States. This broad spectrum of support embraces everything from the installation of PC/LAN and data communications systems, the construction of advanced extranet and enterprise resource planning (ERP) systems, and also extends to maintenance, operating, and help-desk services. Telecomet guarantees future success for its customers through systems introduction and support in the form of supply chain management (SCM), ERP, and knowledge management, among other successful solutions

2.4.1.20. Telecomet International Ltd.

Homepage URL : http://www.telecomet.co.uk/

Head Office Location : Atlas House 4th Floor, 1 King Street, London, EC2V 8AU, UK

Telephone Number : +44-20-7315-3150

Fax Number : +44-20-7600-3088

Summary of business undertakings:

- Network design

- Product supply

- Comprehensive consulting and project management

- Support services

Corporate profile:

(Established)

November 26, 1984

(Capital)

0.4 million pound

(President)

Hitoshi Kawabata

(Employees)

32

(Investment contribution)

Telecomet International Inc. 75%,

KDD Europe Ltd. 25%

Description of main areas of business:

Telecomet International Ltd. provides across-the-globe services catering for everything from data communications terminals to international communications networking systems, whether it be comprehensive consulting, sales, installation work, maintenance, or operating management services. Working under the company’s motto of "There's no data communications problem it can't solve," it have earned an excellent reputation as "trustworthy Telecomet" for the reassurance it offer its customers that they only have to leave their needs in our reliable hands.

2.4.1.21. TELECOMET TECHNOSERVICE, INC.

Head Office Location : 7300 Turfway Road, Suite 500, Florence, KY 41042 U.S.A.

Summary of business undertakings:

-System Integration

Corporate Profile:

(Established)

January 14, 1999

(Capital)

Yen 42 million

(President)

Mamoru Hironaka

(Employees)

6

(KDD investment contribution)

KDD America, Inc. 55%

2.10.1.22. TELEHOUSE International Corporation of America:

Homepage URL : http://www.telehouse.com/

Head Office Location : 7 Teleport Drive, Staten Island, New York 10311 U.S.A.

Telephone Number : +1-718-355-2500

Fax Number : +1-718-355-2517

Summary of business undertakings:

- Housing services

- Operations services

- Collocation services

- Internet interconnection services

- Comprehensive support services

Corporate profile:

(Established)

June 11, 1987

(Capital)

US$ 45 million

(President)

Yasuhiro Shintani

(Employees)

54

(KDD investment contribution)

KDD 54.9%

Description of main areas of business:

Comprehensive support services TELEHOUSE International Corporation of America is currently building up and administering four facility-housing centers around the United States, which, under the integrated management performed by Head Office Telehouse Center, provides high-quality housing services for our customers in the United States, Asia, and Europe.

Comprehensive support services Head Office Telehouse Center Telehouse Center is located on Staten Island, which is 17 kilometers or so from New York's Manhattan. Here, the company’s ample infrastructure facilities and operating personnel are responsible for the operation of computer systems that answer superbly to the extremely high demands for reliability to which they are subject. Thanks to the distance of our location from Manhattan, it is able to fulfill the role of a backup center with the capacity to keep down the effects of natural disaster to a minimum.

Manhattan Center, Broadway Center Both located in New York's Manhattan, the city's financial and commercial hub, these two centers are perfectly equipped with an ample communications infrastructure ideal for our rapidly growing clientele looking for new business chances, especially on the Internet.

Los Angeles Center Located in downtown Los Angeles, the hub of communications activity on the West Coast in recent years and home to numerous communications enterprises, its Los Angeles Center has earned great popularity among customers from the Pacific Rim, thanks to its geographical vantage point enabling it to link Asia and America.

2.4.1.23. Telehouse International Corporation of Europe Ltd.

Homepage URL : http://www.telehouse.net/

Head Office : Location Coriander Avenue, London E14 2AA, U.K.

Telephone Number : +44-20-7512-0550

Fax Number : +44-20-7512-0033

Summary of business undertakings:

- The provision of services for the leasing of space fully equipped with UPS, air-conditioning facilities, and security arrangements for the housing of ISP, information-processing facilities, communications and other equipment

- The provision of housing services to take care of communications and data equipment & devices such as networks, nodes, etc.

- The provision of dealing room disaster-recovery services

Organization data:

(Established)

March 1988

(Capital)

47 million pound

(Representative)

Kengo Miyoshi

(Employees)

70

(KDD investment contribution)

84%

Description of main areas of business:

A computer communications center that caters to a wide spectrum of computing needs with the assurance of reliability. The company’s head office is located in the London Docklands, roughly six kilometers east of London City, the financial hub of Europe.

Telehouse International Corporation of Europe Ltd. has earned an excellent reputation among financial, commercial, ISP, communications enterprises, and other concerns for the high standard of its management and infrastructure facilities such as power supply, security systems, communications networks, and other excellent provisions. In the days ahead, the company looks to achieving the kinds of environment that will meet customer needs in other centers around Europe.

2.4.1.24. TELEHOUSE (Suisse) S.A.

Summary of business undertakings:

- The provision of services for the leasing of space fully equipped with UPS, air-conditioning facilities, and security arrangements for the housing of ISP, information-processing facilities, communications and other equipment

- The provision of housing services to take care of communications and data equipment & devices such as networks, nodes, etc.

- The provision of dealing room disaster-recovery services

Corporate Profile:

(Established)

October 25, 1999

(Capital)

Yen 32 million http://www.prism.co.kr/

(President)

Kengo Miyoshi

(Employees)

4

(KDD investment contribution)

Telehouse International Corporation of Europe Ltd. 100%

2.4.1.25. Prism Communications Corp.

Homepage URL : http://www.prism.co.kr/

Head Office Location : Chongro B/D, 198-8 Kwanhun-dong, Chongro-gu, Seoul, Korea

Telephone Number : 82-2-3700-0400

Fax Number : +82-2-735-3219

Summary of business undertakings:

- The provision of international telephone/fax services

- The provision of international prepaid card services

- Exchange capacity leasing service

Corporate Profile:

(Established)

May 23, 1998

(Capital)

W 3,325 million

(President)

Jin-Wook Kim

(Employees)

29

(KDD investment contribution)

KDD America 49%

Description of main areas of business:

Prism Communications Corp. provides high-quality international telephoning and faxing at competitive rates (as much as 69% cheaper than the local telecommunications carrier KT) from the ROK. The company’s services are available both from the office and from the home. This is an ideal service for people visiting and staying in Korea. Prism Communications also plans to launch a long-distance domestic telephone service in Korea

2.4.1.26 Shanghai KDD Communications Engineering Co., Ltd.

Head Office Location : Room 1201-1202 Tomson Financial Bldg., 710 Dongfang Rd., Pudong New Area, Shanghai

Telephone Number : +86-21-5830-1673

Fax Number : +86-21-5830-1675

Summary of business undertakings:

- System integration Corporate Profile

Corporate Profile:

(Established)

May 9, 2000

(Capital)

Yen 74 million

(President)

Shunnichi Karasawa

(Employees)

11

(KDD investment contribution)

49%

2.4.2. KDD Global Network Solutions

At KDD, everything form our cost-efficient global optical-fiber cable network to seamless domestic and international services puts you the customer first. As a comprehensive global telecommunications provider, our job is not only to respond but also to anticipate the changing needs of our customers and we already have plenty of backbone to do it.

For over 47 years, KDD has been at the forefront of international telecommunications services. This rich experience combined with our pioneering achievements in research and development ensures that your communications are always carried by state-of-the-art technology and high quality services.

With our own independent nodes in major overseas business centers throughout the world, KDD can construct “ALL-KDD” FR/CR and leased circuit networks. In addition , KDD is a major shareholder in Infonet Services Corp., one of the world’s largest data communications networks. Through this mutual alliance with Infonet’s global FR network, KDD can provide FR network service to 49 countries around the world.

KDD Global Solutions:

Network Engineering Service

Equipment Supply Service

Network Management Service

Telehousing Service (Collocation)

International & Domestic Leased Circuit

FR-CR Service

Data Transmission/Reception Service

High-Security Intranet/Extranet Service

Intranet Remote Access Service

EDI Service

Satellite IP Transmission Service

Access Service

Server Hosting Service

Gateway Service

International VPN Service

PSTN service via dedicated access line

International Toll Free Calls

Third-Party Dial

International Conference Calls

International Telex

International Telegram

Global services backed by a global infrastructure – that is the KDD difference. We are a true global carrier that provides you with the latest telephone and data communications technology and services that the Information Age has to offer, all managed and supported end-to-end by our worldwide network. In addition, KDD Group companies such as TELECOMET (system integration service), TELEHOUSE (data center) are ready to complete your total solution.

While we continue to strengthen and expand our core telephone services in markets around the world, we also offer leased-circuit, FRCR and various multimedia-related services under the umbrella of the exclusive KDD brand, which is synonymous with high reliability communications at competitive prices.

Around the world, the telecommunications industry has become increasingly competitive as a result of deregulation and technological advances. Our home market Japan is no exception. In order to secure our position as the core telephone provider in Japan and the region, KDD will merge with DDI and IDO. By joining forces, we can offer you seamless mobile, domestic and international services in Japan built on our powerful domestic and international backbones. The synergies we create in Japan will be the foundation of our expanding presence in worldwide markets and your edge in building your global network.

End-to-End Leased Circuit Service:

For essential connectivity and true End-to-End service, let KDD build a global bridge between your employees, customers and trading partners over a high-quality optical-fiber backbone. KDD provides a direct and private line not only to your expanding global business but also to the total service and resources of the KDD Group, one of the world’s most experienced carriers. Our “One Source” concept ensures “seamless” service, “seamless” support and, of course,

(Service area)

Japan, U.S.A., U.K., Germany, France, Hong Kong, Singapore, Australia, Canada, Mexico, Netherlands, Belgium, Ireland, Switzerland, Italy

( in underlined countries available in the near future )

(End-to-End solutions)

KDD global network services are designed to fit your corporate needs. Our wide range of leased circuit services and immediately accommodate the needs of every type and scale of enterprise enable customers to easily enhance their network as their resources and experience in global telecommunications to deliver the highest standards of reliability, performance and convenience.

FR & CR Services:

When you are ready to introduce enterprise-wide LAN services or expand your existing networks while integrating them with existing terminal/host applications, then our FR(Frame Relay) Service is ideal for high volume data applications in addition to LAN interconnection.

Combine either or these services with the global presence and optical fiber backbone of KDD and you have the perfect One Source Solution.

(Service area)

U.S.A. Costa Rica Canada Mexico Puerto Rico Argentina Brazil Chile Colombia Peru Venezuela Denmark Finland Norway Sweden Ireland U.K. Austria Belgium Luxembourg Netherlands Czech France Germany Hungary Israel Italy Portugal Russia Spain Switzerland Turkey Greece Poland Australia New Zealand China Hong Kong Korea(Rep. Of) Taiwan Indonesia Malaysia Philippines Singapore Thailand India Sri Lanka South Africa

Support System:

Experienced KDD staff members are ready to provide full support at each end of your international network. Even if you do not have you own telecom specialist stationed at an overseas business site, KDD can act on your behalf to provide expert fault management and recovery.

Full redundancy of switch-related facilities and rich route diversity are just few of the measures in place to instantly respond in the event of a fault and prevent interruption of your vital communications.

Network Operation Centers in New York, Los Angeles, London and Tokyo are on duty 24 hours a day 365 days a year, monitoring and managing your network from end to end.

“One-Stop” fault reporting further reduces the burden on staff at your overseas site, freeing them to focus on the business of business.

System Integration & Other Solutions:

You can count on KDD Group for total and global support. From the planning and design of procurement of equipment, construction, provision of telehousing space, and even outsourcing of operation and administration, we are at your side around the world, providing the services that answer your needs. With KDD, you retain the advantage of flexibility without the burden of complexity and get a solution that is simply global.

Telehousing (Colocation) & Data Center Services:

When you totally entrust your vital network facilities to the care of KDD, the reliability of your service is assured by experienced specialists that monitor and manage your telecommunications environment 24 hours a day, 365 days a year. In the event of any fault or malfunction, our response is instantaneous, Also by combining KDD Group’s high-capacity transmission routes with our system integration and applications, we can provide data center functionality that transcends conventional colocation services.

Telephone Service:

Compare us with all the other carriers with global reach. KDD's rates are

always aggressive to keep you competitive.

(Service area)

U.S.A. U.K. Germany France Australia Hong Kong, Korea (Rep. of) Japan

2.4.3. KDD’s Asian Advantage

KDD and BTA Start Service for China’s 1^st International ATM customer:

In June 2000 KDD and China’s BTA(Beijing Telecommunications Authority), together with the Tianjing PTT, have worked together to build and have now officially inaugurated China’s first international ATM service. From its office int Tianjing’s high-tech business park to its Japan headquarters in Tokyo, Motorola now enjoys use of this high-speed international ATM network.

The new Japan-China ATM backbone employs the latest ATM switches and 155Mbps fiber-optic technology with self-healing fiber loops for redundancy and complete backup along the entire backbone network via physically separate submarine cables.

The new service is well positioned to satisfy customer needs for transmission performance and shorter service commissioning time.

Topics:

-Introduced Asia Internet Network(AIN)

KDD has constructed and begun operation of the AIN, a new top quality Internet access service aimed at meeting the rapidly growing demand for Internet access.

AIN members : KDD(Japan), CT(China), KT(Korea), ST(Singapore), CAT(Thailand), TM(Malaysia), PLDT(Philippines), PT Indosat(Indonesia)

-Signed Agreement to Construct the APCN-2

The new cable network will tie a loop between Japan, Korea, Taiwan, Hong Kong, the Philippines, Malaysia and Singapore using 19,000km of submarine cable, The new cable loop will use WDM technology and have self-healing backup.

-Investment in HK Broadband Network Ltd.

KDD invested in this subsidiary of City Telecom Ltd., the second largest Internet access and international telephone service provider in Hong Kong, and its subsidiary, Hong Kong Broadband Network Ltd., to promote more positively its business deployment in Hong Kong’s rapidly growing Internet market.

-Service Started on the China – US Cable

This new cable has a total length of 30,000km and connects Guam-Japan-China-Taiwan-Korea-Japan-US using WDM technology. (The remaining US-Guam portion will start service by the end of 2000.) The cable will contribute to Japan’s position as a telecom hub for Asia as KDD’s JIH cable (shichi envelopes Japan) already connects to other existing submarine cables. KDD’s subsidiary, KDD-SCS, participated in the consortium award with the contract to construct this landmark submarine cable.

-Service Started on the SEA-ME-WE Cable

This cable connects Japan and Europe traveling via Southeast Asia and the Middle East with a total length of 38,000km(the longest in the world) and a capacity of 20Gbps. KDD owns the largest portion by a telecom provider, 4.7% (US$6,000m). The new cable is helping support Internet growth in Asia & Europe.

-Agreed to a Capital Tie-UP with Singtel

KDD and Singtel signed an agreement for a strategic tie-up in order to meet the rapidly growing telecom needs of MNCs in Asia by providing high-quality high-reliability service on a large scale. The tie-up enables provision of end-to-end services using a common single backbone and platform.

-Cable System for 3 Major Indonesian Islands

KDD-SCS was awarded the contract for, and built, a submarine cable system which ties the three major islands of Indonesia into a loop. The 5Gbps cable uses WDM technology and stretches a total length of 2000km.

-Launch Voice Services in Korea

KDD began international voice services from Korea via its Korean JV, Prism communications Co. (described above). This made KDD the first Japanese company to enter the telecom market in Korea.