RESTRICTEDWORLD TRADE
ORGANIZATIONGPA/W/104/Add.2/Rev.1
18 October 2001
(01-5137)
Committee on Government Procurement Original:  English
RESPONSES TO QUESTIONS FROM THE UNITED STATES RELATING TO NTT
Communication from Japan
Revision
The following communication, dated 1 October 2001, has been received from the Permanent
Mission of Japan with the request that it be circulated to the Committee on Government Procurement.
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Please find below Japan's replies to the additional questions that have been received from the
United States regarding Japan's notification to the Committee on Government Procurement on the
reorganization of NTT.
1. Please provide the relevant provisions of the pending legislation that would repeal Article 13
of the Supplementary Provisions of the Law Conc erning Partial Revision of the NTT Law (Law No. 98
of 1997).
(1) Law name:
The Law Concerning Partial Revision to the Telecommunications Business Law, etc. (Law
No. 62 of 2001).
(Note:  This Law was promulgated on 22 June 2001 and shall take effect not later than six months
from the date of the promulgation.)
(2) Relevant provisions:(Partial revision to the "Law Concerning Partial Revision to the Nippon Telegraph and Telephone
Law") Article 4
This Law partially revises the "Law Concerning Partial Revision to the Nippon Telegraph and
Telephone Law" as follows:
- delete Article 13 of the Supplementary Provisions;- delete Article 16 of the Supplementary Provisions;- delete Article 17(i) of the Supplementary Provisions.  Article 17(ii) shall become
Article 17(i) and Article 17(iii) shall become Article 17(ii).
Reference: Supplementary Provisions of the Law Concerning Partial Revision to the Nippon
Telegraph and Telephone Law (Law No. 98 of 20 June 1997)GPA/W/104/Add.2/Rev.1
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(Note:  The "Company" and the "Long Distance Company" referred to in the following Articles mean
"Nippon Telegraph and Telephone Corporation (NTT Holding Company)" and "NTT
Communications Corporation", respectively.)
Article 13 – Shares in Long Distance Company
The Company shall for the time being obtain authorization from the Minister of Public
Management, Home Affairs, Posts and Telecommunications if the Company intends to dispose of
shares in the Long Distance Company which the Company has acquired pursuant to the provisions of
Article 6, paragraph (1) of the Supplementary Provisions.
Article 16 – Consultation with the Minister of Finance
The Minister of Public Management, Home Affairs, Posts and Telecommunications shall
consult with the Minister of Finance when issuin g an authorization pursuant to the Supplementary
Provisions Article 13.
Article 17 – Penal Provisions
Where any of the violations enumerated in the following items has occurred, the director or
auditor of the Company who has committed the violation shall be guilty of an offence and liable to afine of not exceeding one million yen:
(i) where the Company has disposed of the shares in the Long Distance Company in
violation of the Supplementary Provisions Article 13;
(ii) where the Company has invested, in violation of the Supplementary Provisions
Article 14, in a corporation which operates an international telecommunications
business;  and
(iii) where the company has violated an order which has been issued pursuant to the
Supplementary Provisions Article 15.
2. Upon enactment of the legislation referred to in Question 1, please confirm that no other
provision of the laws relating to NTT will apply to NTT Communications Corporation.
The Government of Japan confirms that upon enactment of the legislation referred to in
Question 1, no other provision of the laws relating to NTT will apply to NTT CommunicationsCorporation.
3. Does NTT Holding Company have any plans to sell shares of NTT Communications to the
public following enactment of the legislation referred to in Question 1?
Based on the three-year programme for promoting regulatory reform (dated 30 March 2001)
and other recommendations, the Ministry of Public Management, Home Affairs, Posts and
Telecommunications (MPHPT) requested in May 2001 that NTT Holding Company would put
together and publish a "voluntary action plan" (inc luding the reduction of the proportion of the
investment in NTT Communications) in light of improving management and ensuring fair
competition.  The MPHPT intends to look closely at the implementation of the said action plan.
4. Please provide the most recent Annual Report issued by NTT Communications.GPA/W/104/A dd.2/Rev.1
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According to NTT Holding Company, NTT Communications does not publish an annual
report of its own, but it does disclose corporate information on its website at:
http://www.ntt.com/ABOUTUS_E/B02-000_f.html.
5. What is the ownership structure of the NTT Holding Company, that is who owns the shares
that are not held by the Government of Japan?
Please see attached tables.
6. Please provide any information that demons trates that NTT Communications is purchasing
goods or services from foreign suppliers.
1. First, we would like to confirm the understanding that the mutually agreed coverage of the
WTO Agreement on Government Procurement (G PA) for NTT Co. in Annex 3 is limited to
non-telecom products and construction services (cf. Notes to Annex 3:  4 (f) and (g)).
2. According to Nippon Telegraph and Telephone Company (NTT Holding Company), NTT
Communications made purchases from foreign suppliers in FY2000 as follows:
"In FY2000, NTT Communications made no procurement above the relevant
thresholds.  For reference, non-telecom products that NTT Communications
purchased from foreign suppliers below the relevant thresholds include:  Office-use
machinery from HP, IBM, 3M, Inter decor, Luminabella, Unifor and so forth."
3. NTT Communications conducts it procurement in an open, fair and non-discriminatorymanner, taking into account its business needs.  As for non-telecom products and construction
services, it follows the purchasing procedures described in "the Action Program on Government
Procurement", which is consistent with the GPA.  Also, as for telecom products that are not coveredby the GPA, the company uses procurement pro cedures, including the request for proposal (RFP)
process, which the company voluntarily adopted.  In formation about these procedures is available on
NTT Communications' website (http://www.ntt. com/ABOUTUS_E/B02-04x_f.html).  The tendering
information is also disclosed on the website, allowing any interested supplier to participate.
4. For reference, telecom products that NTT Communications purchased from foreign suppliers
include:
- servers from Sun Microsystems, HT and IBM;- routers from Cisco Systems, Juniper Networks and Lucent Technologies;
- transmission equipment from Alcatel;
- security systems from Nokia.
5. NTT Communications remains committed to its policy of open, fair and non-discriminatory
procurement, whether or not it falls under the scope of the GPA.GPA/W/104/Add.2/Rev.1
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ATTACHMENT
Nippon Telegraph and Te lephone Corporation
17 May 2001
NTT'S SHARES AND SHAREHOLDERS (AS OF 31 MARCH 2001)
1. Classification of Shareholders
NTT's Shares and Shareholders
Details Government
and Public
BodiesFinancial
InstitutionsSecurities
FirmsOther
Domestic
CorporationsForeign
Corporations,
etc.
(Individuals)Domestic
Individuals,
etc.Total Odd-Lot
Shares
Total
Holders6 805 164 17,101 1,354
(112)1,561,537 1,580,967
Total
Shares7,415,894 2,187,684 42,743 380,872 2,641,729
(333)3,423,347 16,092,269 42,321
% 46.08 13.59 0.27 2.37 16.42
(0.00)21.27 100.00
Note: 1. "Other Domestic Corporations" includes 7,024 share under the name of Japan
Securities Depository Center, and "Odd-Lot Shares" includes 0.72 shares under the
name of Japan Securities Depository Center.
2. "Domestic Individuals, etc." includes 31 shares of treasury stock, and "Odd-Lot
Shares" includes 0.43 shares of treasury stock.  The actual number of treasury stocks
as of 31 March 2001 was 11.43.
3. The number of shareholders who own only odd-lot shares is 265,186.
2. Classification by Number of Shares
NTT's Shares and Shareholders
Details At Least
1,000At Least
500At Least
100At Least
50At Least
10At Least
5At Least
1Total Odd-Lot
Shares
Number of
Holders 412 224 1,555 1,897 36,829 86,505 1,453,545 1,580,967
% 0.03 0.01 0.10 0.12 2.33 5.47 91.94 100.00
Total
Shares 12,258,906 152,825 299,930 121,703 572,005 521,313 2,165,587 16,092,269 42,321
% 76.18 0.95 1.86 0.76 3.55 3.24 13.46 100.00
Note: 1. "At Least 1,000" includes 7,024 shares under the name of the Japan Securities
Depository Center, and "Odd-Lot Shares" includes 0.72 shares under the name of
Japan Securities Depository Center.
2. "At Least 10" includes 31 shares of treasury stock, and "Odd-Lot Shares" includes
0.43 shares of treasury stock.GPA/W/104/A dd.2/Rev.1
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3. Principal Shareholders
Name Share Holdings Per Cent of Total Shares Issued
The Minister of Finance 7,415,825.26 45.96
Japan Trustee Services Bank, Ltd. 373,104.00 2.31
State Street Bank and Trust Company 293,626.00 1.82
The Chase Manhattan Bank, N.A. London 229,209.00 1.42
The Mitsubishi Trust and Banking Corporation 220,261.00 1.37
Moxley and Company 190,839.00 1.18
Boston Safe Deposit PSDT, Treaty Clients Omnibus 160,742.00 1.00
The Chase Manhattan Bank, N.A. London SL
Omnibus Account143,718.00 0.89
NTT Employee Share-Holding Association 133,283.22 0.83
The Tokyo Trust & Banking Co., Ltd. 124,117.00 0.77
Total 9,284,724.48 57.55
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