./.RESTRICTEDWORLD TRADE
ORGANIZATIONGPA/W/99
3 November 1999
(99-4762)
Committee on Government Procurement Original:  English
QUESTIONS RELATING TO THE NOTIFICATION BY JAPAN (GPA/W/91)
Communication from the European Community
The following communication has been received from the Permanent Delegation of the
European Commission on 1 November 1999 with the re quest that it be circulated to the Committee on
Government Procurement.
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Following Japan's notification to the Committee on Government Procurement of the
re-organization of NTT (GPA/W/91) and the Euro pean Community's objection thereto (GPA/W/96),
the European Community would like to raise the following questions with the Government of Japan:
I. THE COMPANIES’ STRUCTURE, HOLDINGS AND AFFILIATIONS
(1) Are all the functions of the former NTT, as it existed on 15 April 1999, now being carried out
by Nippon Telegraph and Telephone Co. (the  holding company), NTT Communications
Corporation, Nippon Telegraph and Telephon e West Co. and Nippon Telegraph and
Telephone East Co.?
(2) What does Japan mean by saying that NTT Communications Corporation has been
"established as a private company"?  Does this simply refer to the legal form of the company?
Does it mean that this company is no longer owned (either directly or indirectly) by the
Japanese Government?  If so, who owns the company now?
(3) Which assets of the former NTT have been transferred to NTT Communications Corporation?
(4) Which activities of the former NTT have been transferred to NTT Communications
Corporation?
(5) Does NTT Communications Corporation have any special or exclusive rights as regards any
of these activities?
(6) What is the relationship between the Japanese Government and Nippon Telegraph and
Telephone Co. (the holding company) in terms of  the legal status of the entity, its ownership,
nomination and removal of managers, representation in the executive board and in other
company bodies, etc.?
(7) What is the relationship between Nippon Telegraph and Telephone Co. (the holding
company) and NTT Communications Corporation in terms of the legal status of the entity, its
Communications Corporation in terms of the legal status of the entity, its ownership,GPA/W/99
Page 2
nomination and removal of managers, representation in the executive board and in other
company bodies, etc.?
(8) Would the Japanese Government indicate whether (which) officials working at NTT
Communications Corporation have functions in or are under the orders of the Japanese
Government or any other public authority?
(9) Would the Japanese Government indicate whether (which) officials working at NTT
Communications Corporation have functions in, or are under the orders of the NTT Group or
companies in the NTT Group?
(10) Would the Japanese Government provide an organizational chart showing the precise and
complete structure, holdings and affiliations of the NTT Group, and how this relates to NTT
Communications Corporation?
II. MARKET STRUCTURE
(1) To what extent are the markets in which these companies operate competitive?
(2) What is the estimated market share of NTT Communications Corporation in each of these
markets?
(3) Are there other companies acting in these markets?
III. PROCUREMENT ACTIVITIES
(1) Would the Japanese Government provide an overview of the total value of all procurement
purchases granted to foreign-owned companies:
- by NTT for the period from 1994 up to the present day;  and
- by NTT Communications Corporation since its incorporation?
(2) Which part of the procurement undertaken by former NTT can be allocated to the activities
that have now been transferred to NTT Communications Corporation?
The European Community reserves its right to  raise additional follow-up questions, if need
be.
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